Investment Thesis
Continental Building Products (CBPX) is engaged in the business of manufacturing gypsum wallboard and complementary finishing products. Demand for these products is primarily driven by construction activity. For Continental, the demand is more exposed to residential construction activity than commercial construction and R&R activity. The firm has steadily increased its sales, profit margins, as well as returns on equity, asset, and invested capital. In its latest quarter, Continental's net sales increased by 13%, gross profit by 29%, and EBITDA by 21%. During the quarter, Continental repurchased approximately 77,000 shares of common