Installed Building Products (IBP) AI Stock Analysis

• Market Cap: $7.27B
• Dividend Yield: 1.18%
• Average Volume (3M): 595.92K
• Price to Earnings (P/E): 29.6
• Beta (1Y): 1.37
• Revenue Growth: 3.44%
• EPS Growth: 0.25%
• Country: US
• Employees: 10,800
• Sector: Consumer Cyclical
• Sector Strength: 75
• Industry: Residential Construction
• EPS (TTM): 2.95
• Shares Outstanding: 27,326,395
• 10 Day Avg. Volume: 453,308
• 30 Day Avg. Volume: 595,923
• PEG Ratio: 3.31
• Price to Book (P/B): 6.96
• Price to Sales (P/S): 1.67
• P/FCF Ratio: 19.54
• Enterprise Value/Market Cap: 0.77
• Enterprise Value/Revenue: 1.90
• Enterprise Value/Gross Profit: 5.66
• Enterprise Value/Ebitda: 10.98
• 1Y Price Target: $226.56
• Price Target Upside: -16.77% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 10

• Rating: 78 Outperform
• Price Target: $313.00 ▲(14.98% Upside)

Installed Building Products scores well due to strong financial performance and bullish technical indicators. The company's strategic acquisitions and positive earnings call sentiment further bolster its position. However, high leverage and valuation concerns slightly temper the overall score.

Positive Factors

Acquisition Strategy

The acquisition of Carolina Precision Fibers enhances IBP's market position by expanding its product offerings and operational footprint, contributing to long-term growth through increased revenue and access to environmentally responsible materials.

Cash Flow Management

Strong cash flow growth indicates efficient cash generation and management, providing IBP with the financial flexibility to invest in strategic initiatives and sustain operations, supporting long-term business stability.

Commercial Market Growth

Growth in commercial sales reflects robust demand in the sector, positioning IBP to capitalize on opportunities in heavy commercial activity, which can drive sustained revenue growth and market expansion.

Negative Factors

Slowed Acquisition Pace

A slower acquisition pace could hinder IBP's growth strategy, reducing the potential for revenue expansion and market diversification, which are critical for maintaining competitive advantage.

High Leverage

High leverage poses a risk to financial stability, potentially limiting IBP's ability to invest in growth opportunities and increasing vulnerability to economic downturns, impacting long-term sustainability.

Residential Market Challenges

Declining residential sales highlight challenges in the housing market, which may affect IBP's revenue from this segment, necessitating strategic adjustments to mitigate impact and sustain growth.

Installed Building Products Business Overview & Revenue Model

Company Description

Installed Building Products (IBP) is a leading provider of insulation and building product installation services in the United States. The company operates in the residential and commercial sectors, offering a wide range of products including insulation, gutters, garage doors, and other building materials. IBP serves homebuilders, contractors, and homeowners, delivering customized solutions that enhance energy efficiency and comfort in buildings.

How the Company Makes Money

IBP generates revenue primarily through the installation of insulation products, which includes both fiberglass and foam insulation, as well as additional services related to building products. The company's revenue model is based on a mix of direct service contracts with builders and general contractors, as well as retail sales to homeowners. Key revenue streams come from large-scale residential construction projects and commercial contracts, with a growing emphasis on energy-efficient products that meet regulatory standards. IBP benefits from strategic partnerships with major manufacturers of insulation and building materials, allowing it to offer a comprehensive range of products while maintaining competitive pricing. The company's diversified service offerings and geographical reach further contribute to its earnings stability.

Installed Building Products Financial Statement Overview

Summary

Installed Building Products demonstrates strong revenue growth and profitability, supported by effective cash flow management. However, high leverage remains a concern, necessitating careful financial management to mitigate risks associated with debt.

Income Statement

Installed Building Products shows strong revenue growth with a TTM increase of 77.4%, indicating robust demand in the residential construction sector. The company maintains healthy profitability with a gross profit margin of 33.57% and a net profit margin of 8.45% in the TTM. However, there is a slight decline in EBIT and EBITDA margins compared to the previous year, suggesting potential cost pressures.

Balance Sheet

The company's balance sheet reflects a high debt-to-equity ratio of 1.48, indicating significant leverage. While the return on equity remains strong at 36.39%, the high leverage poses a risk in volatile market conditions. The equity ratio is moderate, suggesting a balanced asset structure but with room for improvement in reducing debt levels.

Cash Flow

Cash flow analysis reveals a positive trend with a 6.38% growth in free cash flow in the TTM. The operating cash flow to net income ratio is 0.49, indicating efficient cash generation relative to profits. The free cash flow to net income ratio of 0.74 suggests good cash conversion, though there is potential to enhance operating cash flow coverage.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.96B	2.94B	2.78B	2.67B	1.97B	1.65B
Gross Profit	992.20M	994.50M	930.70M	827.78M	589.45M	509.97M
EBITDA	511.60M	517.80M	495.80M	462.60M	288.02M	249.46M
Net Income	249.90M	256.60M	243.70M	223.40M	118.80M	97.24M
Balance Sheet
Total Assets	2.02B	2.06B	1.98B	1.78B	1.65B	1.19B
Cash, Cash Equivalents and Short-Term Investments	305.20M	327.60M	386.50M	229.60M	333.49M	231.52M
Total Debt	983.40M	978.30M	954.80M	946.00M	937.38M	622.99M
Total Liabilities	1.36B	1.35B	1.31B	1.29B	1.24B	868.49M
Stockholders Equity	664.50M	705.30M	670.30M	493.50M	416.84M	319.18M
Cash Flow
Free Cash Flow	276.90M	251.40M	278.60M	232.26M	101.30M	147.20M
Operating Cash Flow	358.70M	340.00M	340.20M	277.90M	138.30M	180.79M
Investing Cash Flow	-147.10M	-159.10M	-103.40M	-158.70M	-278.44M	-77.79M
Financing Cash Flow	-286.70M	-239.80M	-79.90M	-223.10M	242.09M	-49.36M

Installed Building Products Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 272.21
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IBP, the sentiment is Positive. The current price of 272.21 is above the 20-day moving average (MA) of 268.30, above the 50-day MA of 233.31, and above the 200-day MA of 191.15, indicating a bullish trend. The MACD of 10.13 indicates Positive momentum. The RSI at 60.91 is Neutral, neither overbought nor oversold. The STOCH value of 58.13 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IBP.

Installed Building Products Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
IBP	78 Outperform	$7.27B	29.57	37.03%	1.18%	3.44%	0.25%
SKY	78 Outperform	$4.19B	19.73	14.39%	―	16.87%	54.47%
CVCO	77 Outperform	$4.28B	23.41	17.90%	―	16.66%	34.61%
MTH	76 Outperform	$5.59B	8.96	12.58%	2.05%	-3.72%	-23.00%
TMHC	76 Outperform	$6.89B	8.05	15.59%	―	13.77%	28.57%
LEN	74 Outperform	$35.18B	11.29	13.04%	1.45%	-1.26%	-17.78%
Sector *	61 Neutral	$18.09B	12.97	-1.60%	2.98%	1.42%	-15.92%

Installed Building Products Corporate Events

Installed Building Products Acquires Carolina Precision Fibers

On September 8, 2025, Installed Building Products announced its acquisition of Carolina Precision Fibers ACP, LLC, a manufacturer of recycled fiber products, which is expected to add over $20 million in annual revenue. This acquisition enhances IBP’s access to environmentally responsible materials and strengthens its market position by expanding its product offerings and operational footprint, contributing to a total of $39 million in acquired annual revenue for 2025.

Installed Building Products Announces Share Repurchase Agreement

On August 19, 2025, Installed Building Products, Inc. entered into a share repurchase agreement with PJAM IBP Holdings, Inc. to buy back 200,000 shares of its common stock at a discounted price of $257.38 per share, totaling $51,476,000. This transaction, approved by the company’s Board of Directors and Audit Committee, is part of a previously announced stock buyback program and will be funded from the company’s cash reserves, potentially impacting its financial position and shareholder value.

Installed Building Products Reports Record Q2 2025 Results

Installed Building Products reported record second quarter 2025 results with a 3.1% increase in net revenue to $760.3 million and a 5.8% rise in net income to $69.0 million. The company declared a quarterly cash dividend of $0.37 per share for the third quarter, reflecting a 6% increase from the previous year, and continued its strategy of growth through acquisitions, including the purchase of Pro Foamers, Inc.