TopBuild Corp. Posts Impressive Revenue and Free Cash Flow Growth

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TOPBUILD ($NYSE:BLD): TopBuild Corp. is a provider of insulation and complementary building products to the professional homebuilding market in the United States. The company was spun-out of Masco Corporation in 2015. TopBuild has an impressive track record of revenue, EBITDA, and free cash flow growth. The company has benefitted from a boom in housing starts and increased penetration of outsourced insulation installation. TopBuild is the leading provider of outsourced insulation services to the homebuilding industry and as well as the #1 player in the distribution of insulation and complimentary products. This growth has been driven by a boom in housing starts and increased penetration of outsourced insulation installation.

TopBuild is the clear leader in its market. The company has a market-leading position in both outsourced insulation services and the distribution of insulation and complementary products. TopBuild has a diversified customer base, with no customer accounting for more than 10% of revenue. This provides the company with a stable and growing platform for future growth.

Earnings

As of June 30, the company earned 4352.4M USD in total revenue, and 432.2M USD in net income. This represents a 24.8% increase in total revenue and a 33.4% increase in net income compared to the previous year. TOPBUILD CORP‘s total revenue has grown from 2718.0M USD to 4352.4M USD in the last 3 years, an impressive feat for any company. This strong financial performance is a testament to the company’s sound management and execution.

Stock Price

On Monday, TOPBUILD CORP stock opened at $166.6 and closed at $170.1, up by 0.9% from last closing price of 168.6. This is a positive sign for the company, which has been under pressure from investors.

VI Analysis

TopBuild Corp is a company that focuses on growth and profitability, while being weak in terms of asset and dividend. Its strong competitive advantage has allowed it to achieve stable and high revenue or earning growth. As a result, TopBuild Corp is classified as a ‘gorilla’ company.

TopBuild Corp’s high health score of 7/10 indicates that it is capable of sustaining future operations in times of crisis. This, combined with its strong fundamentals, makes TopBuild Corp an attractive investment for growth-oriented investors.

VI 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. is a leading provider of installation and construction services for the residential and commercial construction markets in the United States. The company has a strong track record of delivering quality workmanship and customer service, and has a long history of profitable growth. TopBuild’s shares have been under pressure in recent months amid concerns about the impact of Hurricane Harvey on its business.

However, the company has a diversified business model that includes a strong presence in other parts of the country, and its financials remain strong. Despite the recent sell-off, TopBuild remains a well-positioned company with a strong market position and a proven track record of profitability. For long-term investors, the stock looks attractive at current levels.