Single-family housing starts and permits: 70%+ of installation revenue tied to residential new construction activity, with typical 60-90 day lag from permit to insulation installation
Homebuilder order trends and backlog: Direct correlation to top builder production schedules, particularly D.R. Horton, Lennar, and PulteGroup volumes
Acquisition announcements: Company pursues roll-up strategy targeting $50-150M revenue installers and distributors, typically 6-8x EBITDA multiples with 15-20% IRR targets
Material cost inflation/deflation: Fiberglass and spray foam input costs affect gross margins, though typically passed through with 30-60 day lag
high - Revenue directly tracks residential construction activity, which is highly cyclical and GDP-sensitive. Single-family starts typically decline 30-50% during recessions (2008-2009 saw 75% peak-to-trough decline). However, company's market share gains and acquisition strategy provide partial offset. Commercial exposure (~15-20% of revenue) adds diversification but also cyclical. Repair/remodel and retrofit work (~10-15% of revenue) provides modest counter-cyclical buffer.
Rising mortgage rates significantly impact housing affordability and buyer demand, reducing housing starts with 6-12 month lag. Each 100 bps increase in 30-year mortgage rates historically correlates with 10-15% decline in single-family starts. Company also carries $1.2-1.5B in debt (mix of fixed and variable), so rising rates increase interest expense by estimated $5-10M annually per 100 bps move in floating rates. However, strong free cash flow enables rapid deleveraging. Valuation multiple contracts when 10-year Treasury yields rise as investors rotate from growth to defensive sectors.
Labor availability and wage inflation: Skilled insulation installers are scarce, with industry facing demographic challenges as workforce ages. Wage inflation of 4-6% annually pressures margins if not recovered through pricing. Immigration policy changes could tighten labor supply further.
Building code evolution and energy efficiency mandates: Stricter energy codes drive insulation content per home (positive), but shift toward alternative technologies (structural insulated panels, advanced air sealing systems) could disrupt traditional fiberglass/spray foam installation model over 10+ year horizon.
Homebuilder vertical integration: Large builders periodically evaluate bringing insulation installation in-house to capture margins, though capital intensity and management complexity have historically limited this threat. Estimated 5-10% of market is builder self-performed.
growth - Stock attracts growth investors focused on market share consolidation story and operating leverage during housing upcycles. 65.9% one-year return reflects momentum following 2023-2025 housing recovery. However, cyclical nature also attracts value investors during housing downturns when stock trades at trough multiples (historically 8-10x P/E vs current 17-20x). Institutional ownership ~95% with concentration in growth-oriented funds (Fidelity, T. Rowe Price, Wellington). Limited dividend (estimated 0.5% yield) means income investors avoid the stock.
No analyst coverage available for this stock.
2 signals unavailable — limited data for this stock
Trend
+8.5% vs SMA 50 · +2.9% vs SMA 200
Momentum
Accumulation pattern present — more buying days than selling over the past 20 sessions. Volume conditions support gradual price improvement.
Based on volume distribution analysis. Direct short interest data (short float %, days to cover) is not available in current data sources.
BLD News
Unable to load news
About
topbuild is the leading installer and distributor of insulation products to the united states construction industry, based on revenue. we provide insulation installation services nationwide through our truteamsm business, which has over 190 installation branches located in 43 states; we distribute insulation and other building products nationwide through our service partners® business from our 72 distribution centers located in 35 states; and in addition to our core product and service expertise, we are a leader in building science through topbuild home services, inc. and its environments for living® program. topbuild corp., an independent, publically traded company, was formed in 2015 from the spin-off of masco corporation’s installation and other services businesses.
| Symbol | Price | Day % | Mkt Cap↓ | P/E | Rev Grw | Margin | ELO |
|---|---|---|---|---|---|---|---|
BLD◀ | $438.98 | -0.84% | $12.3B | 23.5 | +148.8% | 964.5% | 1500 |
| $397.67 | +0.00% | $2.1T | — | — | — | 1500 | |
| $91.95 | +0.00% | $316.0B | 14.1 | — | 1510.7% | 1500 | |
| $131.46 | +0.00% | $305.1B | 23.7 | — | 1305.9% | 1500 | |
| $184.74 | +0.00% | $286.4B | 27.2 | +862.9% | 1745.9% | 1500 | |
| $146.57 | +0.00% | $279.7B | 21.0 | +597.3% | 2564.4% | 1500 | |
| $88.98 | +0.00% | $251.9B | 14.4 | — | 668.4% | 1500 | |
| Sector avg | — | -0.12% | — | 20.6 | +536.3% | 1459.9% | 1500 |