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Beazer Homes USA (BZH)
NYSE:BZH
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Beazer Homes
(NYSE:BZH)
61Neutral
Beazer Homes (BZH) vs. S&P 500 (SPY)
Market Cap
$593.48M
Dividend YieldN/A
Average Volume (3M)406.72K
Price to Earnings (P/E)4.8
Beta (1Y)2.26
Revenue Growth12.27%
EPS Growth-22.28%
CountryUS
Employees1,158
SectorConsumer Cyclical
Sector Strength55
IndustryResidential Construction
Share Statistics
EPS (TTM)3.93
Shares Outstanding31,203,089
10 Day Avg. Volume332,484
30 Day Avg. Volume406,722
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.28
Price to Cash Flow (P/CF)-1.10
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$45.00Price Target Upside136.59% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering0
Beazer Homes Business Overview & Revenue Model
Company DescriptionBeazer Homes USA, Inc. (BZH) is a prominent homebuilder in the United States, primarily engaged in the design, construction, and sale of single-family and multi-family homes. The company operates across various geographic regions, focusing on providing homes to entry-level, move-up, and active adult homebuyers. Beazer Homes emphasizes quality craftsmanship, energy efficiency, and personalization options to cater to diverse customer needs.
How the Company Makes MoneyBeazer Homes generates revenue primarily through the sale of residential properties. The company acquires land, develops home communities, and constructs homes that are sold to individual buyers. Key revenue streams include the sale of homes in various segments, such as entry-level, move-up, and active adult markets. Beazer Homes also derives income from financing services offered to homebuyers, often through partnerships with financial institutions. Additionally, the company may engage in joint ventures or partnerships for land development and community projects, contributing to its earnings. Factors such as market demand, housing prices, construction costs, and economic conditions significantly influence the company's revenue generation.
Beazer Homes Financial Statement Overview
Summary
Beazer Homes exhibits a mixed financial performance. The income statement shows stable profitability with solid margins, but cash flow challenges indicate potential liquidity issues. The balance sheet reflects significant improvement in leverage, enhancing financial stability despite past risks.Income Statement
The company demonstrates a solid performance with a TTM gross profit margin of 17.1% and a net profit margin of 5.0%. Revenue growth is positive, albeit moderate, with a recent increase of 4.0% from the previous annual report. Margins are stable but have slightly declined from historical highs.70
Positive
Balance Sheet
The company has improved its financial position by eliminating total debt in the TTM period, resulting in a favorable debt-to-equity ratio of 0. This improvement supports a strong equity ratio of 47.5%. However, historical leverage was significant, indicating past financial risk.65
Positive
Cash Flow
The company faces challenges in cash flow, with a negative operating cash flow in the TTM period. Free cash flow has also seen a decline, impacting its financial flexibility. The operating cash flow to net income ratio is negative, highlighting potential liquidity concerns.55
Neutral
| Breakdown | |||||
| TTM | Sep 2024 | Sep 2023 | Sep 2022 | Sep 2021 | Sep 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 2.41B | 2.33B | 2.21B | 2.32B | 2.14B | 2.13B | Gross Profit |
| 413.38M | 424.29M | 442.69M | 537.51M | 404.25M | 347.64M | EBIT |
| 124.90M | 143.03M | 177.25M | 272.49M | 146.87M | 79.11M | EBITDA |
| 141.59M | 157.89M | 190.09M | 285.85M | 160.84M | 94.75M | Net Income Common Stockholders |
| 121.58M | 140.18M | 158.61M | 220.70M | 122.02M | 52.23M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 524.47M | 203.91M | 345.59M | 214.59M | 246.72M | 327.69M | Total Assets |
| 2.02B | 2.59B | 2.41B | 2.25B | 2.08B | 2.01B | Total Debt |
| 1.30B | 1.05B | 997.00M | 994.65M | 1.07B | 1.15B | Net Debt |
| 770.69M | 841.22M | 651.41M | 780.05M | 821.47M | 818.44M | Total Liabilities |
| 1.67B | 1.36B | 1.31B | 1.31B | 1.35B | 1.41B | Stockholders Equity |
| 353.15M | 1.23B | 1.10B | 939.29M | 724.88M | 593.17M |
| Cash Flow | Free Cash Flow | ||||
| -93.24M | -159.90M | 157.72M | 66.03M | 17.01M | 278.45M | Operating Cash Flow |
| -71.21M | -137.54M | 178.06M | 81.07M | 31.66M | 289.10M | Investing Cash Flow |
| -22.91M | -30.01M | -29.67M | -14.71M | -14.19M | -10.16M | Financing Cash Flow |
| 75.26M | 23.88M | -13.93M | -88.68M | -85.85M | -59.20M |
Beazer Homes Technical Analysis
Negative
19.02
Price Trends
22.93
Negative
26.78
Negative
28.82
Negative
Market Momentum
-0.74
Positive
37.27
Neutral
16.33
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BZH, the sentiment is Negative. The current price of 19.02 is below the 20-day moving average (MA) of 21.45, below the 50-day MA of 22.93, and below the 200-day MA of 28.82, indicating a bearish trend. The MACD of -0.74 indicates Positive momentum. The RSI at 37.27 is Neutral, neither overbought nor oversold. The STOCH value of 16.33 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for BZH.
Beazer Homes Risk Analysis
Beazer Homes disclosed 26 risk factors in its most recent earnings report. Beazer Homes reported the most risks in the “Production” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Beazer Homes Peers Comparison
Overall Rating
UnderperformOutperform
Sector (59)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $38.54B | 8.64 | 19.35% | 1.14% | 2.12% | 1.63% | |
74 Outperform | $20.77B | 7.01 | 27.40% | 0.86% | 11.74% | 25.66% | |
69 Neutral | $9.78B | 6.77 | 20.38% | 0.94% | 5.86% | 12.20% | |
68 Neutral | $28.47B | 7.89 | 14.99% | 1.85% | 2.06% | -3.67% | |
66 Neutral | $3.97B | 6.78 | 15.60% | 1.80% | 5.54% | 11.25% | |
61 Neutral | $593.48M | 4.84 | 10.32% | ― | 12.27% | -22.28% | |
59 Neutral | $12.18B | 11.09 | -1.08% | 3.77% | 1.26% | -19.82% |
* Consumer Cyclical Sector Average
Performance Comparison
BZH
Beazer Homes
20.37
-10.49
-33.99%
DHI
DR Horton
127.87
-29.21
-18.60%
KBH
KB Home
57.54
-8.90
-13.40%
LEN
Lennar
111.03
-46.59
-29.56%
PHM
PulteGroup
101.24
-14.28
-12.36%
TOL
Toll Brothers
100.86
-23.60
-18.96%
Beazer Homes Earnings Call Summary
Earnings Call Date: Jan 30, 2025 | % Change Since: -31.34% | Next Earnings Date: May 1, 2025
Earnings Call Sentiment Neutral
The earnings call reflects a mix of positive and negative aspects. While there is significant growth in community count and active lot positions, improved liquidity, and momentum in Zero Energy Ready homes, the company faced challenges with missed sales and closings guidance, deferred closings, increased incentives, and lowered gross margin expectations. Despite these challenges, the company remains optimistic about its long-term outlook and growth prospects.Highlights
Community Expansion
Ending community count was up nearly 20% versus the prior year, allowing for increased sales and closings compared to last year.
Active Lot Position Growth
Active lot position grew by about 10%, providing visibility into further community count growth.
Improved Liquidity
59% of the lot position is controlled through options, up from 53% last year. They also upsized their revolver by more than 20%.
Zero Energy Ready Homes Momentum
Zero Energy Ready homes represented more than 85% of sales during the quarter, up from 43% in the previous year's first quarter.
Cost Reductions
Reduced build costs by about $3,000 per home since October 1, benefiting both to-be-built and spec homes.
Positive Long-Term Outlook
Despite current challenges, the company remains optimistic about the longer-term outlook for new home sales and growth prospects.
Solid Financial Position
Total liquidity exceeding $335 million, with no maturities until October 2027.
Lowlights
Missed Sales and Closings Guidance
Missed both sales and closings guidance for the quarter, with sales softening in November and becoming materially weaker in December.
Deferred Closings
Pushed out 47 closings from the quarter due to utility issues, labor availability in Houston, and meter availability in California.
Challenging Markets
Most challenging markets in Texas and Florida due to higher inventory levels leading to sluggish sales and more aggressive incentives.
Increased Incentives
Had to spend more on incentives for sales made, particularly in Texas and Florida.
Lowered Gross Margin Expectations
Expect full-year gross margins to be around 19.5%, the lower end of the previously provided range of 19.5% to 20.5%.
Company Guidance
In the recent Beazer Homes Earnings Conference Call, detailed guidance for fiscal year 2025 was provided, emphasizing key metrics and strategic initiatives. The company plans to activate over 60 new communities before year-end, aiming to increase its community count by nearly 20% compared to the previous year. Additionally, Beazer Homes reported a 10% growth in their active lot position and improved liquidity by upping their revolver by over 20%. Looking at sales, the company targets a 10% increase in the second quarter with an average sales price (ASP) of around $515,000, despite acknowledging challenges in the Texas and Florida markets. The second quarter gross margin is expected to slightly exceed the first quarter, supported by delayed closings and cost reduction efforts. Beazer Homes also reaffirmed its commitment to achieving a net debt to net capitalization ratio below 30% by the fiscal year 2026 and maintaining a community count of more than 200 by the end of that period.Beazer Homes Corporate Events
Shareholder MeetingsStock BuybackBusiness Operations and Strategy
Beazer Homes Accelerates Share Repurchase Program
Positive
Feb 6, 2025
On February 6, 2025, Beazer Homes held its annual stockholder meeting where key decisions included the election of directors and the ratification of Deloitte & Touche LLP as the independent accounting firm for the fiscal year ending September 30, 2025. The company also announced an acceleration in its share repurchase program, taking advantage of a share price dislocation, aiming to buy back shares at a significant discount to book value. This strategic move is expected to moderately affect debt reduction goals but aligns with Beazer’s long-term financial strategy. The company reaffirmed its commitment to reducing its net debt to net capitalization ratio and achieving its multi-year goals.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.