Beazer Homes (BZH) AI Stock Analysis

• Market Cap: $753.25M
• Dividend Yield: N/A
• Average Volume (3M): 341.02K
• Price to Earnings (P/E): 11.5
• Beta (1Y): 1.39
• Revenue Growth: 9.97%
• EPS Growth: -52.57%
• Country: US
• Employees: 1,158
• Sector: Consumer Cyclical
• Sector Strength: 75
• Industry: Residential Construction
• EPS (TTM): -0.01
• Shares Outstanding: 29,725,725
• 10 Day Avg. Volume: 431,329
• 30 Day Avg. Volume: 341,020
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 2.30
• Enterprise Value/Revenue: 0.73
• Enterprise Value/Gross Profit: 4.69
• Enterprise Value/Ebitda: 19.12
• 1Y Price Target: $30.20
• Price Target Upside: 17.69% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 5

• Rating: 61 Neutral
• Price Target: $26.00 ▲(1.33% Upside)

Beazer Homes' overall stock score reflects mixed financial performance with significant liquidity challenges, balanced by positive technical indicators and reasonable valuation. The earnings call provided a cautiously optimistic outlook, but highlighted ongoing sales challenges, particularly in Texas.

Beazer Homes Business Overview & Revenue Model

Company Description

Beazer 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 Money

Beazer 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 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.

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.

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.

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

• Technical Analysis Sentiment: Positive
• Last Price: 25.66
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BZH, the sentiment is Positive. The current price of 25.66 is above the 20-day moving average (MA) of 23.89, above the 50-day MA of 23.17, and above the 200-day MA of 24.75, indicating a bullish trend. The MACD of 0.34 indicates Negative momentum. The RSI at 60.87 is Neutral, neither overbought nor oversold. The STOCH value of 92.55 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for BZH.

Beazer Homes Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
HOV	79 Outperform	$854.28M	5.52	28.55%	―	7.93%	-3.59%
TPH	79 Outperform	$3.07B	8.89	11.38%	―	-3.59%	-10.82%
MHO	78 Outperform	$3.77B	7.84	17.56%	―	7.39%	-1.37%
CCS	73 Outperform	$1.94B	7.97	10.34%	1.68%	3.76%	-17.55%
LGIH	67 Neutral	$1.50B	9.81	7.84%	―	-7.89%	-19.53%
Sector *	63 Neutral	£1.74B	10.52	4.37%	3.49%	0.66%	-39.52%
BZH	61 Neutral	$753.25M	11.49	5.65%	―	9.97%	-52.57%

Beazer Homes Corporate Events

Beazer Homes Accelerates Share Repurchase Program

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.