United Homes Group, Inc. (UHG) | Investment Case

1. Company Snapshot

1.a. Company Description

United Homes Group, Inc., a land development and homebuilding company, designs, builds, and sells homes in South Carolina.It provides a series of single-family detached and attached homes for entry-level buyers, first-time move-ups, second-time move-ups, and third-time move-ups, as well as offers custom builds.The company was founded in 2004 and is based in Chapin, South Carolina.

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1.b. Last Insights on UHG

United Homes Group's recent performance was negatively impacted by slower home closings, which declined by 19.0% year-over-year in the first quarter of 2025. Despite improved margins from refreshed home designs and cost-cutting efforts, the company's revenue growth was hindered by lower home closings. Additionally, the company's preliminary unit statistics for the quarter showed a decline in net new orders, home starts, and home closings.

1.c. Company Highlights

Last Price	1.15
Change Percentage	-3.36%
Open	1.18
Previous Close	1.19
Market Cap ( Millions)	68
Volume	150469
Year High	4.96
Year Low	0.99
M A 50	2.31
M A 200	3.04

FCF Yield	22815.25%
Dividend Yield	0.00%
ROE	-26.00%
Debt / Equity	0.00%
Net Debt / EBIDTA	-304.93%
Price To Book	1.27
Price Earnings Ratio	-3.59
Price To FCF	0.0
Price To sales	0.16
EV / EBITDA	4.99

2. United Homes Group: Fourth Quarter 2024 Earnings Analysis

United Homes Group (UHG) delivered a solid performance in the fourth quarter of 2024, showcasing resilience despite broader market challenges. The company reported a 7% increase in home deliveries, reaching 1,431 units, and a 19% rise in net new orders, totaling 1,399 units. Revenue grew to $463.7 million, up from $421.5 million in the prior year, reflecting strong demand and execution across its portfolio. The average sales price rose to $324,000, underscoring the effectiveness of UHG's pricing strategies in a competitive market. However, margin pressures remained a challenge, with gross margins declining to 17.2% from 18.9% in 2023, primarily due to rising construction costs and supply chain disruptions. Despite this, UHG maintained a strong backlog of 157 homes valued at $58.3 million, providing visibility into future growth. Analysts estimate no revenue growth for next year, suggesting cautious optimism about the market environment.

Publication Date: Mar -13

                                    📋 Highlights
                                    Strong Home Deliveries and Net New Orders Growth:
                                                - UHG reported a 7% increase in home deliveries and a 19% rise in net new orders, reflecting resilience despite market challenges.
Revenue and Average Sales Price Growth:
                                                - Revenue rose to $463.7 million, with home closings increasing to 1,431 units and the average sales price climbing to $324,000, indicating strong demand and pricing power.
Strategic Initiatives to Enhance Profitability:
                                                - UHG introduced product redesign, a build-to-order model, and a land-light strategy to improve gross margins, though margins declined slightly to 17.2%.
Financial Restructuring and Liquidity:
                                                - The company refinanced $10 million in debt, reducing cash interest by 320 basis points, and secured a strategic shareholder, Kennedy Lewis, while maintaining $60 million in liquidity.
Optimism for Future Growth:
                                                - UHG remains optimistic about market fundamentals and its strategic initiatives, focusing on improving profitability and scaling operations in key markets for 2025.

                                

Strategic Initiatives and Operational Efficiency

UHG has made significant strides in optimizing its operations and driving profitability. The implementation of a product redesign and a shift to a build-to-order model has allowed the company to better align supply with demand, reducing inventory risks and improving margins over the long term. Additionally, the adoption of a land-light strategy has enhanced capital allocation efficiency, enabling UHG to focus on high-margin markets and reduce land-related costs. These initiatives are expected to yield further benefits in 2025 as the company scales operations in key Southeast markets. The company's financial restructuring efforts, including the refinancing of $10 million in debt and the reduction of cash interest by 320 basis points, have also improved its financial flexibility and reduced near-term risks. UHG's liquidity position of $60 million and 46 active communities across the Southeast provide a solid foundation for sustained growth.

Valuation and Market Outlook

Looking ahead, UHG is well-positioned to capitalize on improving market conditions and its strategic initiatives. The company's focus on operational efficiency, selective market expansion, and financial discipline should support its growth trajectory in 2025. While margin pressures and macroeconomic uncertainties may continue to weigh on near-term performance, UHG's strong execution and backlog provide a solid foundation for sustained success.

3. NewsRoom

Bragar Eagel & Squire, P.C. Is Investigating Trex, United Homes Group, and Nidec and Encourages Investors to Contact the Firm

Nov -19

Source: globenewswire.com

United Homes Stock Plunges Following Q3 Earnings and Soft Demand

Nov -11

Source: zacks.com

United Homes Group, Inc. (UHG) Q3 2025 Earnings Call Prepared Remarks Transcript

Nov -06

Source: seekingalpha.com

United Homes Group, Inc. Reports 2025 Third Quarter Results

Nov -06

Source: businesswire.com

INVESTOR ALERT: Investigation of United Homes Group, Inc. (UHG) Announced by Holzer & Holzer, LLC

Nov -03

Source: globenewswire.com

INVESTOR ALERT: Pomerantz Law Firm Investigates Claims On Behalf of Investors of United Homes Group, Inc. - UHG

Oct -28

Source: prnewswire.com

Securities Fraud Investigation Into United Homes Group, Inc. (UHG) Continues – Shareholders Who Lost Money Urged To Contact Glancy Prongay & Murray LLP, a Leading Securities Fraud Law Firm

Oct -24

Source: globenewswire.com

United Homes Group, Inc. (UHG) Shareholders Who Lost Money – Contact Law Offices of Howard G. Smith About Securities Fraud Investigation

Oct -24

Source: globenewswire.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (5.50%)

6. Segments

Homes

Expected Growth: 5.5%

Growing demand for diverse housing options, increasing consumer spending power, and government incentives for first-time homebuyers drive the growth of United Homes Group, Inc.'s business.

7. Detailed Products

Home Building

United Homes Group, Inc. offers custom home building services, providing clients with personalized and tailored living spaces that meet their unique needs and preferences.

Renovation Services

The company provides renovation services, helping homeowners to upgrade and modernize their existing homes, increasing their value and functionality.

Land Development

United Homes Group, Inc. develops raw land into buildable lots, providing opportunities for homeowners to purchase land and build their dream homes.

Property Management

The company offers property management services, helping homeowners and investors to manage their properties, including rental management and maintenance.

Real Estate Services

United Homes Group, Inc. provides real estate services, including buying, selling, and leasing properties, helping clients to navigate the complex real estate market.

8. United Homes Group, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for United Homes Group, Inc. is medium due to the presence of alternative housing options such as apartments and condominiums.

Bargaining Power Of Customers

The bargaining power of customers is low due to the lack of negotiating power and the high switching costs associated with changing housing providers.

Bargaining Power Of Suppliers

The bargaining power of suppliers is medium due to the presence of multiple suppliers of building materials and labor, but the high demand for these inputs.

Threat Of New Entrants

The threat of new entrants is high due to the relatively low barriers to entry and the attractiveness of the housing market.

Intensity Of Rivalry

The intensity of rivalry is high due to the presence of multiple competitors in the housing market and the high stakes of competition.

9. SWOT Analysis

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

	Value
Debt Weight	125.38%
Debt Cost	3.95%
Equity Weight	-25.38%
Equity Cost	7.25%
WACC	3.11%
Leverage	-494.04%

11. Quality Control: United Homes Group, Inc. passed 4 out of 9 key points

Strong Liquidity

Low Debt

Strong Interest Coverage

Healthy Cash Flow

Operating Efficiency

Strong Return On Equity

Consistent Revenue Growth

Consistent Operating Cash Flow Growth

Margin Improvement

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Legacy Housing

A-Score: 5.3/10

Value: 6.0

Growth: 5.9

Quality: 7.8

Yield: 0.0

Momentum: 6.0

Volatility: 6.3

1-Year Total Return ->

Camping World

A-Score: 4.6/10

Value: 8.3

Growth: 3.0

Quality: 3.5

Yield: 9.0

Momentum: 1.5

Volatility: 2.3

1-Year Total Return ->

Hovnanian

A-Score: 3.8/10

Value: 8.6

Growth: 4.6

Quality: 5.6

Yield: 0.0

Momentum: 2.0

Volatility: 2.0

1-Year Total Return ->

Beazer Homes USA

A-Score: 3.7/10

Value: 7.8

Growth: 3.9

Quality: 3.8

Yield: 0.0

Momentum: 2.5

Volatility: 4.0

1-Year Total Return ->

LGI Homes

A-Score: 3.4/10

Value: 8.1

Growth: 3.7

Quality: 4.6

Yield: 0.0

Momentum: 0.5

Volatility: 3.7

1-Year Total Return ->

United Homes

A-Score: 2.5/10

Value: 6.8

Growth: 2.7

Quality: 3.5

Yield: 0.0

Momentum: 1.5

Volatility: 0.7

1-Year Total Return ->

Peers Metrics

12.e Scoring ^Insights

12.f DCF ^BETA

Parameters

Short Term Growth

-8.42%

Short term Time

10.0

Long-Term Growth

2.00%

WACC

3.11%

United Homes Group, Inc. - US91060H1086

1. Company Snapshot

1.a. Company Description

1.b. Last Insights on UHG

1.c. Company Highlights

Cheaper

Weak Momentum

More Volatile

Better Quality

Average Quality

Average Yield

Average Growth

Stable Momentum

Expensive

Lower Growth

2. United Homes Group: Fourth Quarter 2024 Earnings Analysis

Strategic Initiatives and Operational Efficiency

Valuation and Market Outlook

3. NewsRoom

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (5.50%)

6. Segments

Homes

Expected Growth: 5.5%

7. Detailed Products

Home Building

Renovation Services

Land Development

Property Management

Real Estate Services

8. United Homes Group, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Bargaining Power Of Customers

Bargaining Power Of Suppliers

Threat Of New Entrants

Intensity Of Rivalry

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

11. Quality Control: United Homes Group, Inc. passed 4 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

1.15$

Current Price

1.15$

Potential

-0.00%

Expected Cash-Flows

12.e Scoring ^Insights

12.f DCF ^BETA