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Installed Building Products

Market Cap

US$3.8b

Last Updated

2021/04/22 11:23 UTC

Data Sources

Company Financials +

Executive Summary

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. More Details


Snowflake Analysis

Solid track record with reasonable growth potential.

Share Price & News

How has Installed Building Products's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: IBP is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 8% a week.

Volatility Over Time: IBP's weekly volatility (8%) has been stable over the past year.


Market Performance


7 Day Return

2.4%

IBP

-1.6%

US Consumer Durables

-0.7%

US Market


1 Year Return

240.7%

IBP

135.1%

US Consumer Durables

58.2%

US Market

Return vs Industry: IBP exceeded the US Consumer Durables industry which returned 135.1% over the past year.

Return vs Market: IBP exceeded the US Market which returned 58.4% over the past year.


Shareholder returns

IBPIndustryMarket
7 Day2.4%-1.6%-0.7%
30 Day23.8%5.1%3.2%
90 Day11.0%16.5%4.4%
1 Year241.6%240.7%138.3%135.1%61.0%58.2%
3 Year120.9%120.3%77.3%70.0%66.1%55.5%
5 Year384.3%383.1%107.2%92.0%120.9%96.2%

Long-Term Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Installed Building Products undervalued compared to its fair value and its price relative to the market?

2.8%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: IBP ($128.15) is trading below our estimate of fair value ($133.07)

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


Price To Earnings Ratio

PE vs Industry: IBP is poor value based on its PE Ratio (38.9x) compared to the US Consumer Durables industry average (16.2x).

PE vs Market: IBP is poor value based on its PE Ratio (38.9x) compared to the US market (21.8x).


Price to Earnings Growth Ratio

PEG Ratio: IBP is poor value based on its PEG Ratio (1.6x)


Price to Book Ratio

PB vs Industry: IBP is overvalued based on its PB Ratio (11.8x) compared to the US Consumer Durables industry average (2.2x).


Future Growth

How is Installed Building Products forecast to perform in the next 1 to 3 years based on estimates from 10 analysts?

24.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: IBP's forecast earnings growth (24% per year) is above the savings rate (2%).

Earnings vs Market: IBP's earnings (24% per year) are forecast to grow faster than the US market (17.6% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: IBP's revenue (9.1% per year) is forecast to grow slower than the US market (9.7% per year).

High Growth Revenue: IBP's revenue (9.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: IBP's Return on Equity is forecast to be high in 3 years time (26.4%)


Past Performance

How has Installed Building Products performed over the past 5 years?

22.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: IBP has high quality earnings.

Growing Profit Margin: IBP's current net profit margins (5.9%) are higher than last year (4.5%).


Past Earnings Growth Analysis

Earnings Trend: IBP's earnings have grown significantly by 22.9% per year over the past 5 years.

Accelerating Growth: IBP's earnings growth over the past year (42.5%) exceeds its 5-year average (22.9% per year).

Earnings vs Industry: IBP earnings growth over the past year (42.5%) exceeded the Consumer Durables industry 37.2%.


Return on Equity

High ROE: Whilst IBP's Return on Equity (30.47%) is high, this metric is skewed due to their high level of debt.


Financial Health

How is Installed Building Products's financial position?


Financial Position Analysis

Short Term Liabilities: IBP's short term assets ($623.9M) exceed its short term liabilities ($236.5M).

Long Term Liabilities: IBP's short term assets ($623.9M) do not cover its long term liabilities ($632.0M).


Debt to Equity History and Analysis

Debt Level: IBP's debt to equity ratio (177.1%) is considered high.

Reducing Debt: IBP's debt to equity ratio has increased from 107.6% to 177.1% over the past 5 years.

Debt Coverage: IBP's debt is well covered by operating cash flow (32%).

Interest Coverage: IBP's interest payments on its debt are well covered by EBIT (5.5x coverage).


Balance Sheet


Dividend

What is Installed Building Products's current dividend yield, its reliability and sustainability?

0.92%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: IBP's dividend (0.94%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.26%).

High Dividend: IBP's dividend (0.94%) is low compared to the top 25% of dividend payers in the US market (3.52%).


Stability and Growth of Payments

Stable Dividend: Too early to tell whether IBP's dividend payments have been stable as they only just started paying a dividend.

Growing Dividend: Too early to tell if IBP's dividend payments are increasing as they only just started paying a dividend.


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: IBP's dividends in 3 years are forecast to be well covered by earnings (15.1% payout ratio).


Next Steps

Management

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

7.7yrs

Average management tenure


CEO

Jeff Edwards (56 yo)

17.25yrs

Tenure

US$3,425,252

Compensation

Mr. Jeffrey W. Edwards, also known as Jeff, has been the Chairman, Chief Executive Officer and President of Installed Building Products, Inc. since 1999, 2004 and 2011 respectively. Mr. Edwards’ position a...


CEO Compensation Analysis

Compensation vs Market: Jeff's total compensation ($USD3.43M) is below average for companies of similar size in the US market ($USD5.19M).

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


Leadership Team

Experienced Management: IBP's management team is seasoned and experienced (7.7 years average tenure).


Board Members

Experienced Board: IBP's board of directors are considered experienced (7.2 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: IBP insiders have only sold shares 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

Installed Building Products, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Installed Building Products, Inc.
  • Ticker: IBP
  • Exchange: NYSE
  • Founded: 1977
  • Industry: Homebuilding
  • Sector: Consumer Durables
  • Market Cap: US$3.805b
  • Shares outstanding: 29.69m
  • Website: https://www.installedbuildingproducts.com

Number of Employees


Location

  • Installed Building Products, Inc.
  • 495 South High Street
  • Suite 50
  • Columbus
  • Ohio
  • 43215
  • United States

Listings


Biography

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 d...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/04/22 11:23
End of Day Share Price2021/04/21 00:00
Earnings2020/12/31
Annual Earnings2020/12/31


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.