Topbuild Stock Discussion

TopBuild's high P/E ratio is alarming considering its below-average forecasted earnings growth. While investors anticipate a business turnaround, analysts are skeptical. The high P/E ratio and future earnings predictions pose a significant risk to shareholders and potential investors.

Insider selling at TopBuild, without corresponding buying, suggests shares may not be undervalued. Reasonable alignment with shareholder interests is indicated by the level of insider ownership. However, lack of insider buying and recent selling could caution potential investors.

TopBuild's CEO, Robert Buck, believes that Pest Control Insulation is an excellent addition to their Specialty Distribution segment, and is excited about the potential for continued growth of this specialty distribution business throughout the country.

TopBuild shares sale by insiders, including CEO's major sell-off near current value, might pose a red flag. Despite some shareholder alignment, the absence of insider purchases and strong sell-off could erode confidence in the stock.

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 abo...

I have concerns from both a fundamental perspective and share price perspective.
The company share price has been on an uptrend to reach a 10-year peak. But while its ROE was increasing from 2018, there was a decline last year. Is the market thinking that its ROE will eventually turnaround? Or have prices peaked?
From a fundamental angle, the company ROE is not as good as my 2 reference Bursa plantation companies – Boustead Plantation a...