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IBP (Installed Building Products) ROE % : 39.15% (As of Sep. 2024)


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What is Installed Building Products ROE %?

ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Installed Building Products's annualized net income for the quarter that ended in Sep. 2024 was $274 Mil. Installed Building Products's average Total Stockholders Equity over the quarter that ended in Sep. 2024 was $701 Mil. Therefore, Installed Building Products's annualized ROE % for the quarter that ended in Sep. 2024 was 39.15%.

The historical rank and industry rank for Installed Building Products's ROE % or its related term are showing as below:

IBP' s ROE % Range Over the Past 10 Years
Min: 22.57   Med: 30.08   Max: 49.08
Current: 37.65

During the past 13 years, Installed Building Products's highest ROE % was 49.08%. The lowest was 22.57%. And the median was 30.08%.

IBP's ROE % is ranked better than
93.62% of 94 companies
in the Homebuilding & Construction industry
Industry Median: 10.49 vs IBP: 37.65

Installed Building Products ROE % Historical Data

The historical data trend for Installed Building Products's ROE % can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Installed Building Products ROE % Chart

Installed Building Products Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
ROE %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 31.52 34.17 32.28 49.08 41.88

Installed Building Products Quarterly Data
Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24
ROE % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 45.76 39.92 33.14 38.23 39.15

Competitive Comparison of Installed Building Products's ROE %

For the Residential Construction subindustry, Installed Building Products's ROE %, along with its competitors' market caps and ROE % data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Installed Building Products's ROE % Distribution in the Homebuilding & Construction Industry

For the Homebuilding & Construction industry and Consumer Cyclical sector, Installed Building Products's ROE % distribution charts can be found below:

* The bar in red indicates where Installed Building Products's ROE % falls into.



Installed Building Products ROE % Calculation

Installed Building Products's annualized ROE % for the fiscal year that ended in Dec. 2023 is calculated as

ROE %=Net Income (A: Dec. 2023 )/( (Total Stockholders Equity (A: Dec. 2022 )+Total Stockholders Equity (A: Dec. 2023 ))/ count )
=243.7/( (493.5+670.3)/ 2 )
=243.7/581.9
=41.88 %

Installed Building Products's annualized ROE % for the quarter that ended in Sep. 2024 is calculated as

ROE %=Net Income (Q: Sep. 2024 )/( (Total Stockholders Equity (Q: Jun. 2024 )+Total Stockholders Equity (Q: Sep. 2024 ))/ count )
=274.4/( (685.3+716.4)/ 2 )
=274.4/700.85
=39.15 %

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

In the calculation of annual ROE %, the net income of the last fiscal year and the average total shareholder equity over the fiscal year are used. In calculating the quarterly data, the net income data used here is four times the quarterly (Sep. 2024) net income data. ROE % is displayed in the 30-year financial page.


Installed Building Products  (NYSE:IBP) ROE % Explanation

ROE % measures the rate of return on the ownership interest (shareholder's equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' equity (also known as net assets or assets minus liabilities). ROE % shows how well a company uses investment funds to generate earnings growth. ROE %s between 15% and 20% are considered desirable.

The factors that affect a company's ROE % can be illustrated with the three-step DuPont Analysis:

ROE %(Q: Sep. 2024 )
=Net Income/Total Stockholders Equity
=274.4/700.85
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(274.4 / 3042.4)*(3042.4 / 2048.85)*(2048.85 / 700.85)
=Net Margin %*Asset Turnover*Equity Multiplier
=9.02 %*1.4849*2.9234
=ROA %*Equity Multiplier
=13.39 %*2.9234
=39.15 %

With this breakdown, it is clear that if a company grows its Net Profit Margin, its Asset Turnover, or its Leverage, it can grow its ROE %.

The factors that affect a company's ROE % can also be illustrated with the five-step DuPont Analysis:

ROE %(Q: Sep. 2024 )
=Net Income/Total Stockholders Equity
=274.4/700.85
=(Net Income / Pre-Tax Income) * (Pre-Tax Income / Operating Income) * (Operating Income / Revenue) * (Revenue / Total Assets) * (Total Assets / Total Stockholders Equity)
= (274.4 / 375.6) * (375.6 / 405.2) * (405.2 / 3042.4) * (3042.4 / 2048.85) * (2048.85 / 700.85)
= Tax Burden * Interest Burden * Operating Margin % * Asset Turnover * Equity Multiplier
= 0.7306 * 0.9269 * 13.32 % * 1.4849 * 2.9234
=39.15 %

Note: The net income data used here is four times the quarterly (Sep. 2024) net income data. The Revenue data used here is four times the quarterly (Sep. 2024) revenue data. The same rule applies to Pre-Tax Income and Operating Income.
* In the five-step DuPont Analysis, Operating Income is only available for non-financial companies. Thus, for Insurance companies, we use EBIT as a substitution of Operating Income. For Banks, both Operating Income and EBIT is unavailable. Thus we combined Interest Burden and Operating Margin % into Pretax Margin %, and the DuPont Analysis is divided into four components instead.

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


Be Aware

Net Income is used.

Because a company can increase its ROE % by having more financial leverage, it is important to watch the equity multiplier when investing in high ROE % companies. Like ROA %, ROE % is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.

Asset light businesses require very few assets to generate very high earnings. Their ROE %s can be extremely high.


Installed Building Products ROE % Related Terms

Thank you for viewing the detailed overview of Installed Building Products's ROE % provided by GuruFocus.com. Please click on the following links to see related term pages.


Installed Building Products Business Description

Traded in Other Exchanges
Address
495 South High Street, Suite 50, Columbus, OH, USA, 43215
Installed Building Products Inc is an insulation installer serving the residential new construction market and are also a diversified installer of complementary building products, including waterproofing, fire-stopping and fireproofing, garage doors, rain gutters, window blinds, shower doors, closet shelving, mirrors and other products throughout the United States. The company installs fiberglass insulation, spray foam insulation, and cellulose insulation. The company has three operating segments consisting of Installation, Manufacturing and Distribution operations. Majority of revenue is generated from Installation segment.
Executives
Janet E. Jackson director C/O INSTALLED BUILDING PRODUCTS, INC., 495 SOUTH HIGH STREET, SUITE 50, COLUMBUS OH 43215
Jason R Niswonger officer: SVP, Finance & IR C/O INSTALLED BUILDING PRODUCTS, INC., 495 S. HIGH STREET, SUITE 50, COLUMBUS OH 43215
Todd R Fry officer: Chief Accounting Officer CHAMPION INDUSTRIES, P O BOX 2968, HUNTINGTON WV 25728-2968
Jeffrey W. Edwards director, 10 percent owner, officer: President, CEO & Chairman C/O INSTALLED BUILDING PRODUCTS, INC., 495 SOUTH HIGH STREET, SUITE 50, COLUMBUS OH 43215
Michael Thomas Miller director, officer: See Remarks C/O INSTALLED BUILDING PRODUCTS, INC., 495 SOUTH HIGH STREET, SUITE 50, COLUMBUS OH 43215
William Jeffrey Hire officer: President of External Affairs C/O INSTALLED BUILDING PRODUCTS, INC., 495 S. HIGH STREET, SUITE 50, COLUMBUS OH 43215
Marchelle E Moore director C/O INSTALLED BUILDING PRODUCTS, INC., 495 S. HIGH STREET, SUITE 50, COLUMBUS OH 43215
Margot Lebenberg Carter director C/O INSTALLED BUILDING PRODUCTS, INC., 495 S. HIGH STREET, SUITE 50, COLUMBUS OH 43215
Jay P. Elliott officer: Chief Operating Offier C/O INSTALLED BUILDING PRODUCTS, INC., 495 SOUTH HIGH STREET, SUITE 50, COLUMBUS OH 43215
Michael H Thomas director 100 E CAMPUS VIEW BLVD STE 170, C/O TEAM AMERICA, COLUMBUS OH 43235
Lawrence A. Hilsheimer director 425 WINTER ROAD, DELAWARE OH 43015
Vikas Verma director C/O INSTALLED BUILDING PRODUCTS, INC., 495 S. HIGH STREET, SUITE 50, COLUMBUS OH 43215
David R Meuse director 191 WEST NATIONWIDE BLVD, COLUMBUS OH 43215
J Michael Nixon director, 10 percent owner C/O INSTALLED BUILDING PRODUCTS, INC., 495 SOUTH HIGH STREET, SUITE 50, COLUMBUS OH 43215
Installed Building Systems, Inc. director, 10 percent owner, other: Director by Deputization 495 SOUTH HIGH STREET, SUITE 50, COLUMBUS OH 43215