Installed Building Products (IBP) AI Stock Analysis

• Market Cap: $4.57B
• Dividend Yield: 0.87%
• Average Volume (3M): 368.96K
• Price to Earnings (P/E): 18.7
• Beta (1Y): 1.32
• Revenue Growth: 4.30%
• EPS Growth: -0.69%
• Country: US
• Employees: 10,800
• Sector: Consumer Cyclical
• Sector Strength: 60
• Industry: Construction
• EPS (TTM): 2.08
• Shares Outstanding: 27,610,886
• 10 Day Avg. Volume: 261,010
• 30 Day Avg. Volume: 368,957
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 1.21
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: 5.58
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $191.11
• Price Target Upside: 18.73% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 10

Installed Building Products scores a 71, reflecting its strong financial performance and strategic growth initiatives despite some challenges. The financials are robust, with solid revenue growth and profitability. Technical analysis shows some bearish tendencies, while valuation metrics suggest the stock is fairly priced. The earnings call highlighted both strategic growth through acquisitions and pressures from a challenging market environment. Corporate events, such as dividend announcements, offer a positive outlook for investor sentiment.

Positive Factors

Capital Deployment

IBP is confident in its strong M&A pipeline and plans to deploy capital for acquisitions, targeting markets like Southwest, Arizona, Indianapolis, Southeast, and Florida.

Growth Initiatives

IBP’s growth initiatives on the multi-family side resulted in just a 5% same-branch sales decline in this segment in what was likely a market down closer to 30%+.

Operational Improvements

Operationally IBP is in a better spot than recent years due to reduced supply chain, labor bottlenecks, and material availability stress.

Negative Factors

Financial Performance

Installed Building Products reported a challenging start to FY25 with both revenue and margins coming in lower than consensus expectations, resulting in an EPS miss in 1Q.

Market Conditions

Macro limits upside with the current operating backdrop largely unchanged, as elevated interest rates have essentially ground the housing markets sideways.

Weather Impact

Severe weather is expected to impact 1Q25 results, with construction sites nationally losing multiple days of production.

Installed Building Products Business Overview & Revenue Model

Company Description

Installed Building Products, Inc., together with its subsidiaries, engages in the installation of insulation, waterproofing, fire-stopping, fireproofing, garage doors, rain gutters, window blinds, shower doors, closet shelving and mirrors, and other products in the continental United States. The company offers a range of insulation materials, such as fiberglass and cellulose, and spray foam insulation materials. It is also involved in the installation of insulation and sealant materials in various areas of a structure, which includes basement and crawl space, building envelope, attic, and acoustical applications. In addition, the company installs a range of caulk and sealant products that control air infiltration in residential and commercial buildings; and waterproofing options, including sheet and hot applied waterproofing membranes, as well as deck coating, bentonite, and air and vapor systems. It serves homebuilders, multi-family and commercial construction firms, individual homeowners, and repair and remodeling contractors through a network of approximately 210 branch locations. The company was formerly known as CCIB Holdco, Inc. Installed Building Products, Inc. was founded in 1977 and is based in Columbus, Ohio.

How the Company Makes Money

Installed Building Products makes money primarily through the installation services it provides to residential and commercial builders. The company's revenue model is centered around contracts with builders and construction companies, where it installs a variety of building materials that are essential for new construction and remodeling projects. Key revenue streams include the installation of insulation products, which is a significant contributor due to the regulatory demand for energy-efficient buildings. Additionally, IBP generates income from the installation of other products like garage doors and rain gutters, which are critical components of building construction. The company benefits from strong relationships with builders and manufacturers, ensuring a steady supply of materials and consistent demand for its installation services. Strategic acquisitions and geographic expansion also contribute to its earnings by broadening its market reach and service capabilities.

Installed Building Products Financial Statement Overview

Summary

Installed Building Products exhibits strong profitability with solid revenue growth and efficient cost management. However, the balance sheet shows slightly above-optimal leverage, and recent declines in free cash flow growth could pose challenges.

Income Statement

Installed Building Products shows strong profitability with a consistently high Gross Profit Margin of 33.5% TTM and a stable Net Profit Margin of 8.4%. The company has demonstrated a solid Revenue Growth Rate of 9.7% from 2022 to 2023. EBIT and EBITDA Margins are robust at 12.4% and 17.1% TTM, indicating efficient cost management and operational performance.

Balance Sheet

The balance sheet reflects a moderate debt level with a Debt-to-Equity Ratio of 1.48 TTM, which is manageable but slightly on the higher side for the industry. Return on Equity is healthy at 37.2%, showcasing effective deployment of equity capital. The Equity Ratio stands at 33%, indicating a balanced capital structure but with room for improvement in equity proportion.

Cash Flow

Operating Cash Flow to Net Income Ratio is moderate at 0.33 TTM, suggesting adequate cash generation relative to earnings. Free Cash Flow to Net Income Ratio is strong at 0.25 TTM, though there is a decline in Free Cash Flow Growth Rate by 75.4% TTM due to increased capital expenditures, which may impact cash availability for future investments.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
2.94B	2.78B	2.67B	1.97B	1.65B
	Gross Profit
994.50M	930.70M	827.78M	589.52M	509.97M
	EBIT
382.50M	369.10M	345.41M	187.88M	161.87M
	EBITDA
517.80M	495.80M	458.76M	288.02M	249.46M
	Net Income Common Stockholders
256.60M	243.70M	223.40M	118.80M	97.24M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
327.60M	386.50M	229.63M	333.49M	231.52M
	Total Assets
2.06B	1.98B	1.78B	1.65B	1.19B
	Total Debt
978.30M	954.80M	945.99M	937.38M	622.99M
	Net Debt
650.70M	568.30M	716.37M	603.89M	391.47M
	Total Liabilities
1.35B	1.31B	1.29B	1.24B	868.49M
	Stockholders Equity
705.30M	670.30M	493.50M	416.84M	319.18M
Cash Flow		Free Cash Flow
251.40M	278.60M	232.26M	101.33M	147.20M
	Operating Cash Flow
340.00M	340.20M	277.90M	138.31M	180.79M
	Investing Cash Flow
-159.10M	-103.40M	-158.67M	-278.44M	-77.79M
	Financing Cash Flow
-239.80M	-79.90M	-223.09M	242.09M	-49.36M

Installed Building Products Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 160.96
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IBP, the sentiment is Negative. The current price of 160.96 is below the 20-day moving average (MA) of 165.36, below the 50-day MA of 168.65, and below the 200-day MA of 199.56, indicating a bearish trend. The MACD of -0.91 indicates Negative momentum. The RSI at 44.84 is Neutral, neither overbought nor oversold. The STOCH value of 26.64 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IBP.

Installed Building Products Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
AZEK	76 Outperform	$7.19B	49.97	10.62%	―	5.93%	3.50%
LPX	74 Outperform	$6.30B	15.38	24.41%	1.18%	8.09%	55.08%
AAON	72 Outperform	$7.93B	51.97	19.85%	0.42%	8.24%	-11.66%
IBP	71 Outperform	$4.57B	18.71	37.31%	0.87%	4.30%	-0.69%
TREX	71 Outperform	$6.23B	27.87	23.07%	―	-9.10%	-21.50%
FBIN	62 Neutral	$6.40B	14.47	18.62%	1.90%	-3.48%	4.55%
Sector *	61 Neutral	$6.66B	11.77	3.06%	3.96%	2.60%	-21.54%

Installed Building Products Corporate Events

Installed Building Products Acquires Pro Foamers, Inc.

Installed Building Products reported a slight decrease in net revenue and net income for the first quarter of 2025 compared to the previous year, reflecting challenges in the housing market and increased operational costs. Despite these challenges, the company remains optimistic about long-term opportunities and continues to invest in acquisitions, having acquired Pro Foamers, Inc. in May 2025. The Board of Directors declared a quarterly cash dividend of $0.37 per share, payable on June 30, 2025, and the company repurchased 200,000 shares of common stock in the first quarter.

Spark’s Take on IBP Stock

According to Spark, TipRanks’ AI Analyst, IBP is a Outperform.

Installed Building Products scores well due to its strong financial performance and positive earnings call sentiment. The company has managed substantial revenue growth and profitability, supported by strategic acquisitions and dividend enhancements. However, technical indicators present a mixed outlook, and high debt levels and market challenges pose potential risks. Valuation remains fair with a modest dividend yield.

To see Spark’s full report on IBP stock, click here.

Installed Building Products Announces Quarterly and Annual Dividends

On February 27, 2025, Installed Building Products announced that its Board of Directors approved a quarterly cash dividend of $0.37 per share and an annual variable cash dividend of $1.70, both payable on March 31, 2025, to stockholders of record as of March 14, 2025. Additionally, the company plans to engage with prospective investors during the first quarter of 2025, with related materials available on its website, potentially impacting investor relations and market perception.