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Beazer Homes USA (LTS:0HMG) ROE % : 17.28% (As of Sep. 2024)


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What is Beazer Homes USA ROE %?

ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Beazer Homes USA's annualized net income for the quarter that ended in Sep. 2024 was $208 Mil. Beazer Homes USA's average Total Stockholders Equity over the quarter that ended in Sep. 2024 was $1,205 Mil. Therefore, Beazer Homes USA's annualized ROE % for the quarter that ended in Sep. 2024 was 17.28%.

The historical rank and industry rank for Beazer Homes USA's ROE % or its related term are showing as below:

LTS:0HMG' s ROE % Range Over the Past 10 Years
Min: -13.45   Med: 10.62   Max: 75.66
Current: 12.09

During the past 13 years, Beazer Homes USA's highest ROE % was 75.66%. The lowest was -13.45%. And the median was 10.62%.

LTS:0HMG's ROE % is ranked better than
56.38% of 94 companies
in the Homebuilding & Construction industry
Industry Median: 10.49 vs LTS:0HMG: 12.09

Beazer Homes USA ROE % Historical Data

The historical data trend for Beazer Homes USA's ROE % 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.

* Premium members only.

Beazer Homes USA ROE % Chart

Beazer Homes USA Annual Data
Trend Sep15 Sep16 Sep17 Sep18 Sep19 Sep20 Sep21 Sep22 Sep23 Sep24
ROE %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 9.23 18.52 26.52 15.53 12.01

Beazer Homes USA Quarterly Data
Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24
ROE % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 20.77 7.82 13.73 9.30 17.28

Competitive Comparison of Beazer Homes USA's ROE %

For the Residential Construction subindustry, Beazer Homes USA's ROE %, along with its competitors' market caps and ROE % 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's ROE % Distribution in the Homebuilding & Construction Industry

For the Homebuilding & Construction industry and Consumer Cyclical sector, Beazer Homes USA's ROE % distribution charts can be found below:

* The bar in red indicates where Beazer Homes USA's ROE % falls into.



Beazer Homes USA ROE % Calculation

Beazer Homes USA's annualized ROE % for the fiscal year that ended in Sep. 2024 is calculated as

ROE %=Net Income (A: Sep. 2024 )/( (Total Stockholders Equity (A: Sep. 2023 )+Total Stockholders Equity (A: Sep. 2024 ))/ count )
=140.175/( (1102.819+1232.111)/ 2 )
=140.175/1167.465
=12.01 %

Beazer Homes USA's annualized ROE % for the quarter that ended in Sep. 2024 is calculated as

ROE %=Net Income (Q: Sep. 2024 )/( (Total Stockholders Equity (Q: Jun. 2024 )+Total Stockholders Equity (Q: Sep. 2024 ))/ count )
=208.264/( (1178.315+1232.111)/ 2 )
=208.264/1205.213
=17.28 %

* 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.

In the calculation of annual ROE %, the net income of the last fiscal year and the average total shareholder equity over the fiscal year are used. In calculating the quarterly data, the net income data used here is four times the quarterly (Sep. 2024) net income data. ROE % is displayed in the 30-year financial page.


Beazer Homes USA  (LTS:0HMG) ROE % Explanation

ROE % measures the rate of return on the ownership interest (shareholder's equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' equity (also known as net assets or assets minus liabilities). ROE % shows how well a company uses investment funds to generate earnings growth. ROE %s between 15% and 20% are considered desirable.

The factors that affect a company's ROE % can be illustrated with the three-step DuPont Analysis:

ROE %(Q: Sep. 2024 )
=Net Income/Total Stockholders Equity
=208.264/1205.213
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(208.264 / 3224.628)*(3224.628 / 2593.0365)*(2593.0365 / 1205.213)
=Net Margin %*Asset Turnover*Equity Multiplier
=6.46 %*1.2436*2.1515
=ROA %*Equity Multiplier
=8.03 %*2.1515
=17.28 %

With this breakdown, it is clear that if a company grows its Net Profit Margin, its Asset Turnover, or its Leverage, it can grow its ROE %.

The factors that affect a company's ROE % can also be illustrated with the five-step DuPont Analysis:

ROE %(Q: Sep. 2024 )
=Net Income/Total Stockholders Equity
=208.264/1205.213
=(Net Income / Pre-Tax Income) * (Pre-Tax Income / Operating Income) * (Operating Income / Revenue) * (Revenue / Total Assets) * (Total Assets / Total Stockholders Equity)
= (208.264 / 242.424) * (242.424 / 232.984) * (232.984 / 3224.628) * (3224.628 / 2593.0365) * (2593.0365 / 1205.213)
= Tax Burden * Interest Burden * Operating Margin % * Asset Turnover * Equity Multiplier
= 0.8591 * 1.0405 * 7.23 % * 1.2436 * 2.1515
=17.28 %

Note: The net income data used here is four times the quarterly (Sep. 2024) net income data. The Revenue data used here is four times the quarterly (Sep. 2024) revenue data. The same rule applies to Pre-Tax Income and Operating Income.
* In the five-step DuPont Analysis, Operating Income is only available for non-financial companies. Thus, for Insurance companies, we use EBIT as a substitution of Operating Income. For Banks, both Operating Income and EBIT is unavailable. Thus we combined Interest Burden and Operating Margin % into Pretax Margin %, and the DuPont Analysis is divided into four components instead.

* 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.


Be Aware

Net Income is used.

Because a company can increase its ROE % by having more financial leverage, it is important to watch the equity multiplier when investing in high ROE % companies. Like ROA %, ROE % is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.

Asset light businesses require very few assets to generate very high earnings. Their ROE %s can be extremely high.


Beazer Homes USA ROE % Related Terms

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Beazer Homes USA Business Description

Traded in Other Exchanges
Address
2002 Summit Boulevard NE, 15th Floor, Atlanta, GA, USA, 30319
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 over 13 states and over 22 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 leading sources of revenue for the company. Key metro areas include Atlanta, Las Vegas, Los Angeles, Orlando, and Tampa. The company also focuses on land purchasing and development to support future construction efforts as well as mortgage services for its homebuyers.

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