Installed Building Products (IBP) AI Stock Analysis

• Market Cap: $7.25B
• Dividend Yield: 1.19%
• Average Volume (3M): 296.76K
• Price to Earnings (P/E): 28.8
• Beta (1Y): 1.10
• 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: 316,277
• 30 Day Avg. Volume: 296,758
• 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: 1.01
• Enterprise Value/Revenue: 2.47
• Enterprise Value/Gross Profit: 7.36
• Enterprise Value/Ebitda: 14.17
• 1Y Price Target: $245.57
• Price Target Upside: -8.09% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 9
• EPS Forecast (FY): 10.93
• Revenue Forecast (FY): $2.96B

• Rating: 74 Outperform
• Price Target: $300.00 ▲(12.28% Upside)

Installed Building Products shows strong financial performance and technical indicators, with a focus on commercial growth and shareholder returns. However, high leverage and cash flow constraints pose risks. The stock's valuation is relatively high, which may limit upside potential.

Positive Factors

Revenue Growth

The record revenue growth indicates strong market demand and effective business strategies, supporting long-term financial health and expansion.

Sustainability Efforts

Strong sustainability initiatives enhance brand reputation and align with industry trends, potentially attracting eco-conscious clients and investors.

Heavy Commercial Segment Growth

Robust growth in the heavy commercial segment diversifies revenue streams and mitigates risks from residential market fluctuations, supporting stability.

Negative Factors

High Leverage

High leverage can limit financial flexibility and increase risk, especially during economic downturns, potentially impacting long-term stability.

Decline in Free Cash Flow

A significant decline in free cash flow may constrain the company's ability to invest in growth opportunities and service debt, affecting future prospects.

Residential Market Challenges

Challenges in the residential market, including declining starts, could hinder growth in this segment, impacting overall revenue and profitability.

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

Installed Building Products shows strong revenue growth and profitability, supported by effective equity utilization. However, high leverage and a recent decline in free cash flow growth present potential risks. The company needs to manage its debt levels and improve cash flow generation to sustain its growth trajectory and financial stability.

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: Positive
• Last Price: 267.18
• 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 Positive. The current price of 267.18 is below the 20-day moving average (MA) of 267.88, above the 50-day MA of 259.75, and above the 200-day MA of 215.16, indicating a neutral trend. The MACD of 2.51 indicates Positive momentum. The RSI at 52.12 is Neutral, neither overbought nor oversold. The STOCH value of 19.02 is Positive, 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
CVCO	81 Outperform	$4.72B	24.85	18.50%	―	15.81%	37.89%
TMHC	78 Outperform	$5.84B	7.20	14.31%	―	6.98%	9.74%
SKY	78 Outperform	$4.86B	22.65	14.37%	―	12.14%	48.68%
IBP	74 Outperform	$7.25B	28.76	36.66%	1.19%	2.12%	3.08%
MTH	69 Neutral	$4.69B	8.89	10.50%	2.58%	-6.06%	-32.39%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
LEN	59 Neutral	$27.24B	13.53	8.28%	1.85%	-3.78%	-44.21%

Installed Building Products Corporate Events

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.

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.

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.

Installed Building Products Acquires Echols Glass & Mirror

On October 13, 2025, Installed Building Products announced the acquisition of Echols Glass & Mirror, Inc. and Vanderkoy Bros, LLC, adding over $16 million in annual revenue. These acquisitions enhance IBP’s geographic presence and diversify its product offerings in the U.S. building products market, aligning with its growth strategy to expand across multiple geographies and end markets.

Installed Building Products Releases 2025 ESG Report

On October 10, 2025, Installed Building Products released its 2025 Environmental, Social, and Governance (ESG) report, highlighting significant achievements in sustainability and community engagement over the past year. The report underscores the company’s commitment to reducing its carbon footprint, enhancing employee well-being, and contributing to community resilience, with initiatives such as the Jay Elliott Building for Tomorrow Scholarship and substantial philanthropic contributions. The company’s efforts have led to a notable reduction in CO2 emissions and increased use of carbon-free electricity, reinforcing its position as a leader in sustainable building practices.