Installed Building Products Inc ($IBP) Cautious Buy or Hold to $52 Confident Investor Rating: Fair

 

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 Poor
P/E growth Poor
EBIT growth Good

ANALYSIS

Confident Investor Rating Fair
Target stock price (TWCA growth scenario) $58.11
Target stock price (averages with growth) $57.37
Target stock price (averages with no growth) $57.37
Target stock price (manual assumptions) $54.66

 

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. It also provides roof installation services. 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.

Confident Investor comments: At this time, I think that a Confident Investor can cautiously invest in Installed Building Products Inc as long as the price is correct and the indicators that I describe in my book The Confident Investor are favorable. Most of the fundamentals of this company are good but there are some concerns. I have decided to remove Installed Building Products from my WatchList.

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: $51.67
  • Growth: 0.12
  • Current EPS (TTM): $1.85
  • P/E: 27
  • Future EPS Calc: $3.26
  • Future Stock Price Calc: $88.02
  • Target stock price: $54.65

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I hope that this makes you a Confident Investor.

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