2018 Report Card
C+/B-
| 2018 Performance Final Grade: | 67.8/100 |
| 2017 Final Grade: | 71.0/100 |
The New Home Company, Inc. (NYSE:NWHM), Aliso Viejo, California, took another step forward in implementing its strategy to reach more buyers through more affordably priced communities as evidenced by a 46% increase in deliveries compared to 2017 and a 38% reduction in the average selling price of homes delivered. Still, it was not profitable. Revenue fell by 11.1%, posted a net loss for the year, and saw its debt to total capital ratio climb to 61.8%. But its gross margin increased by 160 basis points to 24.7%.
| Total revenue (in millions): | $667.6 |
| HB revenue (in millions): | $504.0 |
| Debt per share: | $18.72 |
| Equity per basic share: | $11.59 |
| HB pretax margin: | -4.9% |
| Backlog value (in millions): | $207.1 |
| Inventory (in millions): | 566.3 |
| Lot supply (in years): | 5.6 |
Financial 21.1/40
| Net debt-to-capital: | 55.0% |
| Pretax home building income (in millions): | $(24,706) |
| Total SG&A/Total revenue: | 9.3% |
| Total SG&A (in millions): | 5.1% |
| Return on invested capital: | -2.3% |
| Return on equity: | -5.6% |
| Total shareholder return: | -49.4% |
| EPS: | -184.1% |
Land 17.8/20
| Community count: | 17.6% |
| Share of lots optioned to total controlled: | 40.7% |
Operations 11.7/20
| Home building gross margins: | 11.4% |
| Sales per month to break even (per community): | 2.4 |
| Revenue per employee (in millions): | $2,073 |
Sales and Marketing 17.2/20
| Closings: | 46.0% |
| Sales velocity (per community per month): | 2.2 |
| Unit backlog: | 24.8% |
