GREEN BRICK PARTNERS INC (GRBK) Stock Fundamental Analysis
NYSE:GRBK - New York Stock Exchange, Inc. - US3927091013 - Common Stock - Currency: USD
We assign a fundamental rating of 7 out of 10 to GRBK. GRBK was compared to 63 industry peers in the Household Durables industry. GRBK has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. GRBK has a correct valuation and a medium growth rate. These ratings could make GRBK a good candidate for quality investing.
1. Profitability
1.1 Basic Checks
GRBK had positive earnings in the past year.
GRBK had a positive operating cash flow in the past year.
GRBK had positive earnings in each of the past 5 years.
Of the past 5 years GRBK 4 years had a positive operating cash flow.
1.2 Ratios
GRBK has a better Return On Assets (16.30%) than 96.83% of its industry peers.
The Return On Equity of GRBK (21.91%) is better than 85.71% of its industry peers.
With an excellent Return On Invested Capital value of 18.76%, GRBK belongs to the best of the industry, outperforming 95.24% 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 10.29%.
The 3 year average ROIC (18.27%) for GRBK is below the current ROIC(18.76%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 16.3% | ||
| ROE | 21.91% | ||
| ROIC | 18.76% |
ROA(3y)16.36%
ROA(5y)14.79%
ROE(3y)24.06%
ROE(5y)22.34%
ROIC(3y)18.27%
ROIC(5y)16.1%
1.3 Margins
GRBK's Profit Margin of 17.24% is amongst the best of the industry. GRBK outperforms 96.83% of its industry peers.
GRBK's Profit Margin has improved in the last couple of years.
GRBK has a better Operating Margin (22.34%) than 96.83% of its industry peers.
In the last couple of years the Operating Margin of GRBK has grown nicely.
GRBK has a better Gross Margin (33.08%) than 66.67% of its industry peers.
GRBK's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 22.34% | ||
| PM (TTM) | 17.24% | ||
| GM | 33.08% |
OM growth 3Y11.85%
OM growth 5Y22.39%
PM growth 3Y9.99%
PM growth 5Y19.48%
GM growth 3Y9.1%
GM growth 5Y9.43%
2. Health
2.1 Basic Checks
GRBK has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
The number of shares outstanding for GRBK has been reduced compared to 1 year ago.
GRBK has less shares outstanding than it did 5 years ago.
The debt/assets ratio for GRBK has been reduced compared to a year ago.
2.2 Solvency
GRBK has an Altman-Z score of 6.43. This indicates that GRBK is financially healthy and has little risk of bankruptcy at the moment.
GRBK has a better Altman-Z score (6.43) than 90.48% of its industry peers.
GRBK has a debt to FCF ratio of 3.73. This is a good value and a sign of high solvency as GRBK would need 3.73 years to pay back of all of its debts.
With a decent Debt to FCF ratio value of 3.73, GRBK is doing good in the industry, outperforming 68.25% of the companies in the same industry.
GRBK has a Debt/Equity ratio of 0.20. This is a healthy value indicating a solid balance between debt and equity.
GRBK has a better Debt to Equity ratio (0.20) than 65.08% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.2 | ||
| Debt/FCF | 3.73 | ||
| Altman-Z | 6.43 |
ROIC/WACC2.16
WACC8.67%
2.3 Liquidity
A Current Ratio of 9.23 indicates that GRBK has no problem at all paying its short term obligations.
The Current ratio of GRBK (9.23) is better than 92.06% of its industry peers.
A Quick Ratio of 0.51 indicates that GRBK may have some problems paying its short term obligations.
With a Quick ratio value of 0.51, GRBK is not doing good in the industry: 74.60% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 9.23 | ||
| Quick Ratio | 0.51 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 25.64% over the past year.
The Earnings Per Share has been growing by 48.43% on average over the past years. This is a very strong growth
Looking at the last year, GRBK shows a very strong growth in Revenue. The Revenue has grown by 21.22%.
The Revenue has been growing by 21.53% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)25.64%
EPS 3Y31.35%
EPS 5Y48.43%
EPS Q2Q%-8.24%
Revenue 1Y (TTM)21.22%
Revenue growth 3Y14.37%
Revenue growth 5Y21.53%
Sales Q2Q%11.24%
3.2 Future
GRBK is expected to show a decrease in Earnings Per Share. In the coming years, the EPS will decrease by -5.14% yearly.
The Revenue is expected to grow by 4.00% on average over the next years.
EPS Next Y-16.65%
EPS Next 2Y-5.14%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-3.57%
Revenue Next 2Y4%
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 decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 7.68 indicates a rather cheap valuation of GRBK.
GRBK's Price/Earnings ratio is a bit cheaper when compared to the industry. GRBK is cheaper than 73.02% of the companies in the same industry.
GRBK 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 8.38, the valuation of GRBK can be described as very reasonable.
76.19% 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 36.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.68 | ||
| Fwd PE | 8.38 |
4.2 Price Multiples
GRBK's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. GRBK is cheaper than 71.43% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of GRBK is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 31.19 | ||
| EV/EBITDA | 6.35 |
4.3 Compensation for Growth
The excellent profitability rating of GRBK may justify a higher PE ratio.
A cheap valuation may be justified as GRBK's earnings are expected to decrease with -5.14% in the coming years.
PEG (NY)N/A
PEG (5Y)0.16
EPS Next 2Y-5.14%
EPS Next 3YN/A
5. Dividend
5.1 Amount
GRBK does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
63.55
-1.31 (-2.02%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryHousehold Durables
Earnings (Last)
Earnings (Next)
Inst Owners78.8%
Inst Owner Change0%
Ins Owners6.26%
Ins Owner Change2.1%
Market Cap2.79B
Analysts76
Price Target72.42 (13.96%)
Short Float %3.13%
Short Ratio4.84
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly Dividend0.06
Dividend Growth(5Y)N/A
DP0.78%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)2.8%
Min EPS beat(2)-6.79%
Max EPS beat(2)12.39%
EPS beat(4)2
Avg EPS beat(4)6.92%
Min EPS beat(4)-6.79%
Max EPS beat(4)28.45%
EPS beat(8)5
Avg EPS beat(8)9.71%
EPS beat(12)9
Avg EPS beat(12)21.52%
EPS beat(16)12
Avg EPS beat(16)19.19%
Revenue beat(2)1
Avg Revenue beat(2)-1.54%
Min Revenue beat(2)-3.17%
Max Revenue beat(2)0.08%
Revenue beat(4)2
Avg Revenue beat(4)0.26%
Min Revenue beat(4)-5.22%
Max Revenue beat(4)9.35%
Revenue beat(8)3
Avg Revenue beat(8)0.79%
Revenue beat(12)7
Avg Revenue beat(12)10.96%
Revenue beat(16)10
Avg Revenue beat(16)9.97%
PT rev (1m)1.43%
PT rev (3m)1.43%
EPS NQ rev (1m)-6.3%
EPS NQ rev (3m)-6.05%
EPS NY rev (1m)-2.67%
EPS NY rev (3m)-14.8%
Revenue NQ rev (1m)-1.01%
Revenue NQ rev (3m)3.14%
Revenue NY rev (1m)-1.91%
Revenue NY rev (3m)-7.06%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.68 | ||
| Fwd PE | 8.38 | ||
| P/S | 1.3 | ||
| P/FCF | 31.19 | ||
| P/OCF | 29.81 | ||
| P/B | 1.65 | ||
| P/tB | 1.65 | ||
| EV/EBITDA | 6.35 |
EPS(TTM)8.28
EY13.03%
EPS(NY)7.58
Fwd EY11.94%
FCF(TTM)2.04
FCFY3.21%
OCF(TTM)2.13
OCFY3.35%
SpS48.92
BVpS38.49
TBVpS38.47
PEG (NY)N/A
PEG (5Y)0.16
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 16.3% | ||
| ROE | 21.91% | ||
| ROCE | 23.47% | ||
| ROIC | 18.76% | ||
| ROICexc | 19.76% | ||
| ROICexgc | 20.18% | ||
| OM | 22.34% | ||
| PM (TTM) | 17.24% | ||
| GM | 33.08% | ||
| FCFM | 4.16% |
ROA(3y)16.36%
ROA(5y)14.79%
ROE(3y)24.06%
ROE(5y)22.34%
ROIC(3y)18.27%
ROIC(5y)16.1%
ROICexc(3y)19.75%
ROICexc(5y)17.23%
ROICexgc(3y)20.31%
ROICexgc(5y)17.78%
ROCE(3y)22.96%
ROCE(5y)20.2%
ROICexcg growth 3Y8.62%
ROICexcg growth 5Y23.72%
ROICexc growth 3Y8.87%
ROICexc growth 5Y23.92%
OM growth 3Y11.85%
OM growth 5Y22.39%
PM growth 3Y9.99%
PM growth 5Y19.48%
GM growth 3Y9.1%
GM growth 5Y9.43%
F-Score8
Asset Turnover0.95
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.2 | ||
| Debt/FCF | 3.73 | ||
| Debt/EBITDA | 0.69 | ||
| Cap/Depr | 80.19% | ||
| Cap/Sales | 0.19% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 19.3% | ||
| Profit Quality | 24.16% | ||
| Current Ratio | 9.23 | ||
| Quick Ratio | 0.51 | ||
| Altman-Z | 6.43 |
F-Score8
WACC8.67%
ROIC/WACC2.16
Cap/Depr(3y)131.52%
Cap/Depr(5y)109.51%
Cap/Sales(3y)0.25%
Cap/Sales(5y)0.24%
Profit Quality(3y)36.44%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)25.64%
EPS 3Y31.35%
EPS 5Y48.43%
EPS Q2Q%-8.24%
EPS Next Y-16.65%
EPS Next 2Y-5.14%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)21.22%
Revenue growth 3Y14.37%
Revenue growth 5Y21.53%
Sales Q2Q%11.24%
Revenue Next Year-3.57%
Revenue Next 2Y4%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y28.31%
EBIT growth 3Y27.93%
EBIT growth 5Y48.74%
EBIT Next Year-1.74%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-65.07%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-63.9%
OCF growth 3YN/A
OCF growth 5YN/A