The New Home Company Inc. focuses on the design, construction, and sale of homes in California, including coastal Southern California, the San Francisco Bay area, and the metro Sacramento area. The company was founded in 2009 and is based in Aliso Viejo, California.
NWHM Price Forecast Based on DCF Valuation
DCF Fair Value Target:
We started the process of determining a valid price forecast for New Home Co Inc with a discounted cash flow analysis -- the results of which can be found in the table below. To summarize, we found that New Home Co Inc ranked in the 95th percentile in terms of potential gain offered. Moreover, under all the scenarios we modelled, the output consistently forecasted positive returns. The most interesting components of our discounted cash flow analysis for New Home Co Inc ended up being:
26% of the company's capital comes from equity, which is greater than only 7.36% of stocks in our cash flow based forecasting set.
New Home Co Inc's interest coverage rate -- a measure of gross earnings relative to interest payments -- comes in at -20.05. This coverage rate is greater than that of only 5.39% of stocks we're observing for the purpose of forecasting via discounted cash flows.
The weighted average cost of capital for the company is 16. This value is greater than 92.92% stocks in the Consumer Cyclical sector that generate free cash flow.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
Want more companies with a valuation profile/forecast similar to that of New Home Co Inc? See BWMX, DXLG, HZO, GIII, and SPWH.
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ALISO VIEJO, Calif.--(BUSINESS WIRE)--The New Home Company Inc. (NYSE: NWHM) today announced a new stock repurchase program. The New Home Company Inc. (NYSE:NWHM) (the “Company”) today announced that on November 18, 2020 its Board of Directors approved a new stock repurchase program authorizing the repurchase of up to $10 million of Company stock. The new plan replaces its previous $15 million authorization, under which, as of November 19, 2020, there was $1.7 million of remaining availability.
ALISO VIEJO, Calif.--(BUSINESS WIRE)--The New Home Company Inc. (NYSE: NWHM) today announced results for the 2020 third quarter. Third Quarter 2020 Financial Results Net income of $1.2 million, or $0.06 per diluted share, compared to a net loss of $4.6 million, or $(0.23) per diluted share, for the 2019 third quarter Homes sales revenue of $117.4 million as compared to $118.8 million for the 2019 third quarter New home deliveries of 157 as compared to 124 in the 2019 third quarter, a 27% increa