NYSE:BLD

Stock Analysis Report

Executive Summary

TopBuild Corp. engages in the installation and distribution of insulation and other building products to the United States construction industry.


Snowflake Analysis

Mediocre balance sheet with questionable track record.

Share Price & News

How has TopBuild's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: BLD has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

3.7%

BLD

-0.4%

US Consumer Durables

-1.1%

US Market


1 Year Return

111.8%

BLD

27.7%

US Consumer Durables

17.9%

US Market

Return vs Industry: BLD exceeded the US Consumer Durables industry which returned 27.7% over the past year.

Return vs Market: BLD exceeded the US Market which returned 17.9% over the past year.


Shareholder returns

BLDIndustryMarket
7 Day3.7%-0.4%-1.1%
30 Day8.2%1.6%1.4%
90 Day11.8%7.9%6.9%
1 Year111.8%111.8%29.4%27.7%20.3%17.9%
3 Year217.9%217.9%33.2%27.3%47.8%38.3%
5 Yearn/a39.7%30.7%71.9%53.0%

Price Volatility Vs. Market

How volatile is TopBuild's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is TopBuild undervalued compared to its fair value and its price relative to the market?

18.4%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: BLD ($123.01) is trading below our estimate of fair value ($150.8)

Significantly Below Fair Value: BLD is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: BLD is poor value based on its PE Ratio (22.8x) compared to the Consumer Durables industry average (13.7x).

PE vs Market: BLD is poor value based on its PE Ratio (22.8x) compared to the US market (18.2x).


Price to Earnings Growth Ratio

PEG Ratio: BLD is poor value based on its PEG Ratio (2.3x)


Price to Book Ratio

PB vs Industry: BLD is overvalued based on its PB Ratio (3.5x) compared to the US Consumer Durables industry average (1.5x).


Next Steps

Future Growth

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

10.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: BLD's forecast earnings growth (10% per year) is above the savings rate (1.7%).

Earnings vs Market: BLD's earnings (10% per year) are forecast to grow slower than the US market (14.1% per year).

High Growth Earnings: BLD's earnings are forecast to grow, but not significantly.

Revenue vs Market: BLD's revenue (5.5% per year) is forecast to grow slower than the US market (7.6% per year).

High Growth Revenue: BLD's revenue (5.5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: BLD's Return on Equity is forecast to be low in 3 years time (19%).


Next Steps

Past Performance

How has TopBuild performed over the past 5 years?

35.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: BLD has high quality earnings.

Growing Profit Margin: BLD's current net profit margins (7.1%) are lower than last year (9%).


Past Earnings Growth Analysis

Earnings Trend: BLD's earnings have grown significantly by 35.5% per year over the past 5 years.

Accelerating Growth: BLD's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: BLD had negative earnings growth (-8.8%) over the past year, making it difficult to compare to the Consumer Durables industry average (5.5%).


Return on Equity

High ROE: BLD's Return on Equity (15.8%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is TopBuild's financial position?


Financial Position Analysis

Short Term Liabilities: BLD's short term assets ($789.4M) exceed its short term liabilities ($482.5M).

Long Term Liabilities: BLD's short term assets ($789.4M) do not cover its long term liabilities ($976.4M).


Debt to Equity History and Analysis

Debt Level: BLD's debt to equity ratio (63.1%) is considered high.

Reducing Debt: Insufficient data to determine if BLD's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: BLD's debt is well covered by operating cash flow (34.5%).

Interest Coverage: BLD's interest payments on its debt are well covered by EBIT (7.4x coverage).


Balance Sheet

Inventory Level: BLD has a low level of unsold assets or inventory.

Debt Coverage by Assets: BLD's debt is covered by short term assets (assets are 1.1x debt).


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%1.4%markettop25%3.7%industryaverage1.9%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate BLD's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate BLD's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if BLD's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if BLD's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of BLD's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

4.0yrs

Average management tenure


CEO

Jerry Volas (64yo)

4.7yrs

Tenure

US$4,156,751

Compensation

Mr. Gerald Volas, also known as Jerry, serves as Chief Executive Officer at TopBuild Corp. since June 2015. He serves as a Director of TopBuild Corp. since July 1, 2015. Between 1982 and June 2015, Mr. Vol ...


CEO Compensation Analysis

Compensation vs Market: Jerry's total compensation ($USD4.16M) is about average for companies of similar size in the US market ($USD4.87M).

Compensation vs Earnings: Jerry's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Gerald Volas
CEO & Director4.7yrsUS$4.16m0.44% $18.4m
Robert Buck
President & COO4.7yrsUS$1.93m0.077% $3.2m
John Peterson
CFO & VP4.7yrsUS$1.46m0.062% $2.6m
David Cushen
Senior Vice President of Mergers & Acquisitions3.6yrsUS$906.76k0.0097% $407.2k
Steven Raia
President of TruTeam Operations2.3yrsUS$1.35m0.0096% $399.2k
Brad Manning
Chief Information Officer5.1yrsno datano data
Tabitha Zane
Vice President of Investor Relations4.3yrsno datano data
Donald Walther
VP, General Counsel & Corporate Secretary0.8yrsno data0.020% $833.9k
Robin Stennet
Vice President of Innovation & Marketing1.1yrsno datano data
David Whan
Chief Human Resources Officer2.8yrsno data0.0069% $288.1k

4.0yrs

Average Tenure

55yo

Average Age

Experienced Management: BLD's management team is considered experienced (4 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Gerald Volas
CEO & Director4.7yrsUS$4.16m0.44% $18.4m
Nancy Taylor
Independent Director1.8yrsUS$173.90k0.0095% $395.0k
Carl Camden
Independent Director4.6yrsUS$179.63k0.031% $1.3m
Alec Covington
Independent Chairman of the Board4.1yrsUS$329.63k0.031% $1.3m
Joseph Cantie
Independent Director4.6yrsUS$199.63k0.057% $2.4m
Mark Petrarca
Independent Director4.6yrsUS$194.63k0.031% $1.3m
Tina Donikowski
Independent Director1.8yrsUS$173.90k0.0095% $395.0k

4.6yrs

Average Tenure

60yo

Average Age

Experienced Board: BLD's board of directors are considered experienced (4.6 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

TopBuild Corp.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: TopBuild Corp.
  • Ticker: BLD
  • Exchange: NYSE
  • Founded: 2015
  • Industry: Homebuilding
  • Sector: Consumer Durables
  • Market Cap: US$4.176b
  • Shares outstanding: 33.95m
  • Website: https://www.topbuild.com

Number of Employees


Location

  • TopBuild Corp.
  • 475 North Williamson Boulevard
  • Daytona Beach
  • Florida
  • 32114
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
BLDNYSE (New York Stock Exchange)YesCommon StockUSUSDJun 2015
BLD *BMV (Bolsa Mexicana de Valores)YesCommon StockMXMXNJun 2015
28TDB (Deutsche Boerse AG)YesCommon StockDEEURJun 2015
28TBRSE (Berne Stock Exchange)YesCommon StockCHCHFJun 2015

Biography

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. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/23 02:17
End of Day Share Price2020/02/21 00:00
Earnings2019/09/30
Annual Earnings2018/12/31


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.