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TopBuild

NYSE:BLD
Snowflake Description

Mediocre balance sheet with acceptable track record.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
BLD
NYSE
$3B
Market Cap
  1. Home
  2. US
  3. Consumer Durables
Company description

TopBuild Corp. engages in the installation and distribution of insulation and other building products to the United States construction industry. The last earnings update was 20 days ago. More info.


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  • TopBuild has significant price volatility in the past 3 months.
BLD Share Price and Events
7 Day Returns
-1.4%
NYSE:BLD
0.2%
US Consumer Durables
-1.4%
US Market
1 Year Returns
-6.1%
NYSE:BLD
0.5%
US Consumer Durables
1.6%
US Market
BLD Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
TopBuild (BLD) -1.4% 14.4% 33.7% -6.1% 119.2% -
US Consumer Durables 0.2% 1.8% 2.3% 0.5% 37% 28%
US Market -1.4% -3.9% 0.1% 1.6% 33.2% 38.2%
1 Year Return vs Industry and Market
  • BLD underperformed the Consumer Durables industry which returned 0.5% over the past year.
  • BLD underperformed the Market in United States of America which returned 1.6% over the past year.
Price Volatility
BLD
Industry
5yr Volatility vs Market
Related Companies

Value

 Is TopBuild undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of TopBuild to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for TopBuild.

NYSE:BLD Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 9 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 9.2%
Perpetual Growth Rate 10-Year US Government Bond Rate 2.7%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NYSE:BLD
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 2.7%
Equity Risk Premium S&P Global 6%
Consumer Durables Unlevered Beta Simply Wall St/ S&P Global 0.9
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.899 (1 + (1- 21%) (30.45%))
1.077
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.08
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (1.077 * 5.96%)
9.15%

Discounted Cash Flow Calculation for NYSE:BLD using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for TopBuild is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

NYSE:BLD DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 9.15%)
2019 167.79 Analyst x4 153.72
2020 182.65 Analyst x4 153.30
2021 198.40 Analyst x1 152.56
2022 211.52 Est @ 6.61% 149.01
2023 223.04 Est @ 5.45% 143.95
2024 233.37 Est @ 4.63% 137.99
2025 242.85 Est @ 4.06% 131.56
2026 251.74 Est @ 3.66% 124.94
2027 260.25 Est @ 3.38% 118.34
2028 268.55 Est @ 3.19% 111.87
Present value of next 10 years cash flows $1,377.24
NYSE:BLD DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= $268.55 × (1 + 2.73%) ÷ (9.15% – 2.73%)
$4,295.91
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $4,295.91 ÷ (1 + 9.15%)10
$1,789.55
NYSE:BLD Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $1,377.24 + $1,789.55
$3,166.80
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $3,166.80 / 34.42
$91.99
NYSE:BLD Discount to Share Price
Calculation Result
Value per share (USD) From above. $91.99
Current discount Discount to share price of $79.70
= -1 x ($79.70 - $91.99) / $91.99
13.4%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price TopBuild is available for.
Intrinsic value
13%
Share price is $79.7 vs Future cash flow value of $91.99
Current Discount Checks
For TopBuild to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • TopBuild's share price is below the future cash flow value, but not at a moderate discount (< 20%).
  • TopBuild's share price is below the future cash flow value, but not at a substantial discount (< 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for TopBuild's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are TopBuild's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NYSE:BLD PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-03-31) in USD $4.22
NYSE:BLD Share Price ** NYSE (2019-05-24) in USD $79.7
United States of America Consumer Durables Industry PE Ratio Median Figure of 51 Publicly-Listed Consumer Durables Companies 14.43x
United States of America Market PE Ratio Median Figure of 3,086 Publicly-Listed Companies 17.45x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of TopBuild.

NYSE:BLD PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NYSE:BLD Share Price ÷ EPS (both in USD)

= 79.7 ÷ 4.22

18.9x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • TopBuild is overvalued based on earnings compared to the US Consumer Durables industry average.
  • TopBuild is overvalued based on earnings compared to the United States of America market.
Price based on expected Growth
Does TopBuild's expected growth come at a high price?
Raw Data
NYSE:BLD PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 18.9x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 9 Analysts
9.6%per year
United States of America Consumer Durables Industry PEG Ratio Median Figure of 37 Publicly-Listed Consumer Durables Companies 1.34x
United States of America Market PEG Ratio Median Figure of 2,121 Publicly-Listed Companies 1.51x

*Line of best fit is calculated by linear regression .

NYSE:BLD PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 18.9x ÷ 9.6%

1.97x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • TopBuild is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on TopBuild's assets?
Raw Data
NYSE:BLD PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-03-31) in USD $32.41
NYSE:BLD Share Price * NYSE (2019-05-24) in USD $79.7
United States of America Consumer Durables Industry PB Ratio Median Figure of 69 Publicly-Listed Consumer Durables Companies 1.4x
United States of America Market PB Ratio Median Figure of 5,208 Publicly-Listed Companies 1.8x
NYSE:BLD PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NYSE:BLD Share Price ÷ Book Value per Share (both in USD)

= 79.7 ÷ 32.41

2.46x

* Primary Listing of TopBuild.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • TopBuild is overvalued based on assets compared to the US Consumer Durables industry average.
X
Value checks
We assess TopBuild's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Consumer Durables industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Consumer Durables industry average (and greater than 0)? (1 check)
  5. TopBuild has a total score of 0/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

 How is TopBuild expected to perform in the next 1 to 3 years based on estimates from 9 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
9.6%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is TopBuild expected to grow at an attractive rate?
  • TopBuild's earnings growth is expected to exceed the low risk savings rate of 2.7%.
Growth vs Market Checks
  • TopBuild's earnings growth is positive but not above the United States of America market average.
  • TopBuild's revenue growth is positive but not above the United States of America market average.
Annual Growth Rates Comparison
Raw Data
NYSE:BLD Future Growth Rates Data Sources
Data Point Source Value (per year)
NYSE:BLD Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 9 Analysts 9.6%
NYSE:BLD Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 9 Analysts 5%
United States of America Consumer Durables Industry Earnings Growth Rate Market Cap Weighted Average 18.2%
United States of America Consumer Durables Industry Revenue Growth Rate Market Cap Weighted Average 6.1%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 13.7%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7.3%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NYSE:BLD Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (1 month ago) See Below
Future Estimates Average of up to 9 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NYSE:BLD Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2021-12-31 2,898 244 195 2
2020-12-31 2,783 239 196 9
2019-12-31 2,644 221 178 9
NYSE:BLD Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2019-03-31 2,512 173 146
2018-12-31 2,384 167 135
2018-09-30 2,246 155 201
2018-06-30 2,088 129 190
2018-03-31 1,956 116 186
2017-12-31 1,906 113 158
2017-09-30 1,849 103 74
2017-06-30 1,813 96 68
2017-03-31 1,770 88 60
2016-12-31 1,743 77 73
2016-09-30 1,725 41 111
2016-06-30 1,700 71 103

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • TopBuild's earnings are expected to grow by 9.6% yearly, however this is not considered high growth (20% yearly).
  • TopBuild's revenue is expected to grow by 5% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NYSE:BLD Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (1 month ago) See Below
Future Estimates Average of up to 9 Analyst Estimates (S&P Global) See Below

All data from TopBuild Company Filings, last reported 1 month ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:BLD Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2021-12-31 5.61 5.61 5.61 1.00
2020-12-31 5.65 6.00 5.19 4.00
2019-12-31 5.12 5.26 4.94 4.00
NYSE:BLD Past Financials Data
Date (Data in USD Millions) EPS *
2019-03-31 4.22
2018-12-31 3.86
2018-09-30 5.74
2018-06-30 5.42
2018-03-31 5.26
2017-12-31 4.41
2017-09-30 2.04
2017-06-30 1.82
2017-03-31 1.60
2016-12-31 1.93
2016-09-30 2.94
2016-06-30 2.73

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • TopBuild is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess TopBuild's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
TopBuild has a total score of 1/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has TopBuild performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare TopBuild's growth in the last year to its industry (Consumer Durables).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • TopBuild has delivered over 20% year on year earnings growth in the past 5 years.
  • TopBuild's 1-year earnings growth is negative, it can't be compared to the 5-year average.
  • TopBuild's 1-year earnings growth is negative, it can't be compared to the US Consumer Durables industry average.
Earnings and Revenue History
TopBuild's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from TopBuild Company Filings, last reported 1 month ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:BLD Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-03-31 2,512.14 146.35 371.20
2018-12-31 2,384.25 134.75 346.09
2018-09-30 2,246.10 201.19 323.53
2018-06-30 2,087.86 189.92 303.00
2018-03-31 1,956.35 186.23 292.93
2017-12-31 1,906.27 158.13 292.80
2017-09-30 1,849.00 74.45 290.40
2017-06-30 1,813.06 67.62 286.86
2017-03-31 1,770.19 59.78 282.44
2016-12-31 1,742.85 72.61 278.74
2016-09-30 1,725.19 110.97 271.15
2016-06-30 1,699.97 103.02 265.92
2016-03-31 1,672.14 94.04 269.22
2015-12-31 1,616.58 79.12 274.50
2015-09-30 1,588.17 25.39 281.16
2015-06-30 1,557.93 15.24 291.94
2015-03-31 1,536.96 14.79 292.46
2014-12-31 1,512.08 10.50 290.95
2013-12-31 1,411.52 -11.55 278.58
2012-12-31 1,207.89 -154.38 273.09

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • TopBuild has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • TopBuild used its assets more efficiently than the US Consumer Durables industry average last year based on Return on Assets.
  • TopBuild has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess TopBuild's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Consumer Durables industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
TopBuild has a total score of 3/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is TopBuild's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up TopBuild's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • TopBuild is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • TopBuild's long term commitments exceed its cash and other short term assets.
Balance sheet
This treemap shows a more detailed breakdown of TopBuild's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • Low level of unsold assets.
  • Debt is not covered by short term assets, assets are 0.8x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from TopBuild Company Filings, last reported 1 month ago.

NYSE:BLD Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-03-31 1,102.85 835.51 98.28
2018-12-31 1,072.10 743.47 100.93
2018-09-30 1,086.04 741.89 93.46
2018-06-30 1,050.93 741.63 65.74
2018-03-31 1,020.80 247.90 37.33
2017-12-31 996.52 241.89 56.52
2017-09-30 889.40 249.91 18.46
2017-06-30 957.96 247.92 94.23
2017-03-31 953.96 173.89 80.37
2016-12-31 972.55 178.80 134.38
2016-09-30 959.57 183.71 104.50
2016-06-30 939.92 188.63 102.09
2016-03-31 925.65 191.04 108.15
2015-12-31 915.73 193.46 112.85
2015-09-30 851.98 197.50 108.34
2015-06-30 836.64 200.00 63.27
2015-03-31 973.26 0.00 3.60
2014-12-31 952.29 0.00 2.97
2013-12-31 1,002.69 0.00 3.02
2012-12-31
  • TopBuild's level of debt (75.8%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (0% vs 75.8% today).
  • Debt is well covered by operating cash flow (20.7%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 6.9x coverage).
X
Financial health checks
We assess TopBuild's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. TopBuild has a total score of 3/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

 What is TopBuild's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
0%
Current annual income from TopBuild dividends. Estimated to be 0% next year.
If you bought $2,000 of TopBuild shares you are expected to receive $0 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Unable to evaluate TopBuild's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.
  • Unable to evaluate TopBuild's dividend against the top 25% market benchmark as the company has not reported any payouts.
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NYSE:BLD Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 9 Analyst Estimates (S&P Global) See Below
United States of America Consumer Durables Industry Average Dividend Yield Market Cap Weighted Average of 21 Stocks 2.2%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 2007 Stocks 2.5%
United States of America Minimum Threshold Dividend Yield 10th Percentile 0.8%
United States of America Bottom 25% Dividend Yield 25th Percentile 1.5%
United States of America Top 25% Dividend Yield 75th Percentile 3.8%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NYSE:BLD Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2021-12-31 0.00 1.00
2020-12-31 0.00 1.00
2019-12-31 0.00 1.00

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to perform a dividend volatility check as TopBuild has not reported any payouts.
  • Unable to verify if TopBuild's dividend has been increasing as the company has not reported any payouts.
Current Payout to shareholders
What portion of TopBuild's earnings are paid to the shareholders as a dividend.
  • Unable to calculate sustainability of dividends as TopBuild has not reported any payouts.
Future Payout to shareholders
  • No need to calculate the sustainability of TopBuild's dividends in 3 years as they are not expected to pay a notable one for United States of America.
X
Income/ dividend checks
We assess TopBuild's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can TopBuild afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. TopBuild has a total score of 0/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

 What is the CEO of TopBuild's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Jerry Volas
COMPENSATION $4,156,751
AGE 63
TENURE AS CEO 3.9 years
CEO Bio

Mr. Gerald Volas, also known as Jerry, has been the Chief Executive Officer at TopBuild Corp. since June 2015. Between 1982 and June 2015, Mr. Volas was employed by Masco Corporation. Mr. Volas served as Group President of North American Diversified Businesses at Masco Corporation from May 2014 to June 30, 2015 and served as its Group President of Plumbing & Heating Products from January 12, 2007 to May 2014 and served as its Vice President until May 2014. Mr. Volas served as President of Liberty Hardware from April 2001 to February 2005 and Group Vice President of Masco Corporation until February 24, 2005. He has been employed by Masco Corporation, one of the world's leading manufacturers of brand-name products for the home improvement and new home construction industries, in various positions of increasing responsibility since 1982. From January 1996 to April 2001, he served as a Group Controller supporting a variety of Masco operating companies. Since February 2005 until June 2015, he has served as a Group Executive responsible for almost all of Masco's operating companies at one time or another. He is responsible for a number of Masco operating companies accounting for approximately 50% of Masco's revenues in 2012 Mr. Volas assume executive management responsibility for several operating companies within Masco's plumbing products platform, including American Shower & Bath, Aqua Glass, Computer Security Systems, Liberty Hardware and Mirolin. Mr. Volas joined Masco in 1983 through the acquisition of BrassCraft Manufacturing Company TopBuild and over the 17 years, he has held various positions including Vice President of Finance for BrassCraft and Controller of Masco Group from May 1982 to January 1996. Mr. Volas began his career at Ernst & Young in 1977 as an independent auditor before moving to BrassCraft. He has been an Independent Director of Trex Co. Inc. since March 1, 2014. He has been a Director of TopBuild Corp. since July 1, 2015. He served as a Member of The Supervisory Board at Hansgrohe SE (alternative name Hansgrohe AG). Mr. Volas is a Certified Public Accountant. He holds a Bachelor of Business Administration degree from the University of Michigan in Ann Arbor, Michigan.

CEO Compensation
  • Jerry's compensation has been consistent with company performance over the past year, both up more than 20%.
  • Jerry's remuneration is about average for companies of similar size in United States of America.
Management Team Tenure

Average tenure and age of the TopBuild management team in years:

3.6
Average Tenure
59
Average Age
  • The tenure for the TopBuild management team is about average.
Management Team

Jerry Volas

TITLE
CEO & Director
COMPENSATION
$4M
AGE
63
TENURE
3.9 yrs

Robert Buck

TITLE
President & COO
COMPENSATION
$2M
AGE
48
TENURE
3.9 yrs

John Peterson

TITLE
CFO & VP
COMPENSATION
$1M
AGE
59
TENURE
3.9 yrs

David Cushen

TITLE
Senior Vice President of Mergers & Acquisitions
COMPENSATION
$907K
TENURE
2.8 yrs

Steve Raia

TITLE
President of TruTeam Operations
COMPENSATION
$1M
AGE
63
TENURE
1.5 yrs

Brad Manning

TITLE
Chief Information Officer
TENURE
4.3 yrs

Tabitha Zane

TITLE
Vice President of Investor Relations
TENURE
3.6 yrs

Don Walther

TITLE
General Counsel & Corporate Secretary
AGE
49

Robin Stennet

TITLE
Vice President of Innovation & Marketing
TENURE
0.3 yrs

David Whan

TITLE
Chief Human Resources Officer
TENURE
2 yrs
Board of Directors Tenure

Average tenure and age of the TopBuild board of directors in years:

3.8
Average Tenure
59
Average Age
  • The tenure for the TopBuild board of directors is about average.
Board of Directors

Alec Covington

TITLE
Chairman of the Board
COMPENSATION
$330K
AGE
61
TENURE
3.3 yrs

Jerry Volas

TITLE
CEO & Director
COMPENSATION
$4M
AGE
63
TENURE
3.8 yrs

Joseph Cantie

TITLE
Independent Director
COMPENSATION
$200K
AGE
54
TENURE
3.8 yrs

Mark Petrarca

TITLE
Independent Director
COMPENSATION
$195K
AGE
54
TENURE
3.8 yrs

Carl Camden

TITLE
Independent Director
COMPENSATION
$180K
AGE
64
TENURE
3.8 yrs

Tina Donikowski

TITLE
Director
COMPENSATION
$174K
AGE
59
TENURE
1.1 yrs

Nancy Taylor

TITLE
Director
COMPENSATION
$174K
AGE
58
TENURE
1.1 yrs
Who owns this company?
Recent Insider Trading
  • TopBuild insiders have only sold shares in the past 3 months.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
17. May 19 Sell Robert Buck Individual 16. May 19 16. May 19 -3,500 $85.00 $-297,500
16. May 19 Sell John Peterson Individual 15. May 19 15. May 19 -4,000 $86.37 $-345,480
13. May 19 Sell Robert Buck Individual 09. May 19 09. May 19 -3,500 $81.00 $-283,500
05. Mar 19 Sell John Peterson Individual 04. Mar 19 04. Mar 19 -8,593 $60.68 $-519,664
04. Mar 19 Sell Robert Buck Individual 28. Feb 19 28. Feb 19 -11,200 $59.64 $-658,618
13. Aug 18 Sell Robert Buck Individual 09. Aug 18 09. Aug 18 -14,000 $77.50 $-1,085,000
X
Management checks
We assess TopBuild's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. TopBuild has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

Is TopBuild Corp. (NYSE:BLD) Potentially Undervalued?

According to my valuation, the intrinsic value for the stock is $110.77, but it is currently trading at US$86.34 on the share market, meaning that there is still an opportunity to buy now. … This is because TopBuild’s beta (a measure of share price volatility) is high, meaning its price movements will be exaggerated relative to the rest of the market. … Although value investors would argue that it’s the intrinsic value relative to the price that matter the most, a more compelling investment thesis would be high growth potential at a cheap price.

Simply Wall St -

Is TopBuild Corp.'s (NYSE:BLD) Balance Sheet A Threat To Its Future?

(NYSE:BLD) with its market cap of US$2.8b, are popular for their explosive growth, investors should also be aware of their balance sheet to judge whether the company can survive a downturn.

Simply Wall St -

Our Take On TopBuild Corp.'s (NYSE:BLD) CEO Salary

This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. … Third, we'll reflect on the total return to shareholders over three years, as a second measure of business performance. … How Does Jerry Volas's Compensation Compare With Similar Sized Companies?

Simply Wall St -

Don’t Buy TopBuild Corp. (NYSE:BLD) Until You Understand Its ROCE

In particular, we'll consider its Return On Capital Employed (ROCE), as that can give us insight into how profitably the company is able to employ capital in its business. … What is Return On Capital Employed (ROCE)? … ROCE measures the amount of pre-tax profits a company can generate from the capital employed in its business.

Simply Wall St -

Before You Buy TopBuild Corp. (NYSE:BLD), Consider Its Volatility

In finance, Beta is a measure of volatility. … Every stock in the market is exposed to this volatility, which is linked to the fact that stocks prices are correlated in an efficient market. … Beta is a widely used metric to measure a stock's exposure to market risk (volatility).

Simply Wall St -

Is TopBuild Corp.'s (NYSE:BLD) ROE Of 13% Impressive?

While some investors are already well versed in financial metrics (hat tip), this article is for those who would like to learn about Return On Equity (ROE) and why it is important. … Our data shows TopBuild has a return on equity of 13% for the last year. … Return on Equity = Net Profit ÷ Shareholders' Equity

Simply Wall St -

Should We Worry About TopBuild Corp.'s (NYSE:BLD) P/E Ratio?

The goal of this article is to teach you how to use price to earnings ratios (P/E ratios). … How Do I Calculate A Price To Earnings Ratio … Price to Earnings Ratio = Share Price ÷ Earnings per Share (EPS)

Simply Wall St -

What Should We Expect From TopBuild Corp.'s (NYSE:BLD) Earnings Over The Next Year?

Based on TopBuild Corp.'s (NYSE:BLD) earnings update on 31 December 2018, … with earnings expected to grow by 19% in the upcoming year … the higher past 5-year average growth rate of 45%.

Simply Wall St -

What Should You Know About TopBuild Corp.'s (NYSE:BLD) Long Term Outlook?

The most recent earnings release TopBuild Corp.'s (NYSE:BLD) announced in December 2018a … showed

Simply Wall St -

What You Must Know About TopBuild Corp.'s (NYSE:BLD) Financial Strength

Small-cap and large-cap companies receive a lot of attention from investors, but mid-cap stocks like TopBuild Corp. … While they are less talked about as an investment category, mid-cap risk-adjusted returns have generally been better than more commonly focused stocks that fall into the small- or large-cap categories. … BLD’s financial liquidity and debt position will be analysed in this article, to get an idea of whether the company can fund opportunities for strategic growth and maintain strength through economic downturns.

Simply Wall St -

Company Info

Description

TopBuild Corp. engages in the installation and distribution of insulation and other building products to the United States construction industry. The company operates in two segments, Installation and Distribution. It offers insulation products, rain gutters, glass and windows, fireproofing and firestopping products, garage doors, fireplaces, shower enclosures, closet shelving, accessories, and other products; and residential insulation services. The company also provides various services and tools that are designed to assist builders in applying the principles of building science to new home construction, which includes pre-construction plan reviews, various inspection services, and diagnostic testing; and home energy rating services. It serves single-family homebuilders, local/single-family custom builders, multi-family builders, commercial general contractors, remodelers, and individual homeowners, as well as insulation contractors, gutter contractors, weatherization contractors, other contractors, dealers, metal building erectors, and modular home builders. TopBuild Corp. has approximately 200 installation branches located in 40 states, and 75 distribution centers in 32 states. The company was formerly known as Masco SpinCo Corp. and changed its name to TopBuild Corp. in March 2015. TopBuild Corp. was incorporated in 2015 and is headquartered in Daytona Beach, Florida.

Details
Name: TopBuild Corp.
BLD
Exchange: NYSE
Founded: 2015
$2,743,612,645
34,424,249
Website: http://www.topbuild.com
Address: TopBuild Corp.
475 North Williamson Boulevard,
Daytona Beach,
Florida, 32114,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NYSE BLD Common Stock New York Stock Exchange US USD 18. Jun 2015
DB 28T Common Stock Deutsche Boerse AG DE EUR 18. Jun 2015
BMV BLD * Common Stock Bolsa Mexicana de Valores MX MXN 18. Jun 2015
Number of employees
Current staff
Staff numbers
10,300
TopBuild employees.
Industry
Homebuilding
Consumer Durables
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/05/27 00:43
End of day share price update: 2019/05/24 00:00
Last estimates confirmation: 2019/05/16
Last earnings filing: 2019/05/07
Last earnings reported: 2019/03/31
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.