Beazer Homes Current Valuation vs. Return On Equity
| 0HMG Stock | 33.74 0.56 1.69% |
For Beazer Homes profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Beazer Homes to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Beazer Homes USA utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Beazer Homes's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Beazer Homes USA over time as well as its relative position and ranking within its peers.
Beazer |
Beazer Homes USA Return On Equity vs. Current Valuation Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Beazer Homes's current stock value. Our valuation model uses many indicators to compare Beazer Homes value to that of its competitors to determine the firm's financial worth. Beazer Homes USA is rated fifth in current valuation category among its peers. It is rated third in return on equity category among its peers . The ratio of Current Valuation to Return On Equity for Beazer Homes USA is about 15,949,394,498 . The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Beazer Homes' earnings, one of the primary drivers of an investment's value.Beazer Current Valuation vs. Competition
Beazer Homes USA is rated fifth in current valuation category among its peers. After adjusting for long-term liabilities, total market size of Industrials industry is presently estimated at about 130.53 Billion. Beazer Homes claims roughly 2.06 Billion in current valuation contributing just under 2% to equities under Industrials industry.
Beazer Return On Equity vs. Current Valuation
Enterprise Value is a firm valuation proxy that approximates the current market value of a company. It is typically used to determine the takeover or merger price of a firm. Unlike Market Cap, this measure takes into account the entire liquid asset, outstanding debt, and exotic equity instruments that the company has on its balance sheet. When a takeover occurs, the parent company will have to assume the target company's liabilities but will take possession of all cash and cash equivalents.
Beazer Homes |
| = | 2.06 B |
Enterprise Value can be a useful tool to compare companies with different capital structures. Long term liability and current cash or cash equivalents can have a huge impact on market valuation of a given company.
Return on Equity or ROE tells company stockholders how effectually their money is being utilized or reinvested. It is a useful ratio when analyzing company profitability or the management effectiveness given the capital invested by the shareholders. ROE shows how efficiently a company utilizes investments to generate income.
Beazer Homes |
| = | 0.13 |
For most industries, Return on Equity between 10% and 30% are considered desirable to provide dividends to owners and have funds for the future growth of the company. Investors should be very careful using ROE as the only efficiency indicator because ROE can be high if a company is heavily leveraged.
Beazer Return On Equity Comparison
Beazer Homes is currently under evaluation in return on equity category among its peers.
Beazer Homes Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Beazer Homes, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Beazer Homes will eventually generate negative long term returns. The profitability progress is the general direction of Beazer Homes' change in net profit over the period of time. It can combine multiple indicators of Beazer Homes, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
| Last Reported | Projected for Next Year | ||
| Operating Income | 203.8 M | 214 M | |
| Income Before Tax | 210 M | 220.5 M | |
| Total Other Income Expense Net | 6.2 M | 6.5 M | |
| Net Income | 182.4 M | 191.5 M | |
| Income Tax Expense | 21.6 M | 41 M | |
| Interest Income | 2 M | 1.9 M | |
| Net Income Applicable To Common Shares | 182.4 M | 191.5 M | |
| Change To Netincome | 30.2 M | 54.3 M |
Beazer Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Beazer Homes. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Beazer Homes position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Beazer Homes' important profitability drivers and their relationship over time.
Use Beazer Homes in pair-trading
One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Beazer Homes position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Beazer Homes will appreciate offsetting losses from the drop in the long position's value.Beazer Homes Pair Trading
Beazer Homes USA Pair Trading Analysis
The ability to find closely correlated positions to Beazer Homes could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Beazer Homes when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Beazer Homes - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Beazer Homes USA to buy it.
The correlation of Beazer Homes is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Beazer Homes moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Beazer Homes USA moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Beazer Homes can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.Use Investing Themes to Complement your Beazer Homes position
In addition to having Beazer Homes in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.Did You Try This Idea?
Run Transportation Thematic Idea Now
Transportation
Fama and French investing themes focus on testing asset pricing under different economic assumptions. The Transportation theme has 61 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Transportation Theme or any other thematic opportunities.
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Additional Tools for Beazer Stock Analysis
When running Beazer Homes' price analysis, check to measure Beazer Homes' market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Beazer Homes is operating at the current time. Most of Beazer Homes' value examination focuses on studying past and present price action to predict the probability of Beazer Homes' future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Beazer Homes' price. Additionally, you may evaluate how the addition of Beazer Homes to your portfolios can decrease your overall portfolio volatility.