TopBuild Corporation installs insulation and other building products in the United States. The company operates in two segments, Installation and Distribution. The company was founded in 2015 and is based in Daytona Beach, Florida.
BLD Price Forecast Based on DCF Valuation
DCF Fair Value Target:
The table below illustrates the output of a discounted cash flow forecast using a variety of scenarios for TopBuild Corp. To summarize, we found that TopBuild Corp ranked in the 80th percentile in terms of potential gain offered. Specifically, our DCF analysis implies the stock is trading below its fair value by an estimated 503%. The most interesting components of our discounted cash flow analysis for TopBuild Corp ended up being:
The stock's equity weight, or the proportion of capital from equity relative to debt, is 83. Its equity weight surpasses that of 73.78% of free cash flow generating stocks in the Basic Materials sector.
Its compound free cash flow growth rate, as measured over the past 4.18 years, is 0.55% -- higher than 84.6% of stocks in our DCF forecasting set.
TopBuild Corp's interest coverage rate -- a measure of gross earnings relative to interest payments -- comes in at 8.25. This coverage rate is greater than that of 72.15% of stocks we're observing for the purpose of forecasting via discounted cash flows.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
WLKP, SUM, CF, KL, and RS can be thought of as valuation peers to BLD, in the sense that they are in the Basic Materials sector and have a similar price forecast based on DCF valuation.
On the call today are Jerry Volas, Chief Executive Officer; Robert Buck, President and Chief Operating Officer; and John Peterson, Chief Financial Officer. As shown on slide two of today's presentation, many of our remarks will include forward-looking statements concerning the company's operations and financial condition. The company assumes no obligation to update or supplement forward-looking statements that become untrue because of subsequent events.
Shares of TopBuild (NYSE:BLD) were flat in pre-market trading after the company reported Q1 results.Quarterly Results Earnings per share were up 29.25% over the past year to $1.37, which beat the estimate of $1.24.Revenue of $653,228,000 rose by 5.47% year over year, which beat the estimate of $652,830,000.Guidance Earnings guidance hasn't been issued by the company for now.TopBuild hasn't issued any revenue guidance for the time being.Conference Call Details Date: May 05, 2020View more earnings on BLDTime: 07:01 AM ETWebcast URL: https://services.choruscall.com/links/bld200505.htmlTechnicals Company's 52-week high was at $125.6652-week low: $54.83Price action over last quarter: down 18.11%Company Profile TopBuild Corp is an installer and distributor of insulation products. The company ...