Beazer Homes (BZH) AI Stock Analysis

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Beazer Homes

(NYSE:BZH)

67Neutral

Beazer Homes' stock reflects a stable financial performance with strong profitability and improved leverage. Despite cash flow challenges, strategic share repurchases and undervaluation enhance its appeal. Technical indicators show short-term strength, but long-term caution is advised. Earnings call insights reveal growth prospects amid market challenges.

Beazer Homes (BZH) vs. S&P 500 (SPY)

Market Cap

$643.95M

Dividend YieldN/A

Average Volume (3M)416.48K

Price to Earnings (P/E)6.8

Beta (1Y)1.46

Revenue Growth13.50%

EPS Growth-40.36%

CountryUS

Employees1,158

SectorConsumer Cyclical

Sector Strength57

IndustryResidential Construction

Share Statistics

EPS (TTM)0.42

Shares Outstanding30,303,406

10 Day Avg. Volume413,374

30 Day Avg. Volume416,484

Financial Highlights & Ratios

PEG RatioN/A

Price to Book (P/B)N/A

Price to Sales (P/S)0.00

Price to Cash Flow (P/CF)0.00

P/FCF Ratio0.00

Enterprise Value/Market Cap2.50

Enterprise Value/RevenueN/A

Enterprise Value/Gross Profit3.79

Enterprise Value/EbitdaN/A

Forecast

1Y Price Target

$35.33

Price Target Upside70.84% Upside

Rating ConsensusStrong Buy

Number of Analyst Covering3

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 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 shows stable profitability with a solid gross profit margin and positive revenue growth. The balance sheet is strengthened by eliminating total debt, although past leverage poses historical risks. Cash flow challenges persist with negative operating cash flow, impacting financial flexibility.

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.

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.

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.

Sep 2024	Sep 2023	Sep 2022	Sep 2021	Sep 2020
Breakdown
Income Statement		Total Revenue
2.33B	2.21B	2.32B	2.14B	2.13B
	Gross Profit
424.29M	442.69M	537.51M	404.25M	347.64M
	EBIT
143.03M	177.25M	272.49M	146.87M	79.11M
	EBITDA
157.89M	190.09M	285.85M	160.84M	94.75M
	Net Income Common Stockholders
140.18M	158.61M	220.70M	122.02M	52.23M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
203.91M	345.59M	214.59M	246.72M	327.69M
	Total Assets
2.59B	2.41B	2.25B	2.08B	2.01B
	Total Debt
1.05B	997.00M	994.65M	1.07B	1.15B
	Net Debt
841.22M	651.41M	780.05M	821.47M	818.44M
	Total Liabilities
1.36B	1.31B	1.31B	1.35B	1.41B
	Stockholders Equity
1.23B	1.10B	939.29M	724.88M	593.17M
Cash Flow		Free Cash Flow
-159.90M	157.72M	66.03M	17.01M	278.45M
	Operating Cash Flow
-137.54M	178.06M	81.07M	31.66M	289.10M
	Investing Cash Flow
-30.01M	-29.67M	-14.71M	-14.19M	-10.16M
	Financing Cash Flow
23.88M	-13.93M	-88.68M	-85.85M	-59.20M

Beazer Homes Technical Analysis

Technical Analysis Sentiment

Positive

Last Price20.68

Price Trends

50DMA

20.65

Positive

100DMA

23.61

Negative

200DMA

27.81

Negative

Market Momentum

MACD

<0.01

Negative

RSI

55.48

Neutral

STOCH

68.86

Neutral

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 20.68 is above the 20-day moving average (MA) of 19.17, above the 50-day MA of 20.65, and below the 200-day MA of 27.81, indicating a neutral trend. The MACD of <0.01 indicates Negative momentum. The RSI at 55.48 is Neutral, neither overbought nor oversold. The STOCH value of 68.86 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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
TPH	75 Outperform	$2.78B	6.83	13.28%	―	10.82%	19.34%
HOV	73 Outperform	$640.79M	3.02	33.63%	―	8.88%	19.66%
MHO	73 Outperform	$2.88B	5.69	19.02%	―	8.68%	8.39%
BZH	67 Neutral	$643.95M	6.85	7.97%	―	13.50%	-40.36%
CCS	65 Neutral	$1.68B	5.69	12.36%	1.96%	10.75%	8.31%
Sector *	61 Neutral	$6.58B	11.77	3.05%	3.99%	2.61%	-21.52%
LGIH	58 Neutral	$1.24B	6.86	9.36%	―	-4.37%	-3.17%

* Consumer Cyclical Sector Average

Performance Comparison

BZH

Beazer Homes

20.68

-8.06

-28.04%

HOV

Hovnanian Enterprises

98.07

-59.63

-37.81%

MHO

M/I Homes

107.65

-14.90

-12.16%

TPH

Tri Pointe

30.65

-8.82

-22.35%

LGIH

LGI Homes

53.19

-44.83

-45.74%

CCS

Century Communities

53.07

-28.74

-35.13%

Beazer Homes Earnings Call Summary

Earnings Call Date:May 01, 2025

(Q2-2025)

% Change Since: 5.89%|

Next Earnings Date:Jul 31, 2025

Earnings Call Sentiment Neutral

Beazer Homes reported better-than-expected earnings and significant share repurchases, with a focus on growing community count and book value per share. However, the company faced challenges with a slower selling environment and elevated spec sales, leading to reduced land spending expectations. Despite these challenges, the company remains committed to its long-term goals.

Q2-2025 Updates

Positive Updates

Better-than-Anticipated Earnings

The second quarter results reflected better-than-anticipated earnings, with adjusted EBITDA of $38.8 million and earnings per diluted share of $0.42.

Improved Community Count

The company reported a growing community count, up nearly 12% year-over-year, and expects to end the year with a community count in the 170s.

Significant Share Repurchases

Beazer Homes repurchased more than $20 million of stock in the quarter, bringing total repurchases to $42 million over the past three years. A new authorization for $100 million in share repurchases was announced.

Book Value Per Share Growth

The company has achieved a five-year CAGR of over 17% in book value per share and targets a double-digit CAGR through fiscal 2027.

Zero Energy Ready Home Success

The company has nearly achieved its Zero Energy Ready goal, with only 30 homes left to start from the prior product series.

Negative Updates

Slower-than-Anticipated Selling Environment

The quarter was characterized by a slower-than-anticipated selling environment due to affordability challenges, weakening consumer sentiment, and increased economic uncertainty.

High Spec Sales Mix

The mix of spec sales remained exceptionally elevated, mirroring the 70% seen in the second quarter, which is higher than anticipated.

Reduced Land Spending Expectations

Due to the slower sales environment and focus on share repurchases, expectations for full-year land spending were reduced to $750 million to $800 million.

Limited Improvement in Mortgage Rates and Consumer Sentiment

The company is not expecting any improvement in mortgage rates or consumer sentiment in the near term.

Company Guidance

During the Beazer Homes earnings call for the second quarter of fiscal 2025, the company provided detailed guidance and updates on its capital allocation priorities. The call revealed an adjusted EBITDA of $38.8 million and earnings per diluted share of $0.42. Despite a slower-than-anticipated selling environment, Beazer Homes repurchased over $20 million in stock, contributing to a three-year total of $42 million. The company outlined its multiyear goals, including a target to exceed 200 communities by fiscal 2027 and achieve a net debt to net capitalization ratio in the low 30s by the same year. Beazer Homes also announced a $100 million share repurchase authorization, representing nearly 20% of its current market cap, to be executed over multiple years. For the third quarter, the company anticipates closing between 1,050 and 1,100 homes, with sales projected to rise 5% to 10% year-over-year, and an adjusted gross margin expected to slightly increase sequentially. The full-year outlook includes a community count increase of 12.5% to 15% and a reduction in land spending to $750 million-$800 million, highlighting a strategic focus on balancing growth, deleveraging, and shareholder value enhancement.

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.