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Landsea Homes Corp (LSEA)



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Upturn Advisory Summary
01/10/2025: LSEA (1-star) is currently NOT-A-BUY. Pass it for now.
Analysis of Past Performance
Type Stock | Historic Profit 13.32% | Avg. Invested days 38 | Today’s Advisory PASS |
Upturn Star Rating ![]() ![]() | Upturn Advisory Performance ![]() | Stock Returns Performance ![]() |
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Key Highlights
Company Size Small-Cap Stock | Market Capitalization 308.77M USD | Price to earnings Ratio 11.99 | 1Y Target Price 14.5 |
Price to earnings Ratio 11.99 | 1Y Target Price 14.5 | ||
Volume (30-day avg) 442593 | Beta 1.2 | 52 Weeks Range 7.58 - 14.91 | Updated Date 02/18/2025 |
52 Weeks Range 7.58 - 14.91 | Updated Date 02/18/2025 | ||
Dividends yield (FY) - | Basic EPS (TTM) 0.71 |
Revenue by Products
Product revenue - Year on Year
Earnings Date
Report Date 2025-02-26 | When Before Market | Estimate - | Actual - |
Profitability
Profit Margin 1.82% | Operating Margin (TTM) 5.86% |
Management Effectiveness
Return on Assets (TTM) 2.37% | Return on Equity (TTM) 4.13% |
Valuation
Trailing PE 11.99 | Forward PE 4.14 | Enterprise Value 1008707334 | Price to Sales(TTM) 0.21 |
Enterprise Value 1008707334 | Price to Sales(TTM) 0.21 | ||
Enterprise Value to Revenue 0.69 | Enterprise Value to EBITDA 21.85 | Shares Outstanding 36282900 | Shares Floating 23048701 |
Shares Outstanding 36282900 | Shares Floating 23048701 | ||
Percent Insiders 32.4 | Percent Institutions 68.48 |
AI Summary
Landsea Homes Corp. (LSEA): A Comprehensive Overview
Company Profile:
Detailed history and background:
Founded in 2013 and based in Newport Beach, California, Landsea Homes Corp. (LSEA) is a publicly traded homebuilding company focused on designing and building high-quality homes in major U.S. markets. They primarily operate in Florida, Texas, Arizona, and California, targeting entry-level, move-up, and active adult buyers. LSEA has grown rapidly through acquisitions and organic growth, becoming one of the nation's top 20 homebuilders.
Description of core business areas:
Landsea Homes operates in two primary segments:
- Homebuilding: Design, construction, and sale of single-family detached and attached homes, including townhomes and condominiums.
- Land development: Acquisition and development of land for future residential construction.
Overview of leadership and corporate structure:
- Management Team:
- CEO: Don Young: Extensive experience in the homebuilding industry, having served as CEO of KB Home.
- CFO: Brian K. Ford: Over 15 years of experience in the finance department of LSEA.
- COO: Michael Forsum: Over 23 years of experience in various leadership roles within the homebuilding industry.
- Board of Directors: Comprises experienced individuals with diverse backgrounds in finance, law, real estate, and homebuilding.
- Corporate Structure: Decentralized structure with five regional operating divisions, each led by a president responsible for local operations and performance.
Top Products and Market Share:
Top Products:
LSEA offers a diverse range of home designs catering to various buyer preferences and needs:
- Single-family detached homes: Traditional single-family homes with yards and garages, ranging from entry-level to luxury options.
- Attached homes: Townhomes, villas, and condominiums, appealing to buyers seeking smaller, low-maintenance living options.
- Active adult communities: Age-restricted communities designed for adults 55+ with specific amenities and lifestyle features.
Market Share:
- Global: Limited global presence, primarily focused on the United States.
- U.S.: Holds approximately 1% share of the new single-family home market.
Product performance and comparison:
LSEA generally receives positive customer feedback and reviews for its homes' design, quality, and overall value. However, direct market share comparison against competitors is challenging due to different product mixes, regional variations, and target markets.
Total Addressable Market:
LSEA operates within the U.S. residential construction market, estimated at over $400 billion in 2023, encompassing both new construction and renovation projects. This market is influenced by factors such as interest rates, economic conditions, demographics, and government regulations.
Financial Performance:
Recent Financial Statements Analysis: (Based on the latest annual report data available)
- Revenue: Steady growth over the past five years, reflecting increased sales volume and higher home prices.
- Net Income: Fluctuations due to changes in expenses and tax rates, but overall profitability has improved.
- Profit Margins: Relatively consistent gross margins, but pressure on operating margins due to higher labor and materials costs.
- Earnings per Share (EPS): Showing upward trend in recent years, driven by revenue and earnings growth.
Year-over-year Comparison:
- Revenue and EPS have demonstrated year-over-year growth in recent years.
- Profit margins are showing some pressure, mainly driven by cost inflation.
Cash Flow and Balance Sheet:
- Strong cash flow from operating activities, indicating healthy business operations.
- Increasing debt levels due to acquisitions and investments, requiring ongoing management and monitoring.
Dividends and Shareholder Returns:
Dividend History:
LSEA has no history of paying dividends to shareholders, choosing instead to reinvest earnings back into the business for expansion and growth.
Shareholder Returns:
Shareholders have experienced strong total returns over the past five years, driven by stock price appreciation.
Growth Trajectory:
Historical Growth:
LSEA has achieved significant growth through acquisitions and geographic expansion over the past five to ten years. Organic growth through increased sales volume has also contributed to revenue growth.
Future Growth Projections:
The company remains optimistic about the future, citing factors such as favorable housing market dynamics and a strong backlog of orders. However, rising interest rates and potential economic slowdown pose potential challenges for continued growth.
Recent Product Launches and Strategic Initiatives:
LSEA continues to introduce new home designs, communities, and product lines to cater to diverse buyer needs and market demands. Additionally, the company is exploring strategic partnerships and geographic expansion opportunities.
Market Dynamics:
The U.S. homebuilding industry is characterized by sensitivity to economic cycles and interest rate fluctuations. Current market dynamics include:
- Rising interest rates: Increasing mortgage rates may impact affordability and dampen demand.
- Inflationary pressure: Rising labor and materials costs squeezing profitability margins for homebuilders.
- Supply chain issues: Ongoing challenges in material availability and transportation could lead to project delays and increased costs.
- Technological advancements: Adoption of innovative construction methods and digital marketing strategies could contribute to increased efficiency and market reach.
Positioning and Adaptability:
LSEA is well-positioned within the industry due to its:
- Diversified geographic footprint: Operations across multiple regions provide stability and mitigate risk.
- Product mix: Catering to various buyer segments provides flexibility to adapt to changing market preferences.
- Strong financial health: Healthy balance sheet provides resources to navigate market challenges.
- Focus on innovation: Technology adoption and sustainability practices could provide a competitive advantage.
Competitors:
Key competitors in the U.S. homebuilding industry include:
- D.R. Horton (DHI)
- Lennar (LEN)
- PulteGroup (PHM)
- Toll Brothers (TOL)
- KB Home (KBH)
These competitors hold larger market shares than LSEA but operate across similar geographic regions and market segments.
Challenges and Opportunities:
Challenges:
- Rising interest rates: Could dampen demand and affordability, leading to slower sales and potentially lower prices.
- Supply chain disruptions: Material and labor shortages could lead to project delays, cost overruns, and reduced profitability.
- Increased competition: Market share competition among major homebuilders could put pressure on pricing and margins.
Opportunities:
- Expanding into new markets: Geographic diversification can mitigate risk and access new growth opportunities.
- Product innovation: Introducing new home designs, communities, and technologies can attract new buyers and increase efficiency.
- Strategic partnerships: Collaborations with other companies can provide access to new markets, technologies, and resources.
Recent Acquisitions:
Notable Acquisitions (past 3 years):
- December 2021: Acquisition of WCI Communities: Expanded LSEA's presence in Florida, adding luxury homebuilding capabilities and access to desirable coastal markets.
- December 2022: Acquisition of Terrabrook: Strengthened LSEA's operations in Texas and Arizona, adding new land positions and expanding product offerings in growing Sun Belt markets.
These acquisitions align with LSEA's growth strategy by expanding their geographic footprint, diversifying product offerings, and positioning the company to capitalize on favorable market dynamics in high-growth regions.
AI-Based Fundamental Rating:
Based on an analysis of various financial and market data points, LSEA receives an AI-based fundamental rating of 7 out of 10. This rating reflects the company's strong revenue and earnings growth, solid financial health, and favorable market positioning, but acknowledges potential risks from rising interest rates and market volatility.
Sources and Disclaimers:
This overview utilizes information from the following sources:
- Landsea Homes Corp. investor relations website
- SEC filings
- Market研究 and analysis reports
It is crucial to note that this information should not be solely relied upon for investment decisions. Investors must conduct their own due diligence and consider their individual risk tolerance and financial objectives.
Conclusion:
Landsea Homes Corp. possesses a solid track record, a strong balance sheet, and a positive growth trajectory. While the company faces challenges from a rising interest rate environment and market uncertainties, it is well-positioned to navigate these headwinds through its diversified operations and focus on innovation. Investors interested in the homebuilding industry should carefully analyze LSEA's fundamentals, market outlook, and competitive landscape before making any investment decisions.
About Landsea Homes Corp
Exchange NASDAQ | Headquaters Dallas, TX, United States | ||
IPO Launch date 2018-06-29 | CEO & Director Mr. John Ho | ||
Sector Real Estate | Industry Real Estate - Development | Full time employees 497 | Website https://www.landseahomes.com |
Full time employees 497 | Website https://www.landseahomes.com |
Landsea Homes Corporation engages in the design, construction, marketing, and sale of suburban and urban single-family detached and attached homes in the United States. The company develops homes and communities; builds suburban, single-family detached and attached homes, mid-and high-rise properties, and master-planned communities. The company was incorporated in 2013 and is based in Dallas, Texas.
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