Company Overview
Beazer Homes USA, Inc. functions as a dedicated homebuilder within the United States, designing, constructing, and selling single-family residences, condominiums, villas, and duets homes under its specific brand portfolio including Beazer Homes, Gatherings, and Choice Plans. The company operates within the Consumer Cyclical sector, specifically targeting the Residential Construction industry, an environment where demand is closely tied to broader economic cycles and housing market conditions. In terms of scale, the entity commands a market capitalization of $570.69M while generating annual revenue of $2.27B and employing 1,018 individuals across its operations. These valuation and revenue metrics indicate that the company maintains a substantial operational footprint, yet the relatively modest market cap relative to its multi-billion dollar revenue suggests the market prices the stock with significant caution regarding its profitability trajectory.
Financial Health
The company reports a Total Revenue of $2.27B over the trailing twelve months, with a Net Income of $9.86M and an EBITDA of $37.11M, revealing a substantial gap between top-line activity and bottom-line earnings that highlights a challenging cost structure and high operating expenses. The business generated Free Cash Flow of $4.10M, which represents a limited amount of cash available for discretionary spending, capital expenditures, or debt repayment, thereby constraining overall financial flexibility. Analysis of the margin profile shows a Gross Margin of 14.0%, an Operating Margin of -8.1%, and a Profit Margin of 0.4%; the negative operating margin indicates that operating costs, such as labor and overhead, exceeded gross profits, while the minimal profit margin demonstrates that the company barely covers its total expenses after all costs are deducted. On the balance sheet, the company holds $120.76M in cash against $1.15B in debt, resulting in a Debt to Equity ratio of 95.99, which characterizes a highly leveraged financial position where debt obligations significantly outweigh equity capitalization. Despite this high leverage, the Current Ratio stands at 13.46, a figure that suggests strong short-term liquidity and an ability to cover current liabilities many times over with current assets. Return on Equity is recorded at 0.8% and Return on Assets at 0.4%, metrics that reveal low management effectiveness in generating returns relative to the shareholders' equity and the total asset base utilized.
Valuation Assessment
The stock carries a Trailing P/E ratio of 66.69 compared to a Forward P/E of 6.47, a stark discrepancy that implies the market expects a dramatic expansion in earnings to justify the current high valuation multiple, though the forward multiple suggests analysts project a significant earnings turnaround or normalization. The Price to Book ratio is 0.46, indicating that the market values the company at less than half of its book value, which often suggests the stock is priced below the value of its tangible assets or that the market anticipates further value erosion. Alternative valuation metrics such as the Price to Sales ratio of 0.25 and an EV/EBITDA of 42.70 suggest the company is trading at a deep discount relative to its sales and earnings power, reflecting skepticism about future cash generation capabilities. The 52-week trading range spans from a low of $17.37 to a high of $28.33, and without a specific current price provided in the facts, the precise percentage deviation cannot be calculated, but the wide spread indicates significant price volatility over the past year. The Beta value of 2.15 signifies that the stock price is highly sensitive to market movements, tending to fluctuate with much greater intensity than the broader market index.
Growth & Income
Revenue growth over the last year is recorded at -22.5%, while earnings growth is listed as N/A, indicating that the company is currently contracting in terms of sales volume and that the lack of reported earnings growth data further complicates the assessment of profitability expansion. The absence of a dividend yield and a payout ratio of 0.0% confirms that the company does not distribute profits to shareholders, implying that management retains all earnings to fund operations, pay down debt, or invest in new homebuilding projects rather than rewarding income investors. Since the firm does not pay dividends, the growth profile relies entirely on organic expansion or acquisitions to increase shareholder value, rather than providing a passive income stream. Overall, the financial picture presents a capital-intensive homebuilder facing revenue contraction with high leverage and no income distribution, focusing purely on operational survival and potential future earnings recovery.