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Beazer Homes USA (BZH)
NYSE:BZH
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Beazer Homes
(NYSE:BZH)
Rating:71Outperform
Price Target:
$26.00
▲(5.52%Upside)
Beazer Homes (BZH) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$735.46M
Dividend YieldN/A
Average Volume (3M)309.66K
Price to Earnings (P/E)7.8
Beta (1Y)1.37
Revenue Growth13.50%
EPS Growth-40.36%
CountryUS
Employees1,158
SectorConsumer Cyclical
Sector Strength64
IndustryResidential Construction
Share Statistics
EPS (TTM)0.42
Shares Outstanding30,303,406
10 Day Avg. Volume347,509
30 Day Avg. Volume309,660
Financial Highlights & Ratios
PEG Ratio-0.05
Price to Book (P/B)0.57
Price to Sales (P/S)0.00
P/FCF Ratio-9.04
Enterprise Value/Market Cap0.84
Enterprise Value/Revenue0.07
Enterprise Value/Gross Profit1.54
Enterprise Value/Ebitda1.06
Forecast
1Y Price Target
$32.75Price Target Upside32.91% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering4
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 its revenue primarily through the sale of homes. The company's revenue model is based on the construction and sale of single-family homes, which are offered across a variety of price ranges and styles to meet the needs of different market segments. Beazer Homes' key revenue streams include home sales, which are influenced by factors such as housing demand, pricing strategies, and construction costs. The company may also generate additional income through the sale of land and development of residential communities. Strategic partnerships with suppliers and contractors, as well as effective cost management, play significant roles in optimizing profitability and ensuring competitive pricing for their homes.
Beazer Homes Earnings Call Summary
Earnings Call Date:May 01, 2025
(Q2-2025)
| % Change Since: 26.16%|
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 Financial Statement Overview
Summary
Beazer Homes exhibits a mixed financial performance. The income statement shows stable profitability with a TTM gross profit margin of 17.1% and a net profit margin of 5.0%. However, declining cash flows and a negative operating cash flow highlight potential liquidity issues. The balance sheet reflects significant improvement in leverage, enhancing financial stability despite past risks.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.70
Positive
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.65
Positive
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.55
Neutral
| Breakdown | Sep 2024 | Sep 2023 | Sep 2022 | Sep 2021 | Sep 2020 |
|---|---|---|---|---|---|
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 |
| EBITDA | 157.89M | 190.09M | 285.85M | 160.84M | 94.75M |
| Net Income | 140.18M | 158.61M | 220.70M | 122.02M | 52.23M |
Balance Sheet | |||||
| Total Assets | 2.59B | 2.41B | 2.25B | 2.08B | 2.01B |
| Cash, Cash Equivalents and Short-Term Investments | 203.91M | 345.59M | 214.59M | 246.72M | 327.69M |
| Total Debt | 1.05B | 997.00M | 994.65M | 1.07B | 1.15B |
| 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
Positive
24.64
Price Trends
22.50
Positive
21.54
Positive
25.34
Negative
Market Momentum
0.62
Negative
58.80
Neutral
66.26
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 24.64 is above the 20-day moving average (MA) of 23.79, above the 50-day MA of 22.50, and below the 200-day MA of 25.34, indicating a neutral trend. The MACD of 0.62 indicates Negative momentum. The RSI at 58.80 is Neutral, neither overbought nor oversold. The STOCH value of 66.26 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 27 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
Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
81 Outperform | $2.88B | 8.05 | 11.38% | ― | -3.59% | -10.82% | |
79 Outperform | $665.61M | 4.25 | 28.55% | ― | 7.93% | -3.59% | |
78 Outperform | $3.24B | 6.65 | 17.56% | ― | 7.39% | -1.37% | |
71 Outperform | $735.46M | 7.84 | 7.97% | ― | 13.50% | -40.36% | |
70 Outperform | $1.84B | 7.82 | 10.34% | 1.84% | 3.76% | -17.55% | |
63 Neutral | $1.36B | 7.51 | 9.36% | ― | -4.37% | -3.17% | |
62 Neutral | AU$2.94B | 27.78 | 4.69% | 4.95% | 2.28% | -33.31% |
* Consumer Cyclical Sector Average
Performance Comparison
BZH
Beazer Homes
24.64
-8.99
-26.73%
HOV
Hovnanian Enterprises
118.94
-88.74
-42.73%
MHO
M/I Homes
122.19
-44.48
-26.69%
TPH
Tri Pointe
31.59
-14.44
-31.37%
LGIH
LGI Homes
57.58
-47.37
-45.14%
CCS
Century Communities
59.63
-41.76
-41.19%
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.