Is the business good?
How good a business is IBP?
Installed Building Products, Inc. earns 23% on the capital it employs against a 9.0% cost of capital, so the business is worth more the bigger it gets.
23%
Return on invested capital · cost of capital 9.0% · 14 points above what the capital costs: growth creates value
- Operating margin
- 13%
Operating margin · Residential Construction median 9.8% · 12 months to Q1 2026
- Cash conversion
- 1.24×
Cash conversion · 1.06× a year ago · every dollar of reported profit arrived as cash, and more
- Share count, year on year
- −2.6%
Share count, year on year · bought back, each share owns more of the company
| Year | Operating margin |
|---|---|
| FY2020 | 9.8% |
| FY2021 | 9.5% |
| FY2022 | 13% |
| FY2023 | 13% |
| FY2024 | 13% |
| FY2025 | 13% |
Details›
- Gross margin12 months to Q1 2026
- 34%
- Operating margin12 months to Q1 2026
- 13%
- Net margin12 months to Q1 2026
- 8.6%
- Free cash flow margin
- 11%
- Revenue, trailing twelve months
- $2.95B
- Free cash flow, trailing twelve months
- $315M
- Net income, trailing twelve months
- $255M
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 23%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion from the cash flow statement.
Residential Construction
Ranks #1 of 14 by Smart Score