TopBuild (BLD) AI Stock Analysis

• Market Cap: $12.72B
• Dividend Yield: N/A
• Average Volume (3M): 357.00K
• Price to Earnings (P/E): 22.3
• Beta (1Y): 1.29
• Revenue Growth: -0.77%
• EPS Growth: 4.34%
• Country: US
• Employees: 13,984
• Sector: Industrials
• Sector Strength: 72
• Industry: Engineering & Construction
• EPS (TTM): 5.31
• Shares Outstanding: 28,138,830
• 10 Day Avg. Volume: 254,958
• 30 Day Avg. Volume: 356,998
• 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: 0.82
• Enterprise Value/Revenue: 2.01
• Enterprise Value/Gross Profit: 6.72
• Enterprise Value/Ebitda: 10.31
• 1Y Price Target: $466.22
• Price Target Upside: 3.15% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 9

• Rating: 74 Outperform
• Price Target: $488.00 ▲(7.97% Upside)

TopBuild's overall score reflects its strong financial performance and strategic initiatives, particularly the acquisition of Progressive Roofing, which supports long-term growth. Technical indicators suggest a positive trend, though caution is warranted due to potential overbought conditions. Valuation is moderate, with no dividend yield. The earnings call provided a positive outlook despite residential market challenges.

Positive Factors

Strategic Acquisition

The acquisition of Progressive Roofing positions TopBuild in the lucrative commercial roofing market, enhancing its growth potential and market reach. This strategic move is expected to contribute significantly to sales and EBITDA, supporting long-term business expansion.

Cash Flow Management

Strong cash flow management indicates TopBuild's ability to generate significant cash relative to profits, providing financial flexibility for future investments and acquisitions, which is crucial for sustaining long-term growth.

Commercial and Industrial Growth

Growth in the commercial and industrial segments offsets residential market weaknesses, showcasing TopBuild's diversified revenue streams and resilience in varying market conditions, supporting sustained business performance.

Negative Factors

Decline in Residential Sales

The decline in residential sales highlights vulnerability in a key market segment, potentially affecting revenue stability and growth if the trend continues, necessitating strategic adjustments to mitigate impact.

Lower Volume in Installation Segment

A significant drop in installation volumes indicates challenges in core operations, which could pressure margins and profitability if not addressed, impacting long-term operational efficiency.

Increased Interest Expenses

Rising interest expenses increase financial burdens, reducing net income and cash available for growth initiatives, potentially limiting financial flexibility and strategic options in the long term.

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 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: 451.98
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• 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 451.98 is above the 20-day moving average (MA) of 422.88, above the 50-day MA of 420.30, and above the 200-day MA of 347.76, indicating a bullish trend. The MACD of 10.82 indicates Negative momentum. The RSI at 66.84 is Neutral, neither overbought nor oversold. The STOCH value of 77.29 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	―	$34.63B	41.57	43.84%	0.21%	27.71%	80.54%
STRL	―	$11.53B	41.22	36.72%	―	3.31%	76.94%
DY	―	$8.45B	32.82	20.65%	―	12.61%	10.33%
BLD	―	$12.72B	22.27	26.41%	―	-0.77%	4.34%
FLR	―	$7.91B	2.02	102.24%	―	3.62%	943.43%
MTZ	―	$16.72B	62.87	9.38%	―	7.08%	3273.27%
Sector *	―	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

TopBuild Corporate Events

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.