TopBuild (BLD) AI Stock Analysis

• Market Cap: $11.76B
• Dividend Yield: N/A
• Average Volume (3M): 355.18K
• Price to Earnings (P/E): 21.3
• Beta (1Y): 1.11
• Revenue Growth: -1.28%
• EPS Growth: -0.66%
• Country: US
• Employees: 13,984
• Sector: Industrials
• Sector Strength: 72
• Industry: Engineering & Construction
• EPS (TTM): 5.36
• Shares Outstanding: 28,071,651
• 10 Day Avg. Volume: 391,440
• 30 Day Avg. Volume: 355,181
• PEG Ratio: 3.06
• Price to Book (P/B): 4.30
• Price to Sales (P/S): 1.78
• P/FCF Ratio: 13.44
• Enterprise Value/Market Cap: 1.10
• Enterprise Value/Revenue: 2.48
• Enterprise Value/Gross Profit: 8.33
• Enterprise Value/Ebitda: 13.03
• 1Y Price Target: $493.66
• Price Target Upside: 22.32% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 10
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 70 Neutral
• Price Target: $460.00 ▲(13.98% Upside)

TopBuild's overall score reflects strong financial performance and strategic acquisitions that bolster growth prospects. However, high leverage, declining free cash flow, and challenges in the residential market pose risks. The stock's valuation is reasonable, but technical indicators suggest mixed momentum. The company's positive outlook and strategic focus on M&A provide a solid foundation for future growth.

Positive Factors

Strategic Acquisitions

The acquisition of Progressive Roofing and other companies strengthens TopBuild's market position and diversifies revenue streams, enhancing long-term growth prospects.

Commercial and Industrial Growth

Growth in commercial and industrial segments offsets residential weakness, indicating resilience and potential for sustained revenue in diverse markets.

Improved EBITDA Margins

Improved EBITDA margins reflect effective cost management and operational efficiency, supporting profitability and financial health over the long term.

Negative Factors

High Leverage

High leverage can pose financial risks, limiting flexibility and increasing vulnerability to economic downturns, impacting long-term stability.

Decline in Residential Sales

Weakness in residential sales highlights vulnerability to sector-specific downturns, potentially affecting revenue consistency and growth.

Declining Free Cash Flow

Reduced free cash flow limits the company's ability to invest in growth opportunities and manage debt, potentially hindering long-term strategic initiatives.

TopBuild Business Overview & Revenue Model

Company Description

TopBuild Corp. is a leading installer and distributor of insulation and building material solutions in the United States. The company operates primarily in the construction sector, offering a wide range of products and services that include insulation installation, distribution of insulation products, and various related building materials. TopBuild serves residential, commercial, and industrial markets, positioning itself as a key player in the construction supply chain with a commitment to energy efficiency and sustainability.

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 shows strong revenue and profit growth, supported by effective cost management. However, high leverage and declining free cash flow growth present potential risks. The company should focus on improving cash flow generation and managing debt levels to sustain its growth trajectory.

Income Statement

TopBuild demonstrates strong revenue growth with a TTM growth rate of 38.1%, indicating robust demand and market expansion. The gross profit margin is healthy at 29.7%, and the net profit margin has improved to 16.3%, reflecting effective cost management and operational efficiency. However, the slight decline in gross profit margin from the previous year suggests potential cost pressures.

Balance Sheet

The company has a high debt-to-equity ratio of 1.39 in the TTM, indicating significant leverage, which could pose financial risks if not managed carefully. However, the return on equity is strong at 39.3%, showcasing effective use of equity to generate profits. The equity ratio stands at 34.7%, suggesting a balanced asset structure.

Cash Flow

Operating cash flow is robust, but the free cash flow has declined by 46.4% in the TTM, which could impact future investments and debt servicing. The operating cash flow to net income ratio is 0.73, indicating moderate cash conversion efficiency. The free cash flow to net income ratio remains strong at 93.9%, highlighting good cash generation relative to net income.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	5.24B	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	995.37M	1.05B	1.03B	922.19M	541.98M	417.96M
Net Income	567.75M	622.60M	614.25M	555.99M	324.02M	247.02M
Balance Sheet
Total Assets	6.41B	4.74B	5.16B	4.61B	4.26B	2.82B
Cash, Cash Equivalents and Short-Term Investments	1.14B	400.32M	848.57M	240.07M	139.78M	330.01M
Total Debt	3.09B	1.58B	1.64B	1.68B	1.68B	793.96M
Total Liabilities	4.19B	2.53B	2.60B	2.68B	2.62B	1.47B
Stockholders Equity	2.22B	2.21B	2.56B	1.93B	1.64B	1.35B
Cash Flow
Free Cash Flow	791.20M	706.68M	785.41M	419.42M	347.48M	316.95M
Operating Cash Flow	845.82M	776.03M	849.41M	495.80M	403.02M	357.88M
Investing Cash Flow	-952.87M	-203.52M	-198.17M	-93.91M	-1.32B	-121.88M
Financing Cash Flow	994.84M	-1.02B	-43.84M	-300.07M	729.01M	-90.80M

TopBuild Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 403.58
• 50DMA: Negative
• 100DMA: Negative
• 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 Negative. The current price of 403.58 is below the 20-day moving average (MA) of 429.79, below the 50-day MA of 419.84, and above the 200-day MA of 354.48, indicating a neutral trend. The MACD of -1.49 indicates Positive momentum. The RSI at 39.45 is Neutral, neither overbought nor oversold. The STOCH value of 44.44 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for BLD.

TopBuild Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
FIX	80 Outperform	$32.08B	38.52	43.84%	0.21%	27.71%	80.54%
DY	77 Outperform	$8.43B	32.73	20.65%	―	12.61%	10.33%
FLR	73 Outperform	$6.83B	2.15	91.03%	―	-1.81%	1228.51%
STRL	71 Outperform	$10.40B	33.21	35.73%	―	6.20%	72.81%
BLD	70 Neutral	$11.76B	21.28	26.18%	―	-1.28%	-0.66%
MTZ	69 Neutral	$15.17B	45.70	11.18%	―	12.99%	274.10%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

TopBuild Corporate Events

TopBuild Corp. Reports Q3 Results and Raises 2025 Outlook

TopBuild Corp., headquartered in Daytona Beach, Florida, is a prominent installer of insulation and commercial roofing, as well as a specialty distributor of insulation and related building products across the United States and Canada.

TopBuild Raises 2025 Sales Outlook Amid Acquisitions

On November 4, 2025, TopBuild Corp. reported its third-quarter results, showing sales of $1.4 billion and an adjusted EBITDA margin of 19.8%. The company raised its 2025 sales outlook to $5.35 to $5.45 billion, incorporating contributions from recent acquisitions, including SPI and four others. Despite challenges in residential new construction due to weak consumer confidence, TopBuild remains optimistic about growth opportunities in commercial and industrial markets, supported by its strategic acquisitions and operational excellence.

The most recent analyst rating on (BLD) stock is a Buy with a $517.96 price target. To see the full list of analyst forecasts on TopBuild stock, see the BLD Stock Forecast page.

TopBuild Completes Acquisition of Specialty Products

On October 8, 2025, TopBuild Corp. announced the completion of its acquisition of Specialty Products and Insulation (SPI) for $1 billion in cash. This strategic acquisition, finalized on October 7, 2025, enhances TopBuild’s leadership in specialty distribution, extends its geographic footprint, and expands its mechanical insulation fabrication capabilities. The transaction is expected to generate $35 to $40 million in annual cost synergies and is immediately accretive to earnings per share. The acquisition strengthens TopBuild’s presence in commercial and industrial markets and improves its non-cyclical revenue stream, with approximately 55% of SPI’s revenue linked to recurring maintenance and repair.

The most recent analyst rating on (BLD) stock is a Hold with a $424.00 price target. To see the full list of analyst forecasts on TopBuild stock, see the BLD Stock Forecast page.

TopBuild Completes $750 Million Senior Notes Offering

On September 25, 2025, TopBuild Corp. completed a private offering of $750 million in senior notes due 2034, with an interest rate of 5.625%. The proceeds are intended for general corporate purposes, potentially including acquisitions. The notes, governed by an indenture, are unsecured senior obligations and are guaranteed by the company’s subsidiaries. They include provisions for redemption and repurchase under specific conditions and are subject to restrictive covenants and events of default.

The most recent analyst rating on (BLD) stock is a Buy with a $487.00 price target. To see the full list of analyst forecasts on TopBuild stock, see the BLD Stock Forecast page.

TopBuild Announces $750M Senior Notes Offering

On September 15, 2025, TopBuild Corp. announced the pricing of its private offering of $750 million in senior unsecured notes due 2034, with an interest rate of 5.625%. The proceeds are intended for general corporate purposes, potentially including acquisitions, and the offering is expected to close on September 25, 2025, subject to customary conditions. The notes will be guaranteed by TopBuild’s wholly owned domestic subsidiaries, but they are not registered under the Securities Act, limiting their sale in the U.S. The announcement highlights TopBuild’s strategic financial maneuvers to support its operations and potential growth through acquisitions.

The most recent analyst rating on (BLD) stock is a Buy with a $487.00 price target. To see the full list of analyst forecasts on TopBuild stock, see the BLD Stock Forecast page.

TopBuild Launches $750M Senior Notes Offering

On September 15, 2025, TopBuild Corp. announced the launch of a private offering of $750 million in senior unsecured notes due 2034 to qualified institutional buyers and certain non-U.S. persons. The proceeds from this offering are intended for general corporate purposes, potentially including acquisitions. The notes will be guaranteed by TopBuild’s wholly owned domestic subsidiaries and are subject to market conditions. This move reflects TopBuild’s strategic financial planning and could impact its market positioning by providing additional capital for growth opportunities.

The most recent analyst rating on (BLD) stock is a Buy with a $487.00 price target. To see the full list of analyst forecasts on TopBuild stock, see the BLD Stock Forecast page.

TopBuild Corp. Reports Q2 Earnings and Strategic Acquisition

TopBuild Corp., based in Daytona Beach, Florida, is a prominent installer of insulation and commercial roofing, and a specialty distributor of insulation and related building materials to the construction industry across the United States and Canada. The company operates through its Installation and Specialty Distribution segments, serving residential, commercial, and industrial markets.

TopBuild Corp’s Earnings Call: Strategic Growth Amid Challenges

TopBuild Corp’s recent earnings call painted a picture of strategic growth tempered by market challenges. The company expressed optimism about its expansion into the commercial roofing market through the acquisition of Progressive Roofing and highlighted strong performance in non-residential segments. However, this was offset by difficulties in the residential market and rising expenses. The guidance for the future reflects cautious optimism, acknowledging potential headwinds in the latter half of the year.

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.

The most recent analyst rating on (BLD) stock is a Buy with a $445.00 price target. To see the full list of analyst forecasts on TopBuild stock, see the BLD Stock Forecast page.