Installed Building Products, Inc. (IBP) stock analysis

P/E above its 5-year median

Installed Building Products's P/E of 23.8 is above its own 5-year median of 22.1.

P/E above the industry

Installed Building Products's P/E of 23.8 is above the Building Construction General Contractors and Operative Builders median of 15.0.

EV/EBITDA above its 5-year median

Installed Building Products's EV/EBITDA of 14.8 is above its 5-year median of 14.1.

P/B above the industry

Installed Building Products's price-to-book of 8.00 is above the Building Construction General Contractors and Operative Builders median of 1.32.

Trading above fair value

The share price of $209.54 is above our fair value estimate of $152.67.

Margin of safety under 20%

The price is 37.3% above fair value, so there is no margin of safety.

Revenue growing under 10% a year

Revenue grew 3.6% a year over the last three fiscal years, short of the 10% we look for.

EPS growing under 10% a year

Diluted EPS grew 7.9% a year over the last three fiscal years.

Earnings growth not accelerating

Net income grew -7.8% over the last twelve months, against a 5-year average of 22.2% a year.

Growing faster than the industry

Revenue grew 0.7% over the last twelve months; the Building Construction General Contractors and Operative Builders median is -7.2%.

Guidance issued

The latest outlook (2026 acquire at least $100 million in revenue, Aug 6, 2026) was issued for the first time, so it neither adds nor takes away points.

Gross margin slipping

Gross margin was 33.1% over the last twelve months, against 33.6% a year earlier.

Return on equity over 15%

Return on equity was 34.3% over the last twelve months and averaged 39.6% over five years.

Return on capital over 10%

Return on invested capital was 20.6%, above the 10% that usually covers the cost of capital.

Return on equity above the industry

Installed Building Products's return on equity of 34.3% is above the Building Construction General Contractors and Operative Builders median of 8.1%.

Earnings grew over 5 years

Net income grew 22.2% a year on average over the last five fiscal years.

Net margin below its 5-year average

Net margin was 7.9% over the last twelve months, against a 5-year average of 8.2%.

Net margin above the industry

Installed Building Products's net margin of 7.9% is above the Building Construction General Contractors and Operative Builders median of 4.0%.

High debt

Debt is 151% of shareholders' equity, above the 40% we consider low.

Debt falling against equity

Debt to equity fell from 177% five years ago to 151%.

Debt covered by cash flow

Operating cash flow over the last twelve months equals 29.5% of total debt.

Interest well covered

Operating income covers interest expense 9.0 times.

Short-term assets cover short-term debts

Current assets are 3.12 times current liabilities.

Low bankruptcy risk

The Altman Z-score is 5.00; above 3 is the safe zone and below 1.8 the distress zone.

Pays a dividend

Installed Building Products paid dividends worth 1.6% of the share price over the last twelve months.

Yield below Treasuries

The 1.6% yield is below the 4.4% on a 1-year Treasury.

Yield below the top quarter

The top quarter of US dividend payers yield 3.8% or more; Installed Building Products yields 1.6%.

Dividend not cut

The dividend per share has not fallen by more than 10% in any of the last 7 fiscal years.

Covered by earnings

Dividends take 37.9% of net income.

Covered by free cash flow

Dividends take 36.4% of free cash flow.