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Green Brick Partners

GRBK
46
Residential Construction · Consumer Cyclical
Winston Score
46
Winston is serious
Mixed quality — meaningful strengths and weaknesses.
Data as of Aug 23, 2026 · filings through Jun 30, 2026
How the score breaks down
Quality
Good
Growth
Weak
Cash Flow
Weak
Stability
Exceptional
Valuation
Good

Winston Score History

The full picture

Green Brick Partners builds and sells new homes in the United States. The company targets entry-level and move-up buyers, selling homes through its own brands like Trophy Signature Homes and CB JENI Homes. It operates mainly in fast-growing Sun Belt markets, with a heavy focus on Texas and Georgia.

Green Brick makes money by building homes and selling them directly to buyers, so revenue comes in when a home closes. The company is mid-sized with a roughly $3 billion market cap, and it controls much of its own land supply, which helps protect margins compared to builders that rely more on outside developers. Its main growth driver is continued population growth in its Sun Belt markets, but rising mortgage interest rates are a persistent risk because higher borrowing costs can quickly reduce how many buyers can afford a new home.

Score breakdown

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Quality

Profit per sale
Gross Margin
31.9%
Modest — 31.9% gross margin
Profit after running costs
Operating Margin
19.5%
Healthy — 19.5% operating margin
Return on the money invested
ROCE
16.7%
Strong — 16.7% return on capital

ROIC between 15% and 25%. Every dollar invested in the business earns 15 to 25 cents back per year.

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Growth

Sales growth
Sales YoY
-8.7%
Shrinking sales (-8.7% YoY)
Profit growth
EPS YoY
-14.9%
Earnings shrinking (-14.9% YoY)

Earnings per share down more than 10%. Either a bad year, or a real decline.

How steady the profit is
EPS Consistency
2/8 quarters
Earnings rarely grow — volatile business

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Cash Flow

Profit that turns into cash
Cash Conversion
39%
Weak — only 39% of profit becomes cash
Spare cash per sale
FCF Margin
5.6%
Thin free cash flow (5.6%)

FCF margin between 0% and 10%. Some cash from sales, but not a lot.

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Stability

What it owes vs what it owns
Debt / Equity
0.15
Conservative — low debt load (0.15)
Covers its interest
Interest Cover
100.00x
Comfortably covers interest (100.0x)

Interest coverage above 8. Profits cover interest many times over.

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Valuation

Price vs profit
P/E Ratio (TTM)
10.8x
no trend
Attractive valuation — P/E 10.8

P/E in the normal range. Price is roughly $15 for every $1 of yearly profit.

Cheaper or dearer next year
P/E vs Forward
-0.9
SLOWING
Earnings expected to fall — forward P/E higher than today

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Dividends

Not applicable for this business.
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