Installed Building Products (IBP) AI Stock Analysis

• Market Cap: $7.82B
• Dividend Yield: 1.2%
• Average Volume (3M): 237.91K
• Price to Earnings (P/E): 31.5
• Beta (1Y): 1.09
• Revenue Growth: 2.12%
• EPS Growth: 3.08%
• Country: US
• Employees: 10,800
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Residential Construction
• EPS (TTM): 3.18
• Shares Outstanding: 27,125,357
• 10 Day Avg. Volume: 210,455
• 30 Day Avg. Volume: 237,911
• 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: 1.08
• Enterprise Value/Revenue: 2.83
• Enterprise Value/Gross Profit: 8.43
• Enterprise Value/Ebitda: 16.23
• 1Y Price Target: $252.38
• Price Target Upside: -12.41% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 8
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 73 Outperform
• Price Target: $341.00 ▲(18.35% Upside)

IBP’s score is driven by strong operational performance and bullish technical trends, tempered by leverage and weaker recent free-cash-flow growth. Valuation is less attractive at a 32.32 P/E with a modest dividend, while the latest call and refinancing/shareholder-return actions provide support despite residential market headwinds and flat 2026 starts expectations.

Positive Factors

Profitability & Margins

Consistently strong margins and record adjusted EBITDA demonstrate durable operational efficiency and pricing power across installations. Stable EBIT/EBITDA margins support reinvestment and returns, enabling the company to fund growth and shareholder distributions over the medium term.

Commercial Segment Diversification

Rapid heavy commercial growth reduces dependence on cyclical single-family housing and diversifies revenue mix. Expansion into higher-volume commercial projects and complementary products increases addressable market and resilience to residential downturns over multiple quarters.

Proactive Capital & Liability Management

Extending maturities and refinancing near-term debt eases rollover risk and may modestly lower interest costs, improving financial flexibility. Coupled with dividend increases and buybacks, this reflects an active capital-allocation framework supporting shareholder returns and balance-sheet planning.

Negative Factors

High Leverage

Material leverage raises sensitivity to interest rates and economic slowdowns, constraining financial flexibility for acquisitions or capex. While ROE is strong, elevated debt increases refinancing and liquidity risk if cash generation weakens over the next several quarters.

Weak Free Cash Flow Conversion

A sharp drop in FCF growth and low operating-cash-to-net-income suggest earnings are not converting cleanly to cash. This can limit internal funding for organic growth, acquisitions, and buybacks, potentially forcing higher leverage or curtailed investments over the medium term.

Residential Market Headwinds

Ongoing weakness in single-family and multifamily markets directly pressures IBP's core residential volumes and pricing. Persistent flat housing starts and lower volumes can limit top-line growth and margin expansion in the coming 2–6 months despite commercial strength.

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

IBP generates revenue primarily through the installation of insulation and other building materials. The company's revenue model is based on service contracts with homebuilders and general contractors, where they charge for both materials and labor associated with the installation process. Key revenue streams include residential insulation, commercial insulation, and the installation of various building products such as gutters and garage doors. Significant partnerships with manufacturers and suppliers allow IBP to source quality materials at competitive prices, enhancing their profitability. Additionally, IBP benefits from the growing demand for energy-efficient building solutions, which drives increased sales and expands their market presence.

Installed Building Products Financial Statement Overview

Summary

Strong income statement momentum (TTM revenue growth 59.5% with solid margins) and strong ROE (36.4%) support the score, but it’s held back by elevated leverage (debt-to-equity 1.45) and weaker cash generation signals, including a sharp TTM free cash flow growth decline (-80.9%) and low operating cash flow to net income (0.20).

Income Statement

Installed Building Products has demonstrated strong revenue growth, with a TTM growth rate of 59.5%, significantly higher than previous periods. The company maintains healthy profitability margins, with a gross profit margin of 33.6% and a net profit margin of 8.6% in the TTM. EBIT and EBITDA margins are stable, indicating efficient operations. However, the slight decline in EBIT and EBITDA margins compared to the previous year suggests potential cost pressures.

Balance Sheet

The company has a relatively high debt-to-equity ratio of 1.45, indicating significant leverage, which could pose risks if not managed carefully. However, the return on equity remains strong at 36.4%, reflecting effective use of equity to generate profits. The equity ratio of 33.1% suggests a balanced capital structure, but the high leverage warrants caution.

Cash Flow

There is a notable decline in free cash flow growth by 80.9% in the TTM, which could impact future investments and debt servicing. The operating cash flow to net income ratio is low at 0.20, indicating potential cash flow constraints. However, the free cash flow to net income ratio remains healthy at 70.7%, suggesting that the company is still generating sufficient cash relative to its net income.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.97B	2.94B	2.78B	2.67B	1.97B	1.65B
Gross Profit	999.60M	994.50M	930.70M	827.78M	589.45M	509.97M
EBITDA	519.00M	517.80M	495.80M	462.60M	288.02M	249.46M
Net Income	255.70M	256.60M	243.70M	223.40M	118.80M	97.24M
Balance Sheet
Total Assets	2.05B	2.06B	1.98B	1.78B	1.65B	1.19B
Cash, Cash Equivalents and Short-Term Investments	333.30M	327.60M	386.50M	229.60M	333.49M	231.52M
Total Debt	985.30M	978.30M	954.80M	946.00M	937.38M	622.99M
Total Liabilities	1.37B	1.35B	1.31B	1.29B	1.24B	868.49M
Stockholders Equity	678.60M	705.30M	670.30M	493.50M	416.84M	319.18M
Cash Flow
Free Cash Flow	52.90M	251.40M	278.60M	232.26M	101.30M	147.20M
Operating Cash Flow	74.80M	340.00M	340.20M	277.90M	138.30M	180.79M
Investing Cash Flow	-61.00M	-159.10M	-103.40M	-158.70M	-278.44M	-77.79M
Financing Cash Flow	-309.10M	-239.80M	-79.90M	-223.10M	242.09M	-49.36M

Installed Building Products Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 288.14
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IBP, the sentiment is Neutral. The current price of 288.14 is below the 20-day moving average (MA) of 293.08, above the 50-day MA of 276.17, and above the 200-day MA of 230.70, indicating a neutral trend. The MACD of 5.74 indicates Positive momentum. The RSI at 49.94 is Neutral, neither overbought nor oversold. The STOCH value of 16.31 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for IBP.

Installed Building Products Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CVCO	81 Outperform	$3.84B	21.36	18.50%	―	15.81%	37.89%
SKY	78 Outperform	$4.38B	20.40	14.37%	―	12.14%	48.68%
IBP	73 Outperform	$7.82B	31.51	36.66%	1.20%	2.12%	3.08%
TMHC	71 Outperform	$5.96B	7.34	14.31%	―	6.98%	9.74%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
LEN	60 Neutral	$26.76B	13.93	8.26%	1.91%	-3.78%	-44.21%
MTH	60 Neutral	$4.89B	11.02	8.76%	2.62%	-6.06%	-32.39%

Installed Building Products Corporate Events

Installed Building Products completes major refinancing and upsizing

On January 21, 2026, Installed Building Products completed a private offering of $500 million in 5.625% senior unsecured notes due 2034 and used approximately $308.2 million of the roughly $490 million in net proceeds to fully redeem its outstanding 5.75% senior unsecured notes due 2028, which were redeemed on January 22, 2026, thereby satisfying and discharging the related 2019 indenture. The company also amended and upsized its asset-based revolving credit facility from $250 million to $375 million, extended its maturity to January 21, 2031, and put in place an updated intercreditor agreement, moves that collectively extend IBP’s debt maturity profile, enhance borrowing capacity and liquidity, and provide greater financial flexibility and access to capital while subjecting the company to customary covenants and security arrangements under the new notes and ABL structure.

The most recent analyst rating on (IBP) stock is a Hold with a $336.00 price target. To see the full list of analyst forecasts on Installed Building Products stock, see the IBP Stock Forecast page.

Installed Building Products Prices $500 Million Senior Notes

On January 7, 2025, Installed Building Products announced it had priced a private offering of $500 million in 5.625% senior unsecured notes due 2034, with closing expected on or about January 21, 2026, for sale to qualified institutional buyers in the U.S. and certain investors abroad. The company plans to use the proceeds primarily to redeem in full its outstanding 5.75% senior unsecured notes due 2028, cover related fees and expenses, and fund general corporate purposes, a move that refinances its debt profile and may modestly lower interest costs while extending maturities, potentially strengthening its capital structure for future operations and growth initiatives.

The most recent analyst rating on (IBP) stock is a Hold with a $245.00 price target. To see the full list of analyst forecasts on Installed Building Products stock, see the IBP Stock Forecast page.

Installed Building Products Announces $500 Million Notes Offering

On January 6, 2025, Installed Building Products announced it had launched a private offering of $500 million in senior unsecured notes due 2034, with proceeds intended primarily to fund the conditional full redemption of its outstanding 5.75% senior unsecured notes due 2028, cover related fees and expenses, and support general corporate purposes. The transaction, which is limited to qualified institutional buyers and certain offshore investors and remains subject to market and other conditions, is set to refinance existing debt and could extend the company’s maturity profile and provide added financial flexibility, potentially strengthening its balance sheet and supporting ongoing operations and growth initiatives.

The most recent analyst rating on (IBP) stock is a Hold with a $245.00 price target. To see the full list of analyst forecasts on Installed Building Products stock, see the IBP Stock Forecast page.

Installed Building Products Executes Share Repurchase Agreement

On November 24, 2025, Installed Building Products, Inc. executed a share repurchase agreement with PJAM IBP Holdings, Inc., acquiring 150,000 shares of its common stock at a discounted price of $250.96 per share, totaling $37,643,760. This transaction, approved by the company’s Board of Directors and Audit Committee, is part of a previously announced stock buyback program and is funded from the company’s cash reserves, potentially enhancing shareholder value and consolidating ownership.

The most recent analyst rating on (IBP) stock is a Hold with a $275.00 price target. To see the full list of analyst forecasts on Installed Building Products stock, see the IBP Stock Forecast page.

Installed Building Products Reports Record Q3 2025 Results

Installed Building Products reported record financial results for the third quarter of 2025, with net revenue reaching $778.2 million, a 2.3% increase from the previous year. The company achieved significant growth in net income and adjusted EBITDA, driven by strategic acquisitions and a focus on service and market diversity. Recent acquisitions include Carolina Precision Fibers and Echols Glass & Mirror, among others, contributing to its expansion in the insulation and building products market. The company also declared a fourth-quarter dividend and continued its share repurchase program, reflecting a strong financial position and commitment to shareholder returns.

The most recent analyst rating on (IBP) stock is a Sell with a $226.09 price target. To see the full list of analyst forecasts on Installed Building Products stock, see the IBP Stock Forecast page.

Installed Building Products Increases Quarterly Dividend by 6%

On October 29, 2025, Installed Building Products announced a 6% increase in its quarterly cash dividend to $0.37 per share, payable on December 31, 2025, to stockholders of record on December 15, 2025. This decision reflects the company’s strong financial position and commitment to returning value to shareholders, potentially enhancing its attractiveness to investors and reinforcing its market position.

The most recent analyst rating on (IBP) stock is a Sell with a $226.09 price target. To see the full list of analyst forecasts on Installed Building Products stock, see the IBP Stock Forecast page.