Beazer Homes Usa Inc (BZH) Stock Analysis and Metrics

Beazer Homes Usa

NYSE: BZH

$33.17 ▲ +0.38 (+1.17%)

At close: Jul 24, 2026 · 3:59 PM UTC

Financial Ratios

Market Cap929.84 Mn

P/E-27.40

P/S0.44

Div. Yield0.00

ROIC (Qtr)0.00

Revenue Growth (1y) (Qtr)-27.50

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About

Beazer Homes USA Inc is a homebuilder engaged in the development design construction marketing and sale of single-family homes across multiple states in the United States. The company focuses on creating homes and communities that emphasize energy efficiency healthier living and personalized buyer options. It operates in 13 states spanning the West East and Southeast regions of the country.

Beazer Homes USA Inc generates revenue primarily through the sale of newly constructed homes to individual homebuyers. The company offers a range of home designs and floorplans tailored to different buyer segments including entry-level move-up and age-restricted communities. Revenue is derived from home sales closings where customers purchase homes either to be built or as speculative inventory. Additional revenue components include mortgage-related services facilitated through third-party Choice Lenders and various home personalization options such as Style Choice and Choice Plans that enhance the homebuying experience without direct additional cost to the buyer in many cases.

The company operates through the following segments: West East and Southeast.

• The West segment includes homebuilding operations in Arizona California Nevada and Texas. This segment encompasses major metropolitan areas such as Phoenix Riverside-San Bernardino Sacramento San Diego Las Vegas Dallas/Ft. Worth Houston and San Antonio. It represents the largest portion of the company's land holdings and homebuilding activity as reflected in lot counts and backlog values.

• The East segment covers operations in Indiana Maryland/Delaware Tennessee and Virginia. Key markets include Indianapolis Baltimore Salisbury Washington D. C. Nashville and surrounding areas. This segment contributes significantly to the company's geographic diversity and backlog with a balanced mix of lot ownership and development activity.

• The Southeast segment comprises homebuilding in Florida Georgia North Carolina and South Carolina. Active markets are located in Orlando Atlanta Raleigh/Durham and Charleston/Myrtle Beach. This segment shows strong lot ownership particularly in finished lots indicating readiness for near-term home construction and sales.

Beazer Homes USA Inc competes in a highly fragmented residential homebuilding industry where it faces competition from national builders with greater scale as well as numerous regional and local homebuilders. The company differentiates itself through strategic focus on energy efficiency indoor air quality noise reduction and personalized customer experiences including mortgage choice and design flexibility. Its average HERS index score of 32 for newly constructed homes significantly outperforms both typical resale homes and code-built homes indicating a leadership position in energy-efficient construction.

Beazer Homes USA Inc serves individual homebuyers seeking to purchase new single-family homes. Its customer base includes first-time buyers move-up buyers and individuals looking for 55+ age-restricted communities under the Gatherings brand. The company does not disclose specific customer names in its filing as its sales are made to private individuals rather than institutional or corporate clients.

Investment Thesis

▲ Bull case

Beazer’s commitment to building Zero Energy Ready homes creates a structural advantage that is likely to drive long term demand and margin expansion. The company has invested in advanced insulation high efficiency HVAC systems and energy recovery ventilators which lower utility costs for homeowners by hundreds of dollars each month. This operating cost advantage is not fully reflected in the current sale price leaving room for price appreciation as buyers recognize the total cost of ownership benefit. As utility rates and insurance premiums continue to rise the value proposition of lower monthly expenses becomes more compelling supporting pricing power and potential gross margin improvement over time.
The differentiated product and customer experience strategy is building brand loyalty that translates into pricing power and repeat business. Beazer highlights its top ranking in energy efficiency and its highest rated national homebuilder status for customer service according to TrustBuilder. Initiatives such as the movable wall panel demonstrations in model homes provide a tangible way to communicate construction quality to buyers and realtors. Educational seminars and targeted marketing efforts help first time buyers and empty nesters understand the long term value of lower utility bills mortgage flexibility and reduced insurance costs reinforcing the company’s premium positioning.
Share repurchases executed at a significant discount to book value are generating accretive returns for shareholders. Year to date the company has bought back about 1.5 million shares at an average price just over twenty two dollars while book value per share exceeds forty one dollars. With eighty seven million dollars remaining on the authorization the board can continue to allocate capital to buybacks as long as the share price stays below intrinsic value. This capital allocation not only boosts earnings per share but also increases book value per share supporting the multiyear goal of a mid fifty dollar book value by the end of fiscal twenty twenty seven.
The land light strategy driven by increased use of option contracts is positioning Beazer for accelerated growth when market conditions improve. Over the past five years the option lot percentage has doubled to sixty% raising active controlled lots by more than fifty five% while reducing owned lot exposure. This structure improves asset turnover and preserves capital allowing the company to increase community count without a proportional rise in debt. With one hundred sixty seven active communities and nearly twenty seven thousand active lots under control Beazer has a clear path to exceed two hundred communities by fiscal twenty twenty seven.
Management’s multiyear goals provide a concrete roadmap for value creation that is underpinned by improving profitability and disciplined capital allocation. The target to reach a net debt to net capitalization ratio in the low thirty% range by fiscal twenty twenty seven relies on rising community count and slowed land spend to accelerate deleveraging. The goal to generate a double digit compound annual growth rate in book value per share through the same period is supported by ongoing share repurchases and steady margin expansion. Achieving these objectives would create a platform for significant top and bottom line growth and enhance shareholder returns over the long term.

Beazer’s commitment to building Zero Energy Ready homes creates a structural advantage that is likely to drive long term demand and margin expansion. The company has invested in advanced insulation high efficiency HVAC systems and energy recovery ventilators which lower utility costs for homeowners by hundreds of dollars each month. This operating cost advantage is not fully reflected in the current sale price leaving room for price appreciation as buyers recognize the total cost of ownership benefit. As utility rates and insurance premiums continue to rise the value proposition of lower monthly expenses becomes more compelling supporting pricing power and potential gross margin improvement over time.
The differentiated product and customer experience strategy is building brand loyalty that translates into pricing power and repeat business. Beazer highlights its top ranking in energy efficiency and its highest rated national homebuilder status for customer service according to TrustBuilder. Initiatives such as the movable wall panel demonstrations in model homes provide a tangible way to communicate construction quality to buyers and realtors. Educational seminars and targeted marketing efforts help first time buyers and empty nesters understand the long term value of lower utility bills mortgage flexibility and reduced insurance costs reinforcing the company’s premium positioning.
Share repurchases executed at a significant discount to book value are generating accretive returns for shareholders. Year to date the company has bought back about 1.5 million shares at an average price just over twenty two dollars while book value per share exceeds forty one dollars. With eighty seven million dollars remaining on the authorization the board can continue to allocate capital to buybacks as long as the share price stays below intrinsic value. This capital allocation not only boosts earnings per share but also increases book value per share supporting the multiyear goal of a mid fifty dollar book value by the end of fiscal twenty twenty seven.
The land light strategy driven by increased use of option contracts is positioning Beazer for accelerated growth when market conditions improve. Over the past five years the option lot percentage has doubled to sixty% raising active controlled lots by more than fifty five% while reducing owned lot exposure. This structure improves asset turnover and preserves capital allowing the company to increase community count without a proportional rise in debt. With one hundred sixty seven active communities and nearly twenty seven thousand active lots under control Beazer has a clear path to exceed two hundred communities by fiscal twenty twenty seven.
Management’s multiyear goals provide a concrete roadmap for value creation that is underpinned by improving profitability and disciplined capital allocation. The target to reach a net debt to net capitalization ratio in the low thirty% range by fiscal twenty twenty seven relies on rising community count and slowed land spend to accelerate deleveraging. The goal to generate a double digit compound annual growth rate in book value per share through the same period is supported by ongoing share repurchases and steady margin expansion. Achieving these objectives would create a platform for significant top and bottom line growth and enhance shareholder returns over the long term.

▼ Bear case

The Texas market continues to drag on overall sales performance revealing a vulnerability in the company’s geographic mix. Sales pace in Texas averaged only thirteen tenths of a home per community per month during the third quarter well below the historical range of one point nine to three point one. This weakness appears linked to a buildup of new home inventory that has pressured both traffic and conversion rates. Until the Texas market absorbs excess inventory and sales rates recover the company’s overall results will remain subdued.
An elevated proportion of speculative homes in the closing mix is exerting pressure on gross margin stability. The company reports that specs to built ratio is consistently in the high sixty to low seventy% range which is higher than its historical preference for a more balanced mix. Speculative homes typically carry lower margins than build to order units and the need to offer incentives to move this inventory further erodes profitability. If the spec mix remains elevated the adjusted gross margin may struggle to sustain the current eighteen% level.
Impairments taken in the third quarter signal that further write downs could arise if price sensitive markets persist. The company recorded modest impairments on a community in the Maricopa submarket of Phoenix and a condo community in Orlando citing deteriorating affordability and rising insurance and HOA costs. Management’s quarterly review process did not flag additional material risks but the precedent shows that shifts in local market conditions can quickly undermine the value of certain land holdings. Continued deterioration in these or similar submarkets could lead to additional earnings drag.
Macro affordability constraints are limiting the company’s ability to raise prices and are acting as a persistent headwind on demand. Rising mortgage rates elevated new and used home inventories and concerns about household income security have made consumers reluctant to commit to new home purchases despite incentives. The industry wide inelasticity of demand means that price cuts alone are unlikely to stimulate a meaningful rebound in sales volumes. Until broader economic conditions improve the top line may remain stagnant or grow only modestly.
The cost premium associated with Beazer’s differentiated product could become a drag if buyers are unwilling to pay for the incremental benefits. The average construction cost premium for Zero Energy Ready homes is estimated at around eighty five hundred dollars per home which translates to roughly fifty five dollars per month if passed on to buyers. While the operating cost savings often exceed this amount the company must effectively communicate the value proposition to justify a higher sale price. If homeowners continue to focus primarily on upfront pricing the premium may need to be absorbed compressing gross margins.

The Texas market continues to drag on overall sales performance revealing a vulnerability in the company’s geographic mix. Sales pace in Texas averaged only thirteen tenths of a home per community per month during the third quarter well below the historical range of one point nine to three point one. This weakness appears linked to a buildup of new home inventory that has pressured both traffic and conversion rates. Until the Texas market absorbs excess inventory and sales rates recover the company’s overall results will remain subdued.
An elevated proportion of speculative homes in the closing mix is exerting pressure on gross margin stability. The company reports that specs to built ratio is consistently in the high sixty to low seventy% range which is higher than its historical preference for a more balanced mix. Speculative homes typically carry lower margins than build to order units and the need to offer incentives to move this inventory further erodes profitability. If the spec mix remains elevated the adjusted gross margin may struggle to sustain the current eighteen% level.
Impairments taken in the third quarter signal that further write downs could arise if price sensitive markets persist. The company recorded modest impairments on a community in the Maricopa submarket of Phoenix and a condo community in Orlando citing deteriorating affordability and rising insurance and HOA costs. Management’s quarterly review process did not flag additional material risks but the precedent shows that shifts in local market conditions can quickly undermine the value of certain land holdings. Continued deterioration in these or similar submarkets could lead to additional earnings drag.
Macro affordability constraints are limiting the company’s ability to raise prices and are acting as a persistent headwind on demand. Rising mortgage rates elevated new and used home inventories and concerns about household income security have made consumers reluctant to commit to new home purchases despite incentives. The industry wide inelasticity of demand means that price cuts alone are unlikely to stimulate a meaningful rebound in sales volumes. Until broader economic conditions improve the top line may remain stagnant or grow only modestly.
The cost premium associated with Beazer’s differentiated product could become a drag if buyers are unwilling to pay for the incremental benefits. The average construction cost premium for Zero Energy Ready homes is estimated at around eighty five hundred dollars per home which translates to roughly fifty five dollars per month if passed on to buyers. While the operating cost savings often exceed this amount the company must effectively communicate the value proposition to justify a higher sale price. If homeowners continue to focus primarily on upfront pricing the premium may need to be absorbed compressing gross margins.

Product and Service 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/	40.90 Bn	12.75	1.23	7.11 Bn
2	PHM	Pultegroup Inc/Mi/	23.36 Bn	12.38	1.42	1.82 Bn
3	LEN	Lennar Corp /New/	19.77 Bn	9.89	0.60	0.69 Bn
4	NVR	Nvr Inc	17.18 Bn	13.87	1.75	0.91 Bn
5	TOL	Toll Brothers, Inc.	15.08 Bn	10.83	1.85	0.90 Bn
6	TMHC	Taylor Morrison Home Corp	6.96 Bn	10.26	0.91	0.79 Bn
7	IBP	Installed Building Products, Inc.	5.97 Bn	23.44	2.03	1.11 Bn
8	MTH	Meritage Homes CORP	4.78 Bn	12.51	-3.49	1.81 Bn

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Investment Thesis

Segments Breakdown of Revenue (2025)

Product and Service Breakdown of Revenue (2025)

Peer Comparison

Research Tools

Developers

About

Investment Thesis

Segments Breakdown of Revenue (2025)

Product and Service Breakdown of Revenue (2025)

Peer Comparison

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