Willian Lyon Homes Stock Analysis, Valuation (NYSE:WLH)

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$25.73 $0.31 (1.22%) WLH stock closing price Feb 16, 2018 (Closing)
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Willian Lyon Homes
Updated on : Feb 16, 2018
previous close
WLH 25.7 (0%)
S&P 500 2732.2 (0%)
Closing Price On: Feb 16, 2018
stock rating
RATING: ★★★★★★★★★★ (0/5)
Industry :
Building-Residential-Commercial
Sector :
Construction
5 Quarter Revenue
Revenue Growth
2017-Q3
$million
%
YOY GROWTH
Compared to the industry
Long Term Growth
5 Year CAGR:
36.6%
Operating Profit
Operating Margin:
7%
Sector Average:
7.8%
5 Quarter Net Profit
Net Margins
2017-Q3
%
LTM Margin
Compared to the industry
Debt/Equity Ratio
Debt:
1.1B
Debt/Equity Ratio:
 1.33
Compared to the industry
Cash Flow
Operating cash flow:
$43.8M
Net Income:
$27.4M
PROS      CONS
Recent Growth
Long Term Growth
Cash Flow
FCF Margin
PE Valuation
PS Valuation
High Debt Burden
ROIC
Rating: ★★★★★★★★★★ (0/5)
Relative Valuation
WLH PS :
0.6
Industry PS :
1
Sector:   Construction.   *PE adjusted for one time items.
Other Metrics
Return on Invested Capital:
4.3%
Return on Equity:
7.6%
Free Cash Flow Margin:
8.5%
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WLH Stock Analysis

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Take a look at Amigobulls Willian Lyon Homes stock analysis video. Our analyst opinion covering the buy and sell arguments for WLH 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.

William Lyon Homes Stock Rating 2.9/5

Amigobulls WLH stock analysis takes into account various financial ratios like relative valuation, Willian Lyon Homes revenue, growth and return on equity based on latest quarter 2017 Q3 financial statements. We also check Willian Lyon Homes dividend performance. Willian Lyon Homes valuation analysis is based on relative valuation multiples like PE ratio and price to sales ratio. Our Willian Lyon Homes stock rating is based on company's fundamentals like balance sheet risk and cash flow position.

Should you buy WLH stock?

  • Willian Lyon Homes's revenue growth came in at 43.1% in 2017 Q3.
  • The company saw a significant growth in revenue with a 5 year CAGR of 36.6%.
  • The company has an operating cash flow which is 1.6 times the net income. We see this as a positive signal.
  • WLH stock is trading at an earnings multiple of 13.5 which is better than the industry average of 21.1.
  • When compared with the Building-Residential-Commercial industry average PS ratio of 1, the price-to-sales ratio of 0.6 for WLH stock is attractive.
  • Willian Lyon Homes has a healthy FCF (Free Cash Flow) margin of 8.5%.

Should you sell WLH stock?

  • Willian Lyon Homes has a debt/equity ratio of  1.33, which is worse than the average in the Construction sector.
  • Willian Lyon Homes has a poor return on invested capital of 4.3%.

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Comments on this video and Willian Lyon Homes stock

Investors can use Amigobulls Willian Lyon Homes stock analysis as a tool to arrive at accurate conclusions regarding financial health of the company and its valuation. Fundamental analysis of a company is the most often used approach to find the intrinsic value of a stock.

Among the financials of the company, Willian Lyon Homes revenue growth along with the profit or net income give a clear picture of the financial health. One can also combine technical analysis and fundamental analysis to get a holistic picture about WLH stock.