Landsea Homes (LSEA) AI Stock Analysis

• Market Cap: $411.79M
• Dividend Yield: N/A
• Average Volume (3M): 1.94M
• Price to Earnings (P/E): 42.3
• Beta (1Y): 1.64
• Revenue Growth: 24.15%
• EPS Growth: -60.70%
• Country: US
• Employees: 555
• Sector: Real Estate
• Sector Strength: 56
• Industry: Real Estate - Development
• EPS (TTM): -0.20
• Shares Outstanding: 36,410,000
• 10 Day Avg. Volume: 867,663
• 30 Day Avg. Volume: 1,941,980
• PEG Ratio: 0.06
• Price to Book (P/B): 0.33
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 20.81
• Enterprise Value/Market Cap: 0.49
• Enterprise Value/Revenue: 0.03
• Enterprise Value/Gross Profit: 0.90
• Enterprise Value/Ebitda: 1.32
• 1Y Price Target: $11.15
• Price Target Upside: -1.41% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 4

• Rating: 61 Neutral
• Price Target: $12.00 ▲(6.10%Upside)

Landsea Homes receives an overall score of 61, driven primarily by strong financial performance and strategic corporate events, notably the merger with New Home Co. Despite bullish technical indicators, caution is advised due to overbought conditions and high P/E ratio. Earnings call highlights mixed results, with strategic shifts counterbalancing current challenges.

Landsea Homes Business Overview & Revenue Model

Company Description

Landsea Homes Corporation designs, constructs, markets, and sells suburban and urban single-family detached and attached homes in California, Arizona, Florida, Texas, and Metro New York. It offers a range of properties, including entry-level and first-time move-up homes. The company was incorporated in 2017 and is headquartered in Newport Beach, California. Landsea Homes Corporation is a subsidiary of Landsea Holdings Corporation.

How the Company Makes Money

Landsea Homes generates revenue primarily through the sale of residential properties. The company's revenue model involves acquiring land, developing it into residential communities, and selling the completed homes to consumers. Key revenue streams include home sales, land development, and potentially, construction services. Landsea Homes may also benefit from strategic partnerships with local contractors and suppliers to optimize its building processes and reduce costs. Additionally, by focusing on sustainability and quality in home design, the company can attract environmentally conscious buyers, contributing to its income.

Landsea Homes Financial Statement Overview

Summary

Landsea Homes exhibits strong revenue growth and improved leverage, positioning it well within the real estate industry. Despite challenges in maintaining profit margins and asset management, the company's cash flow generation and strategic reinvestments indicate a forward-focused growth strategy. Continued attention to profitability and operational efficiency will be crucial for sustained success.

Income Statement

Landsea Homes shows a strong revenue growth trend, increasing from $630.99M in 2019 to $1.55B in 2024. However, the net profit margin has decreased over the years, from 2.72% in 2019 to 1.11% in 2024. The gross profit margin has remained relatively stable, but the EBIT margin has fluctuated, indicating some operational challenges. Despite these fluctuations, the company's top-line growth is a positive indicator.

Balance Sheet

The balance sheet reflects a solid equity base, with stockholders' equity increasing over the period. The debt-to-equity ratio improved significantly in 2024, with no total debt reported, which strengthens the financial position. However, the equity ratio has slightly decreased, indicating a need for better asset management. Overall, the reduction in leverage is a positive sign but requires sustained performance.

Cash Flow

Landsea Homes has shown consistent free cash flow generation, with a positive trajectory from negative figures in 2020. The operating cash flow to net income ratio suggests efficient cash generation relative to earnings, although it has fluctuated. The free cash flow growth rate is positive, indicating sound cash management practices. However, the large negative investing cash flow in 2024 suggests aggressive reinvestment strategies.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.57B	1.55B	1.21B	1.45B	1.02B	734.61M
Gross Profit	223.90M	227.79M	214.97M	286.92M	182.60M	94.87M
EBITDA	26.87M	34.83M	45.39M	113.84M	64.89M	7.75M
Net Income	9.79M	17.23M	29.24M	73.55M	52.79M	-8.95M
Balance Sheet
Total Assets	1.68B	1.70B	1.47B	1.44B	1.27B	895.76M
Cash, Cash Equivalents and Short-Term Investments	36.74M	53.32M	119.56M	123.63M	342.81M	105.78M
Total Debt	0.00	779.28M	556.84M	505.42M	474.31M	264.81M
Total Liabilities	1.01B	1.03B	782.88M	730.18M	644.12M	366.28M
Stockholders Equity	660.27M	667.18M	652.88M	655.95M	620.15M	528.18M
Cash Flow
Free Cash Flow	52.53M	23.74M	19.69M	10.53M	30.22M	-2.60M
Operating Cash Flow	58.24M	29.60M	27.17M	15.99M	33.40M	-806.93K
Investing Cash Flow	-240.88M	-240.90M	-7.48M	-263.62M	-25.58M	52.97M
Financing Cash Flow	103.37M	145.07M	-23.77M	28.00M	225.38M	-52.26M

Landsea Homes Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 11.31
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For LSEA, the sentiment is Positive. The current price of 11.31 is above the 20-day moving average (MA) of 11.28, above the 50-day MA of 9.09, and above the 200-day MA of 9.41, indicating a bullish trend. The MACD of 0.51 indicates Positive momentum. The RSI at 82.98 is Negative, neither overbought nor oversold. The STOCH value of 88.89 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for LSEA.

Landsea Homes Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
AXR	79 Outperform	$110.35M	8.63	10.82%	―	30.36%	481.87%
FPH	76 Outperform	$599.10M	4.47	12.27%	―	11.66%	78.44%
FOR	72 Outperform	$1.02B	6.11	10.81%	―	-5.60%	-17.86%
Sector *	63 Neutral	$6.87B	19.10	-1.13%	7.17%	4.72%	-24.75%
LSEA	61 Neutral	$411.79M	42.30	1.50%	―	24.15%	-60.70%
ARL	55 Neutral	$234.20M	―	-2.20%	―	-6.48%	-592.10%
OZ		$246.58M	―	-9.30%	―	―	―

Landsea Homes Corporate Events

New Home Co. Completes Acquisition of Landsea Homes

On June 25, 2025, New Home Co. completed its acquisition of Landsea Homes Corporation, creating a top-25 national homebuilder with a strong foundation for growth. The acquisition was funded through equity contributions from Apollo, land banking capital from Millrose Properties, and a senior notes offering. As a result of the merger, Landsea Homes’ common stock has been delisted from NASDAQ, and shareholders received $11.30 per share in cash. The merger positions the combined company to extend its platform and enhance offerings to homebuyers, with Matthew Zaist, President and CEO of New Home, leading the company.

The most recent analyst rating on (LSEA) stock is a Hold with a $10.00 price target. To see the full list of analyst forecasts on Landsea Homes stock, see the LSEA Stock Forecast page.

Landsea Homes Amends Senior Notes Indenture

On May 29, 2025, Landsea Homes Corporation, along with certain subsidiary guarantors and U.S. Bank Trust Company, entered into a Third Supplemental Indenture to amend the terms of their 8.875% Senior Notes due 2029. The amendments, which received consents from 97.95% of noteholders, eliminate the obligation to make a ‘change of control offer’ related to a proposed merger, remove most restrictive covenants, and alter certain default provisions. These changes will become operative once the notes are accepted for purchase, contingent on the completion of the merger and financing conditions.

The most recent analyst rating on (LSEA) stock is a Hold with a $10.00 price target. To see the full list of analyst forecasts on Landsea Homes stock, see the LSEA Stock Forecast page.

Landsea Homes Announces $1.2 Billion Merger Agreement

On May 12, 2025, Landsea Homes Corporation entered into a merger agreement with New Home Co., a portfolio company of Apollo Global Management. The merger, valued at approximately $1.2 billion, will see New Home acquire Landsea Homes for $11.30 per share in cash, representing a 61% premium on the closing share price. This transaction aims to create a top-25 national homebuilder with a diverse range of housing options across high-growth markets in the U.S. The merger is expected to close in the third quarter of 2025, subject to customary conditions, and will result in Landsea Homes becoming a privately held company.

The most recent analyst rating on (LSEA) stock is a Hold with a $10.00 price target. To see the full list of analyst forecasts on Landsea Homes stock, see the LSEA Stock Forecast page.