NYSE:GRBK stands out as a growth opportunity that won't break the bank.

Last update: Aug 2, 2024

GREEN BRICK PARTNERS INC (NYSE:GRBK) was identified as an affordable growth stock by our stock screener. NYSE:GRBK is showing great growth, but also scores well on profitability, solvency and liquidity. At the same time it seems to be priced reasonably. We'll explore this a bit deeper below.

Evaluating Growth: NYSE:GRBK

Every stock receives a Growth Rating from ChartMill, ranging from 0 to 10. This rating assesses various growth aspects, including historical and projected EPS and revenue growth. NYSE:GRBK boasts a 7 out of 10:

GRBK shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 26.61%, which is quite impressive.
The Earnings Per Share has been growing by 42.64% on average over the past years. This is a very strong growth
The Revenue has been growing by 23.31% on average over the past years. This is a very strong growth!
GRBK is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 15.13% yearly.
Based on estimates for the next years, GRBK will show a quite strong growth in Revenue. The Revenue will grow by 9.91% on average per year.

Valuation Insights: NYSE:GRBK

An integral part of ChartMill's stock analysis is the Valuation Rating, which spans from 0 to 10. This rating evaluates diverse valuation factors, including price to earnings and cash flows, while considering the stock's profitability and growth. NYSE:GRBK has received a 7 out of 10:

The Price/Earnings ratio is 10.01, which indicates a very decent valuation of GRBK.
72.31% of the companies in the same industry are more expensive than GRBK, based on the Price/Earnings ratio.
GRBK's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 24.11.
The Price/Forward Earnings ratio is 8.95, which indicates a very decent valuation of GRBK.
81.54% of the companies in the same industry are more expensive than GRBK, based on the Price/Forward Earnings ratio.
GRBK's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 20.79.
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of GRBK indicates a somewhat cheap valuation: GRBK is cheaper than 63.08% of the companies listed in the same industry.
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
GRBK has an outstanding profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as GRBK's earnings are expected to grow with 15.13% in the coming years.

Health Assessment of NYSE:GRBK

ChartMill assigns a proprietary Health Rating to each stock. The score is computed by evaluating various liquidity and solvency ratios and ranges from 0 to 10. NYSE:GRBK was assigned a score of 6 for health:

GRBK has an Altman-Z score of 6.58. This indicates that GRBK is financially healthy and has little risk of bankruptcy at the moment.
With an excellent Altman-Z score value of 6.58, GRBK belongs to the best of the industry, outperforming 86.15% of the companies in the same industry.
A Debt/Equity ratio of 0.25 indicates that GRBK is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.25, GRBK is in the better half of the industry, outperforming 61.54% of the companies in the same industry.
GRBK has a Current Ratio of 8.06. This indicates that GRBK is financially healthy and has no problem in meeting its short term obligations.
With an excellent Current ratio value of 8.06, GRBK belongs to the best of the industry, outperforming 84.62% of the companies in the same industry.

Analyzing Profitability Metrics

ChartMill's Profitability Rating offers a unique perspective on stock analysis, providing scores from 0 to 10. These ratings consider a wide range of profitability metrics and margins, both in comparison to industry peers and on their own merits. For NYSE:GRBK, the assigned 9 is a significant indicator of profitability:

GRBK has a better Return On Assets (15.22%) than 92.31% of its industry peers.
GRBK has a better Return On Equity (21.75%) than 86.15% of its industry peers.
Looking at the Return On Invested Capital, with a value of 16.87%, GRBK belongs to the top of the industry, outperforming 93.85% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for GRBK is significantly above the industry average of 10.44%.
The last Return On Invested Capital (16.87%) for GRBK is above the 3 year average (16.66%), which is a sign of increasing profitability.
With an excellent Profit Margin value of 16.97%, GRBK belongs to the best of the industry, outperforming 93.85% of the companies in the same industry.
GRBK's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 21.11%, GRBK belongs to the top of the industry, outperforming 95.38% of the companies in the same industry.
In the last couple of years the Operating Margin of GRBK has grown nicely.
GRBK has a Gross Margin of 32.25%. This is in the better half of the industry: GRBK outperforms 67.69% of its industry peers.
GRBK's Gross Margin has improved in the last couple of years.

Every day, new Affordable Growth stocks can be found on ChartMill in our Affordable Growth screener.

Check the latest full fundamental report of GRBK for a complete fundamental analysis.

Disclaimer

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.