Installed Building Products (IBP) AI Stock Analysis

• Market Cap: $7.37B
• Dividend Yield: 1.19%
• Average Volume (3M): 570.65K
• Price to Earnings (P/E): 30.0
• Beta (1Y): 1.39
• Revenue Growth: 3.44%
• EPS Growth: 0.25%
• Country: US
• Employees: 10,800
• Sector: Consumer Cyclical
• Sector Strength: 70
• Industry: Residential Construction
• EPS (TTM): 2.95
• Shares Outstanding: 27,326,395
• 10 Day Avg. Volume: 775,299
• 30 Day Avg. Volume: 570,648
• 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: 0.76
• Enterprise Value/Revenue: 1.90
• Enterprise Value/Gross Profit: 5.66
• Enterprise Value/Ebitda: 10.98
• 1Y Price Target: $226.56
• Price Target Upside: -14.24% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 9

• Rating: 72 Outperform
• Price Target: $295.00 ▲(11.67% Upside)

Installed Building Products receives a solid score driven by strong financial performance and positive earnings call highlights. The company's robust revenue growth and profitability are tempered by high leverage and valuation concerns. Technical indicators suggest bullish momentum, though caution is warranted due to overbought signals. The company's strategic focus on multifamily and commercial markets offers growth potential, despite challenges in residential sales and acquisition pace.

Positive Factors

Financial Strategy

Strong balance sheet supports further M&A, buybacks, and dividends, with nine acquisitions in FY24 bringing in approximately $100M in annual revenues.

Market Performance

IBP significantly outperformed the market in 2Q, with flattish single-family sales against a ~10% decline in completions.

Shareholder Returns

The company's ability to generate substantial free cash flow means more returns to shareholders in the future, highlighted by a new $500M repurchase authorization and dividend increases.

Negative Factors

Earnings Performance

Installed Building Products reported a challenging start to FY25 with both revenue and margins coming in lower than consensus expectations, resulting in an EPS miss in 1Q.

Macro Environment

Macro limits upside with the current operating backdrop largely unchanged, as elevated interest rates have essentially ground the housing markets sideways.

Operational Challenges

Severe weather is expected to impact 1Q25 results, with construction sites nationally losing multiple days of production.

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, the high leverage remains a concern, necessitating careful financial management to mitigate risks associated with debt. The company is well-positioned in the residential construction industry, but should focus on improving margins and reducing debt to enhance financial stability.

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: 264.18
• 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 IBP, the sentiment is Positive. The current price of 264.18 is above the 20-day moving average (MA) of 238.34, above the 50-day MA of 206.68, and above the 200-day MA of 186.97, indicating a bullish trend. The MACD of 19.36 indicates Negative momentum. The RSI at 69.88 is Neutral, neither overbought nor oversold. The STOCH value of 65.28 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
FBIN	74 Outperform	$7.19B	18.83	16.84%	1.70%	-5.79%	-9.90%
IBP	72 Outperform	$7.37B	30.01	37.03%	1.19%	3.44%	0.25%
TREX	69 Neutral	$6.87B	35.56	19.81%	―	-9.65%	-28.30%
LPX	68 Neutral	$6.86B	23.24	17.53%	1.19%	-1.44%	-31.12%
AAON	66 Neutral	$6.71B	56.12	15.52%	0.45%	5.39%	-34.28%
Sector *	63 Neutral	£1.75B	9.29	4.55%	3.47%	0.65%	-43.22%

Installed Building Products Corporate Events

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.

Installed Building Products Holds Annual Meeting, Elects Directors

Installed Building Products held its Annual Meeting where 27,610,885 shares of common stock were entitled to vote. During the meeting, directors Jeffrey W. Edwards, Lawrence H. Hilsheimer, and Janet E. Jackson were elected for terms expiring in 2028. Additionally, Deloitte & Touche LLP was ratified as the independent public accounting firm for the fiscal year ending December 31, 2025, and the compensation of the company’s named executive officers was approved.