Education
About Us
Working with TipRanks
Follow Us
Beazer Homes USA (BZH)
NYSE:BZH
Top Page
Beazer Homes
(NYSE:BZH)
Select Model
Select Model
Rating:44Neutral
Price Target:
$21.00
▼(-6.12% Downside)
The score is held down primarily by deteriorating profitability and volatile cash flow, with technicals also signaling a weak trend. A high P/E adds valuation risk, while the earnings call provides some offset through specific cost, margin, and capital-allocation plans backed by solid liquidity.
Positive Factors
Strong liquidity & no near-term maturities
A liquidity cushion exceeding $340M and no debt maturities until Oct 2027 provides durable financial flexibility. This reduces refinancing risk, supports disciplined land sales and buybacks, and lets management execute margin and portfolio actions through cyclical slowdowns without urgent external financing.
Large controlled lot and community footprint
A broad community base and ~23,500 controlled lots create a multi-year supply pipeline and optionality. This supports scaling revenue and ASP improvement from newer communities, enables selective lot monetization, and reduces dependency on third-party lot acquisition for multi-quarter growth execution.
Per-home cost cuts and solar product differentiation
Sustained >$10k unit cost reductions and roll-out of higher-margin, solar-included communities create structural margin upside. Solar lowers ongoing energy costs for buyers and, with falling installation costs, can sustainably boost community-level margins and product differentiation across cycles.
Negative Factors
Compressed margins and weak profitability
Gross margin compression to mid-teens and net margins near 2% materially reduce earnings power and return on equity. Lower margins constrain reinvestment, make land and community economics more fragile, and increase sensitivity to incentive pressure and input-cost reversals over the next several quarters.
Inconsistent and volatile cash generation
Highly variable operating cash flow and near-zero/negative free cash flow reduce predictability of internal funding for land, starts, and buybacks. Volatility forces conservative capital allocation or external funding in downturns, limiting ability to execute a sustained growth or return-of-capital program.
Full-year targets depend on market improvement
Management's margin and EBITDA targets rely on demand normalization and a higher sales pace. This makes the recovery conditional on macro and competitive dynamics; absent sustained buyer improvement, margin initiatives and ASP gains may not realize, prolonging weak profitability.
Beazer Homes (BZH) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$636.46M
Dividend YieldN/A
Average Volume (3M)431.15K
Price to Earnings (P/E)72.8
Beta (1Y)1.30
Revenue Growth1.77%
EPS Growth-66.27%
CountryUS
Employees1,158
SectorConsumer Cyclical
Sector Strength84
IndustryResidential Construction
Share Statistics
EPS (TTM)-1.13
Shares Outstanding29,506,805
10 Day Avg. Volume601,980
30 Day Avg. Volume431,147
Financial Highlights & Ratios
PEG Ratio-0.24
Price to Book (P/B)0.58
Price to Sales (P/S)0.31
P/FCF Ratio209.93
Enterprise Value/Market Cap0.87
Enterprise Value/Revenue0.24
Enterprise Value/Gross Profit1.76
Enterprise Value/Ebitda15.95
Forecast
1Y Price Target
$23.00Price Target Upside2.82% Upside
Rating ConsensusHold
Number of Analyst Covering1
EPS Forecast (FY)1.47
Revenue Forecast (FY)$2.53B
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 earns money by purchasing land, developing it, and building homes that are sold to customers. Key revenue streams include the sale of homes, lot sales to other builders, and occasionally, the sale of finished lots. The company also benefits from strategic partnerships with suppliers and subcontractors that help reduce construction costs and improve operational efficiency. Beazer Homes has implemented a customer-centric approach, offering various financing options and incentives, which facilitate sales and enhance customer satisfaction. Additionally, the company may explore land development opportunities and joint ventures that further contribute to its profitability.
Beazer Homes Earnings Call Summary
Earnings Call Date:Jan 29, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Apr 30, 2026
Earnings Call Sentiment Neutral
The call presented a mixed picture: near-term operating results were weak (negative adjusted EBITDA, net loss, Q1 sales shortfall and a one-time litigation charge), but management highlighted tangible actions already taken (>$10k per-home cost reductions, cycle-time compression), strategic differentiation (solar-included homes), strong liquidity, and an active plan to execute land sales and accelerated share repurchases. Management provided specific margin and ASP targets and a plausible path to full-year EBITDA growth contingent on market stability. Given the material but addressable operational and market challenges balanced against clear remediation actions and balance-sheet flexibility, the tone is constructive but cautious.Q1-2026 Updates
Positive Updates
Cost Reduction Achieved
Reduced labor and material construction costs by more than $10,000 per home (nearly 200 basis points), with management expecting this to be reflected in Q3/Q4 results and to contribute to ~300 basis points of margin expansion by year-end.
Solar-Included Homes Accelerating Differentiation
Launched 'solar included' homes in multiple markets (e.g., Las Vegas, Phoenix, Georgia, South Carolina); management expects solar-included communities to be among the highest-margin communities and to represent roughly 20% of business by year-end. Installation costs reduced from >$4 per kWh to < $2 per kWh (management estimate).
Strong Liquidity and Balance Sheet Flexibility
Quarter-end liquidity of >$340 million (including $121 million unrestricted cash and $222 million revolver availability); no debt maturities until October 2027, enabling disciplined capital allocation and share repurchases.
Active Portfolio and Lot Position
168 communities at quarter-end (average active community count 167, up 4% year-over-year) and approximately 23,500 active controlled lots (61% under option), supporting planned growth to >200 communities by end of fiscal '27.
Share Repurchase Momentum
Repurchased $15 million of stock in Q1; trailing 12-month buybacks totaled $48 million (~7% of shares). $72 million remaining on authorization and expected to be fully executed this year, with potential to increase book value per share by 5%-10% at year-end.
Visible Revenue and Margin Catalysts for Back Half
Newer communities (started selling on/after April 2025) were just over 10% of Q1 revenue but are projected to represent ~50% of Q4 revenue; backlog ASPs (~$560k) and higher margins in these communities are expected to drive higher ASP (targeting ~$565k H2) and margin expansion (~300 bps by year-end).
Operational Improvements and Cycle Time Compression
Cycle time reduced by ~2 calendar weeks in Q1, improving ability to sell-to-close within the fiscal year window and supporting faster scaling if demand improves.
Q2 and Near-Term Guidance Provides Path to Profitability
Q2 expectations: sell ~1,100 homes (comparable to prior year), close ~800 homes with ASP ~$520k-$525k, land sale revenue of ~ $30 million, and adjusted EBITDA of ~ $5 million (including land sale gains); interest amortized ~3% of homebuilding revenue and estimated net loss per share of ~$0.75 for Q2.
Negative Updates
Negative Adjusted EBITDA and Net Loss in Q1
Q1 adjusted EBITDA was negative $11.2 million and diluted loss per share was $1.13, reflecting a weak seasonal quarter and a one-time litigation-related pretax charge of $6.4 million ($0.23 per share).
Reported Homebuilding Gross Margin Dragged by Litigation Charge
Reported homebuilding gross margin of 14.0% included a litigation-related charge (~180 basis points). Excluding the charge, margin would have been ~15.8% (in line with guidance).
Sales Pace and Order Shortfall in Q1
Sold 763 homes with a sales pace of 1.5 per community per month; management noted being ~100-150 sales short of expectations in Q1 (broad-based weakness across divisions) and chose not to discount into year-end.
Heavy Land Spend with Limited Q1 Land Sale Proceeds
Spent $181 million on land acquisition and development during Q1 but only generated $3 million in land sale proceeds in the quarter; management expects ~$150 million of land sale proceeds for the year to fund repurchases.
Net Leverage and Deleveraging Timing
While the company targets deleveraging to the low 30% range by the end of fiscal '27, management expects net leverage to be roughly flat year-over-year at or just under ~40% at fiscal year-end due to accelerated share repurchases.
Reliance on Market Improvement to Achieve FY Targets
Achievement of full-year EBITDA growth depends on external market stability (sales pace above 2.5% in Q3/Q4, incentives remaining consistent, and continued buyer demand). Management characterizes the path as achievable but not easy and contingent on normalization of market conditions.
Seasonal/Competitive Pressure and Incentive Impact
Q1 margin softness was partly attributed to higher incentives and mix shifts versus Q4; management noted competitors heavily discounted into year-end, which Beazer did not match, contributing to the near-term sales weakness.
Company Guidance
Beazer guided that for Q2 it expects to sell ~1,100 homes, finish with ~165 active communities, close ~800 homes at an ASP of $520–525k, and see adjusted homebuilding gross margin roughly flat sequentially excluding a ~180‑bp litigation charge; SG&A dollars are expected to be flat year‑over‑year, land sale revenue is forecast at ~$30M, total adjusted EBITDA of about $5M (including land gains), interest amortized at ~3% of homebuilding revenue, taxes of ~ $1M and a net loss of roughly $0.75 per diluted share. Management reiterated a path to ~300 bps of adjusted homebuilding gross margin expansion by Q4 (including >$10k per‑home direct cost reductions realized to date, ~200 bps), a 2H ASP target of ~$565k driven by newer communities (just over 10% of Q1 revenue, projected to be ~50% of Q4 revenue), and a needed sales pace above 2.5% in Q3/Q4; it plans $150M of land sales, will execute the remaining $72M buyback authorization (trailing 12‑month buybacks were $48M, ~7% of shares) to drive book value per share up 5–10% by year‑end, and expects net leverage to be at or just under ~40% this year while targeting low‑30s by FY27 and >200 communities by the end of FY27. Q1 metrics referenced for context: 763 homes sold (1.5 sales/community/month), 167 average active communities (+4% YoY), homebuilding revenue $359.7M with 700 closings at ASP $514k, reported homebuilding gross margin 14% (15.8% ex‑charge), Q1 adjusted EBITDA -$11.2M, diluted loss $1.13, book value per share >$41, liquidity >$340M (cash $121M, revolver $222M), and ~23,500 active lots (61% under option).Beazer Homes Financial Statement Overview
Summary
Financial momentum is weak: profitability has deteriorated materially (TTM revenue down ~4.5%, gross margin compressed to mid-teens, and net margin ~1.9%), and cash generation is inconsistent with slightly negative TTM free cash flow. The balance sheet is a partial offset with improved leverage (debt-to-equity ~0.85–0.90x) and higher equity, but returns on equity have fallen to low single digits.Income Statement
Profitability has weakened materially versus prior years. Annual revenue was roughly flat to modestly up through 2024–2025, but TTM (Trailing-Twelve-Months) revenue is down (-4.45%), and margins have compressed sharply: gross margin fell from ~23.2% (2022) and ~20.1% (2023) to ~14–18% (2024–2025), while net margin declined from ~9.5% (2022) / ~7.2% (2023) to ~1.9% (2025 and TTM). Earnings power also looks more volatile, with TTM EBIT and net income far below prior-year levels.34
Negative
Balance Sheet
Leverage appears moderate for the sector, with debt-to-equity improving from ~1.47x (2021) to ~0.85–0.90x (2023–2025). Equity has grown over time (from ~$725M in 2021 to ~$1.20–$1.25B in 2025), supporting the capital base. The main weakness is reduced profitability on that equity: return on equity dropped from strong levels (~23.5% in 2022; ~14.4% in 2023) to low single digits (~3.7% in 2025 and TTM), indicating weaker returns despite a steadier balance sheet.58
Neutral
Cash Flow
Cash generation is inconsistent. Operating cash flow swung from strong positive in 2023 (~$178M) to meaningfully negative in 2024 (~-$138M), then back to modestly positive in 2025 (~$32M) and TTM (~$26M). Free cash flow also weakened, turning negative in TTM (~-$2.8M) after only a small positive in 2025 (~$3.5M). This volatility—especially the large 2024 outflow—reduces confidence in the durability of cash conversion, even though operating cash flow is currently positive again.37
Negative
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 2.37B | 2.33B | 2.21B | 2.32B | 2.14B |
| Gross Profit | 337.51M | 424.29M | 442.69M | 537.51M | 404.25M |
| EBITDA | 60.02M | 157.89M | 189.45M | 285.85M | 160.84M |
| Net Income | 45.59M | 140.18M | 158.61M | 220.70M | 122.02M |
Balance Sheet | |||||
| Total Assets | 2.61B | 2.59B | 2.41B | 2.25B | 2.08B |
| Cash, Cash Equivalents and Short-Term Investments | 214.71M | 203.91M | 345.59M | 214.59M | 246.72M |
| Total Debt | 1.06B | 1.05B | 997.00M | 994.65M | 1.07B |
| Total Liabilities | 1.36B | 1.36B | 1.31B | 1.31B | 1.35B |
| Stockholders Equity | 1.25B | 1.23B | 1.10B | 939.29M | 724.88M |
Cash Flow | |||||
| Free Cash Flow | 3.48M | -159.90M | 157.72M | 66.03M | 17.01M |
| Operating Cash Flow | 31.98M | -137.54M | 178.06M | 81.07M | 31.66M |
| Investing Cash Flow | -19.66M | -30.01M | -29.67M | -14.71M | -14.19M |
| Financing Cash Flow | -36.36M | 23.88M | -13.93M | -88.68M | -85.85M |
Beazer Homes Technical Analysis
Negative
22.37
Price Trends
22.15
Positive
22.81
Negative
22.76
Negative
Market Momentum
0.32
Positive
47.76
Neutral
49.84
Neutral
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 22.37 is below the 20-day moving average (MA) of 22.96, above the 50-day MA of 22.15, and below the 200-day MA of 22.76, indicating a neutral trend. The MACD of 0.32 indicates Positive momentum. The RSI at 47.76 is Neutral, neither overbought nor oversold. The STOCH value of 49.84 is Neutral, 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 "Legal & Regulatory" 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
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
73 Outperform | $2.87B | 9.91 | 9.47% | ― | -16.60% | -29.85% | |
71 Outperform | $3.50B | 9.08 | 13.20% | ― | 4.77% | -9.30% | |
65 Neutral | $1.16B | 11.08 | 5.21% | ― | -20.62% | -45.74% | |
63 Neutral | $1.83B | 12.95 | 8.37% | 1.99% | -6.28% | -31.55% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
60 Neutral | $662.01M | 15.07 | 7.69% | ― | -0.84% | -76.30% | |
44 Neutral | $636.46M | 72.84 | 0.81% | ― | 1.77% | -66.27% |
* Consumer Cyclical Sector Average
BZH
Beazer Homes
22.81
0.74
3.35%
HOV
Hovnanian Enterprises
116.29
-14.82
-11.30%
MHO
M/I Homes
134.60
12.67
10.39%
TPH
Tri Pointe
33.69
-2.70
-7.42%
LGIH
LGI Homes
53.86
-32.35
-37.52%
CCS
Century Communities
65.64
-9.34
-12.45%
Beazer Homes Corporate Events
Business Operations and StrategyExecutive/Board Changes
Beazer Homes Appoints Howard Heckes to Board
Positive
Dec 9, 2025
On December 9, 2025, Beazer Homes USA, Inc. announced the retirement of Danny Shepherd from its Board of Directors, effective at the next annual stockholders’ meeting, and the appointment of Howard C. Heckes as a new independent board member, effective December 8, 2025. This change is part of Beazer’s ongoing director refreshment efforts, which have seen the retirement of three independent directors and the appointment of four new ones in the past two years. Heckes, with a strong background in building materials and services, is expected to contribute significantly to Beazer’s differentiated product strategy, enhancing the company’s industry positioning and long-term value creation.
The most recent analyst rating on (BZH) stock is a Hold with a $23.00 price target. To see the full list of analyst forecasts on Beazer Homes stock, see the BZH Stock Forecast page.
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.