Our Company We are engaged in the design, construction, and sale of single-family homes in some of the highest growth and most desirable markets in the Southeastern and Southern United States. We employ an efficient land-light, production focused, and conservatively leveraged business model, which we believe results in a compelling combination of strong home closing gross margins, construction …
Operating margin is thin at 7.45%. Limited cushion if revenue slows or costs rise, not the profile of a wide-moat business.
Revenue declined 0.4% YoY. Margins deteriorated 4.8pp alongside, both lines moving the wrong way.
Free cash flow declined 342% versus the prior year, cash generation momentum has weakened. Negative free cash flow of -$37M. The business is consuming cash, not generating it.
Profitability & Returns
Revenue (TTM)
$953M
▼ -0.4% YoY
Net Income (TTM)
$9M
▼ -33.5% YoY
Op. Margin
5.92%
▼ -4.8pp YoY
ROIC
37.62%
▲ +3.4pp YoY
Cash Flow & Balance Sheet
FCF (TTM)
-$1M
▼ -341.8% YoY
Op. Cash Flow (TTM)
$4M
▼ -263.8% YoY
Net Debt
$42M
Cash & Equiv.
$28M
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