BLD's one year PEG ratio, measuring expected growth in earnings next year relative to current common stock price is 172.26 -- higher than 82.02% of US-listed equities with positive expected earnings growth.
BLD's went public 5.32 years ago, making it older than only 18.26% of listed US stocks we're tracking.
Of note is the ratio of TopBuild Corp's sales and general administrative expense to its total operating expenses; 87.82% of US stocks have a lower such ratio.
Stocks with similar financial metrics, market capitalization, and price volatility to TopBuild Corp are CENT, ASGN, GVA, HWKN, and B.
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:
Below please find a table outlining a discounted cash flow forecast for BLD, in which we model out valuation assuming a variety of terminal growth rates. To summarize, we found that TopBuild Corp ranked in the 62th percentile in terms of potential gain offered. Specifically, our DCF analysis implies the stock is trading below its fair value by an estimated 97%. The most interesting components of our discounted cash flow analysis for TopBuild Corp ended up being:
BLD's estimated cost of debt, based largely on its market capitalization and its interest coverage ratio, is 2%; for context, that number is higher than 33.52% of tickers in our DCF set.
TopBuild Corp's interest coverage rate -- a measure of gross earnings relative to interest payments -- comes in at 8.67. This coverage rate is greater than that of 75.26% of stocks we're observing for the purpose of forecasting via discounted cash flows.
Relative to other stocks in its sector (Industrials), TopBuild Corp has a reliance on debt greater than only 23.21% of them.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
Want more companies with a valuation profile/forecast similar to that of TopBuild Corp? See QUAD, TRNS, HQI, MLHR, and IR.
TopBuild (BLD) acquired Garland Insulating, locally owned and operated insulation companies in Texas and Colorado; Garland generated ~$60M in revenue for the trailing twelve months ended June 30, 2020.Garland services a wide range of customers including production and custom builders, multi-family developers and individual homeowners.On a YTD basis, TopBuild has completed three acquisitions which...
TopBuild (BLD) has been a very strong performer as of late, as the last thesis on the stock dates back spring of 2018 when I concluded that TopBuild was a top stock. That conclusion has proven to be correct as shares have tripled from the 2018/2019 lows, with expectations now...
The Value Investor on Seeking Alpha | August 20, 2020
Insider Monkey has processed numerous 13F filings of hedge funds and successful value investors to create an extensive database of hedge fund holdings. The 13F filings show the hedge funds' and successful investors' positions as of the end of the first quarter. You can find articles about an individual hedge fund's trades on numerous financial […]