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GRBK (Green Brick Partners) ROE % : 24.08% (As of Sep. 2024)


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What is Green Brick Partners ROE %?

ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Green Brick Partners's annualized net income for the quarter that ended in Sep. 2024 was $356 Mil. Green Brick Partners's average Total Stockholders Equity over the quarter that ended in Sep. 2024 was $1,480 Mil. Therefore, Green Brick Partners's annualized ROE % for the quarter that ended in Sep. 2024 was 24.08%.

The historical rank and industry rank for Green Brick Partners's ROE % or its related term are showing as below:

GRBK' s ROE % Range Over the Past 10 Years
Min: 3.74   Med: 15.69   Max: 52.53
Current: 25.51

During the past 13 years, Green Brick Partners's highest ROE % was 52.53%. The lowest was 3.74%. And the median was 15.69%.

GRBK's ROE % is ranked better than
85.42% of 96 companies
in the Homebuilding & Construction industry
Industry Median: 10.57 vs GRBK: 25.51

Green Brick Partners ROE % Historical Data

The historical data trend for Green Brick Partners's ROE % 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.

Green Brick Partners ROE % Chart

Green Brick Partners Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
ROE %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 11.83 19.54 25.11 30.15 24.09

Green Brick Partners Quarterly Data
Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24
ROE % Get a 7-Day Free Trial 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 23.86 22.94 24.83 29.86 24.08

Competitive Comparison of Green Brick Partners's ROE %

For the Residential Construction subindustry, Green Brick Partners's ROE %, along with its competitors' market caps and ROE % 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.


Green Brick Partners's ROE % Distribution in the Homebuilding & Construction Industry

For the Homebuilding & Construction industry and Consumer Cyclical sector, Green Brick Partners's ROE % distribution charts can be found below:

* The bar in red indicates where Green Brick Partners's ROE % falls into.



Green Brick Partners ROE % Calculation

Green Brick Partners's annualized ROE % for the fiscal year that ended in Dec. 2023 is calculated as

ROE %=Net Income (A: Dec. 2023 )/( (Total Stockholders Equity (A: Dec. 2022 )+Total Stockholders Equity (A: Dec. 2023 ))/ count )
=284.626/( (1061.907+1300.704)/ 2 )
=284.626/1181.3055
=24.09 %

Green Brick Partners's annualized ROE % for the quarter that ended in Sep. 2024 is calculated as

ROE %=Net Income (Q: Sep. 2024 )/( (Total Stockholders Equity (Q: Jun. 2024 )+Total Stockholders Equity (Q: Sep. 2024 ))/ count )
=356.444/( (1439.235+1520.737)/ 2 )
=356.444/1479.986
=24.08 %

* 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.

In the calculation of annual ROE %, the net income of the last fiscal year and the average total shareholder equity over the fiscal year are used. In calculating the quarterly data, the net income data used here is four times the quarterly (Sep. 2024) net income data. ROE % is displayed in the 30-year financial page.


Green Brick Partners  (NYSE:GRBK) ROE % Explanation

ROE % measures the rate of return on the ownership interest (shareholder's equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' equity (also known as net assets or assets minus liabilities). ROE % shows how well a company uses investment funds to generate earnings growth. ROE %s between 15% and 20% are considered desirable.

The factors that affect a company's ROE % can be illustrated with the three-step DuPont Analysis:

ROE %(Q: Sep. 2024 )
=Net Income/Total Stockholders Equity
=356.444/1479.986
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(356.444 / 2094.64)*(2094.64 / 2118.236)*(2118.236 / 1479.986)
=Net Margin %*Asset Turnover*Equity Multiplier
=17.02 %*0.9889*1.4313
=ROA %*Equity Multiplier
=16.83 %*1.4313
=24.08 %

With this breakdown, it is clear that if a company grows its Net Profit Margin, its Asset Turnover, or its Leverage, it can grow its ROE %.

The factors that affect a company's ROE % can also be illustrated with the five-step DuPont Analysis:

ROE %(Q: Sep. 2024 )
=Net Income/Total Stockholders Equity
=356.444/1479.986
=(Net Income / Pre-Tax Income) * (Pre-Tax Income / Operating Income) * (Operating Income / Revenue) * (Revenue / Total Assets) * (Total Assets / Total Stockholders Equity)
= (356.444 / 475.904) * (475.904 / 455.292) * (455.292 / 2094.64) * (2094.64 / 2118.236) * (2118.236 / 1479.986)
= Tax Burden * Interest Burden * Operating Margin % * Asset Turnover * Equity Multiplier
= 0.749 * 1.0453 * 21.74 % * 0.9889 * 1.4313
=24.08 %

Note: The net income data used here is four times the quarterly (Sep. 2024) net income data. The Revenue data used here is four times the quarterly (Sep. 2024) revenue data. The same rule applies to Pre-Tax Income and Operating Income.
* In the five-step DuPont Analysis, Operating Income is only available for non-financial companies. Thus, for Insurance companies, we use EBIT as a substitution of Operating Income. For Banks, both Operating Income and EBIT is unavailable. Thus we combined Interest Burden and Operating Margin % into Pretax Margin %, and the DuPont Analysis is divided into four components instead.

* 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.


Be Aware

Net Income is used.

Because a company can increase its ROE % by having more financial leverage, it is important to watch the equity multiplier when investing in high ROE % companies. Like ROA %, ROE % is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.

Asset light businesses require very few assets to generate very high earnings. Their ROE %s can be extremely high.


Green Brick Partners ROE % Related Terms

Thank you for viewing the detailed overview of Green Brick Partners's ROE % provided by GuruFocus.com. Please click on the following links to see related term pages.


Green Brick Partners Business Description

Traded in Other Exchanges
Address
5501 Headquarters Drive, Suite 300 W, Plano, TX, USA, 75024
Green Brick Partners Inc is a homebuilding and land development company. It acquires and develops land, as well as provides land and construction financing to its controlled builders. The company has three reportable segments: builder operations central, builder operations southeast, and land development. The majority of the company's revenue is generated from the builder operations central segment which is entirely the operations of builders in Texas. The company is engaged in various aspects of the homebuilding process, including land acquisition and development, entitlements, design, construction, marketing, sales, and brand image creation. In addition to homebuilding, the company provides home financing services, such as mortgage and title, through its subsidiaries.
Executives
James R. Brickman director, officer: Chief Executive Officer 3131 HARVARD AVENUE, SUTE 103, DALLAS TX 75205
Kathleen Olsen director 4 BROOKSIDE DRIVE, PORT WASHINGTON NY 11050
Richard Arthur Costello officer: Chief Financial Officer 2805 DALLAS PARKWAY, SUITE 400, PLANO TX 75093
David Einhorn director, 10 percent owner 140 EAST 45TH STREET, 24TH FLOOR, NEW YORK NY 10017
Richard S Press director 101 BOGLE STREET, WESTON MA 02493
Jed Dolson officer: See Remarks 3131 HARVARD AVENUE, SUTE 103, DALLAS TX 75205
Dme Capital Management, Lp director, 10 percent owner 140 EAST 45TH STREET, 24TH FLOOR, NEW YORK NY 10017
Dme Advisors Gp, L.l.c. director, 10 percent owner 140 EAST 45TH STREET, 24TH FLOOR, NEW YORK NY 10017
Dme Advisors, Lp director, 10 percent owner 140 EAST 45TH STREET, 24TH FLOOR, NEW YORK NY 10017
Greenlight Capital Inc director, 10 percent owner 140 EAST 45TH STREET, 24TH FLOOR, NEW YORK NY 10017
Elizabeth Blake director BIOFUEL ENERGY CORP., 1600 BROADWAY SUITE 2200, DENVER CO 80202
Harry Brandler director 2 GRAND CENTRAL TOWER, 140 EAST 45TH STREET, 24TH FLOOR, NEW YORK NY 10017
Neal J Suit officer: General Counsel & EVP C/O LEGACY HOUSING CORPORATION, 1600 AIRPORT FREEWAY, #100, BEDFORD TX 76022
Lila A Murphy director 2000 S. COLORADO BLVD., SUITE 10200, DENVER CO 80222
John R Farris director P.O. BOX 309, FRANKFORT KY 40602-0309