Beazer Homes (BZH) AI Stock Analysis

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Beazer Homes

(NYSE:BZH)

Rating:65Neutral

Price Target:

$27.00

▲(2.82% Upside)

The overall stock score for Beazer Homes is driven primarily by mixed financial performance and positive technical indicators. While operational efficiency and strategic planning are strengths, declining revenue, profitability margins, and liquidity issues pose significant risks. The stock's valuation is moderate, and the earnings call highlights both opportunities and challenges.

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

Market Cap

$780.60M

Dividend YieldN/A

Average Volume (3M)377.19K

Price to Earnings (P/E)11.9

Beta (1Y)1.35

Revenue Growth9.97%

EPS Growth-52.57%

CountryUS

Employees1,158

SectorConsumer Cyclical

Sector Strength82

IndustryResidential Construction

Share Statistics

EPS (TTM)-0.01

Shares Outstanding29,725,725

10 Day Avg. Volume370,019

30 Day Avg. Volume377,185

Financial Highlights & Ratios

PEG RatioN/A

Price to Book (P/B)N/A

Price to Sales (P/S)N/A

P/FCF RatioN/A

Enterprise Value/Market Cap2.22

Enterprise Value/Revenue0.73

Enterprise Value/Gross Profit4.69

Enterprise Value/Ebitda19.12

Forecast

1Y Price Target

$29.60

Price Target Upside12.72% Upside

Rating ConsensusStrong Buy

Number of Analyst Covering5

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'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 Earnings Call Summary

Earnings Call Date:Jul 31, 2025

(Q3-2025)

% Change Since: |

Next Earnings Date:Nov 12, 2025

Earnings Call Sentiment Neutral

The earnings call reflects a mixed sentiment, with notable achievements in community growth and energy efficiency leadership but challenges in sales performance, particularly in Texas, and impairments in specific markets. The company's efforts in share repurchases and land management indicate strategic planning for long-term growth.

Q3-2025 Updates

Positive Updates

Community Count Growth

Beazer Homes grew its average community count by 15% to 167, successfully activating 19 communities.

Share Repurchases and Book Value Increase

The company repurchased $12.5 million of stock, increasing book value per share to over $41.

Adjusted Homebuilding Gross Margin

Achieved an adjusted homebuilding gross margin of 18.4%, slightly up from the previous quarter.

Energy Efficiency Leadership

Beazer Homes maintains its position as the #1 energy-efficient homebuilder in the U.S., with a focus on Zero Energy Ready homes.

Land Management and Shareholder Returns

The company sold $45 million of non-core land, generating $8 million in gross profit, and maintains $87 million for continued share repurchases.

Negative Updates

Challenging Sales Environment

The sales environment was weaker than anticipated, with affordability concerns and rising home inventories impacting traffic and sales conversion.

Disappointing Sales in Texas

Sales pace in Texas was below expectations at 1.3 sales per community per month, compared to historical rates of 1.9 to 3.1.

Impairments in Phoenix and Orlando

Impairments occurred in a Maricopa community in Phoenix and a condo community in Orlando due to price sensitivity and rising costs, respectively.

Elevated Spec Mix Impact on Margins

The high share of spec homes affected the potential for margin improvement, with expectations of continued elevated spec levels.

Company Guidance

During the Beazer Homes earnings call for the third fiscal quarter of 2025, the company shared guidance for the upcoming fourth quarter. The company expects sales to remain flat compared to the same period last year, with a higher community count of around 175, representing an 8% increase year-over-year, offsetting a slower sales pace. Beazer Homes anticipates closing between 1,200 and 1,300 homes at an average selling price (ASP) of approximately $535,000. The adjusted homebuilding gross margin is expected to be around 18%, and selling, general and administrative expenses (SG&A) are projected at about 11.5% of total revenue. The company is also looking to maintain total liquidity at the end of the fiscal year at around $290 million. Additionally, Beazer Homes plans to continue share repurchases, with $87 million remaining under the current authorization, and expects to spend between $700 million and $750 million on land acquisition and development for the full year, with an option percentage above 60%.

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

Neutral

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

Neutral

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

Neutral

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 Price26.26

Price Trends

50DMA

24.21

Positive

100DMA

22.56

Positive

200DMA

24.25

Positive

Market Momentum

MACD

0.47

Negative

RSI

60.94

Neutral

STOCH

52.28

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 26.26 is above the 20-day moving average (MA) of 25.14, above the 50-day MA of 24.21, and above the 200-day MA of 24.25, indicating a bullish trend. The MACD of 0.47 indicates Negative momentum. The RSI at 60.94 is Neutral, neither overbought nor oversold. The STOCH value of 52.28 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
MHO	80 Outperform	$4.14B	8.61	17.56%	―	7.39%	-1.37%
TPH	79 Outperform	$3.25B	9.46	11.38%	―	-3.59%	-10.82%
HOV	79 Outperform	$853.89M	7.52	20.08%	―	7.97%	-35.64%
CCS	73 Outperform	$2.07B	8.50	10.34%	1.62%	3.76%	-17.55%
LGIH	68 Neutral	$1.55B	10.11	7.84%	―	-7.89%	-19.53%
BZH	65 Neutral	$780.60M	11.91	5.65%	―	9.97%	-52.57%
Sector *	61 Neutral	$17.99B	12.87	-3.56%	2.97%	1.27%	-14.28%

* Consumer Cyclical Sector Average

Performance Comparison

BZH

Beazer Homes

26.26

-4.86

-15.62%

HOV

Hovnanian Enterprises

154.17

-34.85

-18.44%

MHO

M/I Homes

156.91

1.32

0.85%

TPH

Tri Pointe

37.14

-4.86

-11.57%

LGIH

LGI Homes

67.01

-38.23

-36.33%

CCS

Century Communities

69.66

-24.10

-25.70%

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.Date of analysis: Aug 19, 2025