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 14.55%, its profits have fallen by -4.3% ; the PEG ratio of the company is 4.2
6
Market Beating performance in long term as well as near term
- Along with generating 14.55% returns in the last 1 year, the stock has outperformed S&P 500 in the last 3 years, 1 year and 3 months
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.
14.69%
0.30
39.26%
S&P 500
13.22%
0.64
20.20%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
14.56%
EBIT Growth (5y)
22.96%
EBIT to Interest (avg)
13.30
Debt to EBITDA (avg)
1.18
Net Debt to Equity (avg)
0.53
Sales to Capital Employed (avg)
1.37
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
17
Industry P/E
Price to Book Value
4.88
EV to EBIT
13.07
EV to EBITDA
11.25
EV to Capital Employed
3.53
EV to Sales
2.17
PEG Ratio
4.19
Dividend Yield
NA
ROCE (Latest)
27.05%
ROE (Latest)
29.03%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bearish
Bullish
RSI
No Signal
No Signal
Bollinger Bands
Bullish
Bullish
Moving Averages
Bullish (Daily)
KST
Mildly Bearish
Mildly Bearish
Dow Theory
Mildly Bullish
No Trend
OBV
No Trend
Mildly Bearish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend3What is working for the Company
OPERATING CASH FLOW(Y)
Highest at USD 853.18 MM
-6What is not working for the Company
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
Here's what is working for TopBuild Corp.
Operating Cash Flow
Highest at USD 853.18 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)
Depreciation
Highest at USD 35.89 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
At USD 20.55 MM has Grown at 23.75%
period on period (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (USD MM)
Interest Coverage Ratio
Lowest at 1,251.28
in the last five periodsMOJO Watch
The company's ability to manage interest payments is deteriorating
Operating Profit to Interest
Interest
Highest at USD 20.55 MM
in the last five periods and Increased by 23.75% (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (USD MM)
Debt-Equity Ratio
Highest at 57.83 %
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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