TopBuild (BLD) AI Stock Analysis

• Market Cap: $14.05B
• Dividend Yield: N/A
• Average Volume (3M): 299.17K
• Price to Earnings (P/E): 25.1
• Beta (1Y): 0.97
• 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: 333,540
• 30 Day Avg. Volume: 299,166
• 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: 0.92
• Enterprise Value/Revenue: 2.48
• Enterprise Value/Gross Profit: 8.33
• Enterprise Value/Ebitda: 13.03
• 1Y Price Target: $491.75
• Price Target Upside: -0.41% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 10
• EPS Forecast (FY): 20.95
• Revenue Forecast (FY): $6.16B

• Rating: 68 Neutral
• Price Target: $538.00 ▲(8.96% Upside)

TopBuild's overall score reflects strong financial performance and positive earnings call sentiment, offset by high leverage and valuation concerns. The company's strategic focus on acquisitions and market diversification supports its growth outlook, despite challenges in the residential market.

Positive Factors

Strategic Acquisitions

Acquisitions enhance market opportunities and diversify revenue streams, supporting long-term growth and competitive positioning.

Strong Free Cash Flow

Robust free cash flow indicates strong cash generation ability, enabling reinvestment in growth initiatives and debt management.

Market Expansion

Projected sales and EBITDA growth reflect effective market expansion strategies and potential for increased market share.

Negative Factors

High Leverage

Significant leverage poses financial risks, potentially impacting cash flow and limiting strategic flexibility in adverse conditions.

Volume Decline

Volume declines in key segments can affect revenue stability and indicate potential challenges in maintaining market demand.

Interest Expense Increase

Rising interest expenses reduce net income and could constrain financial resources available for growth and investment.

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 its Installation and Distribution segments. The Installation segment provides insulation installation services for residential and commercial construction projects, making it a significant source of recurring revenue. The Distribution segment involves the sale of insulation products and other building materials to contractors and retail customers. Key revenue streams include direct sales from installations, product sales from distribution centers, and value-added services such as energy audits and consulting. The company also benefits from strategic partnerships with manufacturers and suppliers, enabling it to offer a wide range of products while maintaining competitive pricing. Economic factors such as housing starts, renovation activity, and energy efficiency regulations also contribute to its revenue growth.

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: Positive
• Last Price: 493.77
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 493.77 is above the 20-day moving average (MA) of 446.79, above the 50-day MA of 436.86, and above the 200-day MA of 380.82, indicating a bullish trend. The MACD of 15.64 indicates Negative momentum. The RSI at 66.89 is Neutral, neither overbought nor oversold. The STOCH value of 91.21 is Negative, 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	80 Outperform	$38.48B	46.20	43.84%	0.20%	27.71%	80.54%
DY	78 Outperform	$10.59B	36.49	21.90%	―	13.19%	33.58%
STRL	71 Outperform	$10.33B	34.41	35.73%	―	6.20%	72.81%
BLD	68 Neutral	$14.05B	25.07	26.18%	―	-1.28%	-0.66%
MTZ	66 Neutral	$18.61B	57.61	11.18%	―	12.99%	274.10%
FLR	64 Neutral	$7.00B	2.23	91.03%	―	-1.81%	1228.51%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

TopBuild Corporate Events

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.