TopBuild Corp. Common Stock (BLD)

FairStock Score: 51/100 — MIXED

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I look at TopBuild as a solid but cyclical installer and distributor of insulation and building products. The latest filed quarter, fiscal Q1 2026, showed revenue of $1.4 billion and net income of $104.8 million, a 7.25% net margin. That is respectable, not lavish. The business generates cash: trailing free cash flow is $704.4 million, a 5.5% FCF yield at the $12.9 billion market cap. FairStock’s return figures show ROE of 22.26%, though ROCE of 9.18% is only moderate; I would want more evidence of durable competitive advantage. Debt is meaningful at D/E 1.30, and beta of 1.83 means the shares are sensitive. The balance sheet risk looks tolerable for now because Altman Z is 3.01 and Piotroski is 6/9. Valuation is the sticking point. At the $354.53 close on 2026-07-02, FairStock shows P/E 19.92, P/B 4.13, EV/EBITDA 15.91, and a Graham Number of $184.99—a negative 91.65% margin of safety. That is not a Graham bargain. The latest filed quarter is my clean anchor; I lack a prior comparable filed period here, so I cannot verify a durable growth trend and would not pay a high price for unproven momentum. My conclusion: a decent cash-generating business with modest moat evidence, but the price already discounts a lot and offers little conservative cushion.

In plain English: TopBuild installs and distributes insulation and other building products. It is profitable and produces cash, but it carries meaningful debt. At the July 2, 2026 close, the stock looks expensive compared with its earnings and accounting value.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

Data as of 2026-07-02 close · note generated 2026-10-28 · model deepseek-flash

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer