TopBuild (BLD) AI Stock Analysis

• Market Cap: $7.99B
• Dividend Yield: N/A
• Average Volume (3M): 295.60K
• Price to Earnings (P/E): 14.2
• Beta (1Y): 1.36
• Revenue Growth: 1.46%
• EPS Growth: -0.37%
• Country: US
• Employees: 13,984
• Sector: Industrials
• Sector Strength: 92
• Industry: Engineering & Construction
• EPS (TTM): 4.63
• Shares Outstanding: 28,586,765
• 10 Day Avg. Volume: 276,937
• 30 Day Avg. Volume: 295,596
• PEG Ratio: -5.18
• Price to Book (P/B): 4.05
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 12.29
• Enterprise Value/Market Cap: 1.21
• Enterprise Value/Revenue: 0.46
• Enterprise Value/Gross Profit: 6.10
• Enterprise Value/Ebitda: 2.38
• 1Y Price Target: $358.22
• Price Target Upside: 28.10% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 11

• Rating: 75 Outperform
• Price Target: $332.00 ▲( 18.72% Upside)

TopBuild's overall stock score reflects its robust financial performance and strategic initiatives, balanced by technical analysis and valuation concerns. Strong operational efficiency and liquidity improvements bolster its position, but economic uncertainties in the residential market pose challenges.

Positive Factors

Competitive Advantages

TopBuild is believed to have competitive advantages over smaller competitors in the residential insulation market.

Cost Management

Careful analysis of customer delivery points resulted in the consolidation of 33 facilities, leading to ~$30M in annual savings.

Financial Performance

TopBuild reported strong results as a resilient gross margin helped EBITDA and EPS surpass street expectations despite in-line revenue.

Negative Factors

Interest Rates Impact

Elevated interest rates continue to limit new construction as affordability remains a top concern for homebuyers and lending rates remain a high hurdle for developers.

Market Conditions

Spring selling season has been off to a slow start, and BLD is ceding some price & holding on to labor for a recovery in demand.

Residential Market Challenges

Residential softness limits upside due to weaker than anticipated single-family activity, restricted by affordability concerns and elevated mortgage rates.

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 through its two main business segments: Installation and Distribution. In the Installation segment, the company provides installation services for insulation and other building products to builders, contractors, and homeowners. This segment benefits from new residential construction, commercial building projects, and renovation activities. In the Distribution segment, TopBuild sells insulation and complementary construction products to contractors and retailers, leveraging a network of distribution centers across the U.S. The company also forms strategic partnerships with manufacturers and suppliers to ensure a reliable supply chain. Its earnings are significantly influenced by the U.S. construction market trends, housing starts, and energy efficiency regulations.

TopBuild Financial Statement Overview

Summary

TopBuild exhibits strong financial performance with robust profitability and efficient cash management. The income statement highlights strong margins, though revenue growth faced a slight decline recently. The balance sheet shows a moderate debt-to-equity ratio and improved financial stability, but there is room for better return on equity. Cash flow conversion is robust, emphasizing effective cash management.

Income Statement

TopBuild's income statement shows strong profitability with a consistent gross profit margin of around 30%, and a net profit margin exceeding 11% in the TTM. Revenue growth has been steady, although there was a slight decline in the latest TTM period. The EBIT and EBITDA margins reflect solid operational efficiency, contributing to a high score.

Balance Sheet

The balance sheet indicates a moderate debt-to-equity ratio, which suggests a balanced approach to leveraging. The equity ratio has improved over time, reflecting increased financial stability. However, the return on equity has been relatively stable, leaving room for improvement in generating shareholder returns.

Cash Flow

TopBuild's cash flow statement highlights a healthy free cash flow growth and a strong operating cash flow to net income ratio. The company's ability to convert earnings into cash flow is robust, which is a positive indicator of financial health. The free cash flow to net income ratio further demonstrates effective cash management.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
5.28B	5.33B	5.19B	5.01B	3.49B	2.72B
	Gross Profit
1.59B	1.62B	1.60B	1.49B	974.39M	746.36M
	EBIT
849.32M	886.34M	895.02M	797.16M	476.42M	355.05M
	EBITDA
971.81M	1.05B	1.03B	922.19M	555.81M	418.19M
	Net Income Common Stockholders
593.61M	622.60M	614.25M	555.99M	324.02M	247.02M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
968.81M	400.32M	848.57M	240.07M	139.78M	330.01M
	Total Assets
5.31B	4.74B	5.16B	4.61B	4.26B	2.82B
	Total Debt
1.55B	1.58B	1.57B	1.68B	1.68B	793.96M
	Net Debt
586.19M	1.18B	721.87M	1.44B	1.54B	463.96M
	Total Liabilities
2.60B	2.53B	2.60B	2.68B	2.62B	1.47B
	Stockholders Equity
2.71B	2.21B	2.56B	1.93B	1.64B	1.35B
Cash Flow		Free Cash Flow
686.98M	706.68M	785.41M	419.42M	347.48M	316.95M
	Operating Cash Flow
749.84M	776.03M	849.41M	495.80M	403.02M	357.88M
	Investing Cash Flow
-175.86M	-203.52M	-198.17M	-93.91M	-1.32B	-121.88M
	Financing Cash Flow
-1.23B	-1.02B	-43.84M	-300.07M	729.01M	-90.80M

TopBuild Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 279.65
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 279.65 is below the 20-day moving average (MA) of 294.51, below the 50-day MA of 296.13, and below the 200-day MA of 342.28, indicating a bearish trend. The MACD of -2.87 indicates Positive momentum. The RSI at 41.07 is Neutral, neither overbought nor oversold. The STOCH value of 9.24 is Positive, 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
CR	76 Outperform	$9.82B	33.07	18.82%	0.49%	6.65%	39.13%
BLD	75 Outperform	$7.99B	14.15	24.59%	―	1.46%	-0.37%
WCC	75 Outperform	$8.04B	12.46	14.38%	1.02%	-1.80%	9.55%
MLI	74 Outperform	$8.42B	13.87	24.51%	1.12%	18.81%	10.05%
MIDD	73 Outperform	$7.80B	18.21	12.33%	―	-2.56%	11.51%
BECN	72 Outperform	$7.72B	25.25	16.54%	―	4.93%	―
Sector *	64 Neutral	$4.39B	11.81	5.20%	249.38%	3.96%	-12.36%

TopBuild Corporate Events

TopBuild Expands Credit Facilities to Boost Liquidity

On May 16, 2025, TopBuild Corp. announced a significant amendment to its credit agreement, increasing its revolving credit facility from $500 million to $1 billion and introducing a new $1 billion term loan and a $250 million delayed draw term loan, all maturing in May 2030. This renewal and upsizing of its senior secured credit facilities, which now total $2.25 billion, is expected to enhance TopBuild’s liquidity and financial flexibility, reflecting strong support from banking partners and confidence in the company’s business model.

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.

TopBuild Reports Q1 Sales Decline, Maintains Outlook

On May 6, 2025, TopBuild Corp. reported a 3.6% decline in first-quarter sales to $1.23 billion, with installation sales down 6.7% but partially offset by a 2.6% growth in specialty distribution. Despite the sales decline, the company maintained a healthy adjusted EBITDA margin of 19.0%. TopBuild is focusing on cost alignment with current demand and continues to prioritize acquisitions, having completed the acquisition of Seal-Rite Insulation in April. The company returned $215.6 million to shareholders through share repurchases in the first quarter and confirmed its full-year outlook.

TopBuild Shareholders Approve Key Proposals at Annual Meeting

On April 28, 2025, TopBuild held its Annual Meeting where key proposals were voted on by shareholders. The election of directors, the ratification of PricewaterhouseCoopers LLP as the independent auditor for 2025, the approval of executive compensation, and the amendment of the Long Term Stock Incentive Plan were all passed, indicating strong shareholder support for the company’s governance and strategic initiatives.

TopBuild Announces Record Sales and Share Buyback Plan

TopBuild Corp. reported its financial results for the fourth quarter and full year ending December 31, 2024, on February 25, 2025. The company achieved record sales of $5.3 billion for 2024, with an adjusted EBITDA of $1.07 billion, and completed eight acquisitions totaling $153.1 million in annual sales. For 2025, TopBuild projects sales between $5.05 to $5.35 billion and adjusted EBITDA ranging from $925 million to $1.075 billion, with a continued focus on acquisitions. The company also announced a new $1 billion share repurchase authorization, reflecting confidence in its strategic outlook and capital allocation.