Beazer Homes Usa Inc (NYSE: BZH)

Sector: Consumer Cyclical Industry: Residential Construction CIK: 0000915840
Market Cap 942.24 Mn
P/B 0.79
P/E 95.55
P/S 0.42
ROIC (Qtr) 0.12
Div Yield % 0.00
Rev 1y % (Qtr) -22.49
Total Debt (Qtr) 1.15 Bn
Debt/Equity (Qtr) 0.96
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About

Beazer Homes USA, Inc., commonly known as BZH, is a homebuilder operating in the United States with active operations in 13 states across three geographic regions: the West, East, and Southeast. The company's primary business activity is the design, sale, and construction of single-family and multi-family homes, with a focus on providing extraordinary value and quality at affordable prices. Beazer Homes operates in a diverse range of communities and products catering to various demographic segments and price points. The company's main business...

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Investment thesis

Bull case

  • Retained earnings of 391.18M provide strong 34.39x coverage of intangibles 11.38M, indicating quality earnings retention.
  • Strong tangible asset base of 2.63B provides 231.04x coverage of intangibles 11.38M, indicating robust asset quality.
  • Cash position of 124.35M fully covers payables of 120.15M by 1.03x, showing strong vendor relationship management.
  • Tangible assets of 2.63B provide robust 28.34x coverage of receivables 92.76M, showing strong asset quality.

Bear case

  • Operating cash flow of 26.05M barely covers its investment activities of (20.30M), with a coverage ratio of -1.28, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • With cash reserves of 124.35M against inventory of 2.14B, the 0.06 cash-to-inventory ratio suggests potential liquidity risks if inventory turnover slows, particularly concerning given current supply chain volatilities.
  • The company's operating cash flow of 26.05M shows concerning coverage of stock compensation expenses of 6.98M, with a 3.73 ratio indicating potential earnings quality issues.
  • Free cash flow of (2.51M) provides weak coverage of capital expenditures of 28.56M, with a -0.09 ratio suggesting additional external financing needs for growth initiatives.
  • Operating cash flow of 26.05M provides minimal -8.03x coverage of tax expenses of (3.24M), suggesting potential tax planning inefficiencies or unsustainable tax positions.

Segments Breakdown of Revenue (2025)

Segments Breakdown of Revenue (2025)

Peer comparison

Companies in the Residential Construction
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 DHI Horton D R Inc /De/ 56.51 Bn 105.92 7.04 5.55 Bn
2 TOL Toll Brothers, Inc. 29.11 Bn 76.92 7.08 2.79 Bn
3 PHM Pultegroup Inc/Mi/ 28.02 Bn 12.63 1.62 2.16 Bn
4 LEN Lennar Corp /New/ 23.56 Bn -229.13 7.79 4.08 Bn
5 NVR Nvr Inc 21.52 Bn 16.06 2.13 1.05 Bn
6 IBP Installed Building Products, Inc. 8.62 Bn -487.54 19.34 0.99 Bn
7 TMHC Taylor Morrison Home Corp 6.86 Bn 8.06 0.82 2.26 Bn
8 MTH Meritage Homes CORP 5.67 Bn 12.52 0.97 1.83 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 0.67 1.47
EV to Cash from Ops. EV/CFO 68.35 43.01
EV to Debt EV to Debt 1.55 37.82
EV to EBIT EV/EBIT 269.00 48.76
EV to EBITDA EV/EBITDA 81.75 112.58
EV to Free Cash Flow [EV/FCF] EV/FCF -709.94 11.82
EV to Market Cap EV to Market Cap 1.89 1.26
EV to Revenue EV/Rev 0.79 3.28
Price to Book Value [P/B] P/B 0.79 9.23
Price to Earnings [P/E] P/E 95.55 -14.72
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Dividend Coverage Ratio 0.00 8.23
Dividend Payout Ratio % Div Payout % (Qtr) 0.00 6.29
Dividend per Basic Share Div per Share (Qtr) 0.00 0.54
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 0.00 96.10
Interest Coverage Interest Coverage 0.00 142.03
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) -31.93 27.50
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 4.09 196.58
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 4.02
EBIAT Growth (1y) % EBIAT 1y % (Qtr) -91.89 -29.39
EBITDA Growth (1y) % EBITDA 1y % (Qtr) -84.62 -30.05
EBIT Growth (1y) % EBIT 1y % (Qtr) -95.25 -31.27
EBT Growth (1y) % EBT 1y % (Qtr) -95.25 -32.05
EPS Growth (1y) % EPS 1y % (Qtr) -92.70 -25.62
FCF Growth (1y) % FCF 1y % (Qtr) 97.30 341.90
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) -27.71 -14.63
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.86 1.00
Cash Payout Ratio Cash Payout (Qtr) 0.00 0.13
Cash Ratio Cash Ratio 0.00 0.23
Current Ratio Current Ratio 0.00 0.81
Debt to Equity Ratio Debt/Equity (Qtr) 0.96 0.58
Interest Cover Ratio Interest Cover Ratio 0.00 142.03
Times Interest Earned Times Interest Earned 0.00 142.03
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 1.10 10.57
EBIT Margin % EBIT Margin % (Qtr) 0.29 9.64
EBT Margin % EBT Margin % (Qtr) 0.29 9.44
Gross Margin % Gross Margin % (Qtr) 13.40 22.26
Net Profit Margin % Net Margin % (Qtr) 0.40 7.17