📊 BLD Key Takeaways
Investment Thesis
TopBuild demonstrates solid fundamental strength with healthy profitability margins (29% gross, 14.6% operating) and robust cash generation ($696.9M free cash flow, 12.9% FCF margin). The company maintains strong financial health with an excellent interest coverage ratio of 42.1x and manageable leverage at 1.23x debt-to-equity, though revenue growth has decelerated to 1.5% YoY amid a challenging construction environment.
BLD Strengths
- Exceptional free cash flow generation of $696.9M with 12.9% FCF margin demonstrates operational efficiency
- Strong profitability metrics with 22.5% ROE and 7.9% ROA indicate effective capital deployment
- Excellent debt servicing capability with 42.1x interest coverage ratio and solid liquidity position (1.94x current ratio)
- Robust operating margins of 14.6% showing pricing power and operational discipline in the specialty contracting sector
BLD Risks
- Revenue growth has stalled at only 1.5% YoY, indicating market saturation or demand weakness in construction markets
- Elevated debt level at $2.8B with 1.23x debt-to-equity ratio limits financial flexibility for growth investments or downturns
- Net income flat year-over-year (+0.0%) while EPS declined 9.9%, suggesting share dilution or margin pressure despite absolute profitability
- Construction sector cyclicality and sensitivity to housing starts and economic conditions pose downside risk
Key Metrics to Watch
- Revenue growth acceleration - current 1.5% YoY is below historical construction sector averages
- Operating margin sustainability - monitor for cost pressures that could erode the 14.6% margin
- Free cash flow conversion ratio - ensure the strong 12.9% FCF margin is maintained
- Debt reduction trajectory - track whether operating cash flows are being deployed to reduce the $2.8B debt burden
- Return on equity trend - maintain vigilance on the 22.5% ROE amid slowing growth
BLD Financial Metrics
💡 AI Analyst Insight
TopBuild Corp presents a mixed fundamental picture. Review the detailed metrics above to form your own investment thesis.
BLD Profitability Ratios
BLD vs Industrial Sector
How TopBuild Corp compares to Industrial sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
BLD Balance Sheet & Liquidity
BLD 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 Growth Metrics (YoY)
BLD Quarterly Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| 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 |
| Q2 2023 | $1.3B | $114.7M | $4.41 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
BLD Capital Allocation
BLD SEC Filings
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 an AI rating of BUY with 78% confidence, based on fundamental analysis of SEC EDGAR filings.
What are BLD's key strengths?
Exceptional free cash flow generation of $696.9M with 12.9% FCF margin demonstrates operational efficiency. Strong profitability metrics with 22.5% ROE and 7.9% ROA indicate effective capital deployment.
What are the risks of investing in BLD?
Revenue growth has stalled at only 1.5% YoY, indicating market saturation or demand weakness in construction markets. Elevated debt level at $2.8B with 1.23x debt-to-equity ratio limits financial flexibility for growth investments or downturns.
What is BLD's revenue and growth?
TopBuild Corp reported revenue of $5.4B.
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 $18.28.
How is the AI analysis conducted?
Our AI (Claude) analyzes publicly available SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports to evaluate financial health, profitability ratios, balance sheet strength, and growth metrics.