Installed Building Products, Inc. (IBP)
Consumer Cyclical · NYQ · US
Fundamentals
Valuation and ratings
Installed Building Products, Inc. trades at USD235.40, which is 62% above the USD89.76 our discounted cash flow model puts on the business. On that measure it screens as expensive, which is not the same as saying it will fall.
Our moat model scores it 48 out of 100, which is a moat, but not a deep one. A moat is a structural reason competitors cannot take the profits away, and it matters more to a long holding period than any single quarter's numbers do.
It changes hands at 23.7 times earnings. Be careful reading that in isolation: for a cyclical business a low P/E arrives at the top of the cycle, when profits are peaking and about to fall, which is exactly when the shares look cheapest and are not.
About Installed Building Products, Inc.
Installed Building Products, Inc., together with its subsidiaries, engages in the installation of insulation for residential and commercial builders in the United States. It operates through three segments: Installation, Distribution, and Manufacturing Operations. It 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; basic sliding door and complex custom designs; and standard and custom designed mirrors, as well as shower doors, and closet shelving systems. Further, it installs and services garage doors and openers, including steel, aluminum, wood, and vinyl garage doors, as well as opener systems; installs waterproofing and caulking and moisture protection systems; offers sheet and hot applied waterproofing membrane, deck coating, bentonite, and air and vapor systems; and provides rain gutters installation services. Additionally, the company provides fire-stopping systems, including fire-rated joint assemblies, perimeter fire containment, and smoke and fire containment systems installation services; and cordless blinds, shades, and shutters installation, as well as other complementary building products for new construction, repair, remodel, and commercial projects. It also distributes products and materials purchased wholesale from manufacturers, such as spray foam insulation, metal building insulation, residential insulation, and mechanical and fabricated Styrofoam insulation; and insulation products, including equipment, machines, and services. The company was formerly known as CCIB Holdco, Inc. The company was founded in 1977 and is based in Columbus, Ohio.
Smart money ownership
13 of the funds we track reported a position in their latest SEC 13F filing. Largest first:
- Francois Rochon, Giverny Capital Inc.$107.03M · 3.9% of book
- Capital Research Global, Capital Research Global Investors$47.36M · 0.0% of book
- Burgundy Asset Management, Burgundy Asset Management Ltd.$20.03M · 0.2% of book
- First Eagle, First Eagle Investment Management, LLC$16.93M · 0.0% of book
- Ken Griffin, CITADEL ADVISORS LLC$13.26M · 0.0% of book
A word of warning on reading these figures: a 13F reports the market value of a holding, so a fund that traded nothing at all still appears to have sold when the price fell. We found 102 companies where the standard reading gives the opposite answer. Only the share count is honest.
Common questions
Is Installed Building Products, Inc. (IBP) undervalued?
Against our discounted cash flow estimate of USD89.76, IBP at USD235.40 is 62% above fair value. That is one model's answer, not a recommendation, and most of a DCF's output sits in a terminal value nobody can forecast.
Which funds own IBP?
13 of the institutions we track reported a position in IBP in their most recent SEC 13F filing. A 13F is filed up to 45 days after quarter end, so it tells you what a fund held then, not what it holds now.
What is IBP's P/E ratio?
IBP trades at 23.7 times earnings. A low P/E is not automatically cheap: on a cyclical company it is usually a warning that earnings are at a peak.
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Data from company filings, exchange quotes and SEC EDGAR 13F disclosures. Quotes are delayed. Metrics we do not have are left out rather than estimated. Educational information, not financial advice.