Company Overview
Green Brick Partners, Inc. operates as a diversified homebuilding and land development entity with a primary focus on the Dallas-Fort Worth region, where it holds the position of the third largest homebuilder. The company generates income through residential construction activities within Texas, Georgia, and Florida, utilizing a portfolio of five subsidiary homebuilders including CB JENI Homes, Normandy Homes, and Southgate Homes. This organization is classified within the Consumer Cyclical sector and specifically functions inside the Residential Construction industry, meaning its financial performance is directly correlated with housing demand and interest rate environments. With a market capitalization of $2.67B, the firm commands significant valuation weight, supported by an annual revenue of $2.10B and an operational workforce of 620 employees. These aggregate figures indicate that Green Brick Partners, Inc. is a substantial market participant capable of executing large-scale development projects, distinguishing it from smaller regional builders with limited geographic footprints or financial resources.
Financial Health
The company reported a total revenue of $2.10B over the trailing twelve months, generating a net income of $310.35M and an EBITDA of $414.55M. The substantial gap between the $2.10B revenue figure and the $310.35M net income reveals a cost structure where approximately 85% of revenue is consumed by operating expenses, taxes, and interest before reaching the bottom line, leaving a significant portion for capital allocation. Free cash flow for the period stood at $80.06M, which represents the actual cash remaining after capital expenditures, indicating a moderate level of financial flexibility for debt service or strategic investments despite the high revenue volume. Profitability analysis shows a gross margin of 30.5%, an operating margin of 18.7%, and a profit margin of 14.9%, suggesting that the company retains roughly 15 cents for every dollar of sales after all costs are accounted for. Liquidity and leverage metrics show the company holds $154.59M in cash against $328.91M in total debt, resulting in a debt-to-equity ratio of 17.02, which suggests a highly leveraged balance sheet structure reliant on equity markets or refinancing to maintain solvency. The current ratio of 8.70 indicates that current assets are nearly nine times current liabilities, pointing to an exceptionally strong short-term liquidity position that could buffer against supply chain disruptions or delayed payments. Return metrics demonstrate a return on equity of 18.9% and a return on assets of 10.7%, revealing that management is generating nearly 19% returns on shareholder capital, though asset efficiency is lower due to the heavy leverage inherent in the high debt-to-equity ratio.
Valuation Assessment
Valuation multiples indicate a trailing P/E ratio of 8.66 and a forward P/E of 8.71, implying that the market expects earnings to remain relatively flat or grow at a pace that barely alters the multiple between the current period and the future. The price-to-book ratio is listed at 1.46, suggesting the market values the company at approximately 46% above its tangible book value, which may reflect intangible assets or growth expectations not fully captured in historical book figures. Alternative valuation measures include a price-to-sales ratio of 1.27 and an EV/EBITDA of 7.09, metrics that suggest the company is priced at a premium relative to its sales volume but remains within reasonable bounds compared to its earnings before interest, taxes, depreciation, and amortization. Price action analysis shows a 52-week high of $80.97 and a 52-week low of $50.57, providing a clear trading range against which current valuations can be measured to assess investor sentiment. The beta value of 1.98 indicates that the stock price is significantly more volatile than the broader market, meaning it will likely experience nearly twice the magnitude of market movements in either direction during periods of high volatility.
Growth & Income
Growth metrics reveal a revenue growth rate of -2.6% year-over-year and an earnings growth rate of -23.0% year-over-year. The fact that earnings are declining at a much faster rate than revenue indicates that the company is facing intense margin pressure, likely due to rising input costs or a contraction in pricing power that is eroding profitability faster than top-line volume is shrinking. As a non-dividend payer, the company reports a dividend yield of N/A and a payout ratio of 0.0%, meaning it does not distribute any cash to shareholders and instead retains all earnings to fund operations, pay down debt, or potentially pursue organic growth initiatives. The overall growth and income profile is characterized by negative earnings momentum and a lack of current yield, positioning the stock as a pure-play growth vehicle where investors must rely on future capital appreciation rather than periodic income distributions to generate returns.