📊 BLD Key Takeaways
Is TopBuild Corp (BLD) a Good Investment?
TopBuild exhibits fundamental deterioration with near-zero revenue and net income growth, severely impaired capital returns (4.4% ROE, 1.6% ROA), and diluted EPS despite flat earnings. While the company generates strong free cash flow and maintains adequate liquidity, it is not deploying capital efficiently or generating adequate shareholder returns relative to its leverage profile.
TopBuild shows strong underlying fundamentals with high margins for its industry, robust free cash flow generation, and excellent interest coverage despite a meaningfully leveraged balance sheet. Growth has moderated, with revenue up only modestly and net income flat, but the company still demonstrates solid operating discipline and financial resilience.
Why Buy TopBuild Corp Stock? BLD Key Strengths
- Strong free cash flow generation ($146.7M annually, 10.1% FCF margin)
- Healthy liquidity position (2.00x current ratio, 1.41x quick ratio) and solid interest coverage (9.3x)
- Asset-light operational model with minimal CapEx requirements ($14.0M or 1% of revenue)
- Strong profitability profile with 29.0% gross margin, 14.6% operating margin, and 9.6% net margin
- High-quality cash generation, with $696.89M of free cash flow and a 12.9% FCF margin
- Healthy liquidity and debt service capacity, supported by a 1.94x current ratio and 42.1x interest coverage
BLD Stock Risks: TopBuild Corp Investment Risks
- Alarmingly low capital returns (ROE 4.4%, ROA 1.6%) indicate severe capital inefficiency and value destruction
- Stalled growth trajectory (1.5% revenue growth, 0% net income growth YoY) with declining EPS (-9.9% YoY) suggesting shareholder dilution
- Elevated leverage (1.18x Debt/Equity ratio) with $2.8B long-term debt relative to $2.4B equity in low-growth environment
- Revenue growth is slowing, with only 1.5% YoY growth in the latest period
- Net income was flat and diluted EPS fell 9.9% YoY, suggesting weaker per-share earnings momentum
- Leverage is still notable, with $2.85B of long-term debt and debt/equity of 1.23x
Key Metrics to Watch
- Return on Equity trend and revenue growth acceleration indicators
- Debt/Equity ratio trajectory and refinancing risk with elevated leverage
- Operating margin stability and gross margin pressure in competitive construction sector
- Organic revenue growth and operating margin trend
- Free cash flow conversion and leverage reduction
TopBuild Corp (BLD) Financial Metrics & Key Ratios
💡 AI Analyst Insight
TopBuild Corp presents a mixed fundamental picture. Review the detailed metrics above to form your own investment thesis.
BLD Profit Margin, ROE & Profitability Analysis
BLD vs Industrial Sector: How TopBuild Corp Compares
How TopBuild Corp compares to Industrial sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is TopBuild Corp Stock Overvalued? BLD Valuation Analysis 2026
Based on fundamental analysis, TopBuild Corp has mixed fundamental signals relative to the Industrial sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
TopBuild Corp Balance Sheet: BLD Debt, Cash & Liquidity
BLD Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: TopBuild Corp's revenue has grown significantly by 55% over the 5-year period, indicating strong business expansion. The most recent EPS of $19.33 reflects profitable operations.
BLD Revenue Growth, EPS Growth & YoY Performance
BLD Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q1 2026 | $1.2B | $104.8M | $3.73 |
| Q3 2025 | $1.4B | $123.4M | $5.04 |
| Q2 2025 | $1.3B | $123.4M | $4.78 |
| Q1 2025 | $1.2B | $123.4M | $4.23 |
| Q3 2024 | $1.3B | $135.9M | $5.27 |
| Q2 2024 | $1.3B | $135.9M | $4.78 |
| Q1 2024 | $1.3B | $135.9M | $4.28 |
| Q3 2023 | $1.3B | $114.7M | $4.76 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
TopBuild Corp Dividends, Buybacks & Capital Allocation
BLD SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for TopBuild Corp (CIK: 0001633931)
📋 Recent SEC Filings
❓ Frequently Asked Questions about BLD
What is the AI rating for BLD?
TopBuild Corp (BLD) has a Combined AI Rating of HOLD from Claude (SELL) and ChatGPT (BUY) with 74% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are BLD's key strengths?
Claude: Strong free cash flow generation ($146.7M annually, 10.1% FCF margin). Healthy liquidity position (2.00x current ratio, 1.41x quick ratio) and solid interest coverage (9.3x). ChatGPT: Strong profitability profile with 29.0% gross margin, 14.6% operating margin, and 9.6% net margin. High-quality cash generation, with $696.89M of free cash flow and a 12.9% FCF margin.
What are the risks of investing in BLD?
Claude: Alarmingly low capital returns (ROE 4.4%, ROA 1.6%) indicate severe capital inefficiency and value destruction. Stalled growth trajectory (1.5% revenue growth, 0% net income growth YoY) with declining EPS (-9.9% YoY) suggesting shareholder dilution. ChatGPT: Revenue growth is slowing, with only 1.5% YoY growth in the latest period. Net income was flat and diluted EPS fell 9.9% YoY, suggesting weaker per-share earnings momentum.
What is BLD's revenue and growth?
TopBuild Corp reported revenue of $1.4B.
Does BLD pay dividends?
TopBuild Corp does not currently pay dividends.
Where can I find BLD SEC filings?
Official SEC filings for TopBuild Corp (CIK: 0001633931) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is BLD's EPS?
TopBuild Corp has a diluted EPS of $3.73.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is BLD a good stock to buy right now?
Based on our AI fundamental analysis in May 2026, TopBuild Corp has a HOLD rating with 74% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.
Is BLD stock overvalued or undervalued?
Valuation metrics for BLD: ROE of 4.4% (sector avg: 15%), net margin of 7.2% (sector avg: 10%). Compare these metrics with sector averages to assess valuation.
Should I buy BLD stock in 2026?
Our dual AI analysis gives TopBuild Corp a combined HOLD rating for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is BLD's free cash flow?
TopBuild Corp's operating cash flow is $160.7M, with capital expenditures of $14.0M. FCF margin is 10.1%.
How does BLD compare to other Industrial stocks?
Vs Industrial sector averages: Net margin 7.2% (avg: 10%), ROE 4.4% (avg: 15%), current ratio 2.00 (avg: 1.8).