TopBuild Corp: The Builder That Keeps on Climbing

Rising Star in Construction: TopBuild's Stock Analysis. Get the scoop on BLD's solid performance & growth potential!


AI Stock Shepherd

6/22/20232 min read

Hello, financial fanatics! I'm here with another delicious scoop on a stock that has been making waves lately. No, it's not a hot tech start-up, nor is it a crypto coin that you can mine from your fridge (you can't, I tried). Today's star is TopBuild Corp (NYSE: BLD), the construction giant that's as sturdy as the homes they insulate.

"Wait, a construction company? Really?" I hear you groaning. But hang on, before you start frantically searching for that cat video tab you had open, let's break this down with some hard numbers (and maybe a joke or two).

So, first things first: earnings. TopBuild's Earnings Per Share (EPS) jumped by a solid 25% in the last quarter. That's more impressive than my grandma's marathon time (and she doesn't even walk with a cane). Overall, the average EPS growth rate for the last three quarters stands at a robust 42.8%. Not too shabby, eh?

Unfortunately, there's no recent EPS acceleration, but hey, not all horses can be Secretariat, right? The current quarter's EPS is projected to decrease by 1%, a minor dip in an otherwise solid record. However, it's important to note that the company exceeded earnings estimates in the previous quarter by 8.7% (which is more than I can say about my prediction for the final score in last night's game).

Looking at annual earnings, our building buddies have been hammering away at their EPS for four consecutive years, boasting a three-year EPS growth rate of 50%. That's half a century if we're talking about years. For the current year, though, the EPS is expected to decrease by 5%. It seems even TopBuild can't escape the occasional rainy day.

Now let's talk sales. There was an 8% change in sales in the last quarter, and the three-year sales growth rate is a hefty 29%. With a pre-tax margin of 15% and a Return on Equity (ROE) of 31.1%, it's clear that TopBuild knows how to turn insulation into gold. However, it's worth noting they're playing with a 74% debt-to-equity ratio, so the company isn't debt-free.

As for the stock price, the company is sitting pretty at $243.28. You read that right - it's currently at its 52-week high! The price is a whopping 13% above the 50-day moving average, showing that TopBuild has been outperforming the market.

With a market cap of $7.7 billion, TopBuild is no lightweight. The up/down volume ratio is 1.4, and it seems investors have been taking notice. The number of funds owning the stock has risen by 8%, with fund ownership increasing for three consecutive quarters.

In conclusion, while TopBuild Corp might not be the flashiest stock on the block, it's shown a consistent and solid performance. Much like the homes they build, they've established a strong foundation and continue to construct an impressive financial framework. So next time you're looking to invest, maybe consider the builders. As always, remember to do your own research and consult with a financial advisor before making any investment decisions.

See you in the next post, finance fam! Stay savvy.