TopBuild (BLD) AI Stock Analysis

• Market Cap: $8.53B
• Dividend Yield: N/A
• Average Volume (3M): 371.14K
• Price to Earnings (P/E): 15.1
• Beta (1Y): 1.35
• Revenue Growth: 1.46%
• EPS Growth: -0.37%
• Country: US
• Employees: 13,984
• Sector: Industrials
• Sector Strength: 87
• Industry: Engineering & Construction
• EPS (TTM): 4.63
• Shares Outstanding: 28,586,765
• 10 Day Avg. Volume: 445,513
• 30 Day Avg. Volume: 371,141
• 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: 0.76
• Enterprise Value/Revenue: 0.31
• Enterprise Value/Gross Profit: 4.08
• Enterprise Value/Ebitda: 1.57
• 1Y Price Target: $352.13
• Price Target Upside: 17.95% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 10

• Rating: 76 Outperform
• Price Target: $341.00 ▲(14.23%Upside)

TopBuild demonstrates strong financial performance and strategic corporate actions that enhance its liquidity and financial flexibility. While technical indicators and valuation suggest moderate attractiveness, the balanced earnings call sentiment and positive corporate events underscore the company's resilience and potential for growth.

Positive Factors

Commercial and Industrial Growth

Heavy commercial activity remains healthy, with management expecting C&I to grow at the high-end of low-single digit percentages, slightly better than initial outlooks.

M&A and Capital Allocation

M&A remains a focus with an active pipeline, and if no attractive deals are found, excess cash flow will be used for share repurchases.

Market Share Opportunities

There is still runway for share gains in residential installation as BLD and its largest competitor dominate over 50% of the market, while the rest remains highly fragmented.

Negative Factors

Decremental Margins

Decrementals are elevated versus long-term guidance due to price-cost headwinds, with 2025 guidance implying decrementals above 50%.

Interest Rates and Affordability

Elevated interest rates continue to limit new construction as affordability remains a top concern for homebuyers.

Residential Market Challenges

The residential volume outlook remains choppy, with a decline in single-family starts and multi-family revenue, limiting growth potential.

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 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
	EBIT
849.32M	886.34M	895.02M	797.16M	476.42M	355.05M
	EBITDA
1.01B	1.05B	1.03B	922.19M	541.98M	417.96M
	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
308.81M	400.32M	848.57M	240.07M	139.78M	330.01M
	Total Assets
4.60B	4.74B	5.16B	4.61B	4.26B	2.82B
	Total Debt
1.57B	1.58B	1.57B	1.68B	1.68B	793.96M
	Net Debt
1.26B	1.18B	721.87M	1.44B	1.54B	463.96M
	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: Neutral
• Last Price: 298.53
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• 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 Neutral. The current price of 298.53 is above the 20-day moving average (MA) of 292.05, above the 50-day MA of 292.50, and below the 200-day MA of 336.19, indicating a neutral trend. The MACD of 2.80 indicates Negative momentum. The RSI at 52.12 is Neutral, neither overbought nor oversold. The STOCH value of 69.51 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for BLD.

TopBuild Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BLD	76 Outperform	$8.53B	15.11	24.59%	―	1.46%	-0.37%
MLI	75 Outperform	$8.22B	13.53	24.51%	1.35%	18.81%	10.05%
WCC	73 Outperform	$8.46B	13.11	14.38%	1.05%	-1.80%	9.55%
MIDD	73 Outperform	$7.69B	17.64	12.33%	―	-2.56%	11.51%
BECN	72 Outperform	$7.72B	25.25	16.54%	―	4.93%	―
CR	72 Outperform	$10.43B	35.15	18.82%	0.51%	6.65%	39.13%
Sector *	66 Neutral	$4.47B	12.22	5.40%	3.65%	4.14%	-12.00%

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.