Beazer Homes USAFRA:BE4A 62 Gross Margin % is 11.88% as of Mar. 2026, which is 27% below its 10-year median of 16.36. GuruFocus rates FRA:BE4A with a GF Score™ of 62/100 and a GF Value™ of €21.06 (Modestly Overvalued). The stock has 10 warning signs investors should review. Among 89 Homebuilding & Construction companies, Beazer Homes USA ranks worse than 89.89% on this metric.
Beazer Homes USA Inc gross margin has been in long-term decline. The average rate of decline per year is -2.7%.
The historical rank and industry rank for Beazer Homes USA's Gross Margin % or its related term are showing as below:
FRA:BE4A'
s Gross Margin % Range Over the Past 10 Years
Min: 7.95 Med: 16.36 Max: 23.2
Current: 12.57
During the past 13 years, the highestGross Margin % of Beazer Homes USA was 23.20%. The lowest was 7.95%. And the median was 16.36%.
FRA:BE4A's Gross Margin % is ranked worse than 89.89% of 89
companies
in the Homebuilding & Construction industry
Industry Median: 21.3
vs FRA:BE4A: 12.57
Beazer Homes USA had a gross margin of 11.88% for the quarter that ended in Mar. 2026 => No sustainable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Beazer Homes USA was -2.70% per year.
Beazer Homes USA (FRA:BE4A) Gross Margin % Explanation
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
Beazer Homes USA had a gross margin of 11.88% for the quarter that ended in Mar. 2026 => No sustainable competitive advantage
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
Beazer Homes USA Gross Margin % Related Terms
Beazer Homes USA Gross Margin % Historical Data
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The historical data trend for Beazer Homes USA's Gross Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
FRA:BE4A vs HOV, LEGH, VNJA: Gross Margin % Comparison
For the Residential Construction subindustry, Beazer Homes USA's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Beazer Homes USA Gross Margin % vs Homebuilding & Construction Industry
For the Homebuilding & Construction industry and Consumer Cyclical sector, Beazer Homes USA's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Beazer Homes USA's Gross Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
Beazer Homes USA (FRA:BE4A) has a Gross Margin % of 11.88% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Beazer Homes USA and its competitors. This is 27% below median its historical median of 16.36. Over the past decade, Beazer Homes USA's Gross Margin % has ranged from 7.95 to 23.20. According to the industry distribution chart, Beazer Homes USA ranks #80 out of 89 companies in the Homebuilding & Construction industry, placing it in the top 89.9%.
Is Beazer Homes USA's Gross Margin % too high?
Beazer Homes USA's current Gross Margin % of 11.88% is 27% below median its 10-year median of 16.36. Over the past 10 years, this metric has ranged from a low of 7.95 to a high of 23.20. The Homebuilding & Construction industry median Gross Margin % is 21.30. Beazer Homes USA's value of 11.88% is 44.2% below this industry median. Based on the distribution chart, Beazer Homes USA ranks #80 out of 89 companies in the Homebuilding & Construction industry, which is in the bottom quartile relative to peers. Overall, Beazer Homes USA has a GF Score™ of 62/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Beazer Homes USA's Gross Margin % compare to HOV and LEGH?
According to the Homebuilding & Construction industry distribution chart, Beazer Homes USA ranks #80 out of 89 companies for Gross Margin %. This places Beazer Homes USA in the lower half of its industry. The industry median Gross Margin % is 21.30. Beazer Homes USA's value of 11.88% is 44.2% below this benchmark. Historically, Beazer Homes USA's own Gross Margin % has ranged from 7.95 to 23.20 over the past decade. While the company's 10-year median is 16.36 vs. the industry median of 21.30, Beazer Homes USA has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Gross Margin % for a Homebuilding & Construction company?
The median Gross Margin % among Homebuilding & Construction companies is 21.30, based on 89 companies in the industry. Companies in the top quartile (top 25%) have a Gross Margin % significantly above this median, while those in the bottom quartile fall well below. However, Gross Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Beazer Homes USA's current Gross Margin % of 11.88% is 44.2% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Gross Margin % mean?
A high Gross Margin % can signal that a stock is expensive relative to its fundamentals. Gross margin is the ratio of total gross profit to net sales. View historical data on Beazer Homes USA and its competitors. For the Homebuilding & Construction industry, the median Gross Margin % is 21.30 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Beazer Homes USA's current Gross Margin % is 11.88%, which is 27% below median its own 10-year median of 16.36. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Beazer Homes USA stock overvalued right now?
Based on GuruFocus' analysis, Beazer Homes USA (FRA:BE4A) is currently considered Modestly Overvalued. The stock's GF Value™ is €21.06, compared to a current price of €24.40 — trading 15.9% above its estimated fair value. The current Gross Margin % is 11.88%, which is 27% below median its 10-year median of 16.36 and 44.2% below the Homebuilding & Construction industry median of 21.30. Beazer Homes USA's overall GF Score™ is 62/100 with 10 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Gross Margin % calculated?
Gross Margin % is calculated from a company's financial statements. For Beazer Homes USA (FRA:BE4A), the current Gross Margin % is 11.88% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Beazer Homes USA (FRA:BE4A) Overvalued in 2026?
Based on GuruFocus' analysis, Beazer Homes USA stock appears to be overvalued.
The current stock price of €24.40 is trading 15.9% above its estimated GF Value™ of €21.06.
GuruFocus considers Beazer Homes USA to be Modestly Overvalued.
Key valuation signals for FRA:BE4A:
Gross Margin %: 11.88% (27% below median its 10-year median of 16.36)
GF Value™: €21.06 vs. price of €24.40 (15.9% above fair value)
Industry Position: 44.2% below the Homebuilding & Construction median (#80 of 89)
No single metric tells the full story. See the FRA:BE4A stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Beazer Homes USA Inc is an construction company that focuses on residential construction. The company specializes in single-family housing and multi-unit building construction in states and metro markets. Beazer Homes builds homes and communities that target first-time, move-up, and luxury homebuyers with an average selling price of roughly $300,000. From a geographic perspective, home sales in the western and eastern United States have been the sources of revenue for the company. Its segments involve: West segment that includes Arizona, California, Nevada, and Texas; East segment that includes Delaware, Indiana, Maryland, Tennessee, and Virginia; and Southeast segment which includes Florida, Georgia, North Carolina, and South Carolina.
62GF Score
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