United Homes Group (UHG) AI Stock Analysis

• Market Cap: $250.50M
• Dividend Yield: N/A
• Average Volume (3M): 83.79K
• Price to Earnings (P/E): 69.2
• Beta (1Y): 0.87
• Revenue Growth: 7.51%
• EPS Growth: -97.77%
• Country: US
• Employees: 175
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Residential Construction
• EPS (TTM): -0.11
• Shares Outstanding: 21,828,983
• 10 Day Avg. Volume: 47,147
• 30 Day Avg. Volume: 83,791
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.06
• Enterprise Value/Revenue: 0.60
• Enterprise Value/Gross Profit: 3.41
• Enterprise Value/Ebitda: 18.97
• 1Y Price Target: $4.50
• Price Target Upside: 5.63% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 57 Neutral
• Price Target: $4.50 ▲(5.63% Upside)

The overall score is primarily influenced by the company's financial challenges, including declining margins and high leverage. Technical analysis provides a positive outlook with strong momentum indicators. However, the high P/E ratio suggests overvaluation, and mixed earnings call results indicate ongoing operational challenges.

United Homes Group Business Overview & Revenue Model

Company Description

United Homes Group (UHG) is a prominent company in the real estate sector, specializing in the development, construction, and sale of residential properties. The company focuses on creating high-quality homes that cater to a diverse range of customers, including first-time buyers, families, and retirees. UHG is dedicated to delivering exceptional customer service and innovative housing solutions, ensuring that each project meets the unique needs and expectations of its clients.

How the Company Makes Money

UHG generates revenue primarily through the sale of residential properties, including single-family homes, townhouses, and condominiums. The company identifies and acquires land suitable for development and constructs housing units that are then marketed and sold to consumers. In addition to property sales, UHG may also earn income from providing property management services, as well as through partnerships with financial institutions that offer mortgage solutions to homebuyers. Strategic alliances with suppliers and contractors help UHG to manage costs effectively, thereby contributing to its profitability.

United Homes Group Financial Statement Overview

Summary

United Homes Group demonstrates strong profitability with consistent revenue growth, a solid equity position, and robust cash flow management. The elimination of debt and substantial cash reserves highlight financial resilience, although past leverage levels suggest a need for continued prudent financial practices.

Income Statement

United Homes Group demonstrates strong profitability with a healthy gross profit margin and net profit margin, driven by consistent revenue growth over the years. Notably, the company achieved significant revenue growth from 2023 to 2024. EBIT and EBITDA margins indicate efficient operational management, supporting high performance in the residential construction industry.

Balance Sheet

The balance sheet reflects a solid equity position with a significant improvement in stockholders' equity in 2024. The company has eliminated its debt, thus showcasing excellent financial stability and a strong equity ratio. However, historical leverage was relatively high, which could have posed risks in less favorable conditions.

Cash Flow

United Homes Group exhibits robust cash flow management with significant free cash flow growth. The operating cash flow to net income ratio is favorable, indicating effective cash generation relative to earnings. The transition to positive free cash flow and substantial cash reserves in 2024 further highlight financial flexibility.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	445.96M	463.71M	421.47M	477.05M	432.89M	327.25M
Gross Profit	78.06M	79.83M	79.73M	118.81M	100.62M	67.14M
EBITDA	14.02M	39.01M	15.96M	70.37M	62.51M	37.43M
Net Income	5.17M	46.91M	125.06M	69.49M	62.41M	38.98M
Balance Sheet
Total Assets	281.07M	265.38M	298.65M	208.34M	202.26M	131.60M
Cash, Cash Equivalents and Short-Term Investments	36.54M	22.63M	56.67M	12.24M	51.50M	29.18M
Total Debt	134.03M	120.30M	154.06M	121.80M	102.50M	74.82M
Total Liabilities	198.90M	198.51M	329.83M	149.34M	135.70M	97.43M
Stockholders Equity	82.16M	66.87M	-31.18M	59.00M	66.56M	23.11K
Cash Flow
Free Cash Flow	15.44B	15.41M	28.06M	34.45M	57.91M	70.98M
Operating Cash Flow	15.47B	15.44M	28.22M	34.62M	58.32M	71.78M
Investing Cash Flow	-29.15K	-12.59M	-24.30M	-206.88K	-394.05K	-785.29K
Financing Cash Flow	-26.21M	-33.98M	40.51M	-73.68M	-35.60M	-51.42M

United Homes Group Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 4.26
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For UHG, the sentiment is Positive. The current price of 4.26 is above the 20-day moving average (MA) of 4.22, above the 50-day MA of 4.06, and above the 200-day MA of 3.57, indicating a bullish trend. The MACD of 0.05 indicates Positive momentum. The RSI at 52.99 is Neutral, neither overbought nor oversold. The STOCH value of 42.18 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for UHG.

United Homes Group Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
HOV	73 Outperform	801.49M	7.02	19.02%	―	7.97%	-35.64%
CCS	73 Outperform	1.96B	8.06	10.14%	1.71%	3.76%	-17.55%
LEGH	72 Outperform	649.71M	12.10	10.78%	―	8.79%	2.30%
LGIH	68 Neutral	1.30B	8.53	7.58%	―	-7.89%	-19.53%
BZH	65 Neutral	740.47M	11.30	5.56%	―	9.97%	-52.57%
UHG	57 Neutral	$250.50M	69.16	9.58%	―	7.51%	-97.77%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%

United Homes Group Corporate Events

United Homes Group Reports Q2 2025 Operational Results

On July 8, 2025, United Homes Group, Inc. announced its preliminary operational unit statistics for the quarter and year ended June 30, 2025. The company reported a 6% decline in net new orders year-over-year for the second quarter, attributed to a 10% decrease in active community count. However, the company anticipates a reversal in this trend with new community openings in the second half of 2025, which is expected to lead to a double-digit increase in active communities. The company also highlighted a product refresh initiative that has improved gross margins by approximately 300 basis points over legacy products, and expects this to contribute to year-over-year gross margin improvement in 2025. Despite a decline in closings, a 3% increase in starts year-over-year was noted, driven by the expected rise in community count.

United Homes Group Elects Directors at Annual Meeting

On June 12, 2025, United Homes Group, Inc. held its 2025 Annual Meeting of Shareholders. During the meeting, two Class II directors, Robert Dozier and Alan Levine, were elected to the Board to serve until the 2028 annual meeting. Additionally, the appointment of Forvis Mazars, LLP as the Company’s independent registered public accounting firm for the year ending December 31, 2025, was ratified by the shareholders.