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 63 industry peers in the Household Durables industry. There are concerns on the financial health of BZH while its profitability can be described as average. BZH has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
In the past year BZH was profitable.
BZH had a negative operating cash flow in the past year.
In the past 5 years BZH has always been profitable.
BZH had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
With a Return On Assets value of 3.59%, BZH perfoms like the industry average, outperforming 50.79% of the companies in the same industry.
With a Return On Equity value of 7.75%, BZH perfoms like the industry average, outperforming 46.03% of the companies in the same industry.
With a Return On Invested Capital value of 3.90%, BZH is not doing good in the industry: 63.49% of the companies in the same industry are doing better.
The Average Return On Invested Capital over the past 3 years for BZH is in line with the industry average of 10.05%.
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
With a Profit Margin value of 3.91%, BZH perfoms like the industry average, outperforming 49.21% of the companies in the same industry.
In the last couple of years the Profit Margin of BZH has grown nicely.
BZH's Operating Margin of 4.30% is on the low side compared to the rest of the industry. BZH is outperformed by 60.32% of its industry peers.
BZH's Operating Margin has improved in the last couple of years.
The Gross Margin of BZH (16.64%) is worse than 85.71% of its industry peers.
In the last couple of years the Gross Margin of BZH has grown nicely.
| 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so BZH is destroying value.
BZH has less shares outstanding than it did 1 year ago.
BZH has more shares outstanding than it did 5 years ago.
BZH has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 2.49 indicates that BZH is not a great score, but indicates only limited risk for bankruptcy at the moment.
BZH has a Altman-Z score (2.49) 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's Debt to Equity ratio of 0.88 is on the low side compared to the rest of the industry. BZH is outperformed by 73.02% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.88 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 2.49 |
ROIC/WACC0.39
WACC9.88%
2.3 Liquidity
A Current Ratio of 7.93 indicates that BZH has no problem at all paying its short term obligations.
The Current ratio of BZH (7.93) is better than 87.30% of its industry peers.
BZH has a Quick Ratio of 7.93. This is a bad value and indicates that BZH is not financially healthy enough and could expect problems in meeting its short term obligations.
BZH has a Quick ratio of 0.51. This is in the lower half of the industry: BZH underperforms 71.43% 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 -52.59% 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 small growth in Revenue. The Revenue has grown by 5.59% in the last year.
Measured over the past years, BZH shows a small growth in Revenue. The Revenue has been growing by 2.22% on average per year.
EPS 1Y (TTM)-52.59%
EPS 3Y4.23%
EPS 5Y43.29%
EPS Q2Q%-101.14%
Revenue 1Y (TTM)5.59%
Revenue growth 3Y2.87%
Revenue growth 5Y2.22%
Sales Q2Q%-8.45%
3.2 Future
BZH is expected to show a very negative growth in Earnings Per Share. In the coming years, the EPS will decrease by -11.21% yearly.
Based on estimates for the next years, BZH will show a small growth in Revenue. The Revenue will grow by 5.56% on average per year.
EPS Next Y-58.84%
EPS Next 2Y-18.27%
EPS Next 3Y-11.21%
EPS Next 5YN/A
Revenue Next Year-2.28%
Revenue Next 2Y6.32%
Revenue Next 3Y5.56%
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 accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 10.59, which indicates a very decent valuation of BZH.
The rest of the industry has a similar Price/Earnings ratio as BZH.
Compared to an average S&P500 Price/Earnings ratio of 26.99, BZH is valued rather cheaply.
A Price/Forward Earnings ratio of 7.70 indicates a rather cheap valuation of BZH.
82.54% of the companies in the same industry are more expensive than BZH, based on the Price/Forward Earnings ratio.
BZH is valuated cheaply when we compare the Price/Forward Earnings ratio to 36.36, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.59 | ||
| Fwd PE | 7.7 |
4.2 Price Multiples
BZH's Enterprise Value to EBITDA ratio is a bit more expensive when compared to the industry. BZH is more expensive than 61.90% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 13.85 |
4.3 Compensation for Growth
BZH's earnings are expected to decrease with -11.21% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)0.24
EPS Next 2Y-18.27%
EPS Next 3Y-11.21%
5. Dividend
5.1 Amount
BZH does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
23.3
+0.2 (+0.87%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryHousehold Durables
Earnings (Last)
Earnings (Next)
Inst Owners87.06%
Inst Owner Change0.09%
Ins Owners5.88%
Ins Owner Change1.22%
Market Cap705.99M
Analysts84.44
Price Target30.6 (31.33%)
Short Float %7.15%
Short Ratio5.94
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)-5.95%
PT rev (3m)-23%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-61.1%
EPS NY rev (1m)-3.18%
EPS NY rev (3m)-47.66%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-18.5%
Revenue NY rev (1m)-1.86%
Revenue NY rev (3m)-13.43%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.59 | ||
| Fwd PE | 7.7 | ||
| P/S | 0.29 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 0.57 | ||
| P/tB | 0.58 | ||
| EV/EBITDA | 13.85 |
EPS(TTM)2.2
EY9.44%
EPS(NY)3.03
Fwd EY12.99%
FCF(TTM)-2.57
FCFYN/A
OCF(TTM)-1.78
OCFYN/A
SpS80.4
BVpS40.53
TBVpS40.15
PEG (NY)N/A
PEG (5Y)0.24
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 | 2.49 |
F-Score4
WACC9.88%
ROIC/WACC0.39
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)-52.59%
EPS 3Y4.23%
EPS 5Y43.29%
EPS Q2Q%-101.14%
EPS Next Y-58.84%
EPS Next 2Y-18.27%
EPS Next 3Y-11.21%
EPS Next 5YN/A
Revenue 1Y (TTM)5.59%
Revenue growth 3Y2.87%
Revenue growth 5Y2.22%
Sales Q2Q%-8.45%
Revenue Next Year-2.28%
Revenue Next 2Y6.32%
Revenue Next 3Y5.56%
Revenue Next 5YN/A
EBIT growth 1Y-37.04%
EBIT growth 3Y-0.61%
EBIT growth 5Y19.83%
EBIT Next Year5.15%
EBIT Next 3Y19.23%
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