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

Last update: Aug 23, 2024

Here's GREEN BRICK PARTNERS INC (NYSE:GRBK) for you, a growth stock our stock screener believes is undervalued. NYSE:GRBK is scoring impressively in terms of growth while demonstrating strong financials. On top of that, it remains attractively priced. Let's break it down further.

Analyzing Growth Metrics

ChartMill employs its own Growth Rating system for all stocks. This score, ranging from 0 to 10, is derived by evaluating different growth factors, such as EPS and revenue growth, taking into account both past performance and future projections. NYSE:GRBK has earned a 7 for growth:

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

Evaluating Valuation: NYSE:GRBK

To assess a stock's valuation, ChartMill utilizes a Valuation Rating on a scale of 0 to 10. This comprehensive assessment considers various valuation aspects, comparing price to earnings and cash flows, while factoring in profitability and growth. NYSE:GRBK has achieved a 6 out of 10:

Based on the Price/Earnings ratio of 10.34, the valuation of GRBK can be described as reasonable.
Based on the Price/Earnings ratio, GRBK is valued a bit cheaper than 70.77% of the companies in the same industry.
GRBK is valuated cheaply when we compare the Price/Earnings ratio to 29.64, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 9.25, the valuation of GRBK can be described as very reasonable.
GRBK's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. GRBK is cheaper than 76.92% of the companies in the same industry.
GRBK is valuated cheaply when we compare the Price/Forward Earnings ratio to 21.00, which is the current average of the S&P500 Index.
Based on the Enterprise Value to EBITDA ratio, GRBK is valued a bit cheaper than 64.62% of the companies in the same industry.
GRBK's 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.
GRBK's earnings are expected to grow with 15.13% in the coming years. This may justify a more expensive valuation.

Looking at the Health

Every stock is evaluated by ChartMill, receiving a Health Rating on a scale of 0 to 10. This assessment considers different health aspects, including liquidity and solvency, both in absolute terms and relative to industry peers. NYSE:GRBK has achieved a 6 out of 10:

An Altman-Z score of 6.58 indicates that GRBK is not in any danger for bankruptcy at the moment.
With an excellent Altman-Z score value of 6.58, GRBK belongs to the best of the industry, outperforming 87.69% of the companies in the same industry.
GRBK has a Debt/Equity ratio of 0.24. This is a healthy value indicating a solid balance between debt and equity.
A Current Ratio of 7.69 indicates that GRBK has no problem at all paying its short term obligations.
With an excellent Current ratio value of 7.69, GRBK belongs to the best of the industry, outperforming 84.62% of the companies in the same industry.

Profitability Analysis for NYSE:GRBK

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 Return On Assets of 16.03%. This is amongst the best in the industry. GRBK outperforms 93.85% of its industry peers.
GRBK has a Return On Equity of 22.99%. This is amongst the best in the industry. GRBK outperforms 83.08% of its industry peers.
With an excellent Return On Invested Capital value of 17.94%, GRBK belongs to the best of the industry, outperforming 93.85% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for GRBK is significantly above the industry average of 10.98%.
The 3 year average ROIC (16.66%) for GRBK is below the current ROIC(17.94%), indicating increased profibility in the last year.
Looking at the Profit Margin, with a value of 17.63%, 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 Profit Margin of GRBK has grown nicely.
With an excellent Operating Margin value of 21.98%, GRBK belongs to the best of the industry, outperforming 96.92% of the companies in the same industry.
In the last couple of years the Operating Margin of GRBK has grown nicely.
GRBK has a better Gross Margin (32.95%) than 69.23% of its industry peers.
GRBK's Gross Margin has improved in the last couple of years.

Our Affordable Growth screener lists more Affordable Growth stocks and is updated daily.

For an up to date full fundamental analysis you can check the fundamental report of GRBK

Keep in mind

This article should in no way be interpreted as advice. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.