ScoreWhy is TopBuild Corp. ?
1
High Management Efficiency with a high ROCE of 24.02%
2
Strong ability to service debt as the company has a low Debt to EBITDA ratio of 1.18 times
3
Healthy long term growth as Net Sales has grown by an annual rate of 14.56% and Operating profit at 22.96%
4
Flat results in Jun 25
- INTEREST COVERAGE RATIO(Q) Lowest at 1,251.28
- DEBT-EQUITY RATIO (HY) Highest at 57.83 %
- INTEREST(Q) Highest at USD 20.55 MM
5
With ROCE of 27.05%, it has a fair valuation with a 3.53 Enterprise value to Capital Employed
- The stock is trading at a discount compared to its peers' average historical valuations
- Over the past year, while the stock has generated a return of 21.20%, its profits have fallen by -4.3% ; the PEG ratio of the company is 4.2
Real-Time Research ReportHow much should you hold?
- Overall Portfolio exposure to TopBuild Corp. should be less than 10%
- Overall Portfolio exposure to Construction should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Construction)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is TopBuild Corp. for you?
Medium Risk, Medium Return
Absolute
Risk Adjusted
Volatility
TopBuild Corp.
24.4%
0.26
39.41%
S&P 500
20.12%
0.70
20.15%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
14.51%
EBIT Growth (5y)
20.89%
EBIT to Interest (avg)
13.30
Debt to EBITDA (avg)
1.18
Net Debt to Equity (avg)
0.53
Sales to Capital Employed (avg)
1.33
Tax Ratio
25.78%
Dividend Payout Ratio
0
Pledged Shares
0
Institutional Holding
100.00%
ROCE (avg)
24.02%
ROE (avg)
24.56%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
25
Industry P/E
Price to Book Value
7.06
EV to EBIT
18.85
EV to EBITDA
16.17
EV to Capital Employed
4.99
EV to Sales
3.11
PEG Ratio
25.36
Dividend Yield
NA
ROCE (Latest)
26.49%
ROE (Latest)
27.83%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bearish
Bullish
RSI
No Signal
No Signal
Bollinger Bands
Bearish
Bearish
Moving Averages
Mildly Bullish (Daily)
KST
Mildly Bearish
Bullish
Dow Theory
Mildly Bearish
Mildly Bearish
OBV
Mildly Bearish
Mildly Bearish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend5What is working for the Company
OPERATING CASH FLOW(Y)
Highest at USD 845.82 MM
CASH AND EQV(HY)
Highest at USD 1,984.9 MM
NET SALES(Q)
Highest at USD 1,393.16 MM
-9What is not working for the Company
INTEREST COVERAGE RATIO(Q)
Lowest at 952.49
DEBT-EQUITY RATIO
(HY)
Highest at 87.53 %
INTEREST(Q)
Highest at USD 28.41 MM
Here's what is working for TopBuild Corp.
Operating Cash Flow
Highest at USD 845.82 MM and Grown
In each year in the last three yearsMOJO Watch
The company has generated higher cash revenues from business operations
Operating Cash Flows (USD MM)
Net Sales
Highest at USD 1,393.16 MM
in the last five periodsMOJO Watch
Near term sales trend is positive
Net Sales (USD MM)
Cash and Eqv
Highest at USD 1,984.9 MM
in the last six Semi-Annual periodsMOJO Watch
Short Term liquidity is improving
Cash and Cash Equivalents
Depreciation
Highest at USD 42.34 MM
in the last five periodsMOJO Watch
The expenditure on assets done by the company may have gone into operation
Depreciation (USD MM)
Here's what is not working for TopBuild Corp.
Interest Coverage Ratio
Lowest at 952.49 and Fallen
In each period in the last five periodsMOJO Watch
The company's ability to manage interest payments is deteriorating
Operating Profit to Interest
Interest
At USD 28.41 MM has Grown at 38.31%
period on period (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (USD MM)
Interest
Highest at USD 28.41 MM
in the last five periods and Increased by 38.31% (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (USD MM)
Debt-Equity Ratio
Highest at 87.53 %
in the last five Semi-Annual periodsMOJO Watch
The company is borrowing more to fund its operations; it's liquidity situation may be stressed
Debt-Equity Ratio
InfinHub Market Technologies FZ-LLC, Building-2, Unit 112, Dubai Internet City, Dubai, United Arab Emirates
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