Installed Building Products (IBP) AI Stock Analysis

• Market Cap: $5.70B
• Dividend Yield: 1.55%
• Average Volume (3M): 432.11K
• Price to Earnings (P/E): 23.5
• Beta (1Y): 1.29
• Revenue Growth: 4.30%
• EPS Growth: -0.69%
• Country: US
• Employees: 10,800
• Sector: Consumer Cyclical
• Sector Strength: 66
• Industry: Residential Construction
• EPS (TTM): 2.08
• Shares Outstanding: 27,615,446
• 10 Day Avg. Volume: 494,069
• 30 Day Avg. Volume: 432,110
• PEG Ratio: -5.96
• Price to Book (P/B): 8.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 20.40
• Enterprise Value/Market Cap: 1.04
• Enterprise Value/Revenue: 0.51
• Enterprise Value/Gross Profit: 6.04
• Enterprise Value/Ebitda: 2.90
• 1Y Price Target: $189.71
• Price Target Upside: -6.22% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 9

• Rating: 73 Outperform
• Price Target: $217.00 ▲(7.27%Upside)

Installed Building Products achieves a solid overall score driven by strong financial performance and positive technical indicators, despite being overbought. Valuation is moderate, and earnings call insights indicate mixed prospects with notable challenges in sales and expenses. Strategic growth through acquisitions and a focus on shareholder returns are positives, but attention to profit margins and leverage is advised.

Positive Factors

Financial strength

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

Multi-family growth

IBP’s growth initiatives on the multi-family side resulted in just a 5% same-branch sales decline in this segment in what was likely a market down closer to 30%+.

Operational improvements

Operationally IBP is in a better spot than recent years due to reduced supply chain, labor bottlenecks, and material availability stress.

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

Elevated interest rates have essentially ground the housing markets sideways, and the macro environment limits upside.

Weather impact

Severe weather is expected to impact 1Q25 results, as many construction sites nationally lost multiple days of production.

Installed Building Products Business Overview & Revenue Model

Company Description

Installed Building Products, Inc., together with its subsidiaries, engages in the installation of insulation for residential and commercial builders in the United States. It operates through three segments: Installation, Distribution, and Manufacturing Operations. The company offers a range of insulation materials, such as fiberglass and cellulose, and spray foam insulation materials. It is also involved in the installation of insulation and sealant materials in various areas of a structure, which includes basement and crawl space, building envelope, attic, and acoustical applications. In addition, the company installs a range of caulk and sealant products that control air infiltration in residential and commercial buildings; basic sliding door and complex custom designs; and custom designed mirrors, as well as closet shelving systems. Further, it installs and services garage doors and openers, including steel, aluminum, wood, and vinyl garage doors, as well as opener systems; installs waterproofing and caulking and moisture protection systems; offers sheet and hot applied waterproofing membrane, deck coating, bentonite, and air and vapor systems; and provides rain gutters installation services. Additionally, the company provides fire-stopping systems, including fire-rated joint assemblies, perimeter fire containment, and smoke and fire containment systems installation services; and cordless blinds, shades, and shutters installation services, as well as other complementary building products. It also distributes products and materials purchased wholesale from manufacturers, such as spray foam insulation, metal building insulation, residential insulation, and mechanical and fabricated Styrofoam insulation; and insulation products, including equipment, machines, and services. The company was formerly known as CCIB Holdco, Inc. Installed Building Products, Inc. was founded in 1977 and is based in Columbus, Ohio.

How the Company Makes Money

Installed Building Products makes money through the installation services they provide for a wide range of building products. The company's primary revenue stream comes from installing insulation in new residential homes, which accounts for a significant portion of their business. Additionally, IBP generates revenue from installing complementary products such as waterproofing systems, fire-stopping materials, garage doors, rain gutters, and closet shelving. Their business model emphasizes scale and efficiency, allowing them to leverage volume purchasing and labor advantages. IBP also benefits from partnerships with builders and contractors, ensuring a steady demand for their services across various construction markets. The company's earnings are further supported by its strategic acquisitions of smaller regional installation companies, which expand its geographic presence and market share.

Installed Building Products Financial Statement Overview

Summary

Installed Building Products demonstrates strong profitability and revenue growth, supported by effective cost management and operational efficiency. The balance sheet is stable, though leverage is slightly above optimal levels. Cash flow performance is sound, but recent declines in free cash flow growth could pose challenges.

Income Statement

Installed Building Products shows strong profitability with a consistently high Gross Profit Margin of 33.5% TTM and a stable Net Profit Margin of 8.4%. The company has demonstrated a solid Revenue Growth Rate of 9.7% from 2022 to 2023. EBIT and EBITDA Margins are robust at 12.4% and 17.1% TTM, indicating efficient cost management and operational performance.

Balance Sheet

The balance sheet reflects a moderate debt level with a Debt-to-Equity Ratio of 1.48 TTM, which is manageable but slightly on the higher side for the industry. Return on Equity is healthy at 37.2%, showcasing effective deployment of equity capital. The Equity Ratio stands at 33%, indicating a balanced capital structure but with room for improvement in equity proportion.

Cash Flow

Operating Cash Flow to Net Income Ratio is moderate at 0.33 TTM, suggesting adequate cash generation relative to earnings. Free Cash Flow to Net Income Ratio is strong at 0.25 TTM, though there is a decline in Free Cash Flow Growth Rate by 75.4% TTM due to increased capital expenditures, which may impact cash availability for future investments.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.94B	2.78B	2.67B	1.97B	1.65B
Gross Profit	994.50M	930.70M	827.78M	589.45M	509.97M
EBITDA	517.80M	495.80M	462.60M	291.30M	249.46M
Net Income	256.60M	243.70M	223.40M	118.80M	97.24M
Balance Sheet
Total Assets	2.06B	1.98B	1.78B	1.65B	1.19B
Cash, Cash Equivalents and Short-Term Investments	327.60M	386.50M	229.60M	333.49M	231.52M
Total Debt	978.30M	954.80M	946.00M	937.38M	622.99M
Total Liabilities	1.35B	1.31B	1.29B	1.24B	868.49M
Stockholders Equity	705.30M	670.30M	493.50M	416.84M	319.18M
Cash Flow
Free Cash Flow	251.40M	278.60M	232.26M	101.30M	147.20M
Operating Cash Flow	340.00M	340.20M	277.90M	138.30M	180.79M
Investing Cash Flow	-159.10M	-103.40M	-158.70M	-278.44M	-77.79M
Financing Cash Flow	-239.80M	-79.90M	-223.10M	242.09M	-49.36M

Installed Building Products Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 202.29
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Negative

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 202.29 is above the 20-day moving average (MA) of 197.81, above the 50-day MA of 180.31, and above the 200-day MA of 185.72, indicating a bullish trend. The MACD of 6.41 indicates Positive momentum. The RSI at 58.67 is Neutral, neither overbought nor oversold. The STOCH value of 80.93 is Negative, 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
AZEK	79 Outperform	$7.82B	52.67	10.62%	―	5.93%	3.50%
IBP	73 Outperform	$5.70B	23.53	36.73%	1.55%	4.30%	-0.69%
LPX	73 Outperform	$6.26B	15.82	24.41%	1.19%	8.09%	55.08%
FBIN	70 Outperform	$6.56B	15.97	18.62%	1.80%	-3.48%	4.55%
TREX	69 Neutral	$6.89B	35.14	23.07%	―	-9.10%	-21.50%
AAON	68 Neutral	$6.61B	42.67	19.85%	0.43%	8.24%	-11.66%
Sector *	60 Neutral	€5.65B	10.05	-11.12%	4.27%	3.84%	-38.31%

Installed Building Products Corporate Events

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.

The most recent analyst rating on (IBP) stock is a Hold with a $236.00 price target. To see the full list of analyst forecasts on Installed Building Products stock, see the IBP Stock Forecast page.

Installed Building Products Acquires Pro Foamers, Inc.

Installed Building Products reported a slight decrease in net revenue and net income for the first quarter of 2025 compared to the previous year, reflecting challenges in the housing market and increased operational costs. Despite these challenges, the company remains optimistic about long-term opportunities and continues to invest in acquisitions, having acquired Pro Foamers, Inc. in May 2025. The Board of Directors declared a quarterly cash dividend of $0.37 per share, payable on June 30, 2025, and the company repurchased 200,000 shares of common stock in the first quarter.