This is a step-by-step stock review to answer the question, is Installed Building Products (IBP) stock a good buy?
This article will teach you how to use the 4Ms of investing. This will be a detailed walkthrough to show you how the 4Ms work and why they are important. If you are interested, you can log into Tykr to use the 4M Confidence Booster (Powered by OpenAI) which will allow you to complete a 4M Analysis in less than 60 seconds.
What are the 4Ms?
- MOS (Margin of Safety) – The MOS is the math part of investing which includes the Summary, Score, and MOS (Margin of Safety).
- Meaning – The meaning is the business model and how scalable the revenue streams are.
- Moat – The moat is how the business compares to other companies in the same Sector and Industry.
- Management – The management is the track record of the CEO.
What 4M score are we going for?
- 80-100 = High confidence – Yay! You should have high confidence buying this stock. It passes all 4M!
- 60-79 = Moderate confidence – Alert! There may be better stocks in the market. Only buy this stock if you truly believe the company will improve!
- 0-59 = Low confidence – Warning! There are better stocks in the market. Due to the low score, you should consider looking at other stocks.
Table of Contents
The following links will direct you to key topics to help answer the question, is Installed Building Products (IBP) stock a good buy?
- Installed Building Products ( Company History
- MOS
- Meaning
- Moat
- Management
- 4M Score
- Is Installed Building Products (IBP) stock a good buy?
1. Installed Building Products Company History
- Founded: Installed Building Products (IBP) was established in 1977 and is headquartered in Columbus, Ohio and as the name suggests it deals with installation of building products.
- Primary Business: The company specializes in the installation of insulation and related building products, serving both residential and commercial markets.
- Growth: IBP has achieved significant expansion through a blend of organic growth and acquisitions, establishing itself as a leading provider in the industry.
- Public Listing: The company went public in 2015, trading on the New York Stock Exchange under the ticker symbol “IBP.”
- Acquisitions: IBP has acquired numerous regional and local companies specializing in insulation and installation building products, broadening its geographic reach and service offerings.
- Services: The company offers a diverse range of services, including insulation installation, garage doors, and other building products.
- Mission: Installed Building Products is dedicated to delivering high-quality products and exceptional service, with a focus on customer satisfaction and industry innovation.
2. MOS (Margin Of Safety)
When investing in a company such as installation building products, the first step is to look at the financials. Fortunately, Tykr does this for us automatically. The higher the score, the stronger the financials and the safer the investment. The higher the MOS, the higher the potential returns you can make.
- Summary: Watch
- Score: 78
- MOS: 39%
To see the most up-to-date Summary, Score, and MOS, please log into Tykr.
3. Meaning
When investing in a company, it’s important to know how a company makes money. A mature business model has multiple streams of revenue which allow the company to weather downturns in the economy.
Here is how Installed Building Products makes money:
- Insulation Installation: Revenue from installing insulation in residential and commercial buildings.
- Gutter Installation: Earnings from installing and maintaining gutters and downspouts.
- Garage Doors: Income from installing and servicing garage doors.
- Other Building Products: Revenue from installing additional building products like shower doors, mirrors, and closet shelving.
- Maintenance Services: Earnings from ongoing maintenance and repair services for installed products.
- Commercial Projects: Revenue from large-scale commercial installations and projects.
Installed Building Products has acquired several companies specializing in installation building products.. This is important because a company will use a “Buy before build” philosophy to go to market faster and add additional streams of revenue. A company with more revenue streams has a more stable business model. Keep in mind, that most companies don’t build new software because it takes too long to go to market and generate revenue.
- Installed Building Products, Inc.
- Insulation Distributors, Inc.
- IBP of Florida
- IBP of Georgia
- IBP of Ohio
- IBP of Texas
4. Moat
When investing in a company, it’s important to understand how a company ranks against other companies in the same sector and industry. Based on the Score, here is how installation building products stacks up against other companies.
- Lennox International Inc.(LII) – 78
- Masco Corporation(MAS) – 78
- Installed Building Products, Inc.(IBP) – 78
- Trane Technologies plc.(TT) – 72
- The AZEK Company Inc.(AZEK) – 67
- Trex Company, Inc.(TREX) – 67
To see the most up-to-date Summary, Score, and MOS and each stock, please log into Tykr.
5. Management
When investing in a company, it’s important to understand who the CEO is, what they have accomplished in the past, and how they have helped this company grow. Good leaders typically have stronger cultures, less turnover, and better returns in the stock market.
- CEO Appointment (2009): Jeffrey W Edwards Became CEO of Installed Building Products (IBP), guiding the company through a period of significant growth and transformation.
- Revenue Growth: Achieved substantial revenue increases, significantly expanding IBP’s financial performance and market share.
- Strategic Acquisitions: Led numerous acquisitions, growing IBP’s footprint and capabilities across various regions and product lines.
- Operational Efficiency: Implemented strategies to improve operational efficiency and streamline processes, enhancing overall company performance.
- Market Expansion: Expanded IBP’s market presence by entering new geographic areas and increasing the company’s service offerings.
- Strong Financial Performance: Drove strong financial results, positioning IBP as a leading player in the building products industry.
Enhanced Customer Service: Focused on improving customer satisfaction and service quality, contributing to higher client retention and growth.
6. 4M Score
All of our homework on this company leads up to the 4M Score. A lot of investors only look at the numbers. Yes, it’s important to look at the first M (MOS) which is the math part of investing but it’s also important to look past the numbers and also look at the Meaning, Moat, and Management. If all 4Ms pass, we should have high confidence in buying this stock.
What 4M score are we going for?
- 80-100 = High confidence – Yay! You should have high confidence buying this stock. It passes all 4M!
- 60-79 = Moderate confidence – Alert! There may be better stocks in the market. Only buy this stock if you truly believe the company will improve!
- 0-59 = Low confidence – Warning! There are better stocks in the market. Due to the low score, you should consider looking at other stocks.
👉 The 4M Score of Installed Building Products (IBP) is 87/100.
To see the most up-to-date 4M Score, please log into Tykr.
7. Is Installed Building Products (IBP) stock a good buy?
Some of the top questions investors can have is Installed Building Products (IBP) stock a good buy or should I buy Installed Building Products (IBP) stock?
Installed Building Products (IBP) is a strong investment candidate for several reasons. The company has achieved notable revenue growth and profitability under effective leadership. IBP has expanded its market presence through strategic acquisitions, which have enhanced its portfolio and geographic reach. Operational improvements and efficiency gains have further bolstered the company’s performance. Additionally, IBP’s focus on customer service and satisfaction strengthens client retention and supports ongoing growth. However, investors should consider potential risks such as economic downturns affecting the construction industry. Overall, Installed Building Products’ robust growth trajectory, strategic acquisitions, and operational efficiencies make it a promising investment in the building products sector.
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To truly know if installation building products is a good stock to buy or sell, we recommend you log into Tykr. Within seconds you can see the Summary, Score, MOS, and 4M Score.
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The Summary, Score, and MOS of this stock may have changed since the posting of this review. Please login to Tykr to see up-to-date information.