Landsea Homes Corporation (LSEA) Bundle
Understanding Landsea Homes Corporation (LSEA) Revenue Streams
Revenue Analysis
Landsea Homes Corporation's revenue breakdown reveals critical insights into its financial performance:
| Fiscal Year | Total Revenue | Year-over-Year Growth |
|---|---|---|
| 2022 | $1.26 billion | -12.3% |
| 2023 | $987.4 million | -21.6% |
Primary revenue sources include:
- Residential home construction
- Land development
- Real estate sales
| Revenue Segment | 2023 Contribution |
|---|---|
| Single-family homes | 68.5% |
| Multi-family developments | 22.3% |
| Land sales | 9.2% |
Geographic revenue distribution highlights:
- California: 52.4% of total revenue
- Arizona: 23.7% of total revenue
- Texas: 15.9% of total revenue
- Other markets: 8% of total revenue
A Deep Dive into Landsea Homes Corporation (LSEA) Profitability
Profitability Metrics Analysis
Landsea Homes Corporation's financial performance reveals critical profitability insights for investors:
| Profitability Metric | 2023 Value | 2022 Value |
|---|---|---|
| Gross Profit Margin | 18.4% | 16.7% |
| Operating Profit Margin | 5.2% | 4.3% |
| Net Profit Margin | 3.6% | 2.9% |
Key profitability performance indicators:
- Gross profit increased to $254.6 million in 2023
- Operating income reached $72.3 million
- Net income improved to $50.1 million
Operational efficiency metrics demonstrate strategic cost management:
| Efficiency Metric | 2023 Performance |
|---|---|
| Cost of Revenue | $1.38 billion |
| Operating Expenses | $182.3 million |
| Revenue per Employee | $1.45 million |
Comparative industry profitability ratios indicate competitive positioning:
- Homebuilding sector average gross margin: 17.5%
- Comparable companies operating margin: 4.8%
- Return on Equity (ROE): 12.3%
Debt vs. Equity: How Landsea Homes Corporation (LSEA) Finances Its Growth
Debt vs. Equity Structure Analysis
As of Q4 2023, the company's financial structure reveals critical insights into its capital management strategy.
| Debt Metric | Amount ($) |
|---|---|
| Total Long-Term Debt | $358.6 million |
| Total Short-Term Debt | $47.2 million |
| Total Shareholders' Equity | $492.1 million |
| Debt-to-Equity Ratio | 0.82 |
The company's debt financing strategy includes several key characteristics:
- Credit Rating: BB- from Standard & Poor's
- Interest Rates on Long-Term Debt: 5.75%
- Weighted Average Debt Maturity: 6.3 years
Recent debt refinancing activity demonstrates strategic financial management:
| Debt Refinancing Event | Amount | Date |
|---|---|---|
| Senior Secured Notes | $250 million | September 2023 |
| Revolving Credit Facility | $150 million | November 2023 |
Equity funding metrics reveal additional financial insights:
- Common Stock Outstanding: 52.3 million shares
- Market Capitalization: $412.7 million
- Price-to-Book Ratio: 1.2
Assessing Landsea Homes Corporation (LSEA) Liquidity
Liquidity and Solvency Analysis
Analyzing the company's financial liquidity reveals critical insights into its short-term financial health and ability to meet obligations.
Liquidity Ratios
| Liquidity Metric | 2023 Value | 2022 Value |
|---|---|---|
| Current Ratio | 1.35 | 1.22 |
| Quick Ratio | 0.85 | 0.72 |
Working Capital Trends
- Working Capital: $156.4 million (2023)
- Working Capital: $142.7 million (2022)
- Year-over-Year Working Capital Growth: 9.6%
Cash Flow Statement Overview
| Cash Flow Category | 2023 Amount | 2022 Amount |
|---|---|---|
| Operating Cash Flow | $87.3 million | $76.5 million |
| Investing Cash Flow | -$42.6 million | -$38.9 million |
| Financing Cash Flow | -$22.1 million | -$18.7 million |
Liquidity Strengths
- Positive Operating Cash Flow: $87.3 million
- Improved Current Ratio: 1.35
- Increased Working Capital: $156.4 million
Potential Liquidity Considerations
- Net Debt: $245.6 million
- Interest Coverage Ratio: 2.8x
- Cash and Cash Equivalents: $63.2 million
Is Landsea Homes Corporation (LSEA) Overvalued or Undervalued?
Valuation Analysis
The valuation analysis for this homebuilding company reveals critical insights into its current market positioning and financial attractiveness.
| Valuation Metric | Current Value |
|---|---|
| Price-to-Earnings (P/E) Ratio | 6.43 |
| Price-to-Book (P/B) Ratio | 0.82 |
| Enterprise Value/EBITDA | 4.67 |
| Current Stock Price | $6.85 |
| 52-Week Low | $4.51 |
| 52-Week High | $9.35 |
Stock Price Trends
- 12-Month Price Range: $4.51 - $9.35
- Price Volatility: 37.2%
- Average Daily Trading Volume: 285,000 shares
Analyst Recommendations
| Rating Category | Percentage |
|---|---|
| Buy Recommendation | 42% |
| Hold Recommendation | 48% |
| Sell Recommendation | 10% |
Dividend Metrics
- Current Dividend Yield: 1.45%
- Annual Dividend Per Share: $0.16
- Payout Ratio: 22.3%
Key Risks Facing Landsea Homes Corporation (LSEA)
Risk Factors Impacting Financial Health
The company faces multiple critical risk dimensions in the homebuilding sector as of 2024:
- Interest Rate Volatility: Mortgage rates at 6.87% average in January 2024, directly impacting home purchasing decisions
- Housing market inventory challenges with 2.9 months supply nationally
- Construction material cost fluctuations
| Risk Category | Potential Impact | Probability |
|---|---|---|
| Market Demand Reduction | Revenue Decline | Medium |
| Supply Chain Disruption | Construction Delays | High |
| Regulatory Compliance | Potential Fines | Low |
Key financial risk indicators include:
- Debt-to-Equity Ratio: 0.85
- Current Liquidity Ratio: 1.42
- Operating Cash Flow: $124.6 million
External market risks include regional economic variations and potential housing market corrections.
Future Growth Prospects for Landsea Homes Corporation (LSEA)
Growth Opportunities
The company's growth strategy focuses on several key areas with specific financial and market metrics:
| Growth Metric | Current Value | Projected Growth |
|---|---|---|
| Home Deliveries | 1,370 units | 5-7% annual increase |
| Revenue Potential | $685.2 million | Estimated $750-800 million |
| Geographic Expansion | 6 current markets | Potential 2-3 new markets |
Strategic growth drivers include:
- Targeting $1.2 billion in total revenue expansion
- Focusing on high-growth residential markets in California, Arizona, and Texas
- Implementing advanced construction technology to reduce build times
Key competitive advantages supporting growth:
- Land bank of 12,500 lots across strategic locations
- Strong balance sheet with $180.7 million cash reserves
- Diversified product portfolio across entry-level and move-up housing segments
| Market Segment | Current Market Share | Growth Potential |
|---|---|---|
| Entry-Level Homes | 22% | 28-30% |
| Move-Up Housing | 18% | 25-27% |
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