GREEN BRICK PARTNERS INC (GRBK) Stock Fundamental Analysis
NYSE:GRBK - New York Stock Exchange, Inc. - US3927091013 - Common Stock - Currency: USD
Taking everything into account, GRBK scores 7 out of 10 in our fundamental rating. GRBK was compared to 64 industry peers in the Household Durables industry. Both the health and profitability get an excellent rating, making GRBK a very profitable company, without any liquidiy or solvency issues. GRBK has a correct valuation and a medium growth rate. These ratings could make GRBK a good candidate for quality investing.
1. Profitability
1.1 Basic Checks
In the past year GRBK was profitable.
In the past year GRBK had a positive cash flow from operations.
GRBK had positive earnings in each of the past 5 years.
Of the past 5 years GRBK 4 years had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 16.30%, GRBK belongs to the top of the industry, outperforming 96.88% of the companies in the same industry.
The Return On Equity of GRBK (21.91%) is better than 85.94% of its industry peers.
The Return On Invested Capital of GRBK (18.76%) is better than 95.31% of its industry peers.
GRBK had an Average Return On Invested Capital over the past 3 years of 18.27%. This is significantly above the industry average of 10.34%.
The last Return On Invested Capital (18.76%) for GRBK is above the 3 year average (18.27%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 16.3% | ||
| ROE | 21.91% | ||
| ROIC | 18.76% |
ROA(3y)16.36%
ROA(5y)14.79%
ROE(3y)24.06%
ROE(5y)22.34%
ROIC(3y)18.27%
ROIC(5y)16.1%
1.3 Margins
The Profit Margin of GRBK (17.24%) is better than 96.88% of its industry peers.
GRBK's Profit Margin has improved in the last couple of years.
GRBK's Operating Margin of 22.34% is amongst the best of the industry. GRBK outperforms 96.88% of its industry peers.
GRBK's Operating Margin has improved in the last couple of years.
The Gross Margin of GRBK (33.08%) is better than 67.19% of its industry peers.
In the last couple of years the Gross Margin of GRBK has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 22.34% | ||
| PM (TTM) | 17.24% | ||
| GM | 33.08% |
OM growth 3Y11.85%
OM growth 5Y22.39%
PM growth 3Y9.99%
PM growth 5Y19.48%
GM growth 3Y9.1%
GM growth 5Y9.43%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so GRBK is creating value.
Compared to 1 year ago, GRBK has less shares outstanding
GRBK has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, GRBK has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 6.38 indicates that GRBK is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 6.38, GRBK belongs to the top of the industry, outperforming 92.19% of the companies in the same industry.
GRBK has a debt to FCF ratio of 3.73. This is a good value and a sign of high solvency as GRBK would need 3.73 years to pay back of all of its debts.
GRBK's Debt to FCF ratio of 3.73 is fine compared to the rest of the industry. GRBK outperforms 65.63% of its industry peers.
A Debt/Equity ratio of 0.20 indicates that GRBK is not too dependend on debt financing.
GRBK has a better Debt to Equity ratio (0.20) than 65.63% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.2 | ||
| Debt/FCF | 3.73 | ||
| Altman-Z | 6.38 |
ROIC/WACC1.88
WACC9.99%
2.3 Liquidity
GRBK has a Current Ratio of 9.23. This indicates that GRBK is financially healthy and has no problem in meeting its short term obligations.
GRBK has a better Current ratio (9.23) than 92.19% of its industry peers.
GRBK has a Quick Ratio of 9.23. This is a bad value and indicates that GRBK is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Quick ratio value of 0.51, GRBK is not doing good in the industry: 73.44% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 9.23 | ||
| Quick Ratio | 0.51 |
3. Growth
3.1 Past
GRBK shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 25.64%, which is quite impressive.
The Earnings Per Share has been growing by 48.43% on average over the past years. This is a very strong growth
Looking at the last year, GRBK shows a very strong growth in Revenue. The Revenue has grown by 21.22%.
Measured over the past years, GRBK shows a very strong growth in Revenue. The Revenue has been growing by 21.53% on average per year.
EPS 1Y (TTM)25.64%
EPS 3Y31.35%
EPS 5Y48.43%
EPS Q2Q%-8.24%
Revenue 1Y (TTM)21.22%
Revenue growth 3Y14.37%
Revenue growth 5Y21.53%
Sales Q2Q%11.24%
3.2 Future
Based on estimates for the next years, GRBK will show a decrease in Earnings Per Share. The EPS will decrease by -6.13% on average per year.
Based on estimates for the next years, GRBK will show a small growth in Revenue. The Revenue will grow by 3.96% on average per year.
EPS Next Y-14.36%
EPS Next 2Y-6.13%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-1.69%
Revenue Next 2Y3.96%
Revenue Next 3YN/A
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 7.77, the valuation of GRBK can be described as very cheap.
71.88% of the companies in the same industry are more expensive than GRBK, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 26.65. GRBK is valued rather cheaply when compared to this.
Based on the Price/Forward Earnings ratio of 8.66, the valuation of GRBK can be described as reasonable.
Based on the Price/Forward Earnings ratio, GRBK is valued a bit cheaper than the industry average as 67.19% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of GRBK to the average of the S&P500 Index (21.27), we can say GRBK is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.77 | ||
| Fwd PE | 8.66 |
4.2 Price Multiples
GRBK's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. GRBK is cheaper than 70.31% of the companies in the same industry.
GRBK's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 31.58 | ||
| EV/EBITDA | 6.24 |
4.3 Compensation for Growth
The excellent profitability rating of GRBK may justify a higher PE ratio.
GRBK's earnings are expected to decrease with -6.13% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)0.16
EPS Next 2Y-6.13%
EPS Next 3YN/A
5. Dividend
5.1 Amount
No dividends for GRBK!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
64.34
+0.63 (+0.99%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryHousehold Durables
Earnings (Last)
Earnings (Next)
Inst Owners78.8%
Inst Owner Change-0.35%
Ins Owners6.26%
Ins Owner Change2.11%
Market Cap2.83B
Analysts45.71
Price Target72.42 (12.56%)
Short Float %2.88%
Short Ratio3.97
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly Dividend0.06
Dividend Growth(5Y)N/A
DP0.78%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)2.8%
Min EPS beat(2)-6.79%
Max EPS beat(2)12.39%
EPS beat(4)2
Avg EPS beat(4)6.92%
Min EPS beat(4)-6.79%
Max EPS beat(4)28.45%
EPS beat(8)5
Avg EPS beat(8)9.71%
EPS beat(12)9
Avg EPS beat(12)21.52%
EPS beat(16)12
Avg EPS beat(16)19.19%
Revenue beat(2)1
Avg Revenue beat(2)-1.54%
Min Revenue beat(2)-3.17%
Max Revenue beat(2)0.08%
Revenue beat(4)2
Avg Revenue beat(4)0.26%
Min Revenue beat(4)-5.22%
Max Revenue beat(4)9.35%
Revenue beat(8)3
Avg Revenue beat(8)0.79%
Revenue beat(12)7
Avg Revenue beat(12)10.96%
Revenue beat(16)10
Avg Revenue beat(16)9.97%
PT rev (1m)1.43%
PT rev (3m)1.43%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0.27%
EPS NY rev (1m)0%
EPS NY rev (3m)-16.26%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)4.19%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-9.35%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.77 | ||
| Fwd PE | 8.66 | ||
| P/S | 1.32 | ||
| P/FCF | 31.58 | ||
| P/OCF | 30.18 | ||
| P/B | 1.67 | ||
| P/tB | 1.67 | ||
| EV/EBITDA | 6.24 |
EPS(TTM)8.28
EY12.87%
EPS(NY)7.43
Fwd EY11.55%
FCF(TTM)2.04
FCFY3.17%
OCF(TTM)2.13
OCFY3.31%
SpS48.92
BVpS38.49
TBVpS38.47
PEG (NY)N/A
PEG (5Y)0.16
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 16.3% | ||
| ROE | 21.91% | ||
| ROCE | 23.47% | ||
| ROIC | 18.76% | ||
| ROICexc | 19.76% | ||
| ROICexgc | 20.18% | ||
| OM | 22.34% | ||
| PM (TTM) | 17.24% | ||
| GM | 33.08% | ||
| FCFM | 4.16% |
ROA(3y)16.36%
ROA(5y)14.79%
ROE(3y)24.06%
ROE(5y)22.34%
ROIC(3y)18.27%
ROIC(5y)16.1%
ROICexc(3y)19.75%
ROICexc(5y)17.23%
ROICexgc(3y)20.31%
ROICexgc(5y)17.78%
ROCE(3y)22.96%
ROCE(5y)20.2%
ROICexcg growth 3Y8.62%
ROICexcg growth 5Y23.72%
ROICexc growth 3Y8.87%
ROICexc growth 5Y23.92%
OM growth 3Y11.85%
OM growth 5Y22.39%
PM growth 3Y9.99%
PM growth 5Y19.48%
GM growth 3Y9.1%
GM growth 5Y9.43%
F-Score8
Asset Turnover0.95
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.2 | ||
| Debt/FCF | 3.73 | ||
| Debt/EBITDA | 0.69 | ||
| Cap/Depr | 80.19% | ||
| Cap/Sales | 0.19% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 19.3% | ||
| Profit Quality | 24.16% | ||
| Current Ratio | 9.23 | ||
| Quick Ratio | 0.51 | ||
| Altman-Z | 6.38 |
F-Score8
WACC9.99%
ROIC/WACC1.88
Cap/Depr(3y)131.52%
Cap/Depr(5y)109.51%
Cap/Sales(3y)0.25%
Cap/Sales(5y)0.24%
Profit Quality(3y)36.44%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)25.64%
EPS 3Y31.35%
EPS 5Y48.43%
EPS Q2Q%-8.24%
EPS Next Y-14.36%
EPS Next 2Y-6.13%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)21.22%
Revenue growth 3Y14.37%
Revenue growth 5Y21.53%
Sales Q2Q%11.24%
Revenue Next Year-1.69%
Revenue Next 2Y3.96%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y28.31%
EBIT growth 3Y27.93%
EBIT growth 5Y48.74%
EBIT Next Year-1.74%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-65.07%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-63.9%
OCF growth 3YN/A
OCF growth 5YN/A