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NWHM

New HomeNYSE:NWHM Stock Report

Market Cap

US$163.3m

7D

0.2%

1Y

127.0%

Updated

08 Sep, 2021

Data

Company Financials
NWHM fundamental analysis
Snowflake Score
Valuation3/6
Future Growth0/6
Past Performance1/6
Financial Health4/6
Dividends0/6

NWHM Overview

The New Home Company Inc. designs, constructs, and sells single-family detached and attached homes.

New Home Competitors

St. Joe

NYSE:JOE

US$2.8b

Getty Realty

NYSE:GTY

US$1.4b

Tejon Ranch

NYSE:TRC

US$493.2m

Whitestone REIT

NYSE:WSR

US$460.1m

Price History & Performance

Summary of all time highs, changes and price drops for New Home
Historical stock prices
Current Share PriceUS$8.99
52 Week HighUS$3.81
52 Week LowUS$9.00
Beta2.6
1 Month Change0.78%
3 Month Change53.94%
1 Year Change127.02%
3 Year Change1.58%
5 Year Change-10.01%
Change since IPO-26.31%

Recent News & Updates

Jul 16
These 4 Measures Indicate That New Home (NYSE:NWHM) Is Using Debt Extensively

These 4 Measures Indicate That New Home (NYSE:NWHM) Is Using Debt Extensively

Legendary fund manager Li Lu (who Charlie Munger backed) once said, 'The biggest investment risk is not the volatility...

May 05
Here's What's Concerning About New Home's (NYSE:NWHM) Returns On Capital

Here's What's Concerning About New Home's (NYSE:NWHM) Returns On Capital

What underlying fundamental trends can indicate that a company might be in decline? Businesses in decline often have...

Shareholder Returns

NWHMUS Consumer DurablesUS Market
7D0.2%0.8%0.9%
1Y127.0%35.6%33.4%

Return vs Industry: NWHM exceeded the US Consumer Durables industry which returned 47.2% over the past year.

Return vs Market: NWHM exceeded the US Market which returned 37.3% over the past year.

Price Volatility

Is NWHM's price volatile compared to industry and market?
NWHM volatility
NWHM Beta2.6
Industry Beta1.47
Market Beta1

Stable Share Price: NWHM is more volatile than 90% of US stocks over the past 3 months, typically moving +/- 24% a week.

Volatility Over Time: NWHM's weekly volatility has increased from 13% to 24% over the past year.

About the Company

FoundedEmployeesCEOWebsite
2009209Leonard Millerhttps://www.nwhm.com

The New Home Company Inc. designs, constructs, and sells single-family detached and attached homes. The company operates through three segments: Arizona Homebuilding, California Homebuilding, and Fee Building. It builds and sells homes in metropolitan areas of California and Arizona, including Southern California, the San Francisco Bay area, metro Sacramento, and the greater Phoenix area; and Denver, Colorado.

New Home Fundamentals Summary

How do New Home's earnings and revenue compare to its market cap?
NWHM fundamental statistics
Market CapUS$163.26m
Earnings (TTM)US$5.28m
Revenue (TTM)US$516.10m

30.9x

P/E Ratio

0.3x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
NWHM income statement (TTM)
RevenueUS$516.10m
Cost of RevenueUS$439.18m
Gross ProfitUS$76.92m
ExpensesUS$71.64m
EarningsUS$5.28m

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)0.29
Gross Margin14.90%
Net Profit Margin1.02%
Debt/Equity Ratio138.4%

How did NWHM perform over the long term?

See historical performance and comparison

Valuation

Is New Home undervalued compared to its fair value and its price relative to the market?

48.1%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: NWHM ($8.99) is trading below our estimate of fair value ($17.34)

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


Price To Earnings Ratio

PE vs Industry: NWHM is poor value based on its PE Ratio (30.9x) compared to the US Consumer Durables industry average (11.5x).

PE vs Market: NWHM is poor value based on its PE Ratio (30.9x) compared to the US market (17.6x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: NWHM is good value based on its PB Ratio (0.8x) compared to the US Consumer Durables industry average (1.9x).


Future Growth

How is New Home forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

11.0%

Forecasted Consumer Durables industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as New Home has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Past Performance

How has New Home performed over the past 5 years?

-58.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: NWHM has a large one-off loss of $8.9M impacting its June 30 2021 financial results.

Growing Profit Margin: NWHM became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: NWHM's earnings have declined by 58.8% per year over the past 5 years.

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

Earnings vs Industry: NWHM has become profitable in the last year, making it difficult to compare its past year earnings growth to the Consumer Durables industry (67.3%).


Return on Equity

High ROE: NWHM's Return on Equity (2.6%) is considered low.


Financial Health

How is New Home's financial position?


Financial Position Analysis

Short Term Liabilities: NWHM's short term assets ($520.3M) exceed its short term liabilities ($59.9M).

Long Term Liabilities: NWHM's short term assets ($520.3M) exceed its long term liabilities ($282.9M).


Debt to Equity History and Analysis

Debt Level: NWHM's debt to equity ratio (138.4%) is considered high.

Reducing Debt: NWHM's debt to equity ratio has increased from 108.6% to 138.4% over the past 5 years.

Debt Coverage: NWHM's debt is well covered by operating cash flow (27.1%).

Interest Coverage: NWHM's interest payments on its debt are well covered by EBIT (7.1x coverage).


Balance Sheet


Dividend

What is New Home current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

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

High Dividend: Unable to evaluate NWHM'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 NWHM's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if NWHM'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 NWHM'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?

2.8yrs

Average management tenure


CEO

Leonard Miller (58 yo)

2.08yrs

Tenure

US$1,469,296

Compensation

Mr. Leonard S. Miller has been the President and Chief Executive Officer of New Home Company Inc.since January 23, 2019 and August 30, 2019 respectively. Mr. Miller served as the Chief Operating Officer of...


CEO Compensation Analysis

Compensation vs Market: Leonard's total compensation ($USD1.47M) is above average for companies of similar size in the US market ($USD1.08M).

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


Leadership Team

Experienced Management: NWHM's management team is considered experienced (2.8 years average tenure).


Board Members

Experienced Board: NWHM's board of directors are considered experienced (7.6 years average tenure).


Ownership

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


Insider Trading Volume

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.


Top Shareholders

Company Information

The New Home Company Inc.'s employee growth, exchange listings and data sources


Key Information

  • Name: The New Home Company Inc.
  • Ticker: NWHM
  • Exchange: NYSE
  • Founded: 2009
  • Industry: Homebuilding
  • Sector: Consumer Durables
  • Market Cap: US$163.264m
  • Shares outstanding: 18.16m
  • Website: https://www.nwhm.com

Number of Employees


Location

  • The New Home Company Inc.
  • 15231 Laguna Canyon Road
  • Suite 250
  • Irvine
  • California
  • 92618
  • United States

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/09/08 22:09
End of Day Share Price2021/09/07 00:00
Earnings2021/06/30
Annual Earnings2020/12/31


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.