📊 BLD Key Takeaways
Is TopBuild Corp (BLD) a Good Investment?
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.
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
- 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
- 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
- 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
- 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
- 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
- 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 |
|---|---|---|---|
| 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.
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 BUY from Claude (BUY) and ChatGPT (BUY) with 77% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are BLD's key strengths?
Claude: 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. 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: 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. 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 $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?
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 April 2026, TopBuild Corp has a BUY rating with 77% confidence. The AI analysis suggests favorable fundamentals based on SEC filings. This is not investment advice.
Is BLD stock overvalued or undervalued?
Valuation metrics for BLD: ROE of 22.5% (sector avg: 15%), net margin of 9.6% (sector avg: 10%). Higher ROE suggests strong returns relative to peers.
Should I buy BLD stock in 2026?
Our dual AI analysis gives TopBuild Corp a combined BUY 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 $756.3M, with capital expenditures of $59.4M. FCF margin is 12.9%.
How does BLD compare to other Industrial stocks?
Vs Industrial sector averages: Net margin 9.6% (avg: 10%), ROE 22.5% (avg: 15%), current ratio 1.94 (avg: 1.8).