Breaking Down Landsea Homes Corporation (LSEA) Financial Health: Key Insights for Investors

Breaking Down Landsea Homes Corporation (LSEA) Financial Health: Key Insights for Investors

US | Real Estate | Real Estate - Development | NASDAQ

Landsea Homes Corporation (LSEA) Bundle

Get Full Bundle:
$12 $7
$12 $7
$12 $7
$12 $7
$25 $15
$12 $7
$12 $7
$12 $7
$12 $7

TOTAL:



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%

DCF model

Landsea Homes Corporation (LSEA) 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.