A Look inside the Quant Signals For TopBuild Corp. (NYSE:BLD)


The stock market can be an exciting yet scary place for investors who are just starting out. Individual investors who decide to manage their own portfolios may need to hit the books and be ready to take a comprehensive approach. There is no lack of information about investing in the stock market, but figuring out where to start can be difficult. Setting up goals and defining the investment plan can help start the investor down the right path. As many seasoned investors know, there can be times when nothing seems to be going right. Keeping a clear head and focusing on the relevant information can help the investor stay steady when the going gets tough.                                                                                

Ever wonder how investors predict positive share price momentum?  The Cross SMA 50/200, also known as the “Golden Cross” is the fifty day moving average divided by the two hundred day moving average.  The SMA 50/200 for TopBuild Corp. (NYSE:BLD) is currently 1.24057.  If the Golden Cross is greater than 1, then the 50 day moving average is above the 200 day moving average – indicating a positive share price momentum.  If the Golden Cross is less than 1, then the 50 day moving average is below the 200 day moving average, indicating that the price might drop.

The Return on Invested Capital (aka ROIC) for TopBuild Corp. (NYSE:BLD) is 0.477559.  The Return on Invested Capital is a ratio that determines whether a company is profitable or not.  It tells investors how well a company is turning their capital into profits.  The ROIC is calculated by dividing the net operating profit (or EBIT) by the employed capital.  The employed capital is calculated by subrating current liabilities from total assets.  Similarly, the Return on Invested Capital Quality ratio is a tool in evaluating the quality of a company’s ROIC over the course of five years.  The ROIC Quality of TopBuild Corp. (NYSE:BLD) is 2.607244.  This is calculated by dividing the five year average ROIC by the Standard Deviation of the 5 year ROIC.  The ROIC 5 year average is calculated using the five year average EBIT, five year average (net working capital and net fixed assets).  The ROIC 5 year average of TopBuild Corp. (NYSE:BLD) is 0.378709.


In taking a look at some other notable technicals, TopBuild Corp. (NYSE:BLD)’s ROIC is 0.477559. The ROIC 5 year average is 0.378709 and the ROIC Quality ratio is 2.607244. ROIC is a profitability ratio that measures the return that an investment generates for those providing capital. ROIC helps show how efficient a firm is at turning capital into profits.

Shareholder Yield
We also note that TopBuild Corp. (NYSE:BLD) has a Shareholder Yield of 0.038103 and a Shareholder Yield (Mebane Faber) of 0.02422. The first value is calculated by adding the dividend yield to the percentage of repurchased shares.


TopBuild Corp. (NYSE:BLD) has a current MF Rank of 2573. Developed by hedge fund manager Joel Greenblatt, the intention of the formula is to spot high quality companies that are trading at an attractive price. The formula uses ROIC and earnings yield ratios to find quality, undervalued stocks. In general, companies with the lowest combined rank may be the higher quality picks.

We can now take aquick look at some historical stock price index data. TopBuild Corp. (NYSE:BLD) presently has a 10 month price index of 2.22204. The price index is calculated by dividing the current share price by the share price ten months ago. A ratio over one indicates an increase in share price over the period.

A ratio lower than one shows that the price has decreased over that time period. Looking at some alternate time periods, the 12 month price index is 2.18969, the 24 month is 1.68137, and the 36 month is 3.48391. Narrowing in a bit closer, the 5 month price index is 1.32957, the 3 month is 1.23256, and the 1 month is currently 1.13489.

QI Value

Shifting gears, we can see that TopBuild Corp. (NYSE:BLD) has a Q.i. Value of 31.00000. The Q.i. Value ranks companies using four ratios. These ratios consist of EBITDA Yield, FCF Yield, Liquidity, and Earnings Yield. The purpose of the Q.i. Value is to help identify companies that are the most undervalued. Typically, the lower the value, the more undervalued the company tends to be.

Gross Margin score



FCF Yield



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