Beazer Homes USA Stock Analysis, Valuation (NYSE:BZH)

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$12.79 $0.31 (2.48%) BZH stock closing price Aug 16, 2018 (Closing)

View the Beazer Homes USA stock analysis video on Amigobulls. Our analyst opinion covering the buy and sell arguments for BZH stock is shown in the video.

Note: Amigobulls stock rating is our opinion based on the historical performance of the company's fundamentals. It is not indicative of the future performance of the stock.

Beazer Homes USA, Inc. Stock Rating 2.3/5

Amigobulls BZH stock analysis relies on business fundamentals such as Beazer Homes USA revenue growth, profits and return on equity measures from the latest quarter 2018 Q3 earnings. We compare Beazer Homes USA valuation with its sector peers to gauge relative attractiveness of BZH stock. Beazer Homes USA stock rating encapsulates our opinion about the company based on the fundamentals.

Should you buy BZH stock?

  • Long term revenue growth has been strong with a 5 year compounded annual growth of 10.5.
  • The Beazer Homes USA stock currently trades at a price to earnings ratio of 6.4, compared to the sector average of 19.8. We rate this as a positive.
  • When compared with the Construction sector average PS ratio of 0.8, the price-to-sales ratio of 0.2 for BZH stock is attractive.

Should you sell BZH stock?

  • Beazer Homes USA's TTM operating margin of 3.77 was rather poor.
  • Over the last 12 months, Beazer Homes USA had an average Net loss of -3.6%.
  • With a debt/equity ratio of 2.28, Beazer Homes USA is highly leveraged in comparison to Construction peers.
  • The company's operations consume more cash than it generates. This is not a healthy sign.
  • The company has a negative Return on Invested Capital of -6.5, which is a red flag.
  • A negative ROE of -11.9 indicates that the company is not able to generate profits with the money shareholders have invested.
  • The company has a negative free cash flow margin of -4.5.

Comments on this video and Beazer Homes USA stock

Amigobulls Beazer Homes USA stock analysis helps investors in understanding how the company's fundamentals have performed in the last few quarters. Fundamental analysis of a company is the most often used approach to find the intrinsic value of a stock.

While doing a study of the company financials, Beazer Homes USA revenue growth and profit or net income are two main metrics which help in identifying whether BZH stock is overvalued or undervalued. Investors could make use of BZH technical analysis to check whether the fundamental story is reflected in the market sentiment.