NYSE:BZH

Stock Analysis Report

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Executive Summary

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


Snowflake Analysis

Very undervalued with excellent balance sheet.


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 is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 8% a week.

Volatility Over Time: BZH's weekly volatility (8%) has been stable over the past year.


Market Performance


7 Day Return

10.0%

BZH

1.7%

US Consumer Durables

2.8%

US Market


1 Year Return

0.9%

BZH

22.5%

US Consumer Durables

20.7%

US Market

Return vs Industry: BZH underperformed the US Consumer Durables industry which returned 22.5% over the past year.

Return vs Market: BZH underperformed the US Market which returned 20.7% over the past year.


Shareholder returns

BZHIndustryMarket
7 Day10.0%1.7%2.8%
30 Day18.0%10.1%12.3%
90 Day22.4%8.5%6.4%
1 Year0.9%0.9%24.0%22.5%23.4%20.7%
3 Year-25.0%-25.0%16.9%12.6%47.2%37.4%
5 Year16.4%16.4%52.5%42.6%94.1%72.7%

Long-Term 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 ($15.46) is trading below our estimate of fair value ($303.98)

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


Price To Earnings Ratio

PE vs Industry: BZH is good value based on its PE Ratio (8.6x) compared to the US Consumer Durables industry average (14.5x).

PE vs Market: BZH is good value based on its PE Ratio (8.6x) compared to the US market (19.7x).


Price to Earnings Growth Ratio

PEG Ratio: BZH is good value based on its PEG Ratio (0.6x)


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 (1.6x).


Next Steps

Future Growth

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

15.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: BZH's forecast earnings growth (15.5% per year) is above the savings rate (2.2%).

Earnings vs Market: BZH's earnings (15.5% per year) are forecast to grow slower than the US market (22% per year).

High Growth Earnings: BZH's earnings are forecast to grow, but not significantly.

Revenue vs Market: BZH's revenue (1.1% per year) is forecast to grow slower than the US market (10.2% per year).

High Growth Revenue: BZH's revenue (1.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if BZH's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

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

-61.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: BZH has high quality earnings.

Growing Profit Margin: BZH became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: BZH's earnings have declined by 61.4% per year over the past 5 years.

Accelerating Growth: BZH has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: BZH has become profitable in the last year, making it difficult to compare its past year earnings growth to the Consumer Durables industry (26%).


Return on Equity

High ROE: BZH's Return on Equity (9%) is considered low.


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 ($224.5M).

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 (190.6%) is considered high.

Reducing Debt: BZH's debt to equity ratio has reduced from 240.5% to 190.6% over the past 5 years.

Debt Coverage: BZH's debt is well covered by operating cash flow (25.6%).

Interest Coverage: BZH's interest payments on its debt are well covered by EBIT (9.7x coverage).


Balance Sheet


Next Steps

Dividend

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


Dividend Yield vs Market

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

High Dividend: Unable to evaluate BZH's dividend yield against the top 25% of dividend payers, as the company has not reported any recent 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: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


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

How experienced are the management team and are they aligned to shareholders interests?

7.4yrs

Average management tenure


CEO

Allan Merrill (54 yo)

9.42yrs

Tenure

US$5,190,140

Compensation

Mr. Allan P. Merrill serves as a Independent Director at Federal Home Loan Mortgage Corporation (also known as Freddie Mac) since September 1, 2020. He has been the Chief Executive Officer and President of...


CEO Compensation Analysis

Compensation vs Market: Allan's total compensation ($USD5.19M) is above average for companies of similar size in the US market ($USD1.79M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Allan Merrill
Chairman9.42yrsUS$5.19m2.6%
$ 11.9m
Keith Belknap
Executive VP2.83yrsUS$1.74m0.23%
$ 1.1m
David Goldberg
Senior VP0.17yrno data0.16%
$ 740.7k
Kathi James
Area President & Chief Marketing Officer12.83yrsno datano data
Steward Sparks
Senior Vice President of Corporate Development2.67yrsno datano data
Jerry Gates
Head of Californiano datano datano data
J. Shaffer
Senior Vice President of Process Improvement21.83yrsno datano data
Michael Furlow
Division President of Charleston Myrtle Beach & Savannah11.25yrsUS$3.16mno data
Bruce Craig
Area President5.33yrsno datano data
William June
President of Las Vegas Divisionno datano datano data
John Reeves
President of Virginia Division8.08yrsno datano data
Timothy Little
Phoenix Division President6.75yrsno datano data

7.4yrs

Average Tenure

58yo

Average Age

Experienced Management: BZH's management team is seasoned and experienced (7.4 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Allan Merrill
Chairman9.42yrsUS$5.19m2.6%
$ 11.9m
C. Winkle
Independent Director1.25yrsUS$28.02k0.095%
$ 435.2k
Danny Shepherd
Independent Director4yrsUS$210.00k0.19%
$ 848.1k
Elizabeth Acton
Independent Director8.5yrsUS$207.50k0.23%
$ 1.0m
Laurent Alpert
Independent Director18.75yrsUS$198.50k0.23%
$ 1.0m
Norma Provencio
Lead Independent Director1yrUS$201.50k0.24%
$ 1.1m
Peter Orser
Independent Director4.75yrsUS$205.00k0.16%
$ 753.0k
David Spitz
Independent Director1.25yrsUS$28.02k0.062%
$ 285.4k

2.9yrs

Average Tenure

63yo

Average Age

Experienced Board: BZH's board of directors are not considered experienced ( 2.9 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: BZH insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

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


Top Shareholders

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$457.719m
  • Shares outstanding: 29.61m
  • 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. It designs, constructs, and sells single-family and multi-family homes under the Beazer Homes, Gatherings, and Choice Plans names. The...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/11/28 00:13
End of Day Share Price2020/11/27 00:00
Earnings2020/09/30
Annual Earnings2020/09/30


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.