ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. Beazer Homes USA's annualized return on invested capital (ROIC %) for the quarter that ended in Mar. 2026 was -0.16%.
As of today (2026-07-05), Beazer Homes USA's WACC % is 6.30%. Beazer Homes USA's ROIC % is -0.18% (calculated using TTM income statement data).
Beazer Homes USA earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Beazer Homes USA (FRA:BE4A) ROIC % Explanation
ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. The reason book values of debt and equity are used is because the book values are the capital the company received when issuing the debt or receiving the equity investments.
There are four key components to this definition. The first is the use of operating income or EBIT rather than net income in the numerator. The second is the tax adjustment to this operating income or EBIT, computed as a hypothetical tax based on an effective or marginal tax rate. The third is the use of book values for invested capital, rather than market values. The final is the timing difference; the capital invested is from the end of the prior year whereas the operating income or EBIT is the current year's number.
Why is ROIC % important?
Because it costs money to raise capital. A firm that generates higher returns on investment than it costs the company to raise the capital needed for that investment is earning excess returns. A firm that expects to continue generating positive excess returns on new investments in the future will see its value increase as growth increases, whereas a firm that earns returns that do not match up to its cost of capital will destroy value as it grows.
As of today, Beazer Homes USA's WACC % is 6.30%. Beazer Homes USA's ROIC % is -0.18% (calculated using TTM income statement data).
Beazer Homes USA earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Be Aware
Like ROE % and ROA %, ROIC % is calculated with only 12 months of data. Fluctuations in the company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Beazer Homes USA ROIC % Related Terms
Beazer Homes USA ROIC % Historical Data
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The historical data trend for Beazer Homes USA's ROIC % 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.
For the Residential Construction subindustry, Beazer Homes USA's ROIC %, along with its competitors' market caps and ROIC % 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 ROIC % vs Homebuilding & Construction Industry
For the Homebuilding & Construction industry and Consumer Cyclical sector, Beazer Homes USA's ROIC % distribution charts can be found below:
* The bar in red indicates where Beazer Homes USA's ROIC % falls into.
Note:
The Operating Income data used here is four times the quarterly (Mar. 2026) data.
The tax rate is limited to between 0% and 100%.
* 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.
Beazer Homes USA (FRA:BE4A) has a ROIC % of -0.16% as of Mar. 2026. Return on invested capital is the ratio of current-period net income to average two-period invested capital. View historical data on Beazer Homes USA and its competitors.
Is Beazer Homes USA's ROIC % too high?
Beazer Homes USA's current ROIC % is -0.16%. 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 ROIC % compare to HOV and LEGH?
Beazer Homes USA's ROIC % of -0.16% can be compared against companies in the Homebuilding & Construction industry. The industry median ROIC % is 4.65. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good ROIC % for a Homebuilding & Construction company?
The median ROIC % among Homebuilding & Construction companies is 4.65, based on 94 companies in the industry. Companies in the top quartile (top 25%) have a ROIC % significantly above this median, while those in the bottom quartile fall well below. However, ROIC % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high ROIC % mean?
A high ROIC % can signal that a stock is expensive relative to its fundamentals. Return on invested capital is the ratio of current-period net income to average two-period invested capital. View historical data on Beazer Homes USA and its competitors. For the Homebuilding & Construction industry, the median ROIC % is 4.65 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Beazer Homes USA's current ROIC % is -0.16%. 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 €21.48, compared to a current price of €24.40 — trading 13.6% above its estimated fair value. The current ROIC % is -0.16%. 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 ROIC % calculated?
ROIC % is calculated from a company's financial statements. For Beazer Homes USA (FRA:BE4A), the current ROIC % is -0.16% 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 13.6% above its estimated GF Value™ of €21.48.
GuruFocus considers Beazer Homes USA to be Modestly Overvalued.
Key valuation signals for FRA:BE4A:
ROIC %: -0.16%
GF Value™: €21.48 vs. price of €24.40 (13.6% above fair value)
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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