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 67 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 is not valued too expensively and it also shows a decent 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.
BZH had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
BZH has a Return On Assets (4.68%) which is in line with its industry peers.
BZH has a Return On Equity (9.85%) which is comparable to the rest of the industry.
The Return On Invested Capital of BZH (4.74%) is comparable to the rest of the industry.
Measured over the past 3 years, the Average Return On Invested Capital for BZH is below the industry average of 12.10%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.68% | ||
| ROE | 9.85% | ||
| ROIC | 4.74% |
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 5.04%, BZH is in line with its industry, outperforming 50.77% 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 (5.26%) is comparable to the rest of the industry.
BZH's Operating Margin has improved in the last couple of years.
BZH has a worse Gross Margin (17.44%) than 86.15% of its industry peers.
In the last couple of years the Gross Margin of BZH has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 5.26% | ||
| PM (TTM) | 5.04% | ||
| GM | 17.44% |
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.
BZH has less shares outstanding than it did 1 year ago.
The number of shares outstanding for BZH has been increased compared to 5 years ago.
The debt/assets ratio for BZH has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 2.55 indicates that BZH is not a great score, but indicates only limited risk for bankruptcy at the moment.
BZH's Altman-Z score of 2.55 is on the low side compared to the rest of the industry. BZH is outperformed by 60.00% of its industry peers.
BZH has a Debt/Equity ratio of 0.87. This is a neutral value indicating BZH is somewhat dependend on debt financing.
The Debt to Equity ratio of BZH (0.87) is worse than 73.85% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.87 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 2.55 |
ROIC/WACC0.47
WACC10.13%
2.3 Liquidity
BZH has a Current Ratio of 8.95. This indicates that BZH is financially healthy and has no problem in meeting its short term obligations.
BZH has a Current ratio of 8.95. This is amongst the best in the industry. BZH outperforms 87.69% of its industry peers.
A Quick Ratio of 0.58 indicates that BZH may have some problems paying its short term obligations.
The Quick ratio of BZH (0.58) is worse than 76.92% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 8.95 | ||
| Quick Ratio | 0.58 |
3. Growth
3.1 Past
The earnings per share for BZH have decreased strongly by -22.18% in the last year.
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 12.27%.
BZH shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 2.22% yearly.
EPS 1Y (TTM)-22.18%
EPS 3Y4.23%
EPS 5Y43.29%
EPS Q2Q%-85.71%
Revenue 1Y (TTM)12.27%
Revenue growth 3Y2.87%
Revenue growth 5Y2.22%
Sales Q2Q%21.23%
3.2 Future
The Earnings Per Share is expected to grow by 8.42% on average over the next years. This is quite good.
BZH is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 13.93% yearly.
EPS Next Y-21.37%
EPS Next 2Y8.42%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year12.88%
Revenue Next 2Y13.93%
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
Based on the Price/Earnings ratio of 5.67, the valuation of BZH can be described as very cheap.
93.85% of the companies in the same industry are more expensive than BZH, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of BZH to the average of the S&P500 Index (29.98), we can say BZH is valued rather cheaply.
A Price/Forward Earnings ratio of 4.19 indicates a rather cheap valuation of BZH.
Based on the Price/Forward Earnings ratio, BZH is valued cheaply inside the industry as 93.85% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of BZH to the average of the S&P500 Index (22.66), we can say BZH is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.67 | ||
| Fwd PE | 4.19 |
4.2 Price Multiples
BZH's Enterprise Value to EBITDA ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 11.75 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)0.13
EPS Next 2Y8.42%
EPS Next 3YN/A
5. Dividend
5.1 Amount
BZH does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
22.3
-0.14 (-0.62%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryHousehold Durables
Earnings (Last)
Earnings (Next)
Inst Owners82.52%
Inst Owner Change0.24%
Ins Owners5.68%
Ins Owner Change4.74%
Market Cap695.76M
Analysts87.5
Price Target40.8 (82.96%)
Short Float %5.06%
Short Ratio3.61
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly Dividend0
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)-21.98%
Min EPS beat(2)-67.67%
Max EPS beat(2)23.72%
EPS beat(4)3
Avg EPS beat(4)-0.67%
Min EPS beat(4)-67.67%
Max EPS beat(4)36.94%
EPS beat(8)6
Avg EPS beat(8)14.93%
EPS beat(12)10
Avg EPS beat(12)18.92%
EPS beat(16)14
Avg EPS beat(16)28.77%
Revenue beat(2)2
Avg Revenue beat(2)1.61%
Min Revenue beat(2)0.17%
Max Revenue beat(2)3.05%
Revenue beat(4)2
Avg Revenue beat(4)-1.09%
Min Revenue beat(4)-6.28%
Max Revenue beat(4)3.05%
Revenue beat(8)5
Avg Revenue beat(8)0.25%
Revenue beat(12)7
Avg Revenue beat(12)0.92%
Revenue beat(16)8
Avg Revenue beat(16)0.12%
PT rev (1m)-5.88%
PT rev (3m)-5.88%
EPS NQ rev (1m)-68.93%
EPS NQ rev (3m)-68.93%
EPS NY rev (1m)-22.69%
EPS NY rev (3m)-22.69%
Revenue NQ rev (1m)-12.93%
Revenue NQ rev (3m)-12.93%
Revenue NY rev (1m)-6.49%
Revenue NY rev (3m)-6.49%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.67 | ||
| Fwd PE | 4.19 | ||
| P/S | 0.29 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 0.56 | ||
| P/tB | 0.57 | ||
| EV/EBITDA | 11.75 |
EPS(TTM)3.93
EY17.62%
EPS(NY)5.33
Fwd EY23.88%
FCF(TTM)-2.99
FCFYN/A
OCF(TTM)-2.29
OCFYN/A
SpS77.32
BVpS39.55
TBVpS39.19
PEG (NY)N/A
PEG (5Y)0.13
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.68% | ||
| ROE | 9.85% | ||
| ROCE | 5.42% | ||
| ROIC | 4.74% | ||
| ROICexc | 4.91% | ||
| ROICexgc | 5.04% | ||
| OM | 5.26% | ||
| PM (TTM) | 5.04% | ||
| GM | 17.44% | ||
| 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-Score3
Asset Turnover0.93
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.87 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 7.46 | ||
| Cap/Depr | 131.99% | ||
| Cap/Sales | 0.91% | ||
| Interest Coverage | 1.67 | ||
| Cash Conversion | N/A | ||
| Profit Quality | N/A | ||
| Current Ratio | 8.95 | ||
| Quick Ratio | 0.58 | ||
| Altman-Z | 2.55 |
F-Score3
WACC10.13%
ROIC/WACC0.47
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)-22.18%
EPS 3Y4.23%
EPS 5Y43.29%
EPS Q2Q%-85.71%
EPS Next Y-21.37%
EPS Next 2Y8.42%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)12.27%
Revenue growth 3Y2.87%
Revenue growth 5Y2.22%
Sales Q2Q%21.23%
Revenue Next Year12.88%
Revenue Next 2Y13.93%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-25.08%
EBIT growth 3Y-0.61%
EBIT growth 5Y19.83%
EBIT Next Year75.68%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-264.36%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-198.93%
OCF growth 3YN/A
OCF growth 5YN/A