Topbuild Corp

Consumer Discretionary
Engineering & Construction
www.topbuild.com

Earnings Score
Moat Score
Safety Score
Final Score

Market Cap $11.22B
PE 18
Debt $1.44B
Cash $257.34M
EV $12.40B
FCF $698.01M

Earnings

loading chart...

Sales & Net Margins

loading chart...

Earnings	$618.45M
EBIT	$873.69M
ROE	29%
ROA	19%
FCF	$698.01M
Equity	$2.11B
Growth Stability	100%
PE	18.14
PEG	0.53
PB	5.31
P/FCF	16.07
P/S	2.12
Price/Cash	0.02
Debt/Equity	0.68
Debt/FCF	2.07
Net Margins	12%
Gross Margins	31%
Op. Margins	16%
Earnings CAGR	31%
Sales Growth YoY	4%
Sales Growth QoQ	1%
Sales CAGR	17%
FCF CAGR	41%
Equity CAGR	12%
Earnings Stability	0.92
Earnings Growth YoY	1%
Earnings Growth QoQ	12%

Earnings CAGR 5Y	34%
Sales CAGR 5Y	21%
FCF CAGR 5Y	27%
Equity CAGR 5Y	19%
Earnings CAGR 3Y	13%
Sales CAGR 3Y	13%
FCF CAGR 3Y	41%
Equity CAGR 3Y	17%
Market Cap	$11.22B
Revenue	$5.30B
Assets	$4.65B
Total Debt	$1.44B
Cash	$257.34M
Shares Outstanding	29.51M
EV	12.4B
Earnings Score	95%
Moat Score	95%
Safety Score	93%
Final Score	94%
Working Capital	765M
Current Ratio	2.01
Gross Profit	$1.62B
Shares Growth 3y	-3%
Equity Growth QoQ	-10%
Equity Growth YoY	-12%

Assets & ROA

loading chart...

Stockholders Equity & ROE

loading chart...

TopBuild Corp is an installer and distributor of insulation products. Its operating segments involve the Installation and Specialty Distribution segment. Installation segment provides insulation installation services nationwide through contractor services business. Speciality Distribution segment distributes building and mechanical insulation, insulation accessories and other building product materials for the residential, commercial, and industrial end markets. The majority of revenue is earned from the installation segment. Its main customers are contractors. Other products include gutters, after paint, garage doors, fireplaces, and fireproofing and stopping. TopBuild operates primarily in the United States.

SEC Filings

Direct access to Topbuild Corp (BLD) Annual Reports (10K) and Quarterly Reports (10Q) from the SEC website.

2024
- 10-Q Sep 30
- 10-Q Jun 30
- 10-Q Mar 31
2023
- 10-K Dec 31
- 10-Q Sep 30
- 10-Q Jun 30
- 10-Q Mar 31
2022
- 10-K Dec 31
- 10-Q Sep 30
- 10-Q Jun 30
- 10-Q Mar 31

Sector Comparison

How does Topbuild Corp compare to its competitors?

Loading chart...

Peter Lynch's Chart

This chart shows the current pricing of Topbuild Corp compared to its past. The addition of the earnings trend line provides further insights into the company's earnings power.

CAGR 31%

Stability 92%

loading chart...

Topbuild Corp Discounted Cash Flow

Fully customizable DCF calculator online for Topbuild Corp.

Years

Calculation mode

= $116B

	0	1	2	3	4	5	6	7	8	9	10	TV
fcf	$698M	$982M	$1.4B	$1.9B	$2.7B	$3.8B	$5.4B	$7.6B	$11B	$15B	$21B	$211B
DCF		$892M	$1.1B	$1.5B	$1.9B	$2.4B	$3B	$3.9B	$5B	$6.4B	$8.1B	$81B
Value	$116B

Competitiveness and MOAT

High margins render the company resilient under dire circumstances, hence able to drive competitors out or acquire them. ROE and ROA measure the average flow generated by each invested dollar. Their marginal value is a forecast of future growth, and it is considered by Buffett and Munger the most important single indicator.

Years	12/2014	12/2015	12/2016	12/2017	12/2018	12/2019	12/2020	12/2021	12/2022	12/2023	TTM
Net Margins	1%	5%	4%	8%	6%	7%	9%	9%	11%	12%	12%
ROA	-	5%	7%	8%	9%	11%	13%	11%	17%	17%	19%
ROE	-	9%	7%	16%	13%	17%	18%	20%	29%	24%	29%

Good Net Margins (11.75%)

Net Margins are high enough to offer a good protection on the profits in case of higher costs or higher interests. Furthermore higher margins reduce earnings’ volatility.

Safety and Stability

Being debt the number one cause of investment losses and company death, the ratio Debt/FCF is of utmost importance to guarantee safety. On the other hand the Graham’s stability measures the drawdown of earnings, hence indicating the reliability of the flow generated by the company.

Years	12/2014	12/2015	12/2016	12/2017	12/2018	12/2019	12/2020	12/2021	12/2022	12/2023	TTM
Debt over FCF	-	4.96	3.19	2.92	6.79	3.42	2.33	4.47	3.61	1.89	2.07
Debt over Equity	-	0.23	0.21	0.26	0.73	0.67	0.55	0.95	0.78	0.58	0.68
Growth Stability	-	-	-	100%	100%	100%	100%	100%	100%	100%	100%

Neutral Debt/FCF ratio (2.07)

Net Margins are at a level that is not too high nor too low. They are not a competitive advantage but they are not a competitive disadvantage either.

Good Debt/Equity ratio (0.68)

The company is not overleveraged and has a good balance between equity and debt.

Good Graham’s Stability (100%)

The company has a good stability in its earnings, which is a sign of a good competitive advantage.

Growth

Growth can be dangerous when forecasting, simply projecting the current growth is in general wrong. A company passes through multiple phases, from being young and unprofitable, to the first periods of profitability and high growth, until it arrives at a period of regime with limited growth. Identifying in which phase the company is in may help forecasting.

Years	12/2014	12/2015	12/2016	12/2017	12/2018	12/2019	12/2020	12/2021	12/2022	12/2023	CAGR 5Y
Revenue YoY growth	-	7%	8%	9%	25%	10%	4%	28%	44%	4%	21%
Earnings YoY growth	-	740%	-8%	118%	-15%	42%	29%	31%	72%	10%	34%
Equity YoY growth	-	-4%	6%	2%	8%	8%	17%	21%	18%	33%	19%
FCF YoY growth	-	-28%	48%	40%	30%	97%	40%	10%	21%	87%	27%