Green Brick Partners, Inc.
Green Brick Partners, Inc. Fundamental Analysis
Green Brick Partners, Inc. (GRBK) shows moderate financial fundamentals with a PE ratio of 9.00, profit margin of 14.93%, and ROE of 17.70%. The company generates $2.1B in annual revenue with weak year-over-year growth of -0.02%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 64.3/100 based on profitability, valuation, growth, and balance sheet metrics. The C+ grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze GRBK's fundamental strength across five key dimensions:
Efficiency Score
ExcellentGRBK demonstrates superior asset utilization.
Valuation Score
ExcellentGRBK trades at attractive valuation levels.
Growth Score
WeakGRBK faces weak or negative growth trends.
Financial Health Score
ExcellentGRBK maintains a strong and stable balance sheet.
Profitability Score
ModerateGRBK maintains healthy but balanced margins.
Key Financial Metrics
Is GRBK Expensive or Cheap?
P/E Ratio
GRBK trades at 9.00 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, GRBK's PEG of -1.29 indicates potential undervaluation.
Price to Book
The market values Green Brick Partners, Inc. at 1.52 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 6.33 times EBITDA. This is generally considered low.
How Well Does GRBK Make Money?
Net Profit Margin
For every $100 in sales, Green Brick Partners, Inc. keeps $14.93 as profit after all expenses.
Operating Margin
Core operations generate 19.51 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $17.70 in profit for every $100 of shareholder equity.
ROA
Green Brick Partners, Inc. generates $12.35 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Green Brick Partners, Inc. produces operating cash flow of $213.92M, showing steady but balanced cash generation.
Free Cash Flow
Green Brick Partners, Inc. produces free cash flow of $209.11M, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $4.80 in free cash annually.
FCF Yield
GRBK converts 7.39% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
9.005
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-1.29
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.52
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.35
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.18
vs 25 benchmark
Current Ratio
Current assets to current liabilities
8.47
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.18
vs 25 benchmark
ROA
Return on assets percentage
0.12
vs 25 benchmark
ROCE
Return on capital employed
0.18
vs 25 benchmark
How GRBK Stacks Against Its Sector Peers
| Metric | GRBK Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 9.00 | 23.52 | Better (Cheaper) |
| ROE | 17.70% | 1156.00% | Weak |
| Net Margin | 14.93% | 670.00% | Weak |
| Debt/Equity | 0.18 | 0.73 | Strong (Low Leverage) |
| Current Ratio | 8.47 | 2.56 | Strong Liquidity |
| ROA | 12.35% | -8289.00% (disorted) | Strong |
GRBK outperforms its industry in 4 out of 6 key metrics, particularly excelling in ROA, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Green Brick Partners, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
148.28%
Industry Style: Cyclical, Growth, Discretionary
High GrowthEPS CAGR
218.14%
Industry Style: Cyclical, Growth, Discretionary
High GrowthFCF CAGR
-100.00%
Industry Style: Cyclical, Growth, Discretionary
Declining