Green Brick Partners

2017 Performance Final Grade: 74.29/100
2016 Final Grade:79.5/100
B/B+

27.62/40

Change YoY
Net debt-to-capital 14.6% 420bps
Pretax home building income
(in millions)
$59.4 24.5%
Total SG&A/Total revenue 8.6% --
Total SG&A
(in millions)
$39 1%
Return on invested capital 2.9% -230bps
Return on equity 3.7% -260bps
Total shareholder return 13.6% --
EPS $0.30 -38.8%

15.71/20

Change YoY
Community count 55 +5
Share of lots optioned to total controlled 27.7% 50.8%

18.10/20

Change YoY
Home building gross margins 21.7% -100bps
Sales per month to break even
(per community)
0.62 --
Revenue per employee
(in millions)
$1.7 1.1%
Change YoY
Closings 990 17.3%
Sales velocity
(per community per month)
1.6 9.8%
Unit backlog 310 30.8%


Total revenue (in millions):$454
HB revenue (in millions): $435
Debt per share: $2.36
Equity per basic share: $8.39
HB pretax margin: 13.1%
Backlog value (in millions): $488.6
Inventory (in millions):$495.7
Lot supply (in years): 6.3

Green Brick (Nasdaq: GRBK) got whacked by a deferred tax asset charge, which shaved its earnings from an estimated $0.69 per share down to $0.30 per share. It had a strong fourth quarter 2017 with pre-tax income up 25% and full year pre-tax income up 38%. It has seen a 40% increase in backlog and a 30% increase in homes under construction so far in 2018, and it expects to announce several new neighborhoods in supply-constrained, high-margin, AAA locations this year.