Beazer Homes (BZH) AI Stock Analysis

• Market Cap: $780.16M
• Dividend Yield: N/A
• Average Volume (3M): 539.50K
• Price to Earnings (P/E): 84.7
• Beta (1Y): 1.25
• Revenue Growth: 1.77%
• EPS Growth: -66.27%
• Country: US
• Employees: 1,158
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Residential Construction
• EPS (TTM): -1.13
• Shares Outstanding: 29,506,805
• 10 Day Avg. Volume: 427,023
• 30 Day Avg. Volume: 539,496
• PEG Ratio: -0.24
• Price to Book (P/B): 0.58
• Price to Sales (P/S): 0.31
• P/FCF Ratio: 209.93
• Enterprise Value/Market Cap: 2.32
• Enterprise Value/Revenue: 0.80
• Enterprise Value/Gross Profit: 5.76
• Enterprise Value/Ebitda: 52.17
• 1Y Price Target: $23.00
• Price Target Upside: -10.99% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 1
• EPS Forecast (FY): 1.47
• Revenue Forecast (FY): $2.53B

• Rating: 49 Neutral
• Price Target: $28.00 ▲(8.36% Upside)
• Action: Reiterated Date: 02/06/26
• Date: Action: Reiterated 02/06/26

The score is held back primarily by weakened financial performance—sharp margin/earnings compression and inconsistent cash generation—despite a steadier balance sheet. Technicals are moderately supportive with the stock trading above key moving averages and positive MACD. Valuation is a key risk due to the very high P/E, while the earnings call adds some support via concrete cost-out initiatives, margin/ASP targets, and liquidity, but near-term losses and execution dependence keep the outlook mixed.

Positive Factors

Improved leverage and equity base

Lower leverage and a larger equity base materially increase financial flexibility over the medium term. Improved debt-to-equity and higher equity support disciplined capital allocation, permit buybacks or targeted investment without urgent refinancing, and provide a balance-sheet buffer in cyclical housing markets.

Per-home cost reductions

Realized >$10k per-home cost savings are a structural improvement to build economics. Permanent reductions in labor and material costs raise sustainable gross margins, increase per-home profitability, and lower break-even requirements, making earnings and cash generation less sensitive to modest demand or input-cost swings.

Product differentiation and lot inventory

Solar-included homes create a differentiated, higher-margin product line while a large controlled lot position supports scale and pricing optionality. Together these structural assets improve long-term competitiveness, enable higher ASP mix, and reduce near-term land acquisition pressure as communities scale.

Negative Factors

Margin and earnings compression

Profitability has deteriorated meaningfully and persistently. Substantially compressed gross and net margins reduce return on invested capital, shrink internal cash available for reinvestment, and increase vulnerability to inflation in materials or labor, limiting durable earnings power.

Inconsistent cash generation

Volatile operating and free cash flow undermines the durability of funding for land, community starts, and share repurchases. Large swings reduce confidence in cash conversion, forcing reliance on planned land sales or revolver availability and complicating execution of multi-quarter margin and deleveraging targets.

Execution reliant on market improvement

Management’s path to margin expansion, ASP mix, and EBITDA growth depends materially on an external demand rebound. This makes results conditional rather than structural: if buyer demand, incentives, or pricing dynamics do not normalize, margin and leverage targets risk slipping and planned capital returns may be curtailed.

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 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 Financial Statement Overview

Summary

Overall fundamentals are pressured: profitability and margins have deteriorated sharply versus 2022–2023 (TTM net margin ~1.9% and TTM revenue down ~4.45%), and cash flow has been volatile with slightly negative TTM free cash flow. The balance sheet is a relative bright spot with improved leverage (debt-to-equity down to ~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.

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.

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.

Breakdown	TTM	Sep 2025	Sep 2024	Sep 2023	Sep 2022	Sep 2021
Income Statement
Total Revenue	2.27B	2.37B	2.33B	2.21B	2.32B	2.14B
Gross Profit	313.51M	337.51M	424.29M	442.69M	537.51M	404.25M
EBITDA	34.64M	60.02M	157.89M	189.45M	285.85M	160.84M
Net Income	9.86M	45.59M	140.18M	158.61M	220.70M	122.02M
Balance Sheet
Total Assets	2.64B	2.61B	2.59B	2.41B	2.25B	2.08B
Cash, Cash Equivalents and Short-Term Investments	120.76M	214.71M	203.91M	345.59M	214.59M	246.72M
Total Debt	1.17B	1.06B	1.05B	997.00M	994.65M	1.07B
Total Liabilities	1.44B	1.36B	1.36B	1.31B	1.31B	1.35B
Stockholders Equity	1.20B	1.25B	1.23B	1.10B	939.29M	724.88M
Cash Flow
Free Cash Flow	-2.79M	3.48M	-159.90M	157.72M	66.03M	17.01M
Operating Cash Flow	26.05M	31.98M	-137.54M	178.06M	81.07M	31.66M
Investing Cash Flow	-20.30M	-19.66M	-30.01M	-29.67M	-14.71M	-14.19M
Financing Cash Flow	-870.00K	-36.36M	23.88M	-13.93M	-88.68M	-85.85M

Beazer Homes Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 25.84
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 25.84 is above the 20-day moving average (MA) of 25.62, above the 50-day MA of 23.47, and above the 200-day MA of 23.30, indicating a bullish trend. The MACD of 0.87 indicates Positive momentum. The RSI at 54.39 is Neutral, neither overbought nor oversold. The STOCH value of 15.16 is Positive, 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
MHO	71 Outperform	$3.66B	9.55	13.20%	―	4.77%	-9.30%
TPH	69 Neutral	$3.92B	17.07	7.25%	―	-16.60%	-29.85%
CCS	63 Neutral	$2.02B	14.33	8.37%	1.99%	-6.28%	-31.55%
HOV	62 Neutral	$731.38M	17.02	6.76%	―	-0.84%	-76.30%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
LGIH	51 Neutral	$1.21B	16.29	3.51%	―	-20.62%	-45.74%
BZH	49 Neutral	$780.16M	84.73	0.81%	―	1.77%	-66.27%

Beazer Homes Corporate Events

Beazer Homes Extends Charter Protections for Tax Assets

At its 2026 Annual Meeting of Stockholders held on February 5, 2026, Beazer Homes USA, Inc. secured shareholder approval to amend its certificate of incorporation to extend protective charter provisions aimed at preserving the value of its net deferred tax assets, including net operating loss carryforwards and energy-efficiency tax credits, by restricting certain transfers of stock by holders of 4.95% or more of its shares; the related charter amendment was filed in Delaware the same day and is scheduled to become effective on February 6, 2026. At the same meeting, shareholders elected nine directors to serve until the 2027 annual meeting, approved executive compensation for the fiscal year ending September 30, 2025, ratified Deloitte & Touche LLP as the independent auditor for fiscal 2026, and endorsed both a charter amendment and a rights agreement specifically designed to protect the company’s NOLs and energy-efficiency tax credits, reinforcing Beazer Homes’ efforts to safeguard tax assets that can support future profitability and capital management.

The most recent analyst rating on (BZH) stock is a Hold with a $21.00 price target. To see the full list of analyst forecasts on Beazer Homes stock, see the BZH Stock Forecast page.

Beazer Homes Appoints Howard Heckes to Board

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.