Installed Building Products, In IBP

Competitive advantage analysis · consumer-cyclical

Corporate Default
Overall moat score
70/100
Moderate

About Installed Building Products, In

Installed Building Products, Inc., together with its subsidiaries, engages in the installation of insulation for residential and commercial builders in the United States. It operates through three segments: Installation, Distribution, and Manufacturing Operations. The company offers a range of insulation materials, such as fiberglass and cellulose, and spray foam insulation materials. It is also involved in the installation of insulation … Full IBP analysis →

Competitive advantage assessment

Key strengths

  • Margins Stable Across Cycles Operating margin volatility is low (stability score 0.95), demonstrating pricing resilience across cycles.
  • ROIC Sustainably Above Peers ROIC at 95.2th percentile exceeds peers and WACC, demonstrating superior capital allocation.

Key risks

  • Elevated Debt Risk Debt serviceability is weak (score 0.36), raising refinancing risk.
  • Liquidity Concerns Liquidity is concerning (score 0.19), raising questions about short-term obligations.

The dashed ring is the peer median. Defense scores are percentile ranks against peers, so 50 is roughly the typical company in this group.

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Pricing Power

Strong
89

Where IBP ranks in Residential Construction

Installed Building Products, In ranks #5 of 22 scored companies in Residential Construction by moat score — the top 23%. The widest moat in the group is PulteGroup, Inc. (PHM) at 80/100.

Moat scores for companies ranked near IBP in Residential Construction
# Company Moat score Rating
1 PulteGroup, Inc. PHM 80/100 Strong
2 NVR, Inc. NVR 79/100 Strong
3 Green Brick Partners, Inc. GRBK 78/100 Strong
4 Toll Brothers, Inc. TOL 76/100 Strong
5 Installed Building Products, In IBP 70/100 Moderate
6 Legacy Housing Corporation LEGH 70/100 Moderate
7 Taylor Morrison Home Corporatio TMHC 69/100 Moderate
8 M/I Homes, Inc. MHO 68/100 Moderate
9 Cavco Industries, Inc. CVCO 64/100 Moderate

See every General Corporate company ranked by moat score →

How IBP scores on the Corporate Default defenses

Pricing Power

Score 89 · 20% of the moat score

Pricing power is the ability to raise prices without losing volume.

Cost Advantage

Score 38 · 15% of the moat score

A cost advantage means delivering the same product for structurally less — better purchasing, denser distribution, a more automated process.

Customer Stickiness

Score 71 · 15% of the moat score

Stickiness is what makes revenue repeat without being re-won every year.

Capital Efficiency

Score 79 · 18% of the moat score

Capital efficiency asks what the company earns on the money tied up in the business.

Resilience

Score 41 · 17% of the moat score

Resilience is the capacity to get through a bad year on its own terms — enough liquidity, enough interest cover, and enough cash generation to avoid a rescue financing or a forced sale.

Scale & Market Position

Score 87 · 15% of the moat score

Scale matters only when it converts into economics.

How each Corporate Default defense is measured, in full →

Understanding IBP's moat

What is Installed Building Products, In's moat score?

Installed Building Products, In (IBP) scores 70 out of 100 on the StatsAlpha Moat Map, which rates its competitive advantage as moderate. It ranks #5 of 22 scored companies in Residential Construction, the top 23%. The score is a weighted composite of 6 competitive defenses, each measured against industry peers of 21 companies in Residential Construction. Its strongest defense is Pricing Power (89/100) and its weakest is Cost Advantage (38/100).

How does Installed Building Products, In compare with other Residential Construction companies?

Installed Building Products, In ranks #5 of 22 scored companies in Residential Construction by moat score. The widest moat in Residential Construction is PulteGroup, Inc. (PHM) at 80/100. The companies ranked closest are Toll Brothers, Inc. (TOL) at 76 just above it and Legacy Housing Corporation (LEGH) at 70 just below it.

How is the moat score calculated?

Each company is scored with an industry-specific template — Corporate Default in this case, chosen because the defenses that matter to a bank are not the ones that matter to a software company. Every defense combines several financial signals, and each signal is measured as a percentile against a peer group of 21 companies in Residential Construction. The defenses are then weighted to produce the overall score out of 100.

Why is Installed Building Products, In scored with the Corporate Default template?

Most public companies sell a product or a service at a margin, so the moat question is whether that margin survives contact with competitors. The Corporate template scores the six defenses that show up in a general operating company's financial signature: whether it can hold price, produce more cheaply than rivals, keep its customers, earn a return above its cost of capital, withstand a downturn, and turn size into economics.

Which competitive defenses are measured for Installed Building Products, In?

The Corporate Default template measures 6 defenses, and IBP scores: Pricing Power (89), Cost Advantage (38), Customer Stickiness (71), Capital Efficiency (79), Resilience (41), Scale & Market Position (87). Each is scored independently as a percentile against peers, so a company can be strong on one and weak on another — the overall score reflects how those defenses are weighted for this industry.

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