UCP, Inc. relative valuation is UNDERVALUED and it has a fundamental analysis score of 31.
Our analysis is based on comparing UCP, Inc. with the following peers – D.R. Horton, Inc., Hovnanian Enterprises, Inc. Class A and Lennar Corporation Class A (DHI-US, HOV-US and LEN-US).
UCP, Inc. has shown good performance overall, both over the last one year (at 52.55%) as well as over the last month (at 10.73%). Share price performance over the last month, though has been lower than that over the last year. But UCP, Inc.’s stock has done better than its overall peer group whose performance was -0.51% over the last month.
- Considering peers, relative outperformance over the last year and the last month suggest a leading position.
- It trades at a lower Price/Book multiple (0.40) than its peer median (1.46).
- We classify UCP-US as Challenged because of its below median returns and the market’s relatively low growth expectations.
- UCP-US has relatively low profit margins and median asset efficiency.
- The company’s year-on-year change in revenues and earnings are better than the median among its peer group.
- UCP-US‘s return on assets currently and over the past five years has trailed the peer median and suggests the company might be operationally challenged relative to its peers.
- The company’s median gross margin and relatively low pre-tax margin suggest high operating costs versus peers.
- While UCP-US‘s revenue growth in recent years has been above the peer median, the stock’s P/E ratio is less than the peer median suggesting that the company’s earnings may be peaking and the market expects a decline in its growth expectations.
- The company’s capital investment program and to-date returns suggest that the company is likely making big bets on the future.
- UCP-US seems too levered to raise additional debt.
- Our analysis rates UCP, Inc. as UNDERVALUED relative to its peers.
Share Price Performance
Considering peers, relative outperformance over the last year and the last month suggest a leading position.
UCP-US‘s share price performance of 52.55% over the last 12 months is above peer median of 25.24%. The 30-day trend in its share price performance of 10.73% is also above the peer median of -0.51% suggesting that this company is a leading performer relative to its peers.
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UCP, Inc.’s price of USD 11.35 is lower than CapitalCube’s implied price of USD 17.82. CapitalCube believes that at these levels, UCP, Inc. is undervalued and has upside potential. Over the last 52 week period, the stock has fluctuated between USD 6.35 and USD 12.75.
Valuation & Peer Metrics
A complete list of valuation metrics is available on the company page.
UCP, Inc. a homebuilder and land developer company, which engages in the acquisition, development, construction, and sale of residential properties. It operates through the Homebuilding and Land Development segments. The Homebuilding segment plans, designs, constructs, and sells homes through the subsidiary Benchmark Communities LLC. The Land Development segment owns, acquires, develops, and controls land for homebuilding purposes. The company was founded by Dustin L. Bogue in 2004 and is headquartered in San Jose, CA.
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