BEAZER HOMES USA INC (BZH) Stock Fundamental Analysis
NYSE:BZH - New York Stock Exchange, Inc. - US07556Q8814 - Common Stock - Currency: USD
BZH gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 63 industry peers in the Household Durables industry. There are concerns on the financial health of BZH while its profitability can be described as average. BZH is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
BZH had positive earnings in the past year.
In the past year BZH has reported a negative cash flow from operations.
BZH had positive earnings in each of the past 5 years.
Of the past 5 years BZH 4 years had a positive operating cash flow.
1.2 Ratios
BZH has a Return On Assets (3.59%) which is in line with its industry peers.
The Return On Equity of BZH (7.75%) is comparable to the rest of the industry.
BZH has a worse Return On Invested Capital (3.90%) than 63.49% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for BZH is in line with the industry average of 10.29%.
The 3 year average ROIC (8.40%) for BZH is well above the current ROIC(3.90%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.59% | ||
| ROE | 7.75% | ||
| ROIC | 3.9% |
ROA(3y)7.26%
ROA(5y)6.05%
ROE(3y)16.42%
ROE(5y)14.98%
ROIC(3y)8.4%
ROIC(5y)7.29%
1.3 Margins
Looking at the Profit Margin, with a value of 3.91%, BZH is in line with its industry, outperforming 49.21% of the companies in the same industry.
In the last couple of years the Profit Margin of BZH has grown nicely.
The Operating Margin of BZH (4.30%) is worse than 60.32% of its industry peers.
In the last couple of years the Operating Margin of BZH has grown nicely.
Looking at the Gross Margin, with a value of 16.64%, BZH is doing worse than 87.30% of the companies in the same industry.
BZH's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 4.3% | ||
| PM (TTM) | 3.91% | ||
| GM | 16.64% |
OM growth 3Y-3.38%
OM growth 5Y17.22%
PM growth 3Y1.81%
PM growth 5YN/A
GM growth 3Y-1.13%
GM growth 5Y3.95%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so BZH is destroying value.
The number of shares outstanding for BZH has been reduced compared to 1 year ago.
The number of shares outstanding for BZH has been increased compared to 5 years ago.
Compared to 1 year ago, BZH has an improved debt to assets ratio.
2.2 Solvency
BZH has an Altman-Z score of 2.50. This is not the best score and indicates that BZH is in the grey zone with still only limited risk for bankruptcy at the moment.
The Altman-Z score of BZH (2.50) is comparable to the rest of the industry.
BZH has a Debt/Equity ratio of 0.88. This is a neutral value indicating BZH is somewhat dependend on debt financing.
BZH's Debt to Equity ratio of 0.88 is on the low side compared to the rest of the industry. BZH is outperformed by 73.02% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.88 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 2.5 |
ROIC/WACC0.4
WACC9.74%
2.3 Liquidity
A Current Ratio of 7.93 indicates that BZH has no problem at all paying its short term obligations.
With an excellent Current ratio value of 7.93, BZH belongs to the best of the industry, outperforming 87.30% of the companies in the same industry.
A Quick Ratio of 0.51 indicates that BZH may have some problems paying its short term obligations.
The Quick ratio of BZH (0.51) is worse than 73.02% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 7.93 | ||
| Quick Ratio | 0.51 |
3. Growth
3.1 Past
The earnings per share for BZH have decreased strongly by -40.35% in the last year.
The Earnings Per Share has been growing by 43.29% on average over the past years. This is a very strong growth
Looking at the last year, BZH shows a quite strong growth in Revenue. The Revenue has grown by 13.51% in the last year.
BZH shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 2.22% yearly.
EPS 1Y (TTM)-40.35%
EPS 3Y4.23%
EPS 5Y43.29%
EPS Q2Q%-66.67%
Revenue 1Y (TTM)13.51%
Revenue growth 3Y2.87%
Revenue growth 5Y2.22%
Sales Q2Q%4.39%
3.2 Future
Based on estimates for the next years, BZH will show a very negative growth in Earnings Per Share. The EPS will decrease by -11.21% on average per year.
BZH is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.56% yearly.
EPS Next Y-58.84%
EPS Next 2Y-18.27%
EPS Next 3Y-11.21%
EPS Next 5YN/A
Revenue Next Year-2.28%
Revenue Next 2Y6.32%
Revenue Next 3Y5.56%
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 7.53, the valuation of BZH can be described as very cheap.
BZH's Price/Earnings ratio is a bit cheaper when compared to the industry. BZH is cheaper than 77.78% of the companies in the same industry.
BZH is valuated cheaply when we compare the Price/Earnings ratio to 27.50, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 7.69, the valuation of BZH can be described as very cheap.
Based on the Price/Forward Earnings ratio, BZH is valued cheaply inside the industry as 82.54% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 36.44. BZH is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.53 | ||
| Fwd PE | 7.69 |
4.2 Price Multiples
63.49% of the companies in the same industry are cheaper than BZH, based on the Enterprise Value to EBITDA ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 13.91 |
4.3 Compensation for Growth
A cheap valuation may be justified as BZH's earnings are expected to decrease with -11.21% in the coming years.
PEG (NY)N/A
PEG (5Y)0.17
EPS Next 2Y-18.27%
EPS Next 3Y-11.21%
5. Dividend
5.1 Amount
BZH does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
23.28
-0.09 (-0.39%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryHousehold Durables
Earnings (Last)
Earnings (Next)
Inst Owners87.06%
Inst Owner Change0%
Ins Owners5.88%
Ins Owner Change1.22%
Market Cap705.38M
Analysts84.44
Price Target33.41 (43.51%)
Short Float %7.33%
Short Ratio5.57
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DP0%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-6.64%
Min EPS beat(2)-67.67%
Max EPS beat(2)54.4%
EPS beat(4)3
Avg EPS beat(4)3.7%
Min EPS beat(4)-67.67%
Max EPS beat(4)54.4%
EPS beat(8)6
Avg EPS beat(8)17.16%
EPS beat(12)10
Avg EPS beat(12)20.24%
EPS beat(16)14
Avg EPS beat(16)29.55%
Revenue beat(2)2
Avg Revenue beat(2)1.74%
Min Revenue beat(2)0.17%
Max Revenue beat(2)3.31%
Revenue beat(4)3
Avg Revenue beat(4)1.3%
Min Revenue beat(4)-1.31%
Max Revenue beat(4)3.31%
Revenue beat(8)5
Avg Revenue beat(8)0.22%
Revenue beat(12)7
Avg Revenue beat(12)0.95%
Revenue beat(16)9
Avg Revenue beat(16)0.5%
PT rev (1m)-7.31%
PT rev (3m)-18.12%
EPS NQ rev (1m)-2.03%
EPS NQ rev (3m)-61.1%
EPS NY rev (1m)-3.18%
EPS NY rev (3m)-47.66%
Revenue NQ rev (1m)-1.13%
Revenue NQ rev (3m)-18.5%
Revenue NY rev (1m)-1.86%
Revenue NY rev (3m)-13.43%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.53 | ||
| Fwd PE | 7.69 | ||
| P/S | 0.29 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 0.57 | ||
| P/tB | 0.58 | ||
| EV/EBITDA | 13.91 |
EPS(TTM)3.09
EY13.27%
EPS(NY)3.03
Fwd EY13%
FCF(TTM)-2.57
FCFYN/A
OCF(TTM)-1.78
OCFYN/A
SpS80.4
BVpS40.53
TBVpS40.15
PEG (NY)N/A
PEG (5Y)0.17
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.59% | ||
| ROE | 7.75% | ||
| ROCE | 4.45% | ||
| ROIC | 3.9% | ||
| ROICexc | 4.04% | ||
| ROICexgc | 4.14% | ||
| OM | 4.3% | ||
| PM (TTM) | 3.91% | ||
| GM | 16.64% | ||
| FCFM | N/A |
ROA(3y)7.26%
ROA(5y)6.05%
ROE(3y)16.42%
ROE(5y)14.98%
ROIC(3y)8.4%
ROIC(5y)7.29%
ROICexc(3y)9.56%
ROICexc(5y)8.41%
ROICexgc(3y)9.76%
ROICexgc(5y)8.56%
ROCE(3y)9.6%
ROCE(5y)8.34%
ROICexcg growth 3Y-9.53%
ROICexcg growth 5Y14.5%
ROICexc growth 3Y-9.92%
ROICexc growth 5Y14.16%
OM growth 3Y-3.38%
OM growth 5Y17.22%
PM growth 3Y1.81%
PM growth 5YN/A
GM growth 3Y-1.13%
GM growth 5Y3.95%
F-Score4
Asset Turnover0.92
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.88 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 8.83 | ||
| Cap/Depr | 134.62% | ||
| Cap/Sales | 0.98% | ||
| Interest Coverage | 1.31 | ||
| Cash Conversion | N/A | ||
| Profit Quality | N/A | ||
| Current Ratio | 7.93 | ||
| Quick Ratio | 0.51 | ||
| Altman-Z | 2.5 |
F-Score4
WACC9.74%
ROIC/WACC0.4
Cap/Depr(3y)142.9%
Cap/Depr(5y)120.18%
Cap/Sales(3y)0.84%
Cap/Sales(5y)0.74%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-40.35%
EPS 3Y4.23%
EPS 5Y43.29%
EPS Q2Q%-66.67%
EPS Next Y-58.84%
EPS Next 2Y-18.27%
EPS Next 3Y-11.21%
EPS Next 5YN/A
Revenue 1Y (TTM)13.51%
Revenue growth 3Y2.87%
Revenue growth 5Y2.22%
Sales Q2Q%4.39%
Revenue Next Year-2.28%
Revenue Next 2Y6.32%
Revenue Next 3Y5.56%
Revenue Next 5YN/A
EBIT growth 1Y-37.04%
EBIT growth 3Y-0.61%
EBIT growth 5Y19.83%
EBIT Next Year21.65%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-147.77%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-130.03%
OCF growth 3YN/A
OCF growth 5YN/A