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TopBuild Corp. (NYSE:BLD): Commentary On Fundamentals

Isabel Galloway

TopBuild Corp. (NYSE:BLD) is a company with exceptional fundamental characteristics. Upon building up an investment case for a stock, we should look at various aspects. In the case of BLD, it is a company with a a strong history of performance, trading at a great value. Below is a brief commentary on these key aspects. If you’re interested in understanding beyond my high-level commentary, read the full report on TopBuild here.

Undervalued with solid track record

In the past couple of years, BLD has ramped up its bottom line by over 100%, with its latest earnings level surpassing its average level over the last five years. Not only did BLD outperformed its past performance, its growth also surpassed the Consumer Durables industry expansion, which generated a 17% earnings growth. This is an notable feat for the company. BLD is currently trading below its true value, which means the market is undervaluing the company’s expected cash flow going forward. According to my intrinsic value of the stock, which is driven by analyst consensus forecast of BLD’s earnings, investors now have the opportunity to buy into the stock to reap capital gains. Compared to the rest of the consumer durables industry, BLD is also trading below its peers, relative to earnings generated. This further reaffirms that BLD is potentially undervalued.

NYSE:BLD Income Statement Export December 19th 18

Next Steps:

For TopBuild, I’ve put together three key factors you should further research:

  1. Future Outlook: What are well-informed industry analysts predicting for BLD’s future growth? Take a look at our free research report of analyst consensus for BLD’s outlook.
  2. Financial Health: Are BLD’s operations financially sustainable? Balance sheets can be hard to analyze, which is why we’ve done it for you. Check out our financial health checks here.
  3. Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of BLD? Explore our interactive list of stocks with large potential to get an idea of what else is out there you may be missing!

To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.

The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.