NYSE:BZH

Stock Analysis Report

Executive Summary

Beazer Homes USA, Inc. operates as a homebuilder in the United States.


Snowflake Analysis

Fair value with moderate growth potential.


Similar Companies

Share Price & News

How has Beazer Homes USA's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: BZH has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

4.1%

BZH

4.0%

US Consumer Durables

1.7%

US Market


1 Year Return

31.8%

BZH

36.9%

US Consumer Durables

23.6%

US Market

Return vs Industry: BZH underperformed the US Consumer Durables industry which returned 33.1% over the past year.

Return vs Market: BZH exceeded the US Market which returned 24.7% over the past year.


Shareholder returns

BZHIndustryMarket
7 Day4.1%4.0%1.7%
30 Day6.5%4.5%3.5%
90 Day-6.6%5.1%11.7%
1 Year31.8%31.8%38.9%36.9%26.2%23.6%
3 Year20.6%20.6%35.3%29.1%53.2%43.3%
5 Year-7.9%-7.9%42.9%33.2%75.5%56.1%

Price Volatility Vs. Market

How volatile is Beazer Homes USA's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Beazer Homes USA undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: BZH ($15.16) is trading below our estimate of fair value ($103.32)

Significantly Below Fair Value: BZH is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: BZH is unprofitable, so we can't compare its PE Ratio to the Consumer Durables industry average.

PE vs Market: BZH is unprofitable, so we can't compare its PE Ratio to the US market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate BZH's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: BZH is good value based on its PB Ratio (0.8x) compared to the US Consumer Durables industry average (1.4x).


Next Steps

Future Growth

How is Beazer Homes USA forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

107.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: BZH is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (1.7%).

Earnings vs Market: BZH is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: BZH's is expected to become profitable in the next 3 years.

Revenue vs Market: BZH's revenue (3.6% per year) is forecast to grow slower than the US market (7.5% per year).

High Growth Revenue: BZH's revenue (3.6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: BZH's Return on Equity is forecast to be low in 3 years time (9%).


Next Steps

Past Performance

How has Beazer Homes USA performed over the past 5 years?

-47.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: BZH is currently unprofitable.

Growing Profit Margin: BZH is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: BZH is unprofitable, and losses have increased over the past 5 years at a rate of -47.5% per year.

Accelerating Growth: Unable to compare BZH's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: BZH is unprofitable, making it difficult to compare its past year earnings growth to the Consumer Durables industry (-1.5%).


Return on Equity

High ROE: BZH has a negative Return on Equity (-14.74%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Beazer Homes USA's financial position?


Financial Position Analysis

Short Term Liabilities: BZH's short term assets ($1.7B) exceed its short term liabilities ($194.2M).

Long Term Liabilities: BZH's short term assets ($1.7B) exceed its long term liabilities ($1.2B).


Debt to Equity History and Analysis

Debt Level: BZH's debt to equity ratio (218.7%) is considered high.

Reducing Debt: BZH's debt to equity ratio has reduced from 550.6% to 218.7% over the past 5 years.

Debt Coverage: BZH's debt is not well covered by operating cash flow (9.6%).

Interest Coverage: BZH is unprofitable, therefore interest payments are not well covered by earnings.


Balance Sheet

Inventory Level: BZH has a high level of physical assets or inventory.

Debt Coverage by Assets: BZH's debt is covered by short term assets (assets are 1.4x debt).


Next Steps

Dividend

What is Beazer Homes USA's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

company0%marketbottom25%1.4%markettop25%3.7%industryaverage1.9%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate BZH's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate BZH's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if BZH's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if BZH's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: BZH is not paying a notable dividend for the US market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of BZH's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

What is the CEO of Beazer Homes USA's salary, the management and board of directors tenure and is there insider trading?

8.6yrs

Average management tenure


CEO

Allan Merrill (53yo)

8.6yrs

Tenure

US$5,190,140

Compensation

Mr. Allan P. Merrill has been the Chief Executive Officer and President of Beazer Homes USA, Inc. since June 13, 2011 and serves as Chairman since 2019. Prior to joining the Beazer Homes USA, Inc., he work ...


CEO Compensation Analysis

Compensation vs Market: Allan's total compensation ($USD5.19M) is above average for companies of similar size in the US market ($USD1.70M).

Compensation vs Earnings: Allan's compensation has been consistent with company performance over the past year.


Management Age and Tenure

8.6yrs

Average Tenure

60yo

Average Age

Experienced Management: BZH's management team is seasoned and experienced (8.6 years average tenure).


Board Age and Tenure

4.4yrs

Average Tenure

64.5yo

Average Age

Experienced Board: BZH's board of directors are considered experienced (4.4 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Management Team

  • Michael Furlow (69yo)

    Division President of Charleston Myrtle Beach & Savannah

    • Tenure: 10.4yrs
    • Compensation: US$3.16m
  • Allan Merrill (53yo)

    Chairman

    • Tenure: 8.6yrs
    • Compensation: US$5.19m
  • Kathi James

    Area President & Chief Marketing Officer

    • Tenure: 12yrs
  • David Goldberg

    Vice President of Investor Relations & Treasurer

    • Bob Salomon (59yo)

      Executive VP

      • Tenure: 8.6yrs
      • Compensation: US$2.47m
    • Keith Belknap (61yo)

      Executive VP

      • Tenure: 2yrs
      • Compensation: US$1.74m
    • Jerry Gates

      Head of California

      • Bruce Craig

        Area President

        • Tenure: 4.5yrs
      • J. Shaffer

        Senior Vice President of Process Improvement

        • Tenure: 21yrs
      • Sam Sparks

        Senior Vice President of Corporate Development

        • Tenure: 1.8yrs

      Board Members

      • Stephen Zelnak (74yo)

        Director

        • Tenure: 16.9yrs
        • Compensation: US$349.99k
      • Danny Shepherd (68yo)

        Independent Director

        • Tenure: 3.2yrs
        • Compensation: US$210.00k
      • Brian Beazer (84yo)

        Chairman Emeritus

        • Tenure: 4.9yrs
        • Compensation: US$195.00k
      • Beth Acton (67yo)

        Independent Director

        • Tenure: 7.7yrs
        • Compensation: US$207.50k
      • Peter Leemputte (62yo)

        Independent Director

        • Tenure: 14.4yrs
        • Compensation: US$197.50k
      • Allan Merrill (53yo)

        Chairman

        • Tenure: 8.6yrs
        • Compensation: US$5.19m
      • Laurent Alpert (73yo)

        Independent Director

        • Tenure: 17.9yrs
        • Compensation: US$198.50k
      • Norma Provencio (62yo)

        Lead Director

        • Tenure: 0.2yrs
        • Compensation: US$201.50k
      • Peter Orser (62yo)

        Independent Director

        • Tenure: 3.9yrs
        • Compensation: US$205.00k
      • David Spitz (46yo)

        Independent Director

        • Tenure: 0.4yrs
        • Compensation: US$28.02k

      Company Information

      Beazer Homes USA, Inc.'s company bio, employee growth, exchange listings and data sources


      Key Information

      • Name: Beazer Homes USA, Inc.
      • Ticker: BZH
      • Exchange: NYSE
      • Founded: 1985
      • Industry: Homebuilding
      • Sector: Consumer Durables
      • Market Cap: US$458.572m
      • Shares outstanding: 29.95m
      • Website: https://www.beazer.com

      Number of Employees


      Location

      • Beazer Homes USA, Inc.
      • 1000 Abernathy Road
      • Suite 260
      • Atlanta
      • Georgia
      • 30328
      • United States

      Listings

      TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
      BZHNYSE (New York Stock Exchange)YesCommon StockUSUSDFeb 1994
      BE4ADB (Deutsche Boerse AG)YesCommon StockDEEURFeb 1994
      0HMGLSE (London Stock Exchange)YesCommon StockGBUSDFeb 1994

      Biography

      Beazer Homes USA, Inc. operates as a homebuilder in the United States. The company designs, constructs, and sells single-family and multi-family homes under the Beazer Homes, Gatherings, and Choice Plans names. It sells its homes through commissioned new home sales counselors and independent brokers in Arizona, California, Nevada, Texas, Delaware, Indiana, Maryland, Tennessee, Virginia, Florida, Georgia, North Carolina, and South Carolina. The company was founded in 1985 and is headquartered in Atlanta, Georgia. 


      Company Analysis and Financial Data Status

      All financial data provided by Standard & Poor's Capital IQ.
      DataLast Updated (UTC time)
      Company Analysis2020/01/19 23:33
      End of Day Share Price2020/01/17 00:00
      Earnings2019/09/30
      Annual Earnings2019/09/30


      Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.