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Category: Stock Market and Beazer Home
Date: 7 July 2020 Stock Price of Beazer (BZH): $10.11 We take a look at the 2nd quarter earnings release of their 2020 fiscal year of Beazer Homes one of America's largest homebuilders. The group received 1 661 new home orders during the 2nd quarter of their 2020 fiscal year and revenues topped $489 million.
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We generated strong second quarter results, highlighted by growth in revenue, margin and profitability, said Allan P. Merrill, Chairman and Chief Executive Officer of Beazer Homes"
About Beazer Homes
Headquartered in Atlanta, Beazer Homes (NYSE:BZH) is one of the country’s largest homebuilders. Every Beazer home is designed and built to provide Surprising Performance, giving you more quality and more comfort from the moment you move in - saving you money every month. With Beazer’s Choice Plans™, you can personalize your primary living areas - giving you a choice of how you want to live in the home, at no additional cost. And unlike most national homebuilders, we empower our customers to shop and compare loan options. Our Mortgage Choice program gives you the resources to easily compare multiple loan offers and choose the best lender and loan offer for you, saving you thousands over the life of your loan. We build our homes in Arizona, California, Delaware, Florida, Georgia, Indiana, Maryland, Nevada, North Carolina, South Carolina, Tennessee, Texas, and Virginia.
Overview of Beazers' 2nd quarter 2020 earnings report
The data below refers to the latest quarter unless specified otherwise:
Homebuilding revenue (in thousands of dollars)
- Revenues: $489.413 million (up from $421.260 million from the same quarter of the previous year)
- Revenues increased by 16.2% over the last 12 months
- Home construction and sales expenses: $410.568 million (up from $356.329 million for the same quarter of the previous year)
- Sales expenses increased by 15.2% over the last 12 months
- So margins gains for Beazer Homes as expenses increased at a slower rate than their revenues
- Net income: $10.614 million (down from -$100.860 million loss for the same quarter of the previous year)
- Diluted earnings per share: $0.36 (up from -$3.28 for the same quarter of the previous year)
- Diluted weighted-average shares outstanding: 29.975 million (down from 30.078 million for the same quarter of the previous year)
- Cash and cash equivalents: $294.265 million
- Cash and cash equivalents per share: $9.82
- Cash and cash equivalents makes up 97.1% of Beazer Homes' market capital
- Cash and cash equivalents makes up 13.1% of Beazer Homes' total assets
- Owned inventory: $1.595 billion
- Owned inventory makes up 71.2% of Beazer Homes' total assets
- Stockholders equity in Beazer Homes: $547.482 million
- Stockholders equity per share in Beazer Homes: $18.26
- So Beazer Homes is trading at 0.54 times its stockholders equity per share. It is rather unusual to see a company trading at less than its stockholders equity per share. Most firms tend to trade at between 2 and 4 times its stockholders equity per share.
Homebuilding revenue (in thousands of dollars)
- West region: $267.231
- East region: $110.011
- Southeast region: $110.744
- Total homebuilding revenue: $487.986
Beazer Homes' management commentary on their2nd quarter 2020 earnings
ATLANTA--(BUSINESS WIRE)--Apr. 30, 2020-- Beazer Homes USA, Inc. (NYSE: BZH) (www.beazer.com) today announced its financial results for the three and six months ended March 31, 2020.
“We generated strong second quarter results, highlighted by growth in revenue, margin and profitability, said Allan P. Merrill, Chairman and Chief Executive Officer of Beazer Homes. “Of course, these results were overshadowed by the effects of the COVID-19 pandemic beginning in mid-March. We have made significant operational changes to help protect the health and safety of our team, our customers and our trade partners and simultaneously taken steps to enhance our liquidity.”
“We generated strong second quarter results, highlighted by growth in revenue, margin and profitability, said Allan P. Merrill, Chairman and Chief Executive Officer of Beazer Homes. “Of course, these results were overshadowed by the effects of the COVID-19 pandemic beginning in mid-March. We have made significant operational changes to help protect the health and safety of our team, our customers and our trade partners and simultaneously taken steps to enhance our liquidity.”
- Net income from continuing operations of $10.6 million, compared to net loss from continuing operations of $100.8 million in fiscal second quarter 2019, which included an impairment charge of $147.6 million pre-tax
- Adjusted EBITDA of $43.9 million, up 34.7%
- Homebuilding revenue of $488.0 million, up 15.9% on a 12.6% increase in home closings to 1,277 and a 2.9% increase in average selling price to $382.1 thousand
- Homebuilding gross margin was 16.1%. Excluding impairments, abandonments and amortized interest, homebuilding gross margin was 20.8%, up 100 basis points
- SG&A as a percentage of total revenue was 12.0%, down 70 basis points year-over-year
- Unit orders of 1,661, up 3.9% on an increase in average community count to 167 and a slight increase in orders/community/month to 3.3
- Dollar value of backlog of $895.0 million, up 14.3%
Liquidity Update.
At the close of the second quarter, total liquidity was $294.3 million including a fully drawn $250.0 million revolving credit facility. This compares to total liquidity of $221.4 million at March 31, 2019, including cash of $86.4 million and undrawn revolving credit facility capacity of $135.0 million. As we stated in our April 6th announcement of preliminary operating results, despite an increasingly challenging business environment as a result of the COVID-19 pandemic, especially in the final weeks of March, we generated strong fiscal second quarter results.
We also ended the quarter with substantially more liquidity than in the same period in the prior year. However, due to uncertainty surrounding this ongoing public health crisis and its continued impact on the U.S. economy, we cannot predict either the near-term or long-term effects that the pandemic will have on our business. .
At the close of the second quarter, total liquidity was $294.3 million including a fully drawn $250.0 million revolving credit facility. This compares to total liquidity of $221.4 million at March 31, 2019, including cash of $86.4 million and undrawn revolving credit facility capacity of $135.0 million. As we stated in our April 6th announcement of preliminary operating results, despite an increasingly challenging business environment as a result of the COVID-19 pandemic, especially in the final weeks of March, we generated strong fiscal second quarter results.
We also ended the quarter with substantially more liquidity than in the same period in the prior year. However, due to uncertainty surrounding this ongoing public health crisis and its continued impact on the U.S. economy, we cannot predict either the near-term or long-term effects that the pandemic will have on our business. .
Beazer Homes (NYSE:BZH) stock price history
The image below, obtained from Google, shows the stock price history of Beazer Homes (NYSE: BZH) over the last 5 years. And it's not been a good time for Beazer Homes stockholders. 5 years ago the stock was trading at around $19.60, and its currently trading at $10.11 a stock. Thats a loss of -48.4% suffered by Beazer Homes over the last 5 years.
The stock of Beazer Homes is trading at close to the midpoint between its 52 week high and 52 week low, which indicates that short term sentiment and momentum of Beazer Homes' stock is neutral.
The stock of Beazer Homes is trading at close to the midpoint between its 52 week high and 52 week low, which indicates that short term sentiment and momentum of Beazer Homes' stock is neutral.
Recent coverage of Beazer Homes
The extract below covers the latest regarding Beazer Homes as obtained from Equitiesl.com
Beazer Homes USA Inc. (BZH) Soars 3.48% on July 06
Beazer Homes USA Inc. is a Beazer Homes USA Inc is an American construction company that focuses on residential construction. Beazer Homes USA Inc. (BZH) had a good day on the market for Monday July 06 as shares jumped 3.48% to close at $10.11. About 569,026 shares traded hands on 2,913 trades for the day, compared with an average daily volume of n/a shares out of a total float of 31.03 million. After opening the trading day at $10.04, shares of Beazer Homes USA Inc. stayed within a range of $10.23 to $9.85.
With today's gains, Beazer Homes USA Inc. now has a market cap of $313.69 million. Shares of Beazer Homes USA Inc. have been trading within a range of $17.23 and $4.39 over the last year, and it had a 50-day SMA of $n/a and a 200-day SMA of $n/a.
Beazer Homes USA Inc is an American construction company that focuses on residential construction. The company specializes in single-family housing and multi-unit building construction in over 13 states and over 22 metro markets. Beazer Homes builds homes and communities that target first-time, move-up, and luxury homebuyers with an average selling price of roughly $300,000. From a geographic perspective, home sales in the western and eastern United States have been the leading sources of revenue for the company. Key metro areas include Atlanta, Las Vegas, Los Angeles, Orlando, and Tampa. The company also focuses on land purchasing and development to support future construction efforts as well as mortgage services for its homebuyers.
Read the full article here
Beazer Homes USA Inc. (BZH) Soars 3.48% on July 06
Beazer Homes USA Inc. is a Beazer Homes USA Inc is an American construction company that focuses on residential construction. Beazer Homes USA Inc. (BZH) had a good day on the market for Monday July 06 as shares jumped 3.48% to close at $10.11. About 569,026 shares traded hands on 2,913 trades for the day, compared with an average daily volume of n/a shares out of a total float of 31.03 million. After opening the trading day at $10.04, shares of Beazer Homes USA Inc. stayed within a range of $10.23 to $9.85.
With today's gains, Beazer Homes USA Inc. now has a market cap of $313.69 million. Shares of Beazer Homes USA Inc. have been trading within a range of $17.23 and $4.39 over the last year, and it had a 50-day SMA of $n/a and a 200-day SMA of $n/a.
Beazer Homes USA Inc is an American construction company that focuses on residential construction. The company specializes in single-family housing and multi-unit building construction in over 13 states and over 22 metro markets. Beazer Homes builds homes and communities that target first-time, move-up, and luxury homebuyers with an average selling price of roughly $300,000. From a geographic perspective, home sales in the western and eastern United States have been the leading sources of revenue for the company. Key metro areas include Atlanta, Las Vegas, Los Angeles, Orlando, and Tampa. The company also focuses on land purchasing and development to support future construction efforts as well as mortgage services for its homebuyers.
Read the full article here
Beazer Homes (NYSE: BZH) latest stock valuation
So based on the earnings report of Beazer Homes (NYSE:BZH) what do we value Beazer Homes (BZH) stock at? Based on the earnings reported by the group our valuation model provides a target price (full value price) for Beazer Homes at $18.26 a stock (up slightly from our 1st quarter 2019 earnings report valuation of Beazer Homes). We therefore believe the stock of Beazer Homes is undervalued
We usually suggest long term fundamental and value investors look to enter the stock at least 10% below our target price, which in this case is $18.26 Therefore we believe a good entry point into the stock of Beazer Homes is at $16.43 or below.
Since the current price of Beazer Homes is trading at well below our suggested entry point we rate the stock of Beazer (BZH) as a buy
We usually suggest long term fundamental and value investors look to enter the stock at least 10% below our target price, which in this case is $18.26 Therefore we believe a good entry point into the stock of Beazer Homes is at $16.43 or below.
Since the current price of Beazer Homes is trading at well below our suggested entry point we rate the stock of Beazer (BZH) as a buy
Next earnings release of Beazer Homes (BZH)
It is expected that Beazer Homes will release their 2nd quarter 2020 earnings report in late July 2020