Installed Building Products, Inc.

IBP

General Bldg Contractors - Residential Bldgs

Mkt Cap

$5.907B

PE

23.60

Debt

$906.6M

Cash

$399.9M

EV

$6.414B

FCF

$282.7M

Market Cap

$5.907B

P/E Ratio

23.60

Debt

$906.6M

Cash

$399.9M

EV

$6.414B

FCF

$282.7M

Charts data: {"Earnings":[{"time":"2014-12-30","value":-5965000},{"time":"2015-12-30","value":26517000},{"time":"2016-12-30","value":38436000},{"time":"2017-12-30","value":41140000},{"time":"2018-12-30","value":54748000},{"time":"2019-12-30","value":68159000},{"time":"2020-12-30","value":97239000},{"time":"2021-12-30","value":118763000},{"time":"2022-12-30","value":223428000},{"time":"2023-12-30","value":243700000}],"Sales":[{"time":"2014-12-30","value":518020000},{"time":"2015-12-30","value":662719000},{"time":"2016-12-30","value":862980000},{"time":"2017-12-30","value":1132927000},{"time":"2018-12-30","value":1336432000},{"time":"2019-12-30","value":1511629000},{"time":"2020-12-30","value":1653225000},{"time":"2021-12-30","value":1968650000},{"time":"2022-12-30","value":2669844000},{"time":"2023-12-30","value":2778600000}],"Net Margins":[{"time":"2014-12-30","value":-0.011514999420871782},{"time":"2015-12-30","value":0.04001243362571467},{"time":"2016-12-30","value":0.04453869151081138},{"time":"2017-12-30","value":0.03631301928544381},{"time":"2018-12-30","value":0.04096579549127827},{"time":"2019-12-30","value":0.04508976739662973},{"time":"2020-12-30","value":0.05881776527695867},{"time":"2021-12-30","value":0.06032712772712265},{"time":"2022-12-30","value":0.08368578838314149},{"time":"2023-12-30","value":0.08770603901245232}],"Assets":[{"time":"2014-12-30","value":234162000},{"time":"2015-12-30","value":374082000},{"time":"2016-12-30","value":462095000},{"time":"2017-12-30","value":738746000},{"time":"2018-12-30","value":834658000},{"time":"2019-12-30","value":1099479000},{"time":"2020-12-30","value":1187676000},{"time":"2021-12-30","value":1653202000},{"time":"2022-12-30","value":1778932000},{"time":"2023-12-30","value":1981300000}],"Stockholders Equity":[{"time":"2014-12-30","value":91874000},{"time":"2015-12-30","value":114483000},{"time":"2016-12-30","value":153977000},{"time":"2017-12-30","value":210528000},{"time":"2018-12-30","value":182498000},{"time":"2019-12-30","value":250031000},{"time":"2020-12-30","value":319182000},{"time":"2021-12-30","value":416840000},{"time":"2022-12-30","value":493499000},{"time":"2023-12-30","value":670300000}],"ROE":[{"time":"2014-12-30","value":-0.06492587674423667},{"time":"2015-12-30","value":0.2316239092266974},{"time":"2016-12-30","value":0.24962169674691675},{"time":"2017-12-30","value":0.19541343669250646},{"time":"2018-12-30","value":0.2999923286830541},{"time":"2019-12-30","value":0.2726021973275314},{"time":"2020-12-30","value":0.3046506381938831},{"time":"2021-12-30","value":0.28491267632664813},{"time":"2022-12-30","value":0.4527425587488526},{"time":"2023-12-30","value":0.3635685513948978}],"ROA":[{"time":"2014-12-30","value":0.10997941595989101},{"time":"2015-12-30","value":0.1201661667762683},{"time":"2016-12-30","value":0.14293597636849564},{"time":"2017-12-30","value":0.1005298167435086},{"time":"2018-12-30","value":0.11168286891157815},{"time":"2019-12-30","value":0.11019764815880977},{"time":"2020-12-30","value":0.13628885318891684},{"time":"2021-12-30","value":0.1136461243090681},{"time":"2022-12-30","value":0.19416762417000763},{"time":"2023-12-30","value":0.18629182859738555}]}

Installed Building Products, Inc., together with its subsidiaries, engages in the installation of insulation, waterproofing, fire-stopping, fireproofing, garage doors, rain gutters, window blinds, shower doors, closet shelving and mirrors, and other products in the continental United States. The company offers a range of insulation materials, such as fiberglass and cellulose, and spray foam insulation materials. It is also involved in the installation of insulation and sealant materials in various areas of a structure, which includes basement and crawl space, building envelope, attic, and acoustical applications. In addition, the company installs a range of caulk and sealant products that control air infiltration in residential and commercial buildings; and waterproofing options, including sheet and hot applied waterproofing membranes, as well as deck coating, bentonite, and air and vapor systems. It serves homebuilders, multi-family and commercial construction firms, individual homeowners, and repair and remodeling contractors. The company was formerly known as CCIB Holdco, Inc. Installed Building Products, Inc. was founded in 1977 and is based in Columbus, Ohio.

Sector

10-Q
9/30/23
10-Q
6/30/23
10-Q
3/31/23
10-K
12/31/22
10-Q
9/30/22
10-Q
6/30/22
10-Q
3/31/22
10-K
12/31/21
10-Q
9/30/21
10-Q
6/30/21
10-Q
3/31/21
10-K
12/31/20
10-Q
9/30/20
10-Q
6/30/20
10-Q
3/31/20
10-K
12/31/19
10-Q
9/30/19
10-Q
6/30/19
10-Q
3/31/19
10-K
12/31/18
10-Q
9/30/18
10-Q
6/30/18
10-Q
3/31/18
10-K
12/31/17

DCF

Discounted Cash Flow Valuation of Installed Building Products, Inc.

Calculate

Growth Years

Growth

Start

End

Discount

Start

End

Multiple

g\r	+10%	+11%	+12%	+13%	+14%
0%	10	9	8	8	7
+1%	11	10	9	8	8
+2%	13	11	10	9	8
+3%	14	13	11	10	9
+4%	17	14	12	11	10

Years	0	1	2	3	4	5	6	7	8	9	10	TV
FCF	$282.7M	$367.5M	$467.6M	$581.9M	$708M	$841.7M	$977.3M	$1.108B	$1.224B	$1.32B	$1.386B	$13.86B
DCF		$319.6M	$353.6M	$382.6M	$404.8M	$418.5M	$422.5M	$416.4M	$400.3M	$375.2M	$342.5M	$3.425B
Value	$7.261B

Chart P/E ratio

In the chart Earnings are multiplied by this value.

Earnings Growth 33%

Earnings Stability 98%

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.

The Net Margin is too low to guarantee profitability in case of higher costs or higher interest rates. Furthermore lower margins cause higher earnings’ volatility.

Over time the ROA has been increasing indicating a higher marginal ROA with respect to the calculated one, giving a good sign for continued growth.

Years	12-2015	12-2016	12-2017	12-2018	12-2019	12-2020	12-2021	12-2022	12-2023	TTM
Net Margin	4%	4.5%	3.6%	4.1%	4.5%	5.9%	6%	8.4%	8.8%	8.9%
ROA	12%	14%	10%	11%	11%	14%	11%	19%	19%	19%
ROE	23%	25%	20%	30%	27%	30%	28%	45%	36%	37%

What is the average Net Margin?

The average Net Margin over the past 5 years is +6.28%.

What is the trend of Net Margin?

The trend of Net Margin over the past 5 years is +1%.

What is the average Return on Assets (ROA)?

The average ROA over the past 5 years is +14.2%.

What is the trend of Return on Assets (ROA)?

The trend of ROA over the past 5 years is +1.72%.

What is the average Return on Equity (ROE)?

The average ROE over the past 5 years is +32.97%.

What is the trend of Return on Equity (ROE)?

The trend of ROE over the past 5 years is +2.4%.

Safety & Stabiliy

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.

Under the assumption that FCF does not diminish and debt does not increase, the current years to repay the debt are acceptable.

The Graham’s stability indicate reliability of earnings, and consideration about the future are more dependable.

Years	12-2015	12-2016	12-2017	12-2018	12-2019	12-2020	12-2021	12-2022	12-2023	TTM
Debt FCF	18.47	3.65	9.82	7.78	8.14	4.00	8.82	3.84	3.23	3.21
Debt Equity	1.17	1.10	1.73	2.62	2.37	1.84	2.14	1.81	1.34	1.33
MIN
Graham Stability	-	-	100%	100%	100%	100%	100%	100%	100%	100%

What is the Debt/FCF?

The Debt/FCF trailing twelve month is 3.21.

What is the trend of Debt/FCF?

The trend of Debt/FCF over the past 5 years is -0.88.

What is the Graham’s Stability?

Graham’s Stability measure stands at 1.00.

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.

Earnings growth has been increasing in past years.

Years	12-2016	12-2018	12-2020	12-2022	Trend
Revenue	18%	16%	19%	4.1%	-1.9%
Net Income	30%	35%	36%	9.1%	1.7%
Stockholders Equity	23%	30%	28%	36%	0.42%
FCF	29%	35%	24%	20%	-16%

What is the 5 year Revenue CAGR?

The Revenue CAGR over the past 5 years is +15.76%.

What is the trend of Revenue growth?

The trend of Revenue growth rate over the past 5 years is -1.87%.

What is the 5 year Earnings CAGR?

The Earnings CAGR over the past 5 years is +34.8%.

What is the trend of Earnings growth?

The trend of Earnings growth rate over the past 5 years is +1.66%.

What is the 5 year Equity CAGR?

The Equity CAGR over the past 5 years is +29.72%.

What is the trend of Equity growth?

The trend of Equity growth rate over the past 5 years is +0.42%.

What is the 5 year FCF CAGR?

The FCF CAGR over the past 5 years is +35.32%.

What is the trend of FCF growth?

The trend of FCF growth rate over the past 5 years is -15.85%.