Topbuild Corp Intrinsic Value Calculation – TopBuild Corp Names New Chief Growth Officer in Strategic Move to Expand Construction Industry Presence
October 11, 2024

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TOPBUILD ($NYSE:BLD): TopBuild Corp is a leading company in the construction and specialty trade contracting industry. With a strong focus on innovation and growth, the company has consistently delivered top-notch services and solutions to its clients. As a result, it has become a trusted name in the market, making it a preferred partner for both commercial and residential construction projects. In a recent announcement, TopBuild Corp revealed a change in its leadership team with the appointment of a new Chief Growth Officer. The new Chief Growth Officer is expected to bring valuable insights and expertise to the table, leveraging their extensive experience to drive new initiatives and accelerate TopBuild’s growth trajectory. According to Investing.com, the new Chief Growth Officer’s appointment comes at a crucial time for TopBuild Corp as the industry continues to evolve and present new challenges and opportunities.
With their strong leadership skills and industry knowledge, the new executive is well-equipped to lead TopBuild to even greater heights. The addition of a Chief Growth Officer to the leadership team also highlights TopBuild’s dedication to staying ahead of the curve and continuously innovating. By focusing on growth and expansion, the company aims to strengthen its position as a market leader and provide its clients with cutting-edge solutions that meet their evolving needs. With a strong leadership team in place and a clear focus on growth, TopBuild is well-positioned to continue its success in the construction industry. Investors and stakeholders can expect to see further milestones achieved and innovative solutions offered as TopBuild continues to expand its presence in the market.
Share Price
This announcement was made on Friday, when the company’s stock opened at $402.5 and closed at $385.85, a decrease of 3.24% from the previous closing price of $398.78. The decision to appoint a Chief Growth Officer reflects TOPBUILD CORP‘s commitment to driving growth and increasing its market share. This move comes at a time when the construction industry is experiencing significant growth, and TOPBUILD CORP aims to capitalize on this trend. The newly appointed Chief Growth Officer brings extensive experience and expertise in the construction industry, making them well-suited for this role. Their main responsibility will be to identify and pursue new business opportunities for TOPBUILD CORP, with a focus on expanding the company’s reach and diversifying its portfolio. This strategic move is also aligned with TOPBUILD CORP’s long-term goals of sustained growth and profitability.
By expanding its presence in the construction industry, the company is taking proactive steps towards achieving these goals and solidifying its position as a market leader. Furthermore, this announcement reflects TOPBUILD CORP’s confidence in the construction industry’s outlook and its belief in the potential for continued growth in the sector. With its strong financial standing and proven track record, TOPBUILD CORP is well-positioned to capitalize on the opportunities presented by the construction industry’s expansion. With an experienced leader at the helm, TOPBUILD CORP is well-equipped to identify and pursue new business opportunities, driving growth and cementing its position as a key player in the market. This announcement also reflects the company’s confidence in the construction industry’s potential for continued growth, making TOPBUILD CORP a promising investment for shareholders. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Topbuild Corp. More…
| Total Revenues | Net Income | Net Margin |
| 5.19k | 614.25 | 11.8% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Topbuild Corp. More…
| Operations | Investing | Financing |
| 849.41 | -198.17 | -43.84 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Topbuild Corp. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 5.16k | 2.6k | 75.78 |
Key Ratios Snapshot
Some of the financial key ratios for Topbuild Corp are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 24.1% | 35.3% | 17.3% |
| FCF Margin | ROE | ROA |
| 15.1% | 23.4% | 10.9% |
Analysis – Topbuild Corp Intrinsic Value Calculation
As a team at GoodWhale, we have thoroughly analyzed the financials of TOPBUILD CORP and have come to some key conclusions. First, we have determined that the fair value of a share of TOPBUILD CORP is approximately $283.4. This valuation was calculated using our proprietary Valuation Line, which takes into account various financial metrics such as earnings, cash flow, and growth potential. At the current market price of $385.85 per share, we have found that TOPBUILD CORP is overvalued by 36.2%. While the company may be performing well and generating strong returns for investors, our analysis suggests that the current stock price is not justified by its underlying fundamentals. It’s important for investors to be aware of this discrepancy between fair value and market price, as it could indicate a potential investment opportunity. For those considering investing in TOPBUILD CORP, we recommend conducting your own thorough analysis and considering whether the current market price aligns with your investment goals and risk tolerance. Overall, our analysis of TOPBUILD CORP’s financials has led us to conclude that the stock is currently overvalued. However, with continued growth and strong performance, it’s possible that the company’s fair value could increase over time. As always, it’s important for investors to conduct their own due diligence and make informed decisions when it comes to their investments. More…

Peers
There is intense competition between TopBuild Corp and its competitors: BlueLinx Holdings Inc, Beacon Roofing Supply Inc, Grafton Group PLC. All of these companies are trying to gain market share in the highly competitive building materials industry. TopBuild Corp has been able to differentiate itself from its competitors by offering a unique combination of products and services that are unmatched in the industry.
– BlueLinx Holdings Inc ($NYSE:BXC)
BlueLinx Holdings Inc is a holding company that engages in the wholesale distribution of building and industrial products in the United States. It operates through the following segments: Engineered Products and Building Products. The Engineered Products segment offers metal components and industrial products. The Building Products segment focuses on lumber and lumber sheet goods, millwork, roofing, siding, decking, fencing, insulation, gypsum, and other specialty building products. The company was founded on January 25, 2002 and is headquartered in Atlanta, GA.
– Beacon Roofing Supply Inc ($NASDAQ:BECN)
Beacon Roofing Supply Inc is a publicly traded company that engages in the distribution of roofing materials and complementary building products in the United States and Canada. It has a market cap of 3.66B as of 2022 and a return on equity of 11.71%. The company was founded in 1928 and is headquartered in Herndon, Virginia.
Summary
TopBuild Corp, a leader in the construction and specialty trade contracting industry, recently named a new Chief Growth Officer in a strategic move to drive future growth. This announcement was accompanied by a decrease in the company’s stock price on the same day. This signals that investors are cautious about the change in leadership and its potential impact on the company’s performance. It is important for investors to closely monitor TopBuild’s financial results and strategic decisions in the coming months to determine if the new Chief Growth Officer can successfully drive growth and increase shareholder value.
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