United Homes Group (UHG) AI Stock Analysis

• Market Cap: $86.46M
• Dividend Yield: N/A
• Average Volume (3M): 145.80K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.66
• Revenue Growth: -6.20%
• EPS Growth: 24.90%
• Country: US
• Employees: 175
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Residential Construction
• EPS (TTM): -0.53
• Shares Outstanding: 21,839,762
• 10 Day Avg. Volume: 122,617
• 30 Day Avg. Volume: 145,798
• PEG Ratio: -0.07
• Price to Book (P/B): 3.30
• Price to Sales (P/S): 0.48
• P/FCF Ratio: 14.30
• Enterprise Value/Market Cap: 4.22
• Enterprise Value/Revenue: 0.87
• Enterprise Value/Gross Profit: 4.85
• Enterprise Value/Ebitda: -15.43
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 44 Neutral
• Price Target: $1.00 ▼(-7.41% Downside)

The overall stock score of 44 reflects significant financial challenges, bearish technical indicators, and poor valuation metrics. The financial instability and governance issues are the most significant factors impacting the score, with technical analysis and valuation further contributing to a negative outlook.

Positive Factors

Cash Generation Ability

Efficient cash generation relative to net income indicates robust operational efficiency, providing a buffer against financial instability.

Community Expansion

Expanding community count and increased home starts suggest potential for future revenue growth and market share expansion.

Innovative Building Practices

Commitment to innovative and sustainable building practices can enhance brand reputation and appeal to environmentally conscious consumers.

Negative Factors

High Leverage

High leverage poses risks to financial stability, limiting flexibility and increasing vulnerability to economic downturns.

Governance Issues

Leadership disputes and board resignations can undermine strategic direction and investor confidence, affecting long-term stability.

Declining Revenue

Declining revenue and profitability indicate challenges in maintaining market position and financial health, impacting future growth.

United Homes Group Business Overview & Revenue Model

Company Description

United Homes Group (UHG) is a diversified real estate company that specializes in the development, construction, and sale of residential properties across various markets. The company operates primarily in the homebuilding sector, delivering a wide range of housing options, including single-family homes, townhouses, and condominiums. UHG focuses on creating sustainable communities by integrating modern design and innovative building practices into its projects, while also providing related services such as property management and real estate investment solutions.

How the Company Makes Money

United Homes Group generates revenue through multiple streams, primarily from the sale of newly constructed residential properties. The company profits by purchasing land, developing it into residential communities, and selling homes at a markup. In addition to home sales, UHG also earns revenue from ancillary services, such as property management fees and the sale of warranties or home-related products. The company may engage in partnerships with local governments or other developers to enhance project financing and expand its market reach, which can further contribute to its earnings. Additionally, fluctuations in the housing market and interest rates can significantly impact the company's revenue, as demand for new homes directly influences sales volume.

United Homes Group Financial Statement Overview

Summary

United Homes Group faces challenges in maintaining stable revenue and profitability, as evidenced by declining income statement metrics. The balance sheet reflects high leverage and financial instability, while cash flow analysis shows strong cash generation but inconsistent growth. The company needs to address these issues to improve financial health and stability.

Income Statement

United Homes Group's income statement shows a declining trend in revenue and profitability. The TTM data indicates a negative revenue growth rate of -6.25% and a net loss, reflecting challenges in maintaining revenue and profitability. Historical data shows fluctuating revenue growth and decreasing margins, suggesting instability in income generation.

Balance Sheet

The balance sheet reveals a concerning debt-to-equity ratio, with TTM data showing a negative equity position in the past. Although the company has managed to reduce its debt over time, the negative return on equity and fluctuating equity ratios indicate financial instability and potential risks in leveraging.

Cash Flow

Cash flow analysis shows a strong operating cash flow to net income ratio in the TTM period, indicating efficient cash generation relative to net income. However, the free cash flow growth rate is negative, suggesting challenges in sustaining cash flow growth. Historical data shows fluctuating free cash flow growth, highlighting potential volatility in cash management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	418.11M	463.71M	421.47M	477.05M	432.89M	327.25M
Gross Profit	75.27M	80.79M	79.73M	96.67M	87.84M	67.14M
EBITDA	-23.66M	8.51M	15.96M	73.20M	62.51M	37.43M
Net Income	-18.79M	46.91M	125.06M	69.49M	62.41M	38.98M
Balance Sheet
Total Assets	293.11M	265.38M	298.65M	208.34M	202.26M	131.60M
Cash, Cash Equivalents and Short-Term Investments	25.65M	22.63M	56.67M	12.24M	51.50M	29.18M
Total Debt	149.25M	120.30M	154.06M	121.80M	102.50M	74.82M
Total Liabilities	240.21M	198.51M	329.83M	149.34M	135.70M	97.43M
Stockholders Equity	52.91M	66.87M	-31.18M	59.00M	66.56M	34.17M
Cash Flow
Free Cash Flow	5.16M	15.41M	28.06M	34.45M	57.91M	70.98M
Operating Cash Flow	6.42M	15.44M	28.22M	34.62M	58.32M	71.78M
Investing Cash Flow	-1.02M	-12.59M	-24.30M	-206.88K	-394.05K	-785.29K
Financing Cash Flow	-4.11M	-33.98M	40.51M	-73.68M	-35.60M	-51.42M

United Homes Group Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 1.08
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For UHG, the sentiment is Neutral. The current price of 1.08 is below the 20-day moving average (MA) of 1.20, below the 50-day MA of 1.70, and below the 200-day MA of 2.91, indicating a neutral trend. The MACD of -0.07 indicates Negative momentum. The RSI at 55.35 is Neutral, neither overbought nor oversold. The STOCH value of 75.44 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for UHG.

United Homes Group Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
LEGH	72 Outperform	$473.79M	10.10	9.62%	―	10.25%	-10.52%
CCS	69 Neutral	$1.75B	8.70	8.37%	1.95%	-6.28%	-31.55%
LGIH	65 Neutral	$1.03B	9.82	5.21%	―	-20.62%	-45.74%
HOV	63 Neutral	$611.08M	13.76	7.76%	―	-0.84%	-76.30%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
BZH	56 Neutral	$623.77M	13.65	3.67%	―	1.77%	-66.27%
UHG	44 Neutral	$86.46M	-4.61	-51.69%	―	-6.20%	24.90%

United Homes Group Corporate Events

United Homes Group Directors Resign on November 7, 2025

United Homes Group announced the resignation of directors Nikki Haley and James M. Pirrello, effective November 7, 2025. The company is reviewing candidates to replace them, while existing directors have agreed to stay on temporarily to ensure compliance with Nasdaq rules. Additionally, on November 6, 2025, the company entered into retention agreements with key executives, offering them a cash retention amount equal to their 2025 base salaries, with conditions for repayment if they leave before March 31, 2026.

United Homes Group Directors Announce Upcoming Resignations

On October 19, 2025, several directors of United Homes Group announced their intention to resign from the Board, effective no later than November 14, 2025, to facilitate an orderly transition and allow the company to file its quarterly report on time. This decision follows the conclusion of a strategic review process by the company’s special committee, which determined that continuing as an independent public company is in the best interest of stakeholders, despite macroeconomic challenges. The resignations were partly due to disagreements over the role of Michael Nieri, the Executive Chairman, and his refusal to step down or forego compensation, as proposed by the directors.

United Homes Group Reports Decline in Net New Orders

On October 7, 2025, United Homes Group, Inc. reported a decline in net new orders by 5% year-over-year for the third quarter ending September 30, 2025, due to weaker demand in July, which improved in August and September. The company faced industry-wide pressures from elevated new home inventory levels, affecting sales and margins. Despite these challenges, the company saw a 66% increase in home starts year-over-year, attributed to an increase in community count, which reached 56 by the end of September, and expects continued growth through the end of 2025.

United Homes Group Amends Credit Agreements

On September 29, 2025, United Homes Group, Inc. amended its credit agreements with Wells Fargo and Kennedy Lewis, adjusting financial covenants and thresholds. These amendments impact the company’s financial operations by altering debt service coverage ratios and liquidity requirements, potentially affecting its financial flexibility and stakeholder relations.