| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 53 | 21.7x | 17.3x | Around median | |
Growth | 27 | 0.3% | 7.1% | Bottom tier | |
Quality | 81 | 16.4% | 4.5% | Top tier | |
Safety | 69 | 1.9x | 2.6x | Top tier | |
Capital Return | 76 | 1.64% | 0.06% | Top tier | |
Momentum | 22 | -23.6% | -1.6% | Bottom tier | |
Sentiment | 74 | 7 | 3 | Top tier |
The floor: what the company is worth if growth stopped today
72% of today's price is what a buyer pays for growth that has not happened yet.
10-year US Treasury yield 4.96% as of 2026-10-22. Estimates computed from company data and analyst targets, not investment advice.
Ten ratios that matter, each compared against its sector median and average — so you can see whether a number is rich or cheap relative to peers in the same sector.
Installed Building Products is a company specializing in the installation of insulation and complementary building products through more than 250 branches across the United States. The company generates revenue primarily from installation solutions for new single-family and multifamily housing and commercial projects, including fiberglass insulation, which accounts for approximately 50% of revenue, and spray foam insulation, which accounts for approximately 11%, in addition to mechanical and industrial insulation, waterproofing, fireproofing, doors, mirrors, cabinets, and building accessories. Its operations also include an Other segment for manufacturing and distribution, including the manufacture of cellulose insulation, industrial fibers, and road fibers. This segment has lower margins than the installation business but diversifies demand sources away from new residential construction.
In fiscal Q2 2026, consolidated revenue increased 2% to $777.8 million, while same-branch sales declined by less than 1%, reflecting the contribution of acquisitions and commercial growth in offsetting weakness in new residential construction. Gross profit was $258.9 million, net income was $64.9 million, and earnings per share were $2.43, compared with revenue of $660.5 million and net income of $34.8 million in fiscal Q1 2026. On an adjusted basis, the company reported EBITDA of $131 million and a margin of 16.9%, and adjusted net income of $78 million, or $2.91 per diluted share.
The business mix in fiscal Q2 2026 showed a clear divergence: same-branch sales in the Installation segment declined 2% due to a 6% decrease in new residential construction, while comparable commercial sales increased 10% and the heavy commercial business grew approximately 16%. Revenue in the Other segment increased 50% after eliminations, or 28% on a same-branch basis, but growth in this lower-margin segment pressured the consolidated gross margin by approximately 40 basis points. The Installation segment margin was 36.5% versus 37.1% a year earlier, while the Other segment margin improved to 24.7% from 23%.
The average analyst price target is $235.6, within a range of $200 to $250, accompanied by a neutral consensus rather than a buy recommendation. The average target is below the 52-week high of $349, while the full range of $193.11 to $349 remains wide, reflecting a revaluation tied to weakness in single-family residential construction versus strength in commercial activity and acquisitions. The analyst target should be weighed against declining margins and pressure from fuel and spray foam, rather than against an assumption of a rapid recovery in housing activity.
Figures in the text are as of 2026-08-30; the live price is shown at the top of the page.
Consolidated revenue increased 2% to $777.8 million, supported by acquisitions and growth in commercial installation, manufacturing, and distribution. Heavy commercial grew approximately 16%, while the Other segment grew 50% after eliminations and 28% on a same-branch basis. In contrast, comparable new residential sales declined 6% and volume declined 5%, so growth came more from platform diversification than from an improvement in the housing market.
Weak housing affordability and lower consumer confidence led to a 6% decline in same-branch new residential sales in fiscal Q2 2026. Public homebuilders account for approximately 25% of single-family residential revenue and approximately 15% of total revenue, and IBP's revenue from them declined at a rate close to the decline in their reported homebuilding revenue. Growth in the number of residential communities and local pricing flexibility helped mitigate the impact, but management expected pressures on new residential activity to persist in the near term.
Automated analysis for informational purposes only — not investment advice.
Heavy commercial generated same-branch sales growth of approximately 16% during fiscal Q2 2026, with the backlog continuing to grow despite record monthly revenue. The largest products in this business include heavy waterproofing followed by fireproofing, alongside opportunities in mechanical and industrial insulation and commercial roofing. Multifamily residential sales turned positive in June 2026 and remained positive in July 2026, with approximately 60% of this business's revenue concentrated in the South region.
Cash totaled $395 million as of June 30, 2026, and the ratio of net debt to adjusted EBITDA was 1.34 times versus a stated target of two times. Management prioritizes acquisitions and expects to acquire businesses representing at least $100 million in annual revenue during fiscal 2026, with transactions in Q2 and July 2026 adding approximately $30 million. In fiscal Q2 2026, the company repurchased 365 thousand shares for $76 million and approved a dividend of $0.39 per share for fiscal Q3 2026.
Spray foam accounts for approximately 11% of IBP's revenue, compared with approximately 50% for fiberglass. The cost of foam materials increased approximately 25%, and management said on August 6, 2026 that the price pass-through had begun gaining acceptance among custom and semi-custom home customers. However, the fiscal Q3 2026 margin could face temporary pressure due to the delay in passing through the increase, and the extent to which customers shift from foam to fiberglass will become clearer later.