Company Overview
United Homes Group, Inc. operates as a publicly traded residential builder that specializes in the design, construction, and sale of homes within the southeastern United States. The company maintains active communities in South Carolina, North Carolina, and Georgia, utilizing a land-light operating strategy to manage its development footprint. This business model places the firm within the Consumer Cyclical sector, specifically the Residential Construction industry, an environment where performance is directly tied to housing demand and material costs. The entity's current scale is defined by a market capitalization of $68.83M, an annual revenue of $406.69M, and a workforce comprising 195 employees. These figures indicate a mid-sized market position where the company has established a significant revenue base relative to its employee count, yet the market cap suggests a valuation that does not yet reflect the full magnitude of its operational scale or potential future expansion capabilities within the regional housing market.
Financial Health
United Homes Group, Inc. reported a trailing twelve-month revenue of $406.69M, while generating a net income of -$16,252,000 and an EBITDA of $972,000. The substantial gap between the $406.69M in revenue and the -$16,252,000 net income reveals a cost structure where operating expenses and interest costs significantly erode bottom-line profitability despite healthy top-line activity. The company generated free cash flow of -$25,560,376, which indicates a current lack of financial flexibility as cash outflows exceed cash inflows from operations and investing activities. Profitability is further contextualized by three distinct margin metrics: a gross margin of 17.7%, an operating margin of 1.2%, and a profit margin of -4.0%. The narrow 1.2% operating margin suggests high sensitivity to overhead costs, while the negative 4.0% profit margin confirms that the company is currently operating at a loss on a per-dollar-of-sales basis. Regarding liquidity and leverage, the company holds $24.42M in cash against total debt of $147.58M, resulting in a debt-to-equity ratio of 257.24. This disparity between cash and debt, combined with the high debt-to-equity figure, characterizes the balance sheet as highly leveraged rather than conservative. Short-term liquidity is supported by a current ratio of 3.63, which indicates that current assets are more than three times current liabilities, providing a buffer against immediate obligations. Return metrics show a Return on Equity of -26.2% and a Return on Assets of -0.0%, revealing that management effectiveness is currently challenged by the inability to generate positive returns on shareholder capital or total assets.
Valuation Assessment
The trailing P/E ratio is listed as N/A, and the forward P/E is also N/A due to the negative earnings profile, which prevents traditional earnings-based valuation multiples from being calculated. The price-to-book ratio stands at 1.20, indicating that the market values the company at 20% above its book value despite the negative earnings and high leverage. Alternative valuation metrics provide further insight, with a Price to Sales ratio of 0.17 and an EV/EBITDA of 197.52. The extremely high EV/EBITDA multiple of 197.52 suggests that the market is pricing in significant future growth expectations or that the current earnings structure is distorted by one-time costs or interest burdens. The stock's price range over the last year spans from a 52-Week Low of $0.99 to a 52-Week High of $4.78. Without a specific current price provided in the data, the range itself highlights the stock's wide trading band, but the ratio of the low to high ($0.99/$4.78) demonstrates a trading range of nearly 500%. The beta value is 1.19, which means the stock's price volatility is 19% higher than the broader market, indicating that the asset class is more sensitive to market swings than large-cap equities.
Growth & Income
The company experienced a revenue growth rate of -8.5% year-over-year, while earnings growth is reported at 278.1% year-over-year. This divergence implies that while the top line contracted, the earnings figure improved significantly, likely due to a reduction in losses rather than an expansion of profitability, as the absolute net income remains negative. United Homes Group, Inc. does not pay a dividend, evidenced by a dividend yield of N/A and a payout ratio of 0.0%. Because the company does not distribute cash to shareholders, the capital generated from operations is reinvested into growth initiatives or used to manage its existing debt obligations rather than being paid out. The overall growth and income profile is characterized by a period of revenue contraction paired with a technical recovery in earnings per share, while the absence of dividends reflects the capital needs of a leveraged firm in a cyclical industry.