Opinions
Stockchase Insights
Green Brick Partners
GRBK-Q
HOLD
Apr 17, 2023
$35.730
Stock price when the opinion was issued
Developers (Real Estate)
It's the ideal tool to help you make quicker, more informed decisions for
managing and tracking your investments.
You might be interested:
TOP PICK
Stockchase Research Editor: Michael O'Reilly
Recently reported earnings for GRBK, a builder of new homes in the US southern states, showed all time record high quarterly home closings and EPS -- both increasing 25% over the year. It trades at 8x earnings, under 2x book and supports a 25% ROE. The company is prudently using cash reserves to retire debt and buy back shares. We recommend setting a stop-loss at $43, looking to achieve $74 -- upside potential of 19%. Yield 0%
(Analysts’ price target is $74.00)
Developers (Real Estate)
Advertising
GRBK is a mid cap home builder and land development company. It is growing nicely and priced well at 10X earnings.
It has economic/rate sensitivity but has been very profitable for the past decade. The balance sheet is OK.
Insiders own 7% and the stock has been doing very well.
Positives: growth, management, consistency, valuation.
Cons: recession risk, interest rate risk, cash flow variablility.
It looks good to us and is growing faster than a group of six Bloomberg peers.
We cannot provide personal weightings, but as a mid cap stock with economic sensitivity we would be cautious on a big position.
Unlock Premium - Try 5i Free