TopBuild (BLD) AI Stock Analysis

• Market Cap: $11.71B
• Dividend Yield: N/A
• Average Volume (3M): 404.00K
• Price to Earnings (P/E): 21.4
• Beta (1Y): 1.40
• Revenue Growth: -0.77%
• EPS Growth: 4.34%
• Country: US
• Employees: 13,984
• Sector: Industrials
• Sector Strength: 76
• Industry: Engineering & Construction
• EPS (TTM): 5.31
• Shares Outstanding: 28,138,830
• 10 Day Avg. Volume: 359,472
• 30 Day Avg. Volume: 404,000
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 0.89
• Enterprise Value/Revenue: 2.01
• Enterprise Value/Gross Profit: 6.72
• Enterprise Value/Ebitda: 10.31
• 1Y Price Target: $430.55
• Price Target Upside: -0.85% Downside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 11

• Rating: 78 Outperform
• Price Target: $487.00 ▲(12.16% Upside)

TopBuild's overall score reflects strong technical momentum and strategic growth initiatives, particularly the acquisition of Progressive Roofing. Solid financial performance and improved EBITDA margins further support the score, though challenges in the residential market and valuation concerns slightly temper the outlook.

Positive Factors

Acquisition Impact

The acquisition of Progressive Roofing is seen as a long-term growth driver, enhancing the company's share of non-discretionary and non-cyclical revenue.

Financial Performance

TopBuild reported solid results with revenue aligning with consensus estimates and exceeding expectations for EBITDA and EPS.

Strategic Growth

Operational excellence and M&A growth have led to an upgrade in the stock rating to Buy.

Negative Factors

Cost Challenges

There is a $30 million price/cost headwind in the back half of the year, weighing somewhat on the EBITDA guide.

Earnings Guidance

Management lowered its views for single-family construction, with questions about the impact on insulation pricing over the next 3-4 quarters.

Market Conditions

Weakness in new residential construction led to a decline in revenue and a less optimistic outlook for the installation landscape.

TopBuild Business Overview & Revenue Model

Company Description

TopBuild Corp., together with its subsidiaries, engages in the installation and distribution of insulation and other building products to the construction industry. The company operates in two segments, Installation and Specialty Distribution. It provides insulation products and accessories, glass and windows, rain gutters, afterpaint products, fireproofing products, garage doors, fireplaces, closet shelving, roofing materials, and other products; and insulation installation services. The company also offers various services and tools to assist builders in applying the principles of building science to new home construction, which include pre-construction plan reviews, diagnostic testing, and various inspection services; and home energy rating services. In addition, it distributes building and mechanical insulation, insulation accessories, and other building product materials for the residential, commercial, and industrial end markets. The company serves single-family homebuilders, single-family custom builders, multi-family builders, commercial general contractors, remodelers, and individual homeowners, as well as insulation contractors, gutter contractors, weatherization contractors, other contractors, dealers, metal building erectors, and modular home builders. It operates approximately 235 installation branches and 175 distribution centers in the United States and Canada. The company was formerly known as Masco SpinCo Corp. and changed its name to TopBuild Corp. in March 2015. TopBuild Corp. was incorporated in 2015 and is headquartered in Daytona Beach, Florida.

How the Company Makes Money

TopBuild generates revenue primarily through two key segments: insulation installation services and distribution of insulation and building materials. The installation segment involves providing insulation services to residential and commercial construction projects, where the company earns fees based on the volume and complexity of the work performed. The distribution segment involves selling insulation products and related materials to contractors and builders, generating revenue through product markups and sales commissions. Additionally, TopBuild benefits from strategic partnerships with various manufacturers and suppliers, enhancing its product offerings and market reach. The company also capitalizes on industry trends such as energy efficiency regulations, which drive demand for insulation products, thereby contributing to its overall earnings.

TopBuild Financial Statement Overview

Summary

TopBuild demonstrates solid profitability and cash flow generation, with strong net profit margins and cash flow ratios. However, the recent decline in revenue growth and slight pressure on operating margins warrant attention. The balance sheet is stable, with a balanced debt-to-equity ratio and strong return on equity, though reliance on debt should be monitored.

Income Statement

TopBuild's income statement shows a strong net profit margin of 15.02% in the TTM, indicating solid profitability. However, the revenue growth rate has declined by 1.29% in the TTM, which is a concern. The gross profit margin remains healthy at 29.89%, but the EBIT margin has decreased to 12.44%, suggesting some pressure on operating efficiency.

Balance Sheet

The balance sheet reflects a moderate debt-to-equity ratio of 0.97, indicating a balanced approach to leverage. The return on equity is robust at 36.52%, showcasing effective use of equity. However, the equity ratio stands at 41.87%, suggesting a moderate reliance on debt financing.

Cash Flow

Cash flow analysis reveals a strong free cash flow growth rate of 15.71% in the TTM, highlighting effective cash management. The operating cash flow to net income ratio is 0.92, indicating good cash conversion. The free cash flow to net income ratio of 0.93 further supports strong cash generation relative to profits.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	5.22B	5.33B	5.19B	5.01B	3.49B	2.72B
Gross Profit	1.56B	1.62B	1.60B	1.49B	974.39M	746.36M
EBITDA	1.02B	1.05B	1.03B	922.19M	541.98M	417.96M
Net Income	594.49M	622.60M	614.25M	555.99M	324.02M	247.02M
Balance Sheet
Total Assets	5.12B	4.74B	5.16B	4.61B	4.26B	2.82B
Cash, Cash Equivalents and Short-Term Investments	842.49M	400.32M	848.57M	240.07M	139.78M	330.01M
Total Debt	2.08B	1.58B	1.64B	1.68B	1.68B	793.96M
Total Liabilities	2.98B	2.53B	2.60B	2.68B	2.62B	1.47B
Stockholders Equity	2.14B	2.21B	2.56B	1.93B	1.64B	1.35B
Cash Flow
Free Cash Flow	794.89M	706.68M	785.41M	419.42M	347.48M	316.95M
Operating Cash Flow	853.18M	776.03M	849.41M	495.80M	403.02M	357.88M
Investing Cash Flow	-127.07M	-203.52M	-198.17M	-93.91M	-1.32B	-121.88M
Financing Cash Flow	-345.23M	-1.02B	-43.84M	-300.07M	729.01M	-90.80M

TopBuild Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 434.22
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BLD, the sentiment is Positive. The current price of 434.22 is above the 20-day moving average (MA) of 410.33, above the 50-day MA of 370.51, and above the 200-day MA of 332.99, indicating a bullish trend. The MACD of 17.66 indicates Positive momentum. The RSI at 65.07 is Neutral, neither overbought nor oversold. The STOCH value of 42.49 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for BLD.

TopBuild Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
FIX	81 Outperform	$24.13B	35.15	40.09%	0.25%	26.33%	63.32%
STRL	80 Outperform	$8.40B	29.89	36.72%	―	3.31%	76.94%
BLD	78 Outperform	$11.71B	21.39	26.41%	―	-0.77%	4.34%
DY	74 Outperform	$7.80B	28.93	20.65%	―	12.61%	10.33%
MTZ	72 Outperform	$13.83B	51.19	9.38%	―	7.08%	3273.27%
Sector *	64 Neutral	$10.71B	16.03	7.42%	2.02%	2.57%	-16.39%
FLR	54 Neutral	$6.67B	1.68	102.24%	―	3.62%	943.43%

TopBuild Corporate Events

TopBuild Reports Q2 2025 Results and Acquires Progressive Roofing

On August 5, 2025, TopBuild Corp. reported its second-quarter results for 2025, revealing sales of $1.3 billion and an adjusted EBITDA margin of 20.1%. The company closed the acquisition of Progressive Roofing, which is expected to bolster its growth in the commercial roofing sector. Despite a 5% decline in sales compared to the previous year, driven by a decrease in installation sales, TopBuild remains optimistic about its long-term business fundamentals. The company has also repurchased 455,000 shares, returning $136 million to shareholders, and plans to continue prioritizing mergers and acquisitions to enhance shareholder returns.

TopBuild Acquires Progressive Roofing for $810 Million

On July 8, 2025, TopBuild Corp. announced its agreement to acquire Progressive Roofing for $810 million in cash. This acquisition aligns with TopBuild’s core strengths and expands its building envelope installation solutions to include a comprehensive suite of commercial roofing services. The transaction is expected to be immediately accretive to adjusted earnings per share and will enable TopBuild to tap into the $75 billion commercial roofing services industry, which is largely non-discretionary and highly fragmented. Progressive Roofing, a leader in commercial roofing installation services, generated $438 million in revenue and $89 million in EBITDA for the trailing 12 months ended March 31, 2025. The acquisition is anticipated to enhance TopBuild’s growth potential both organically and through future mergers and acquisitions, providing a scalable platform for growth in the commercial roofing sector.