Beazer Homes USA, Inc. (BZH) Fundamental Analysis: Bull vs. Bear Case

BZH

Beazer Homes USA, Inc.

Fundamental data last updated:June 14, 2026

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company profile

SECTOR

Consumer Cyclical

industry

Residential Construction

Exchange

NYSE

County of HQ

US

Next Earnings Date

07/30/2026

Business Summary

Beazer Homes USA, Inc. operates as a homebuilder in the United States. It designs, constructs, and sells single-family and multi-family homes under the Beazer Homes, Gatherings, and Choice Plans names. The company sells its homes through commissioned new home sales counselors and independent brokers in Arizona, California, Nevada, Texas, Delaware, Maryland, Indiana, Tennessee, Virginia, Florida, Georgia, North Carolina, and South Carolina. Beazer Homes USA, Inc. was founded in 1985 and is headquartered in Atlanta, Georgia.

VALUATION

P/E

-184.38

Market Cap ($M USD)

$687.99M

Forward P/E

17.91 PEG

0.02 PRICE TO SALES

0.33 PRICE TO BOOK

0.60 EV / EBITDA

1506.56

5-Year Average P/E

Free Cash Flow Yield

-10.13%

DCF Value

$22.68

Graham Number

N/A

Price to FCF

-9.87

EV to FCF

-26.16

Earnings Yield

-0.54%

FCF Yield

-10.13%

DIVIDEND

Yield

0.00%

Annual Payout

$0.00

Payout Ratio

0.00%

Consecutive Years of Dividend Growth

5-Year Dividend Growth Rate

Financial Health & Profitability

Earnings Per Share

-$0.14

Next Year EPS Growth Estimate

$1.41

Next Year Revenue Growth Estimate

$241.46B

Return on Equity (ROE)

-0.32%

FREE CASH FLOW

Operating Margin

-1.41%

Debt-to-Equity

0.85 Piotroski F-Score

4 Altman Z-Score

2.16 Return on Invested Capital (ROIC)

-1.18%

Current Ratio

10.24 Quick Ratio

0.86 Net Debt to EBITDA

937.97 Interest Coverage

0.00 Gross Profit margin

12.95%

FCF PER SHARE

$-2.49

REVENUE PER SHARE

$75.41

Gainseekers Quantitative Analysis

Summary

The market seems to be mispricing Beazer Homes USA, Inc. relative to its DCF value, as recent pricing indicated it traded below this intrinsic valuation. Despite a forward P/E of 10.19 suggesting potential growth, the negative earnings yield and a concerning Altman Z-score of 2.10 highlight financial vulnerability. The company’s negative ROIC and operating margin further underscore execution challenges. While the stock’s valuation metrics like Price/Book and Price/Sales appear attractive, these are overshadowed by its precarious financial health and negative earnings performance.

AI Exposure / Tech Reliance

In the residential construction industry, Beazer Homes faces challenges in adapting to AI and tech shifts, given the sector's traditional nature. However, advancements in smart home technology and construction automation could offer opportunities for innovation. The company's ability to integrate these technologies will be crucial for future resilience.

The Bull Case

For value or GARP investors, Beazer Homes presents a compelling opportunity due to its low Price/Book ratio and a forward PEG of 0.007, indicating undervaluation relative to growth. The Piotroski F-Score of 4 suggests moderate financial health, while the high current ratio of 10.24 indicates strong liquidity. Despite negative FCF yield, the potential for significant sales growth next year could enhance pricing power and capital efficiency.

The Bear Case

The bear case for Beazer Homes is stark, with a negative EPS and an alarming EV to EBITDA ratio of 1361.99, signaling severe valuation concerns. The company's negative FCF yield and high net debt to EBITDA ratio of 937.97 highlight cash flow struggles and leverage risks. Additionally, the stock's proximity to its 52-week low suggests technical weakness, further exacerbated by a lack of dividend yield.

Market Sentiment & Smart Money

Short Interest %

Analyst Consensus

Hold

Average Analyst Price Target

$41.00

Institutional Ownership %

1-Year Beta

2.15 Insider Buying % (6 Mo)

Distance to 52-Week High

12.55%

Distance to 52-Week Low

29.16%

EARNINGS SURPRISE %

95.83%

50-DAY SMA

$21.33

200-DAY SMA

$22.95

⚠️ Financial Disclaimer:
This content is for informational purposes only and is not financial advice. Information may be delayed or inaccurate. We may earn a commission from partner links.