TopBuild Corp. (BLD) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Comfort Systems USA, Inc.

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EMCOR Group, Inc.

APi Group Corp.

Exponent, Inc.

MasTec, Inc.

Quanta Services, Inc.

AECOM

Fluor Corp.

Installed Building Products, Inc.

TopBuild Corp.

Why is TopBuild Corp. ?

High Management Efficiency with a high ROCE of 24.02%

Strong ability to service debt as the company has a low Debt to EBITDA ratio of 1.18 times

Healthy long term growth as Net Sales has grown by an annual rate of 14.56% and Operating profit at 22.96%

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

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 Report

Verdict Report

How much should you sell?

All quantity irrespective of whether you are making profits or losses

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Construction)

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is TopBuild Corp. for you?

Medium Risk, Medium Return

Absolute

Risk Adjusted

Volatility

TopBuild Corp.

34.56%

0.26

39.41%

S&P 500

22.93%

0.70

20.15%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

14.76%

EBIT Growth (5y)

18.28%

EBIT to Interest (avg)

13.30

Debt to EBITDA (avg)

1.18

Net Debt to Equity (avg)

0.53

Sales to Capital Employed (avg)

1.30

Tax Ratio

25.78%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

100.00%

ROCE (avg)

24.02%

ROE (avg)

24.56%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

5.17

EV to EBIT

17.93

EV to EBITDA

14.86

EV to Capital Employed

2.90

EV to Sales

2.72

PEG Ratio

Dividend Yield

ROCE (Latest)

16.19%

ROE (Latest)

23.45%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Bearish

Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Bearish

Bullish

Dow Theory

Mildly Bullish

No Trend

OBV

Mildly Bullish

Mildly Bearish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

0What is working for the Company

NO KEY POSITIVE TRIGGERS

-19What is not working for the Company

INTEREST(HY)

At USD 74.83 MM has Grown at 120.85%

INTEREST COVERAGE RATIO(Q)

Lowest at 635.5

ROCE(HY)

Lowest at 22.26%

DEBT-EQUITY RATIO (HY)

Highest at 118.89 %

INVENTORY TURNOVER RATIO(HY)

Lowest at 8.69 times

OPERATING PROFIT MARGIN(Q)

Lowest at 16.1 %

PRE-TAX PROFIT(Q)

Lowest at USD 141.15 MM

NET PROFIT(Q)

Lowest at USD 105.86 MM

Here's what is working for TopBuild Corp.

Depreciation

Highest at USD 56.3 MM

in the last five periods

MOJO 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

At USD 74.83 MM has Grown at 120.85%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (USD MM)

Interest Coverage Ratio

Lowest at 635.5 and Fallen

In each period in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Operating Profit Margin

Lowest at 16.1 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at USD 141.15 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (USD MM)

Pre-Tax Profit

At USD 141.15 MM has Fallen at -22.94%

over average net sales of the previous four periods of USD 183.17 MM

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (USD MM)

Net Profit

Lowest at USD 105.86 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (USD MM)

Net Profit

At USD 105.86 MM has Fallen at -22.04%

over average net sales of the previous four periods of USD 135.8 MM

MOJO Watch

Near term Net Profit trend is negative

Net Profit (USD MM)

Debt-Equity Ratio

Highest at 118.89 %

in the last five Semi-Annual periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio

Inventory Turnover Ratio

Lowest at 8.69 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio