Installed Building Products Inc: A High-Performing Stock with Strong Growth and Profitability

GF Score analysis

Summary
  • Stock analysis of IBP.
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Installed Building Products Inc (IBP, Financial) is a leading player in the Homebuilding & Construction industry. As of August 2, 2023, the company's stock price stands at $153.25, with a market cap of $4.35 billion. The stock has seen a gain of 3.04% today and a significant increase of 9.19% over the past four weeks.

GF Score Analysis

Installed Building Products Inc boasts a high GF Score of 96 out of 100, indicating a high outperformance potential. The GF Score is a stock performance ranking system developed by GuruFocus, which is closely correlated to the long-term performances of stocks. It takes into account five key aspects: Financial Strength, Profitability Rank, Growth Rank, GF Value Rank, and Momentum Rank. A higher GF Score generally suggests higher returns.

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Financial Strength Analysis

Installed Building Products Inc has a Financial Strength rank of 6 out of 10. This rank measures the company's financial situation based on its debt burden, debt to revenue ratio, and Altman Z-Score. The company's interest coverage is 8.59, and its debt to revenue ratio is 0.35, both indicating a manageable debt level. Its Altman Z-Score of 4.99 suggests a low risk of bankruptcy.

Profitability Rank Analysis

The company's Profitability Rank is a perfect 10 out of 10, indicating strong profitability. This rank is based on factors such as operating margin, Piotroski F-Score, and the trend of the operating margin. The company's operating margin is 12.74%, and its Piotroski F-Score is 8, both suggesting a healthy profitability.

Growth Rank Analysis

Installed Building Products Inc also has a Growth Rank of 10 out of 10, indicating strong growth in terms of revenue and profitability. The company's 5-year revenue growth rate is 19.30%, and its 3-year revenue growth rate is 22.30%, both suggesting a robust growth trajectory.

GF Value Rank Analysis

The company's GF Value Rank is 5 out of 10, suggesting a fair valuation. This rank is determined by the price-to-GF-Value ratio, a proprietary metric calculated based on historical multiples and an adjustment factor based on a company's past returns and growth.

Momentum Rank Analysis

Installed Building Products Inc has a Momentum Rank of 9 out of 10, indicating strong stock momentum. This rank is determined using the standardized momentum ratio and other momentum indicators.

Competitor Analysis

When compared to its main competitors in the same industry, Installed Building Products Inc holds a strong position. AAON Inc (AAON, Financial) has a slightly higher GF Score of 97, while Cornerstone Building Brands Inc (CNR, Financial) and The AZEK Co Inc (AZEK, Financial) have lower GF Scores of 63 and 66, respectively. This comparative analysis suggests that Installed Building Products Inc is a strong performer in its industry. For more details, please visit the competitors page.

In conclusion, Installed Building Products Inc presents a promising investment opportunity with its high GF Score, strong financial strength, profitability, growth, and momentum ranks. However, investors should also consider its fair GF Value Rank and the performance of its competitors when making investment decisions.

Disclosures

I/We may personally own shares in some of the companies mentioned above. However, those positions are not material to either the company or to my/our portfolios.