| Company name | Installed Building Products Inc |
| Stock ticker | IBP |
| Live stock price | [stckqut]IBP[/stckqut] |
| P/E compared to competitors | Fair |
MANAGEMENT EXECUTION
| Employee productivity | Poor |
| Sales growth | Good |
| EPS growth | Good |
| P/E growth | Fair |
| EBIT growth | Good |
ANALYSIS
| Confident Investor Rating | Good |
| Target stock price (TWCA growth scenario) | $85.26 |
| Target stock price (averages with growth) | $124.44 |
| Target stock price (averages with no growth) | $84.53 |
| Target stock price (manual assumptions) | $84.24 |
The following company description is from Reuters: https://www.reuters.com/finance/stocks/company-profile/ibp
Installed Building Products, Inc., incorporated on October 28, 2011, is a holding company. The Company is a residential insulation installer in the United States. As of December 31, 2016, the Company’s national platform included over 100 locations accessing customers in 48 continental states and the District of Columbia. The Company also installs complementary building products, including garage doors, rain gutters, shower doors, closet shelving and mirrors, which provides cross-selling opportunities to supplement the insulation installation business. The Company manages various aspects of the installation process for the customers, from the direct purchase and receipt of materials from national manufacturers, to supply of materials to job sites and quality installation. The Company’s customers include production and custom homebuilders, multi-family and commercial contractors, and homeowners.
The Company handles various stages of the installation process, including material procurement, project scheduling and logistics, multi-phase professional installation and field quality inspection. The Company offers a range of insulation materials, including Fiberglass and Cellulose Insulation, and Spray Foam Insulation. Fiberglass insulation is made of fibrous glass that is held together by a thermoset resin creating insulating air pockets. It is primarily available in two forms: batts (also referred to as blankets) and loosefill (also referred to as blown in). Cellulose insulation is made primarily of paper and cardboard. Spray foam insulation, which is generally a polyurethane foam, is applied at a job site by mixing two chemical components together in specialized application equipment.
Confident Investor comments: At this price and at this time, I think that a Confident Investor can confidently invest in Installed Building Products Inc as long as the indicators that I describe in my book The Confident Investor are favorable.
If you would like to understand how to evaluate companies like I do on this site, please read my book, The Confident Investor. You can review the best companies that I have found (and I probably invest my own money in most of these companies) in my Watch List.
How was this analysis of Installed Building Products Inc calculated?
For owners of my book, “The Confident Investor” I offer the following analysis (you must be logged in to this site as a book owner in order to see the following analysis). If you have registered and cannot see the balance of this article, make sure you are logged in and refresh your browser.
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In order to assist you in using the techniques of this book, the values that I used when calculating the Manual pricing above were:
- Stock price at the time of the calculation: $55
- Growth: 0.2
- Current EPS (TTM): $1.16
- P/E: 47
- Future EPS Calc: $2.88
- Future Stock Price Calc: $135.66
- Target stock price: $84.23
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I hope that this makes you a Confident Investor.