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Green Brick Partners (GRBK)
NYSE:GRBK
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Green Brick Partners
(NYSE:GRBK)
Rating:78Outperform
Price Target:
$68.00
▲(15.08%Upside)
Green Brick Partners (GRBK) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$2.60B
Dividend YieldN/A
Average Volume (3M)279.73K
Price to Earnings (P/E)7.1
Beta (1Y)1.26
Revenue Growth21.22%
EPS Growth24.90%
CountryUS
Employees650
SectorConsumer Cyclical
Sector Strength75
IndustryResidential Construction
Share Statistics
EPS (TTM)1.67
Shares Outstanding43,926,290
10 Day Avg. Volume266,658
30 Day Avg. Volume279,733
Financial Highlights & Ratios
PEG Ratio-3.53
Price to Book (P/B)1.56
Price to Sales (P/S)0.00
P/FCF Ratio29.17
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusHold
Number of Analyst Covering2
Green Brick Partners Business Overview & Revenue Model
Company DescriptionGreen Brick Partners, Inc. operates as a homebuilding and land development company in the United States. It operates through Builder operations Central, Builder operations Southeast, and Land development segments. The company is involved in the land acquisition and development, entitlements, design, construction, title and mortgage services, marketing, and sale of townhomes, patio homes, single family homes, and luxury homes in residential neighborhoods, and master planned communities. As of December 31,2021, the company owns or controls approximately 28,600 home sites in Dallas-Forth Worth, Atlanta metropolitan areas, and the Treasure Coast, Florida market. The company sells its homes through sales representatives and independent realtors. Green Brick Partners, Inc. was incorporated in 2006 and is headquartered in Plano, Texas.
How the Company Makes MoneyGreen Brick Partners generates revenue through the sale of residential properties, including single-family homes, townhomes, and condominiums. The company's revenue model is primarily based on homebuilding operations across its various builder brands and markets. Key revenue streams include home sales, land development, and the sale of developed lots to other builders. Green Brick Partners also leverages strategic partnerships with contractors and suppliers to optimize costs and enhance profitability. Additionally, the company's focus on sustainable building practices and customer-centric designs helps in maintaining a competitive edge in the housing market, thereby contributing to its earnings.
Green Brick Partners Earnings Call Summary
Earnings Call Date:Apr 30, 2025
(Q1-2025)
| % Change Since: 0.17%|
Next Earnings Date:Jul 30, 2025
Earnings Call Sentiment Neutral
The earnings call reflected a strong performance in terms of record-breaking revenue and home closings, along with strategic expansions and a solid financial position. However, challenges such as a decline in gross margins, economic uncertainties, and a decrease in net income and EPS present some concerns. While the highlights are significant, the lowlights indicate notable challenges that balance the overall outlook.Q1-2025 Updates
Positive Updates
Record-Breaking Revenue and Home Closings
Home closings revenue increased by 11.8% year-over-year to $495 million, setting a record for any first quarter in company history. Home closings increased by 10.8% to 910 units.
Strong Net New Home Orders
Net new home orders grew by 3.3% year-over-year to 1,106, a new company record.
Solid Financial Position
The company's total debt-to-capital ratio stood at only 14.5%, and net debt to total capital was 9.8%, providing flexibility to navigate market conditions.
Expansion into Houston Market
Green Brick Partners is expanding its Trophy brand into Houston, with the first community expected to open in the fall.
Strong Backlog and Ending Community Count
Ending backlog value increased by 29% sequentially to $594 million, and the community count increased by 5% year-over-year to 103.
Negative Updates
Decline in Homebuilding Gross Margin
Homebuilding gross margin decreased by 220 basis points year-over-year to 31.2% due to higher incentives resulting from elevated mortgage rates and economic uncertainties.
Challenges in Affordability and Economic Uncertainty
Economic uncertainty and affordability challenges due to high interest rates, tariffs, and trade wars are impacting the market.
Decrease in Net Income and Earnings Per Share
Net income attributable to Green Brick decreased year-over-year by 9.9% to $75 million, and diluted EPS was down 8.2% to $1.67 per share.
Impact of Tariffs and Immigration Policies
The company is facing uncertainties related to tariffs and immigration policies, which could impact the supply chain and labor availability.
Company Guidance
During Green Brick Partners' first-quarter 2025 earnings call, the company reported robust financial performance despite economic headwinds. They closed 910 homes, with home closings revenue rising 11.8% year-over-year to $495 million, marking a record for any first quarter. The company achieved a leading homebuilding gross margin of 31.2%, while net income attributable to Green Brick was $75 million, with diluted EPS at $1.67. The book value per share increased by 25% year-over-year to $37.09, and net new home orders totaled 1,106, breaking previous records by 2.2%. In terms of financial strategy, Green Brick maintained a total debt-to-capital ratio of 14.5% and a net debt-to-capital ratio of 9.8%, with a total deployable capital of over $430 million. The first quarter also saw the authorization of $100 million in share buybacks, with $38.3 million repurchased through April. The company plans to invest approximately $300 million in land development throughout the year, reflecting their strategic focus on high-quality assets in desirable locations. Despite challenges like high interest rates and tariffs, Green Brick remains optimistic about long-term market opportunities, driven by household formation among Millennials and Gen Z, along with an undersupplied housing market.Green Brick Partners Financial Statement Overview
Summary
Green Brick Partners demonstrates a strong financial position with consistent revenue growth, efficient cost management, and improved profitability metrics. The balance sheet reflects low leverage and a robust equity position, enhancing financial stability. Although cash flow management shows improvement, past fluctuations suggest the need for cautious cash management strategies moving forward.Income Statement
Green Brick Partners shows strong revenue growth with a significant increase from $976 million in 2020 to $2.15 billion in TTM (Trailing-Twelve-Months) 2025, reflecting a robust expansion strategy. The Gross Profit Margin has remained stable, around 33%, indicating effective cost management. Net Profit Margin has also improved, reaching approximately 17.4% in TTM 2025. EBITDA Margin remains strong at about 22.8%, demonstrating operational efficiency.85
Very Positive
Balance Sheet
The company's Debt-to-Equity Ratio has decreased significantly from 0.52 in 2020 to a very low 0.01 in TTM 2025, showcasing reduced leverage and financial stability. Return on Equity is strong at around 22.1% for TTM 2025, indicating efficient use of shareholders' equity. The Equity Ratio has improved to 74.4%, reflecting a strong equity base and reduced reliance on debt.78
Positive
Cash Flow
Free Cash Flow has seen substantial growth, with a Free Cash Flow of $89.5 million in TTM 2025, up from $32.2 million in 2020. Operating Cash Flow to Net Income Ratio is solid at 0.25 in TTM 2025, suggesting good cash conversion. However, cash flow fluctuations in earlier years highlight potential risks in operational cash management.72
Positive
| Breakdown | |||||
| TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 2.15B | 2.10B | 1.78B | 1.76B | 1.40B | 976.02M | Gross Profit |
| 709.80M | 703.52M | 548.18M | 523.02M | 362.06M | 234.60M | EBIT |
| 480.16M | 476.95M | 355.20M | 356.71M | 225.05M | 119.17M | EBITDA |
| 492.43M | 476.95M | 358.75M | 361.45M | 230.53M | 126.14M | Net Income Common Stockholders |
| 373.34M | 381.58M | 284.63M | 291.90M | 190.21M | 113.69M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 103.00M | 141.54M | 179.76M | 76.59M | 78.70M | 19.48M | Total Assets |
| 2.27B | 2.25B | 1.90B | 1.66B | 1.42B | 988.85M | Total Debt |
| 14.87M | 344.95M | 354.76M | 371.42M | 339.66M | 222.46M | Net Debt |
| -88.13M | 203.41M | 175.00M | 294.84M | 260.97M | 202.98M | Total Liabilities |
| 515.26M | 551.83M | 548.68M | 543.62M | 511.31M | 339.44M | Stockholders Equity |
| 1.69B | 1.63B | 1.30B | 1.06B | 874.55M | 640.24M |
| Cash Flow | Free Cash Flow | ||||
| 89.51M | 21.55M | 205.54M | 88.66M | -94.41M | 32.23M | Operating Cash Flow |
| 93.64M | 25.91M | 213.34M | 90.68M | -92.38M | 35.10M | Investing Cash Flow |
| -45.45M | 27.84M | -13.35M | -6.48M | -2.03M | -13.30M | Financing Cash Flow |
| -123.85M | -93.51M | -93.80M | -84.48M | 154.33M | -25.85M |
Green Brick Partners Technical Analysis
Negative
59.09
Price Trends
58.51
Positive
58.81
Positive
66.02
Negative
Market Momentum
0.58
Positive
47.54
Neutral
10.32
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GRBK, the sentiment is Negative. The current price of 59.09 is below the 20-day moving average (MA) of 60.24, above the 50-day MA of 58.51, and below the 200-day MA of 66.02, indicating a neutral trend. The MACD of 0.58 indicates Positive momentum. The RSI at 47.54 is Neutral, neither overbought nor oversold. The STOCH value of 10.32 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GRBK.
Green Brick Partners Risk Analysis
Green Brick Partners disclosed 43 risk factors in its most recent earnings report. Green Brick Partners reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 1 New Risks
1.
Potential tariffs, if enacted into law, could adversely affect our business and financial results, especially since we may not be able to raise home prices sufficiently to offset increased prices caused by any such tariffs. Q4, 2024
Green Brick Partners Peers Comparison
Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $2.60B | 7.13 | 24.29% | ― | 21.22% | 24.90% | |
77 Outperform | $2.71B | 6.65 | 13.28% | ― | 10.82% | 19.34% | |
77 Outperform | $2.85B | 5.62 | 19.02% | ― | 8.68% | 8.39% | |
70 Outperform | $1.96B | 6.55 | 26.25% | ― | 21.18% | 11.40% | |
65 Neutral | $1.62B | 5.48 | 12.36% | 2.02% | 10.75% | 8.31% | |
62 Neutral | $6.84B | 11.23 | 3.09% | 3.95% | 2.66% | -25.23% | |
58 Neutral | $1.21B | 6.64 | 9.36% | ― | -4.37% | -3.17% |
* Consumer Cyclical Sector Average
Performance Comparison
GRBK
Green Brick Partners
60.41
5.66
10.34%
MHO
M/I Homes
109.54
-14.95
-12.01%
TPH
Tri Pointe
30.56
-7.32
-19.32%
LGIH
LGI Homes
53.87
-41.13
-43.29%
CCS
Century Communities
55.30
-26.73
-32.59%
DFH
Dream Finders Homes
21.59
-7.06
-24.64%
Green Brick Partners Corporate Events
Executive/Board Changes
Green Brick Partners Appoints Jeffery Cox as Interim CFO
Neutral
Mar 19, 2025
On March 17, 2025, Richard A. Costello resigned as Chief Financial Officer and Principal Accounting Officer of Green Brick Partners, Inc., and Jeffery Cox was appointed as the interim replacement. Cox, who has extensive experience in the homebuilding industry, has been with the company since June 2023 and has played a significant role in launching the company’s mortgage subsidiary and overseeing its title operations.
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.