TopBuild - overpriced

TopBuild (NYSE BLD) is a leading installer and distributor of insulation and other building material products for the US and Canadian construction sectors.

It experienced significant revenue growth, driven by acquisitions, price and volume growth.

BLD has two operating segments - Installation and Distribution. The Installation segment is the largest contributor to revenue and earnings, with improving returns.

While there are good growth drivers for BLD, I have concerns about its financial position. While fundamentally ok, TopBuild looks overpriced. A valuation based on a 2-stage growth model suggests there isn't much margin of safety