TopBuild (BLD) AI Stock Analysis

• Market Cap: $9.94B
• Dividend Yield: N/A
• Average Volume (3M): 405.55K
• Price to Earnings (P/E): 17.6
• Beta (1Y): 1.34
• Revenue Growth: 1.46%
• EPS Growth: -0.37%
• Country: US
• Employees: 13,984
• Sector: Industrials
• Sector Strength: 86
• Industry: Engineering & Construction
• EPS (TTM): 4.63
• Shares Outstanding: 28,586,765
• 10 Day Avg. Volume: 441,673
• 30 Day Avg. Volume: 405,554
• PEG Ratio: 0.12
• Price to Book (P/B): 2.61
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 12.02
• Enterprise Value/Market Cap: 0.65
• Enterprise Value/Revenue: 0.31
• Enterprise Value/Gross Profit: 4.08
• Enterprise Value/Ebitda: 1.57
• 1Y Price Target: $351.57
• Price Target Upside: 1.13% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 9

• Rating: 79 Outperform
• Price Target: $362.00 ▲(4.13%Upside)

TopBuild's strong financial performance and strategic corporate events are the primary drivers of its solid stock score. While technical indicators and earnings call insights present mixed signals, the company's stable financial health and enhanced liquidity position suggest a positive outlook.

Positive Factors

Cost Optimization

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.

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. (BLD) is a leading installer and distributor of insulation and building material products in the United States. Operating primarily through its two segments, the Installation segment and the Distribution segment, TopBuild serves both residential and commercial construction markets. The company focuses on providing high-quality, energy-efficient insulation solutions and other building materials, catering to a broad customer base including homebuilders, contractors, and homeowners.

How the Company Makes Money

TopBuild generates revenue through its two primary segments: Installation and Distribution. The Installation segment, conducted through its TruTeam brand, involves installing insulation and other building products directly for residential and commercial construction projects. Revenue is generated from contracts with builders and contractors who require professional installation services. The Distribution segment operates under the Service Partners brand, which supplies insulation and other building materials to contractors and retailers across the U.S. This segment makes money by purchasing products from manufacturers and reselling them to a wide network of customers. Additionally, TopBuild benefits from partnerships with leading manufacturers and leverages its national scale to optimize its supply chain and pricing strategies, thereby enhancing profitability.

TopBuild Financial Statement Overview

Summary

TopBuild's financial performance is strong, highlighted by robust profitability metrics, efficient cash management, and a stable financial foundation. While there is room for improvement in return on equity, the company's solid margins and cash flow metrics are commendable.

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
EBITDA	1.01B	1.05B	1.03B	922.19M	541.98M	417.96M
Net Income	593.61M	622.60M	614.25M	555.99M	324.02M	247.02M
Balance Sheet
Total Assets	4.60B	4.74B	5.16B	4.61B	4.26B	2.82B
Cash, Cash Equivalents and Short-Term Investments	308.81M	400.32M	848.57M	240.07M	139.78M	330.01M
Total Debt	1.57B	1.58B	1.57B	1.68B	1.68B	793.96M
Total Liabilities	2.48B	2.53B	2.60B	2.68B	2.62B	1.47B
Stockholders Equity	2.12B	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: Positive
• Last Price: 347.63
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• 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 347.63 is above the 20-day moving average (MA) of 315.27, above the 50-day MA of 301.59, and above the 200-day MA of 332.73, indicating a bullish trend. The MACD of 12.20 indicates Negative momentum. The RSI at 71.68 is Negative, neither overbought nor oversold. The STOCH value of 85.74 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
BLD	79 Outperform	$9.94B	17.59	24.59%	―	1.46%	-0.37%
MLI	77 Outperform	$9.14B	15.06	24.51%	1.21%	18.81%	10.05%
MIDD	74 Outperform	$7.95B	18.57	12.33%	―	-2.56%	11.51%
WCC	73 Outperform	$9.48B	14.70	14.38%	0.93%	-1.80%	9.55%
CR	72 Outperform	$11.11B	37.42	18.82%	0.48%	6.65%	39.13%
Sector *	68 Neutral	£2.95B	10.28	8.40%	3.21%	2.87%	-9.95%

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.