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 64 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
BZH had positive earnings in the past year.
In the past year BZH has reported a negative cash flow from operations.
Each year in the past 5 years BZH has been profitable.
Of the past 5 years BZH 4 years had a positive operating cash flow.
1.2 Ratios
BZH has a Return On Assets (3.59%) which is in line with its industry peers.
Looking at the Return On Equity, with a value of 7.75%, BZH is in line with its industry, outperforming 46.88% of the companies in the same industry.
BZH's Return On Invested Capital of 3.90% is on the low side compared to the rest of the industry. BZH is outperformed by 62.50% of its industry peers.
The Average Return On Invested Capital over the past 3 years for BZH is in line with the industry average of 10.33%.
The last Return On Invested Capital (3.90%) for BZH is well below the 3 year average (8.40%), which needs to be investigated, but indicates that BZH had better years and this may not be a problem.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.59% | ||
| ROE | 7.75% | ||
| ROIC | 3.9% |
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
BZH's Profit Margin of 3.91% is in line compared to the rest of the industry. BZH outperforms 48.44% of its industry peers.
In the last couple of years the Profit Margin of BZH has grown nicely.
With a Operating Margin value of 4.30%, BZH perfoms like the industry average, outperforming 40.63% of the companies in the same industry.
BZH's Operating Margin has improved in the last couple of years.
BZH's Gross Margin of 16.64% is on the low side compared to the rest of the industry. BZH is outperformed by 85.94% of its industry peers.
BZH's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 4.3% | ||
| PM (TTM) | 3.91% | ||
| GM | 16.64% |
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.
Compared to 5 years ago, BZH has more shares outstanding
BZH has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 2.48 indicates that BZH is not a great score, but indicates only limited risk for bankruptcy at the moment.
BZH has a Altman-Z score (2.48) which is comparable to the rest of the industry.
BZH has a Debt/Equity ratio of 0.88. This is a neutral value indicating BZH is somewhat dependend on debt financing.
BZH has a worse Debt to Equity ratio (0.88) than 71.88% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.88 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 2.48 |
ROIC/WACC0.4
WACC9.78%
2.3 Liquidity
A Current Ratio of 7.93 indicates that BZH has no problem at all paying its short term obligations.
BZH has a better Current ratio (7.93) than 84.38% of its industry peers.
A Quick Ratio of 0.51 indicates that BZH may have some problems paying its short term obligations.
BZH has a worse Quick ratio (0.51) than 73.44% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 7.93 | ||
| Quick Ratio | 0.51 |
3. Growth
3.1 Past
The earnings per share for BZH have decreased strongly by -40.35% in the last year.
The Earnings Per Share has been growing by 43.29% on average over the past years. This is a very strong growth
Looking at the last year, BZH shows a quite strong growth in Revenue. The Revenue has grown by 13.51% in the last year.
The Revenue has been growing slightly by 2.22% on average over the past years.
EPS 1Y (TTM)-40.35%
EPS 3Y4.23%
EPS 5Y43.29%
EPS Q2Q%-66.67%
Revenue 1Y (TTM)13.51%
Revenue growth 3Y2.87%
Revenue growth 5Y2.22%
Sales Q2Q%4.39%
3.2 Future
Based on estimates for the next years, BZH will show a decrease in Earnings Per Share. The EPS will decrease by -4.67% on average per year.
BZH is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.67% yearly.
EPS Next Y-57.49%
EPS Next 2Y-4.67%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-0.43%
Revenue Next 2Y6.67%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 7.43 indicates a rather cheap valuation of BZH.
Compared to the rest of the industry, the Price/Earnings ratio of BZH indicates a somewhat cheap valuation: BZH is cheaper than 75.00% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.59, BZH is valued rather cheaply.
The Price/Forward Earnings ratio is 5.58, which indicates a rather cheap valuation of BZH.
Based on the Price/Forward Earnings ratio, BZH is valued cheaper than 92.19% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of BZH to the average of the S&P500 Index (22.39), we can say BZH is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.43 | ||
| Fwd PE | 5.58 |
4.2 Price Multiples
60.94% of the companies in the same industry are cheaper than BZH, based on the Enterprise Value to EBITDA ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 13.57 |
4.3 Compensation for Growth
A cheap valuation may be justified as BZH's earnings are expected to decrease with -4.67% in the coming years.
PEG (NY)N/A
PEG (5Y)0.17
EPS Next 2Y-4.67%
EPS Next 3YN/A
5. Dividend
5.1 Amount
BZH does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
22.97
+0.99 (+4.5%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryHousehold Durables
Earnings (Last)
Earnings (Next)
Inst Owners82.52%
Inst Owner Change3.07%
Ins Owners5.68%
Ins Owner Change1.22%
Market Cap695.99M
Analysts88.57
Price Target36.04 (56.9%)
Short Float %8.1%
Short Ratio5.52
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
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)-6.64%
Min EPS beat(2)-67.67%
Max EPS beat(2)54.4%
EPS beat(4)3
Avg EPS beat(4)3.7%
Min EPS beat(4)-67.67%
Max EPS beat(4)54.4%
EPS beat(8)6
Avg EPS beat(8)17.16%
EPS beat(12)10
Avg EPS beat(12)20.24%
EPS beat(16)14
Avg EPS beat(16)29.55%
Revenue beat(2)2
Avg Revenue beat(2)1.74%
Min Revenue beat(2)0.17%
Max Revenue beat(2)3.31%
Revenue beat(4)3
Avg Revenue beat(4)1.3%
Min Revenue beat(4)-1.31%
Max Revenue beat(4)3.31%
Revenue beat(8)5
Avg Revenue beat(8)0.22%
Revenue beat(12)7
Avg Revenue beat(12)0.95%
Revenue beat(16)9
Avg Revenue beat(16)0.5%
PT rev (1m)0%
PT rev (3m)-11.67%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-60.3%
EPS NY rev (1m)-45.94%
EPS NY rev (3m)-45.94%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-17.56%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-11.79%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.43 | ||
| Fwd PE | 5.58 | ||
| P/S | 0.29 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 0.57 | ||
| P/tB | 0.57 | ||
| EV/EBITDA | 13.57 |
EPS(TTM)3.09
EY13.45%
EPS(NY)4.12
Fwd EY17.92%
FCF(TTM)-2.57
FCFYN/A
OCF(TTM)-1.78
OCFYN/A
SpS80.4
BVpS40.53
TBVpS40.15
PEG (NY)N/A
PEG (5Y)0.17
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.59% | ||
| ROE | 7.75% | ||
| ROCE | 4.45% | ||
| ROIC | 3.9% | ||
| ROICexc | 4.04% | ||
| ROICexgc | 4.14% | ||
| OM | 4.3% | ||
| PM (TTM) | 3.91% | ||
| GM | 16.64% | ||
| 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-Score4
Asset Turnover0.92
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.88 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 8.83 | ||
| Cap/Depr | 134.62% | ||
| Cap/Sales | 0.98% | ||
| Interest Coverage | 1.31 | ||
| Cash Conversion | N/A | ||
| Profit Quality | N/A | ||
| Current Ratio | 7.93 | ||
| Quick Ratio | 0.51 | ||
| Altman-Z | 2.48 |
F-Score4
WACC9.78%
ROIC/WACC0.4
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)-40.35%
EPS 3Y4.23%
EPS 5Y43.29%
EPS Q2Q%-66.67%
EPS Next Y-57.49%
EPS Next 2Y-4.67%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)13.51%
Revenue growth 3Y2.87%
Revenue growth 5Y2.22%
Sales Q2Q%4.39%
Revenue Next Year-0.43%
Revenue Next 2Y6.67%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-37.04%
EBIT growth 3Y-0.61%
EBIT growth 5Y19.83%
EBIT Next Year21.65%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-147.77%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-130.03%
OCF growth 3YN/A
OCF growth 5YN/A