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 64 industry peers in the Household Durables industry. While BZH is still in line with the averages on profitability rating, there are concerns on its financial health. BZH has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
In the past year BZH was profitable.
BZH had a negative operating cash flow in the past year.
In the past 5 years BZH has always been profitable.
Of the past 5 years BZH 4 years had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 3.59%, BZH is in line with its industry, outperforming 48.44% of the companies in the same industry.
The Return On Equity of BZH (7.75%) is comparable to the rest of the industry.
BZH has a Return On Invested Capital of 3.90%. This is in the lower half of the industry: BZH underperforms 62.50% of its industry peers.
BZH had an Average Return On Invested Capital over the past 3 years of 8.40%. This is in line with the industry average of 10.34%.
The last Return On Invested Capital (3.90%) for BZH is well below the 3 year average (8.40%), which needs to be investigated, but indicates that BZH had better years and this may not be a problem.
| 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
BZH has a Profit Margin (3.91%) which is in line with its industry peers.
In the last couple of years the Profit Margin of BZH has grown nicely.
The Operating Margin of BZH (4.30%) is comparable to the rest of the industry.
In the last couple of years the Operating Margin of BZH has grown nicely.
With a Gross Margin value of 16.64%, BZH is not doing good in the industry: 85.94% of the companies in the same industry are doing better.
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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), BZH is destroying value.
Compared to 1 year ago, BZH has less shares outstanding
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.
With a Altman-Z score value of 2.50, BZH perfoms like the industry average, outperforming 46.88% of the companies in the same industry.
BZH has a Debt/Equity ratio of 0.88. This is a neutral value indicating BZH is somewhat dependend on debt financing.
BZH has a Debt to Equity ratio of 0.88. This is in the lower half of the industry: BZH underperforms 71.88% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.88 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 2.5 |
ROIC/WACC0.4
WACC9.72%
2.3 Liquidity
A Current Ratio of 7.93 indicates that BZH has no problem at all paying its short term obligations.
BZH has a Current ratio of 7.93. This is amongst the best in the industry. BZH outperforms 84.38% of its industry peers.
BZH has a Quick Ratio of 7.93. This is a bad value and indicates that BZH is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Quick ratio value of 0.51, BZH is not doing good in the industry: 71.88% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 7.93 | ||
| Quick Ratio | 0.51 |
3. Growth
3.1 Past
BZH shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -40.35%.
Measured over the past years, BZH shows a very strong growth in Earnings Per Share. The EPS has been growing by 43.29% on average per year.
BZH shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 13.51%.
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
BZH is expected to show a very negative growth in Earnings Per Share. In the coming years, the EPS will decrease by -13.28% yearly.
The Revenue is expected to grow by 6.67% on average over the next years.
EPS Next Y-57.49%
EPS Next 2Y-13.28%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-0.43%
Revenue Next 2Y6.67%
Revenue Next 3YN/A
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
The Price/Earnings ratio is 7.63, which indicates a rather cheap valuation of BZH.
Based on the Price/Earnings ratio, BZH is valued a bit cheaper than the industry average as 78.13% of the companies are valued more expensively.
BZH is valuated cheaply when we compare the Price/Earnings ratio to 27.45, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 6.92, which indicates a rather cheap valuation of BZH.
Compared to the rest of the industry, the Price/Forward Earnings ratio of BZH indicates a rather cheap valuation: BZH is cheaper than 89.06% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of BZH to the average of the S&P500 Index (21.90), we can say BZH is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.63 | ||
| Fwd PE | 6.92 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, BZH is valued a bit more expensive than the industry average as 60.94% of the companies are valued more cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 13.97 |
4.3 Compensation for Growth
BZH's earnings are expected to decrease with -13.28% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)0.18
EPS Next 2Y-13.28%
EPS Next 3YN/A
5. Dividend
5.1 Amount
No dividends for BZH!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
23.58
-0.32 (-1.34%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryHousehold Durables
Earnings (Last)
Earnings (Next)
Inst Owners87.06%
Inst Owner Change-62.87%
Ins Owners5.88%
Ins Owner Change1.22%
Market Cap714.47M
Analysts84.44
Price Target33.41 (41.69%)
Short Float %7.69%
Short Ratio5.69
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)0%
EPS NY rev (3m)-45.94%
Revenue NQ rev (1m)-1.13%
Revenue NQ rev (3m)-18.5%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-11.79%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.63 | ||
| Fwd PE | 6.92 | ||
| P/S | 0.29 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 0.58 | ||
| P/tB | 0.59 | ||
| EV/EBITDA | 13.97 |
EPS(TTM)3.09
EY13.1%
EPS(NY)3.41
Fwd EY14.45%
FCF(TTM)-2.57
FCFYN/A
OCF(TTM)-1.78
OCFYN/A
SpS80.4
BVpS40.53
TBVpS40.15
PEG (NY)N/A
PEG (5Y)0.18
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
WACC9.72%
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-57.49%
EPS Next 2Y-13.28%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)13.51%
Revenue growth 3Y2.87%
Revenue growth 5Y2.22%
Sales Q2Q%4.39%
Revenue Next Year-0.43%
Revenue Next 2Y6.67%
Revenue Next 3YN/A
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