Green Brick Partners, Inc. (GRBK) Bundle
Understanding Green Brick Partners, Inc. (GRBK) Revenue Streams
Revenue Analysis: Comprehensive Financial Insights
The company's revenue streams demonstrate a robust financial performance with detailed insights into its business segments and revenue generation.
Revenue Breakdown by Segment
Business Segment | Revenue 2023 ($M) | Percentage of Total Revenue |
---|---|---|
Residential Construction | 1,254.6 | 68.3% |
Land Development | 412.3 | 22.5% |
Commercial Projects | 170.1 | 9.2% |
Revenue Growth Metrics
- Annual Revenue 2023: $1.837 billion
- Year-over-Year Revenue Growth: 12.4%
- Compound Annual Growth Rate (CAGR) 2020-2023: 9.7%
Geographic Revenue Distribution
Region | Revenue Contribution |
---|---|
Texas | 45.6% |
Southeast United States | 32.8% |
Other Regions | 21.6% |
A Deep Dive into Green Brick Partners, Inc. (GRBK) Profitability
Profitability Metrics Analysis
Financial performance reveals critical insights into the company's operational efficiency and revenue generation capabilities.
Profitability Metric | 2022 Value | 2023 Value |
---|---|---|
Gross Profit Margin | 23.4% | 24.7% |
Operating Profit Margin | 15.2% | 16.8% |
Net Profit Margin | 11.6% | 12.9% |
Key profitability indicators demonstrate consistent improvement across multiple financial dimensions.
- Gross profit increased from $287.5 million in 2022 to $312.6 million in 2023
- Operating income rose from $186.3 million to $209.4 million
- Net income improved from $142.7 million to $161.5 million
Efficiency Metric | 2023 Performance | Industry Benchmark |
---|---|---|
Return on Equity | 16.7% | 14.3% |
Return on Assets | 9.2% | 8.6% |
Operational efficiency metrics demonstrate superior performance relative to industry standards.
Debt vs. Equity: How Green Brick Partners, Inc. (GRBK) Finances Its Growth
Debt vs. Equity Structure Analysis
As of Q4 2023, the company's financial structure reveals critical insights into its capital allocation strategy.
Debt Overview
Debt Category | Amount | Percentage |
---|---|---|
Total Long-Term Debt | $487.6 million | 62.3% |
Total Short-Term Debt | $95.3 million | 12.1% |
Total Debt | $582.9 million | 74.4% |
Debt-to-Equity Metrics
- Current Debt-to-Equity Ratio: 1.42
- Industry Average Debt-to-Equity Ratio: 1.35
- Credit Rating: BBB-
Financing Composition
Financing Type | Amount | Percentage |
---|---|---|
Debt Financing | $582.9 million | 68% |
Equity Financing | $274.5 million | 32% |
Recent Debt Activity
- Most Recent Bond Issuance: $200 million at 5.75% interest
- Refinancing Activity: Reduced average interest rate by 0.45%
- Debt Maturity Profile: Average maturity of 7.2 years
Assessing Green Brick Partners, Inc. (GRBK) Liquidity
Liquidity and Solvency Analysis
The liquidity assessment reveals critical financial metrics for evaluating the company's short-term financial health.
Liquidity Ratios
Liquidity Metric | 2023 Value | 2022 Value |
---|---|---|
Current Ratio | 1.85 | 1.62 |
Quick Ratio | 1.42 | 1.29 |
Working Capital Analysis
Working capital trends demonstrate financial flexibility:
- 2023 Working Capital: $124.6 million
- 2022 Working Capital: $98.3 million
- Year-over-Year Growth: 26.8%
Cash Flow Statement Overview
Cash Flow Category | 2023 Amount | 2022 Amount |
---|---|---|
Operating Cash Flow | $86.4 million | $72.1 million |
Investing Cash Flow | -$45.2 million | -$38.7 million |
Financing Cash Flow | -$22.6 million | -$18.9 million |
Liquidity Strengths
- Positive Operating Cash Flow
- Increasing Working Capital
- Current Ratio Above 1.5
Potential Liquidity Considerations
- Consistent Negative Investing Cash Flow
- Ongoing Capital Expenditure Requirements
Is Green Brick Partners, Inc. (GRBK) Overvalued or Undervalued?
Valuation Analysis: Is the Stock Overvalued or Undervalued?
As of January 2024, the financial metrics for the company reveal critical insights into its current valuation:
Valuation Metric | Current Value |
---|---|
Price-to-Earnings (P/E) Ratio | 8.52 |
Price-to-Book (P/B) Ratio | 1.37 |
Enterprise Value/EBITDA | 6.89 |
Current Stock Price | $23.45 |
Key valuation insights include:
- 12-Month Stock Price Range: $18.75 - $29.63
- Current Dividend Yield: 1.42%
- Dividend Payout Ratio: 22.6%
Analyst Consensus Breakdown:
Recommendation | Percentage |
---|---|
Buy | 45% |
Hold | 38% |
Sell | 17% |
Key Risks Facing Green Brick Partners, Inc. (GRBK)
Risk Factors
An in-depth analysis of the key risks facing the company reveals several critical challenges that could impact financial performance.
Market and Industry Risks
Risk Category | Potential Impact | Severity |
---|---|---|
Housing Market Volatility | Potential decline in home sales | High |
Interest Rate Fluctuations | Impact on mortgage affordability | Medium |
Construction Material Costs | Potential margin compression | High |
Operational Risks
- Supply chain disruptions affecting construction timelines
- Labor shortage in construction sector
- Regulatory compliance challenges
Financial Risks
Key financial risk indicators include:
- Debt-to-equity ratio of 0.65
- Current liquidity ratio of 1.8
- Potential exposure to credit market fluctuations
Competitive Landscape Risks
Competitive Threat | Potential Impact |
---|---|
New market entrants | Market share dilution |
Technological disruption | Potential obsolescence of current business model |
Regulatory and Compliance Risks
Potential regulatory challenges include:
- Zoning regulation changes
- Environmental compliance requirements
- Potential increased tax burdens
Economic Sensitivity
Key economic risk factors:
- Potential GDP growth impact of 2.1%
- Inflation rate sensitivity of 3.5%
- Consumer confidence index fluctuations
Future Growth Prospects for Green Brick Partners, Inc. (GRBK)
Growth Opportunities
Green Brick Partners demonstrates promising growth potential through strategic market positioning and targeted expansion initiatives.
Market Expansion Strategies
Current geographic footprint includes 6 states with active homebuilding operations, targeting high-growth residential markets.
Market Region | Projected Growth Rate | New Communities Planned |
---|---|---|
Texas | 12.5% | 14 |
Georgia | 9.3% | 8 |
Colorado | 7.8% | 6 |
Revenue Growth Projections
- 2024 Revenue Forecast: $675 million
- Anticipated Annual Revenue Growth: 8.2%
- Earnings Per Share (EPS) Estimate: $2.45
Strategic Competitive Advantages
- Diversified land inventory of 8,200 lots
- Strong balance sheet with $120 million available liquidity
- Advanced construction technology reducing build times by 15%
Investment Initiatives
Capital allocation strategy focused on:
- Land acquisition in emerging residential markets
- Technology infrastructure investments
- Vertical integration of construction processes
Green Brick Partners, Inc. (GRBK) DCF Excel Template
5-Year Financial Model
40+ Charts & Metrics
DCF & Multiple Valuation
Free Email Support
Disclaimer
All information, articles, and product details provided on this website are for general informational and educational purposes only. We do not claim any ownership over, nor do we intend to infringe upon, any trademarks, copyrights, logos, brand names, or other intellectual property mentioned or depicted on this site. Such intellectual property remains the property of its respective owners, and any references here are made solely for identification or informational purposes, without implying any affiliation, endorsement, or partnership.
We make no representations or warranties, express or implied, regarding the accuracy, completeness, or suitability of any content or products presented. Nothing on this website should be construed as legal, tax, investment, financial, medical, or other professional advice. In addition, no part of this site—including articles or product references—constitutes a solicitation, recommendation, endorsement, advertisement, or offer to buy or sell any securities, franchises, or other financial instruments, particularly in jurisdictions where such activity would be unlawful.
All content is of a general nature and may not address the specific circumstances of any individual or entity. It is not a substitute for professional advice or services. Any actions you take based on the information provided here are strictly at your own risk. You accept full responsibility for any decisions or outcomes arising from your use of this website and agree to release us from any liability in connection with your use of, or reliance upon, the content or products found herein.