IBP Stock Intrinsic Value – Truist Financial Downgrades Installed Building Products to ‘Hold’

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Installed Building Products ($NYSE:IBP) (IBP) is a leading provider of insulation and related building products in North America. It offers a diverse range of insulation and other building products to residential and commercial customers. Recently, Truist Financial has downgraded their rating of Installed Building Products to Hold. The downgrade comes as a result of increased competition in the markets that IBP operates in, as well as a decrease in expected profits due to the current economic climate. The combination of these factors has made it difficult for IBP to remain competitive in the market.

Truist Financial’s downgrade of IBP to Hold is reflective of their assessment of the current market conditions and the company’s overall financial outlook. While IBP is still well positioned to serve its customer base, its future growth will be dependent on its ability to remain competitive in the face of increased competition and higher costs. Investors should continue to monitor the stock closely and weigh their options accordingly.

Share Price

IBP stock opened at $169.7 and closed at $174.3, up 1.6% from the previous closing price of $171.6. This followed an overall positive day of trading, with the stock rising steadily throughout the day despite the lowered rating from Truist. Despite the downgrade, IBP was able to maintain its high level of performance in the market, suggesting that investors remain confident in the company’s future prospects. Live Quote…

About the Company

Income Snapshot

Below shows the total revenue, net income and net margin for IBP. More…

Cash Flow Snapshot

Below shows the cash from operations, investing and financing for IBP. More…

Balance Sheet Snapshot

Below shows the total assets, liabilities and book value per share for IBP. More…

Key Ratios Snapshot

Some of the financial key ratios for IBP are shown below. More…

Analysis – IBP Stock Intrinsic Value

At GoodWhale, we have just conducted an analysis of INSTALLED BUILDING PRODUCTS’ wellbeing. According to our proprietary Valuation Line, the intrinsic value of INSTALLED BUILDING PRODUCTS’ share is approximately $140.7. However, the current market price of INSTALLED BUILDING PRODUCTS’ stock is $174.3, meaning that it is overvalued by 23.9%. As a result, we recommend exercising caution when making investment decisions related to this company. More…

Peers

– GMS Inc ($NYSE:GMS)

GMS Inc is a publicly traded company with a market capitalization of $1.89 billion as of 2022. The company has a return on equity of 26.33%. GMS Inc is engaged in the business of marketing and distributing acoustical and construction products. The company operates in three segments: North American Operations, European Operations, and Asia-Pacific Operations.

– BlueLinx Holdings Inc ($NYSE:BXC)

BlueLinx Holdings Inc is a leading provider of building products and services in North America. The company has a market cap of 573.84M as of 2022 and a return on equity of 58.79%. BlueLinx offers a broad range of products and services that meet the needs of its customers. The company’s products include lumber, engineered wood, windows, doors, decking, siding, and more. BlueLinx also provides services such as installation, delivery, and financing.

– Beacon Roofing Supply Inc ($NASDAQ:BECN)

Beacon Roofing Supply Inc is a distributor of roofing materials and complementary building products, serving contractors, remodelers and homebuilders in the United States. As of 2022, it had a market cap of 3.56 billion and a return on equity of 11.71%. The company supplies a range of roofing products, including asphalt shingles, metal roofing, slate roofing, tile roofing, commercial roofing and residential roofing. It also offers complementary building products, such as decking, siding, windows, doors, millwork and drywall.

Summary

Installed Building Products (IBP) is a stock to consider for investors looking to capitalize on the current construction and home improvement industry. Recently, Truist Financial downgraded IBP to a “Hold” from an earlier Buy rating. Despite these positive numbers, Truist Financial believes there is a limited upside potential in the stock, citing strong competition in the sector.

Nevertheless, IBP is well-positioned for the current market and could see an increase in share price as the economy recovers. Investors should watch IBP’s financials and consider adding the stock to their portfolios if the company continues to show strong growth.