We are engaged in the design, construction and sale of new homes in markets in Texas, Arizona, Florida, Georgia, New Mexico, Colorado, North Carolina, South Carolina, Washington, Tennessee, Minnesota, Oklahoma, Alabama, California, Oregon, Nevada, West Virginia, Virginia, Pennsylvania, Maryland and Utah. Our management team has been in the residential land development business since the…
Operating margin is thin at 4.68%. Limited cushion if revenue slows or costs rise, not the profile of a wide-moat business.
Revenue declined 22.6% YoY. Margins deteriorated 5.0pp alongside, both lines moving the wrong way.
ROIC dropped from 4.50% to 1.48%, capital efficiency is deteriorating. Negative free cash flow of -$141M. The business is consuming cash, not generating it.
Profitability & Returns
Revenue (TTM)
$1.67B
▼ -22.6% YoY
Net Income (TTM)
$71M
▼ -63.0% YoY
Op. Margin
4.72%
▼ -5.0pp YoY
ROIC
1.38%
▼ -3.0pp YoY
Cash Flow & Balance Sheet
FCF (TTM)
-$69M
▲ +3.3% YoY
Op. Cash Flow (TTM)
-$68M
▲ +2.6% YoY
Net Debt
$1.65B
Cash & Equiv.
$61M
5Y CAGR: -6.4%
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