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Beazer Homes USA (BZH)
:BZH
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Beazer Homes
(NYSE:BZH)
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Rating:59Neutral
Price Target:
$26.00
▲(6.17% Upside)
Beazer Homes' overall stock score is driven by mixed financial performance and technical indicators. The company faces challenges with declining revenue and profitability, and significant cash flow issues. However, the stock's valuation suggests it may be undervalued, providing potential for price appreciation. Technical analysis shows a mix of short-term bearish and long-term bullish signals.
Beazer Homes (BZH) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$727.98M
Dividend YieldN/A
Average Volume (3M)392.86K
Price to Earnings (P/E)11.1
Beta (1Y)1.32
Revenue Growth9.97%
EPS Growth-52.57%
CountryUS
Employees1,158
SectorConsumer Cyclical
Sector Strength84
IndustryResidential Construction
Share Statistics
EPS (TTM)-0.01
Shares Outstanding29,725,725
10 Day Avg. Volume395,598
30 Day Avg. Volume392,858
Financial Highlights & Ratios
PEG Ratio-0.61
Price to Book (P/B)0.85
Price to Sales (P/S)0.45
P/FCF Ratio-6.53
Enterprise Value/Market Cap2.38
Enterprise Value/Revenue0.73
Enterprise Value/Gross Profit4.69
Enterprise Value/Ebitda19.12
Forecast
1Y Price Target
$29.80Price Target Upside21.68% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering5
Beazer Homes Business Overview & Revenue Model
Company DescriptionBeazer Homes USA, Inc. operates as a homebuilder in the United States. It designs, constructs, and sells single-family and multi-family homes under the Beazer Homes, Gatherings, and Choice Plans names. The company sells its homes through commissioned new home sales counselors and independent brokers in Arizona, California, Nevada, Texas, Delaware, Maryland, Indiana, Tennessee, Virginia, Florida, Georgia, North Carolina, and South Carolina. Beazer Homes USA, Inc. was founded in 1985 and is headquartered in Atlanta, Georgia.
How the Company Makes MoneyBeazer Homes generates revenue primarily through the sale of newly constructed homes. The company's revenue model is based on the construction and sale of single-family residences, which are sold directly to homebuyers. Key revenue streams include the sale of homes in various communities and market segments, as well as potential revenue from land sales or joint ventures. Beazer Homes also benefits from economies of scale in its construction processes, which helps to control costs and maximize margins. Additionally, the company may engage in strategic partnerships with suppliers and subcontractors to enhance its operational efficiency and improve profitability. Factors contributing to its earnings include market demand for housing, favorable interest rates, and the company's ability to manage construction costs effectively.
Beazer Homes Earnings Call Summary
Earnings Call Date:Jul 31, 2025
(Q3-2025)
| % Change Since: |
Next Earnings Date:Nov 12, 2025
Earnings Call Sentiment Neutral
The earnings call reflects a mixed sentiment, with notable achievements in community growth and energy efficiency leadership but challenges in sales performance, particularly in Texas, and impairments in specific markets. The company's efforts in share repurchases and land management indicate strategic planning for long-term growth.Q3-2025 Updates
Positive Updates
Community Count Growth
Beazer Homes grew its average community count by 15% to 167, successfully activating 19 communities.
Share Repurchases and Book Value Increase
The company repurchased $12.5 million of stock, increasing book value per share to over $41.
Adjusted Homebuilding Gross Margin
Achieved an adjusted homebuilding gross margin of 18.4%, slightly up from the previous quarter.
Energy Efficiency Leadership
Beazer Homes maintains its position as the #1 energy-efficient homebuilder in the U.S., with a focus on Zero Energy Ready homes.
Land Management and Shareholder Returns
The company sold $45 million of non-core land, generating $8 million in gross profit, and maintains $87 million for continued share repurchases.
Negative Updates
Challenging Sales Environment
The sales environment was weaker than anticipated, with affordability concerns and rising home inventories impacting traffic and sales conversion.
Disappointing Sales in Texas
Sales pace in Texas was below expectations at 1.3 sales per community per month, compared to historical rates of 1.9 to 3.1.
Impairments in Phoenix and Orlando
Impairments occurred in a Maricopa community in Phoenix and a condo community in Orlando due to price sensitivity and rising costs, respectively.
Elevated Spec Mix Impact on Margins
The high share of spec homes affected the potential for margin improvement, with expectations of continued elevated spec levels.
Company Guidance
During the Beazer Homes earnings call for the third fiscal quarter of 2025, the company shared guidance for the upcoming fourth quarter. The company expects sales to remain flat compared to the same period last year, with a higher community count of around 175, representing an 8% increase year-over-year, offsetting a slower sales pace. Beazer Homes anticipates closing between 1,200 and 1,300 homes at an average selling price (ASP) of approximately $535,000. The adjusted homebuilding gross margin is expected to be around 18%, and selling, general and administrative expenses (SG&A) are projected at about 11.5% of total revenue. The company is also looking to maintain total liquidity at the end of the fiscal year at around $290 million. Additionally, Beazer Homes plans to continue share repurchases, with $87 million remaining under the current authorization, and expects to spend between $700 million and $750 million on land acquisition and development for the full year, with an option percentage above 60%.Beazer Homes Financial Statement Overview
Summary
Beazer Homes is experiencing mixed financial performance. While operational efficiency is evident, declining revenue and profitability margins pose challenges. The balance sheet shows improved leverage but reduced returns on equity. Cash flow issues are significant, with negative operating and free cash flows indicating potential liquidity constraints.Income Statement
Beazer Homes shows a declining trend in profitability with decreasing gross and net profit margins over the TTM period. Revenue growth has also turned negative, indicating potential challenges in sales. However, the company maintains positive EBIT and EBITDA margins, suggesting operational efficiency despite the revenue decline.55
Neutral
Balance Sheet
The company's debt-to-equity ratio has improved over the years, indicating better leverage management, but remains relatively high. Return on equity has decreased, reflecting reduced profitability. The equity ratio is stable, showing a balanced asset structure.60
Neutral
Cash Flow
Beazer Homes faces challenges with negative operating and free cash flows in the TTM period, indicating liquidity issues. The free cash flow to net income ratio is strong, suggesting effective conversion of profits into cash, but the negative growth in free cash flow is concerning.50
Neutral
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 2.39B | 2.33B | 2.21B | 2.32B | 2.14B | 2.13B |
| Gross Profit | 369.01M | 424.29M | 442.69M | 537.51M | 404.25M | 347.64M |
| EBITDA | 90.49M | 157.89M | 190.09M | 285.85M | 160.84M | 94.75M |
| Net Income | 67.65M | 140.18M | 158.61M | 220.70M | 122.02M | 52.23M |
Balance Sheet | ||||||
| Total Assets | 2.71B | 2.59B | 2.41B | 2.25B | 2.08B | 2.01B |
| Cash, Cash Equivalents and Short-Term Investments | 90.42M | 203.91M | 345.59M | 214.59M | 246.72M | 327.69M |
| Total Debt | 1.16B | 1.05B | 997.00M | 994.65M | 1.07B | 1.15B |
| Total Liabilities | 1.50B | 1.36B | 1.31B | 1.31B | 1.35B | 1.41B |
| Stockholders Equity | 1.22B | 1.23B | 1.10B | 939.29M | 724.88M | 593.17M |
Cash Flow | ||||||
| Free Cash Flow | -59.45M | -159.90M | 157.72M | 66.03M | 17.01M | 278.45M |
| Operating Cash Flow | -32.76M | -137.54M | 178.06M | 81.07M | 31.66M | 289.10M |
| Investing Cash Flow | -18.79M | -30.01M | -29.67M | -14.71M | -14.19M | -10.16M |
| Financing Cash Flow | 33.54M | 23.88M | -13.93M | -88.68M | -85.85M | -59.20M |
Beazer Homes Technical Analysis
Neutral
24.49
Price Trends
24.77
Negative
23.47
Positive
23.60
Positive
Market Momentum
-0.12
Positive
45.22
Neutral
11.27
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BZH, the sentiment is Neutral. The current price of 24.49 is below the 20-day moving average (MA) of 25.33, below the 50-day MA of 24.77, and above the 200-day MA of 23.60, indicating a neutral trend. The MACD of -0.12 indicates Positive momentum. The RSI at 45.22 is Neutral, neither overbought nor oversold. The STOCH value of 11.27 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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 (61)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
80 Outperform | 3.85B | 8.00 | 16.59% | ― | 7.39% | -1.37% | |
75 Outperform | 2.95B | 8.59 | 13.73% | ― | -3.59% | -10.82% | |
69 Neutral | 1.87B | 7.69 | 10.14% | 1.79% | 3.76% | -17.55% | |
68 Neutral | 731.65M | 6.35 | 19.02% | ― | 7.97% | -35.64% | |
68 Neutral | 1.20B | 7.84 | 7.58% | ― | -7.89% | -19.53% | |
59 Neutral | $727.98M | 11.11 | 5.65% | ― | 9.97% | -52.57% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% |
* Consumer Cyclical Sector Average
Performance Comparison
BZH
Beazer Homes
24.49
-9.68
-28.33%
HOV
Hovnanian Enterprises
130.35
-74.02
-36.22%
MHO
M/I Homes
145.72
-25.64
-14.96%
TPH
Tri Pointe
33.73
-11.58
-25.56%
LGIH
LGI Homes
52.01
-66.51
-56.12%
CCS
Century Communities
63.05
-38.25
-37.76%
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
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
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.