Breaking Down Green Brick Partners, Inc. (GRBK) Financial Health: Key Insights for Investors

Breaking Down Green Brick Partners, Inc. (GRBK) Financial Health: Key Insights for Investors

US | Consumer Cyclical | Residential Construction | NYSE

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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

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