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

Fundamentals

Acceptable track record with mediocre balance sheet.

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

4.0%

BLD

2.6%

US Consumer Durables

0.4%

US Market


1 Year Return

130.9%

BLD

45.1%

US Consumer Durables

6.9%

US Market

Return vs Industry: BLD exceeded the US Consumer Durables industry which returned 45.1% over the past year.

Return vs Market: BLD exceeded the US Market which returned 6.9% over the past year.


Shareholder returns

BLDIndustryMarket
7 Day4.0%2.6%0.4%
30 Day6.3%3.0%-1.2%
90 Day27.2%8.0%-0.4%
1 Year130.9%130.9%47.1%45.1%9.3%6.9%
3 Year232.2%232.2%53.2%48.5%45.8%36.4%
5 Yearn/a41.9%33.0%62.9%45.1%

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?

6.9%

Undervalued compared to fair value


Share Price vs. Fair Value

Undervalued: BLD ($101.61) is trading below our estimate of fair value ($109.09)

Significantly Undervalued: 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 (20.4x) compared to the Consumer Durables industry average (13.8x).

PE vs Market: BLD is poor value based on its PE Ratio (20.4x) compared to the US market (17.6x).


Price to Earnings Growth Ratio

Low 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 (3x) compared to the US Consumer Durables industry average (1.6x).


Next Steps

Future Growth

How is TopBuild forecast to perform in the next 1 to 3 years based on estimates from 8 analysts?

8.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: BLD's forecast earnings growth (8.9% per year) is above the savings rate (2.7%).

Earnings vs Market: BLD's earnings (8.9% per year) are forecast to grow slower than the US market (14.5% per year).

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

Revenue vs Market: BLD's revenue (4.4% per year) is forecast to grow slower than the US market (7.2% per year).

High Growth Revenue: BLD's revenue (4.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: Insufficient data to determine if BLD's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has TopBuild performed over the past 5 years?

37.6%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: BLD has become profitable over the past 5 years, growing earnings by 37.6% per year.

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 (-9.8%) over the past year, making it difficult to compare to the Consumer Durables industry average (13.5%).


Return on Equity

High ROE: BLD's Return on Equity (15%) is considered low.


Return on Assets

ROA vs Industry: BLD has a higher Return on Assets than the Consumer Durables industry average last year.


Return on Capital Employed

ROCE Improving: BLD has significantly improved its Return on Capital Employed over the past 3 years.


Next Steps

Financial Health

How is TopBuild's financial position?


Financial Position Analysis

Short Term Liabilities: BLD's short term assets ($748.3M) exceeds its short term liabilities ($458.1M)

Long Term Liabilities: BLD's short term assets (748.3M) do not cover its long term liabilities (981.4M)


Debt to Equity History and Analysis

Debt Level: BLD's debt to equity ratio (64.6%) 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 (30.1%).

Interest Coverage: BLD's interest payments on its debt are well covered by EBIT (7.1x 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 1.014090x 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


Stability and Growth of Payments

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.

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

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

3.6yrs

Average management tenure


CEO

Jerry Volas (64yo)

4.3yrs

Tenure

US$4,156,751

Compensation

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 G ...


CEO Compensation Analysis

Compensation vs. Market: Jerry's total compensation ($USD4.16M) is about average for companies of similar size in the US market ($USD5.10M).

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


Management Age and Tenure

3.6yrs

Average Tenure

55yo

Average Age

Experienced Management: BLD's management team is considered experienced (3.6 years average tenure).


Board Age and Tenure

4.3yrs

Average Tenure

60yo

Average Age

Experienced Board: BLD's board of directors are considered experienced (4.3 years average tenure).


Insider Trading

Insider Buying: BLD insiders have only sold shares in the past 3 months.


Recent Insider Transactions

SellUS$5,25609 Sep 19
David Cushen
EntityIndividual
Role
Senior Key Executive
Senior Vice President of Mergers & Acquisitions
Shares57
Max PriceUS$92.21
SellUS$18,00015 Aug 19
David Cushen
EntityIndividual
Role
Senior Key Executive
Senior Vice President of Mergers & Acquisitions
Shares200
Max PriceUS$90.00
SellUS$265,89707 Aug 19
John Peterson
EntityIndividual
Role
Chief Financial Officer
CFO & VP
Shares3,045
Max PriceUS$87.75
SellUS$181,00607 Aug 19
Robert Buck
EntityIndividual
Role
President
President & COO
Shares2,000
Max PriceUS$91.29
SellUS$352,45107 Aug 19
David Cushen
EntityIndividual
Role
Senior Key Executive
Senior Vice President of Mergers & Acquisitions
Shares4,000
Max PriceUS$88.11
SellUS$27,14707 Aug 19
Robert Kuhns
EntityIndividual
Shares310
Max PriceUS$87.57
SellUS$297,50017 May 19
Robert Buck
EntityIndividual
Role
President
President & COO
Shares3,500
Max PriceUS$85.00
SellUS$345,48016 May 19
John Peterson
EntityIndividual
Role
Chief Financial Officer
CFO & VP
Shares4,000
Max PriceUS$86.37
SellUS$283,50013 May 19
Robert Buck
EntityIndividual
Role
President
President & COO
Shares3,500
Max PriceUS$81.00
SellUS$519,66405 Mar 19
John Peterson
EntityIndividual
Role
Chief Financial Officer
CFO & VP
Shares8,593
Max PriceUS$60.68
SellUS$658,61804 Mar 19
Robert Buck
EntityIndividual
Role
President
President & COO
Shares11,200
Max PriceUS$59.64

Ownership Breakdown


Management Team

  • Tabitha Zane

    Vice President of Investor Relations

    • Tenure: 4yrs
  • Steve Raia (64yo)

    President of TruTeam Operations

    • Tenure: 1.9yrs
    • Compensation: US$1.35m
  • Jerry Volas (64yo)

    CEO & Director

    • Tenure: 4.3yrs
    • Compensation: US$4.16m
  • Robert Buck (49yo)

    President & COO

    • Tenure: 4.3yrs
    • Compensation: US$1.93m
  • John Peterson (60yo)

    CFO & VP

    • Tenure: 4.3yrs
    • Compensation: US$1.46m
  • David Cushen (50yo)

    Senior Vice President of Mergers & Acquisitions

    • Tenure: 3.3yrs
    • Compensation: US$906.76k
  • Brad Manning

    Chief Information Officer

    • Tenure: 4.8yrs
  • David Whan

    Chief Human Resources Officer

    • Tenure: 2.4yrs
  • Don Walther (50yo)

    VP, General Counsel & Corporate Secretary

    • Tenure: 0.4yrs
  • Robin Stennet

    Vice President of Innovation & Marketing

    • Tenure: 0.8yrs

Board Members

  • Nancy Taylor (59yo)

    Independent Director

    • Tenure: 1.5yrs
    • Compensation: US$173.90k
  • Carl Camden (65yo)

    Independent Director

    • Tenure: 4.3yrs
    • Compensation: US$179.63k
  • Alec Covington (62yo)

    Independent Chairman of the Board

    • Tenure: 3.8yrs
    • Compensation: US$329.63k
  • Joseph Cantie (55yo)

    Independent Director

    • Tenure: 4.3yrs
    • Compensation: US$199.63k
  • Mark Petrarca (55yo)

    Independent Director

    • Tenure: 4.3yrs
    • Compensation: US$194.63k
  • Jerry Volas (64yo)

    CEO & Director

    • Tenure: 4.3yrs
    • Compensation: US$4.16m
  • Tina Donikowski (60yo)

    Independent Director

    • Tenure: 1.5yrs
    • Compensation: US$173.90k

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$3.483b
  • Shares outstanding: 34.28m
  • 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

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 Dist ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/19 00:33
End of Day Share Price2019/10/18 00:00
Earnings2019/06/30
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.