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Beazer Homes USA (Beazer Homes USA) Gross Margin %

: 20.09% (As of Dec. 2023)
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Gross Margin % is calculated as gross profit divided by its revenue. Beazer Homes USA's Gross Profit for the three months ended in Dec. 2023 was $78 Mil. Beazer Homes USA's Revenue for the three months ended in Dec. 2023 was $387 Mil. Therefore, Beazer Homes USA's Gross Margin % for the quarter that ended in Dec. 2023 was 20.09%.


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

BZH' s Gross Margin % Range Over the Past 10 Years
Min: 7.95   Med: 16.56   Max: 23.2
Current: 20.23


During the past 13 years, the highest Gross Margin % of Beazer Homes USA was 23.20%. The lowest was 7.95%. And the median was 16.56%.

BZH's Gross Margin % is ranked worse than
59.22% of 103 companies
in the Homebuilding & Construction industry
Industry Median: 21.72 vs BZH: 20.23

Beazer Homes USA had a gross margin of 20.09% for the quarter that ended in Dec. 2023 => Competition eroding margins

The 5-Year average Growth Rate of Gross Margin for Beazer Homes USA was 13.30% per year.


Beazer Homes USA Gross Margin % Historical Data

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.

* Premium members only.

Beazer Homes USA Annual Data
Trend Sep14 Sep15 Sep16 Sep17 Sep18 Sep19 Sep20 Sep21 Sep22 Sep23
Gross Margin %
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 7.95 16.34 18.89 23.20 20.06

Beazer Homes USA Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
Gross Margin % 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 Premium Member Only Premium Member Only Premium Member Only 19.28 18.92 20.39 21.27 20.09

Competitive 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 % Distribution

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.



Beazer Homes USA Gross Margin % Calculation

Gross Margin is the percentage of Gross Profit out of sales or Revenue.

Beazer Homes USA's Gross Margin for the fiscal year that ended in Sep. 2023 is calculated as

Gross Margin % (A: Sep. 2023 )=Gross Profit (A: Sep. 2023 ) / Revenue (A: Sep. 2023 )
=442.7 / 2206.785
=(Revenue - Cost of Goods Sold) / Revenue
=(2206.785 - 1764.09) / 2206.785
=20.06 %

Beazer Homes USA's Gross Margin for the quarter that ended in Dec. 2023 is calculated as


Gross Margin % (Q: Dec. 2023 )=Gross Profit (Q: Dec. 2023 ) / Revenue (Q: Dec. 2023 )
=77.7 / 386.818
=(Revenue - Cost of Goods Sold) / Revenue
=(386.818 - 309.088) / 386.818
=20.09 %

* 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  (NYSE:BZH) 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 20.09% for the quarter that ended in Dec. 2023 => Competition eroding margins


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

Thank you for viewing the detailed overview of Beazer Homes USA's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.


Beazer Homes USA (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.
Executives
Lloyd Emerson Johnson director 16737 NEW PROVIDENCE LANE, CHARLOTTE NC 28277
Robert L. Salomon officer: EVP, Chief Financial Officer 5535 LEXINGTON WOODS LANE, ALPHARETTA GA 30005
Pei Sun officer: VP & Chief Accounting Officer 1000 ABERNATHY ROAD, SUITE 260, ATLANTA GA 30328
C Christian Winkle director ONE RAVINIA DRIVE, STE 1500, ATLANTA GA 30346
David I Goldberg officer: SVP, Chief Financial Officer 1000 ABERNATHY ROAD, NE, SUITE 260, ATLANTA GA 30328
Zelnak Stephen P Jr director MARTIN MARIETTA MATERIALS INC, 2710 WYCLIFF ROAD, RALEIGH NC 27607
David J Spitz director C/O CHANNELADVISOR CORPORATION, 2701 AERIAL CENTER PARKWAY, MORRISVILLE NC 27568
Allan P Merrill director, officer: President and CEO BEAZER HOMES, 1000 ABERNATHY RD, SUITE 1200, ATLANTA GA 30328
Danny R Shepherd director VULCAN MATERIALS COMPANY, 1200 URBAN CENTER DRIVE, BIRMINGHAM AL 35242
Belknap Keith L Jr officer: EVP, General Counsel 3585 ENGINEERING DRIVE, SUITE 100, NORCROSS GA 30092
Larry T Solari director
Brian C Beazer director C/O NUMEREX, 1600 PARKWOOD CIRCLE #200, ATLANTA GA 30339-2119
Peter M Orser director 1000 ABERNATHY ROAD, SUITE 260, ATLANTA GA 30328
Elizabeth S Acton director 5408 WALDENHILL COURT, SUPERIOR TOWNSHIP MI 48198
Laurent Alpert director