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Installed Building Products

IBP
43
Residential Construction · Consumer Cyclical
Winston Score
43
Winston is serious
Mixed quality — meaningful strengths and weaknesses.

Installed Building Products installs insulation in new homes and buildings across the United States. Its main customers are homebuilders — the companies that construct new houses. Beyond insulation, it also installs gutters, garage doors, shower glass, and other finishing products. It is one of the largest installers of insulation in the country.

The company makes money by charging builders for both the materials and the labor to install them. It operates through hundreds of branch locations spread across most U.S. states, giving it broad geographic reach that smaller local competitors struggle to match. Revenue is closely tied to how many new homes are being built, so rising interest rates that slow housing construction are the main risk the business faces.

Winston Score History

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Growth Profile

When traditional metrics don't capture the full picture, these are the signals growth stock investors use instead.

Revenue Growth

-3.5% YoY

YoY Growth Rate

Revenue declining

EPS Growth

-21.2% YoY

YoY Growth Rate

Earnings declining

Insider Activity

13.8%ownership

Flat

Insiders holding steady — not selling despite ability to

Cash Position

Cash flow positive

$474M cash & investments

Quarterly Free Cash Flow

→ Burn rate stable

Company generates more cash than it spends — no dilution risk from fundraising

Revenue declining

Installed Building Products's revenue is actually shrinking. In a growth stock, that removes the core investment thesis. The low Winston Score here may be warranted — unless there's a turnaround story.

The Winston Score above measures business quality today. Growth stocks often score lower because they invest in the future rather than maximising current profits. These metrics show what matters most for evaluating that future.

Score breakdown

Every number that matters to educated investors.

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Quality

Gross Margin
30.6%
Modest — 30.6% gross margin
Operating Margin
8.9%
Modest — 8.9% operating margin
ROCE
3.3%
Weak — 3.3% return on capital

ROIC between 0% and 5%. They earn a few cents back per dollar invested in the business.

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Growth

Sales YoY
+0.5%
Nearly flat sales (0.5% YoY)
EPS YoY
+6.9%
Modest earnings growth (6.9% YoY)

Single-digit earnings growth — steady but not exciting.

EPS Consistency
6/8 quarters
Earnings grew in most of the last 8 quarters

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Cash Flow

Cash Conversion
29%
Weak — only 29% of profit becomes cash
FCF Margin
-0.3%
Burning cash (-0.3%)

Free cash flow is negative. They are burning cash, not generating it.

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Stability

Debt / Equity
1.67
Elevated debt (1.67)
Interest Cover
11.13x
Comfortably covers interest (11.1x)

Interest coverage above 8. Profits cover interest many times over.

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Valuation

P/E Ratio (TTM)
24.2x
no trend
Growth-priced — P/E 24.2

P/E above the market average. People are paying up for expected growth.

P/E vs Forward
+1.6
GROWING
Earnings expected to grow — slightly cheaper on forward P/E

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Dividends

Dividend Yield
1.45%
no trend
Small dividend — 1.45% yield

Modest yield. The bulk of any return needs to come from price appreciation.

Dividend Growth
+5.7%
no trend
Dividend growing modestly (5.7% YoY)

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