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GRBK (Green Brick Partners) Altman Z-Score : 6.55 (As of Oct. 31, 2024)


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What is Green Brick Partners Altman Z-Score?

The Altman Z-Score is a model designed to predict the likelihood of a company going bankrupt within the next two years. Created by American finance professor Edward Altman in 1968, the model is specifically designed for publicly traded manufacturing companies with assets greater than $1 million.

Good Sign:

Altman Z-score of 6.83 is strong.

Green Brick Partners has a Altman Z-Score of 6.55, indicating it is in Safe Zones. This implies the Altman Z-Score is strong.

The zones of discrimination were as such:

When Altman Z-Score <= 1.8, it is in Distress Zones.
When Altman Z-Score >= 3, it is in Safe Zones.
When Altman Z-Score is between 1.8 and 3, it is in Grey Zones.

The historical rank and industry rank for Green Brick Partners's Altman Z-Score or its related term are showing as below:

GRBK' s Altman Z-Score Range Over the Past 10 Years
Min: -20.1   Med: 4.06   Max: 6.83
Current: 6.83

During the past 13 years, Green Brick Partners's highest Altman Z-Score was 6.83. The lowest was -20.10. And the median was 4.06.


Green Brick Partners Altman Z-Score Historical Data

The historical data trend for Green Brick Partners's Altman Z-Score 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 Altman Z-Score Chart

Green Brick Partners Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Altman Z-Score
Get a 7-Day Free Trial Premium Member Only Premium Member Only 3.64 4.92 4.88 4.69 5.88

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
Altman Z-Score 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 5.18 5.88 6.21 6.00 -

Competitive Comparison of Green Brick Partners's Altman Z-Score

For the Residential Construction subindustry, Green Brick Partners's Altman Z-Score, along with its competitors' market caps and Altman Z-Score 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 Altman Z-Score Distribution in the Homebuilding & Construction Industry

For the Homebuilding & Construction industry and Consumer Cyclical sector, Green Brick Partners's Altman Z-Score distribution charts can be found below:

* The bar in red indicates where Green Brick Partners's Altman Z-Score falls into.



Green Brick Partners Altman Z-Score Calculation

Altman Z-Score model is an accurate forecaster of failure up to two years prior to distress. It can be considered the assessment of the distress of industrial corporations.

Green Brick Partners's Altman Z-Score for today is calculated with this formula:

Z=1.2*X1+1.4*X2+3.3*X3+0.6*X4+1.0*X5
=1.2*0.8091+1.4*0.566+3.3*0.219+0.6*5.2564+1.0*0.9125
=6.55

* 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. GuruFocus does not calculate Altman Z-Score when X4 or X5 value is 0.

Trailing Twelve Months (TTM) ended in Sep. 2024:
Total Assets was $2,172 Mil.
Total Current Assets was $2,034 Mil.
Total Current Liabilities was $277 Mil.
Retained Earnings was $1,229 Mil.
Pre-Tax Income was 118.976 + 139.177 + 115.633 + 101.843 = $476 Mil.
Interest Expense was 0 + 0 + 0 + 0 = $0 Mil.
Revenue was 523.66 + 560.631 + 447.338 + 450.382 = $1,982 Mil.
Market Cap (Today) was $3,071 Mil.
Total Liabilities was $584 Mil.

* Note that for stock reported semi-annually or annually, GuruFocus uses latest annual data as the TTM data.

X1=Working Capital/Total Assets
=(Total Current Assets - Total Current Liabilities)/Total Assets
=(2034.023 - 276.593)/2172.07
=0.8091

X2=Retained Earnings/Total Assets
=1229.49/2172.07
=0.566

X3=Earnings Before Interest and Taxes/Total Assets
=(Pre-Tax Income - Interest Expense)/Total Assets
=(475.629 - 0)/2172.07
=0.219

X4=Market Value Equity/Book Value of Total Liabilities
=Market Cap/Total Liabilities
=3070.722/584.187
=5.2564

X5=Revenue/Total Assets
=1982.011/2172.07
=0.9125

The zones of discrimination were as such:

Distress Zones - 1.81 < Grey Zones < 2.99 - Safe Zones

Green Brick Partners has a Altman Z-Score of 6.55 indicating it is in Safe Zones.

Study by Altman found that companies that are in Distress Zone have more than 80% of chances of bankruptcy in two years.


Green Brick Partners  (NYSE:GRBK) Altman Z-Score Explanation

X1: The Working Capital/Total Assets (WC/TA) ratio is a measure of the net liquid assets of the firm relative to the total capitalization. Working capital is defined as the difference between current assets and current liabilities. Ordinarily, a firm experiencing consistent operating losses will have shrinking current assets in relation to total assets. Altman found this one proved to be the most valuable liquidity ratio comparing with the current ratio and the quick ratio. This is however the least significant of the five factors.

X2: Retained Earnings/Total Assets: the RE/TA ratio measures the leverage of a firm. Retained earnings is the account which reports the total amount of reinvested earnings and/or losses of a firm over its entire life. Those firms with high RE, relative to TA, have financed their assets through retention of profits and have not utilized as much debt.

X3, Earnings Before Interest and Taxes/Total Assets (EBIT/TA): This ratio is a measure of the true productivity of the firm's assets, independent of any tax or leverage factors. Since a firm's ultimate existence is based on the earning power of its assets, this ratio appears to be particularly appropriate for studies dealing with corporate failure. This ratio continually outperforms other profitability measures, including cash flow.

X4, Market Value of Equity/Book Value of Total Liabilities (MVE/TL): The measure shows how much the firm's assets can decline in value (measured by market value of equity plus debt) before the liabilities exceed the assets and the firm becomes insolvent.

X5, Revenue/Total Assets (S/TA): The capital-turnover ratio is a standard financial ratio illustrating the sales generating ability of the firm's assets.

Read more about Altman Z-Score and the original research.


Be Aware

Altman Z-Score does not apply to financial companies.


Green Brick Partners Altman Z-Score Related Terms

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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