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Beazer Homes USA sees 172% five-year ROCE increase

EditorNikhilesh Pawar
Published 18/11/2023, 15:28
© Reuters.
BZH
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NEW YORK - Beazer Homes USA, Inc. (NYSE: NYSE:BZH), a prominent American home construction company, has reported a significant improvement in its Return on Capital Employed (ROCE), indicating enhanced efficiency in its operations. The company's ROCE has reached 11%, derived from an Earnings Before Interest and Taxes (EBIT) of $228 million. This performance comes against a backdrop of stable capital, with total assets minus current liabilities reported at $2.3 billion minus $203 million.

The current ROCE represents a substantial increase of 172% over the past five years, demonstrating the company's successful efforts to improve its operational efficiency. This increase is notable even though it falls below the Consumer Durables industry average. During this period, investors have enjoyed robust returns, witnessing a 158% return on their investments.

The future trends and potential for sustained growth for Beazer Homes are contingent upon analyst forecasts and prevailing market conditions. The company's progress and strategic initiatives will be closely monitored by investors and market analysts alike, as they evaluate the prospects of the housing sector and individual players within the industry.

InvestingPro Insights

The InvestingPro real-time data and tips provide a comprehensive overview of Beazer Homes USA, Inc. (NYSE: BZH). With a market cap of 826.22M USD and a low P/E ratio of 5.27, the company is trading at a low earnings multiple, which could be an attractive entry point for investors, as per InvestingPro Tip 2.

The company's strong return over the last year, as noted in InvestingPro Tip 3, aligns with the article's mention of investors enjoying robust returns. Additionally, the company's liquid assets exceed its short-term obligations (InvestingPro Tip 4), which further indicates the company's financial stability.

The InvestingPro Tips also highlight that analysts predict the company will be profitable this year (InvestingPro Tip 7), which is in line with the positive trend reported in the article.

InvestingPro offers additional valuable tips, with a total of 11 tips available for BZH. Subscribers can access these tips and more, with a special Black Friday sale now offering up to 55% off the subscription price.

In conclusion, the InvestingPro data and tips provide valuable insights that complement the article's content, helping readers make informed investment decisions.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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