A Land Developer Growing Revenues and Earnings
The company I am going to be talking about today has, in the first nine months of their fiscal 2025, grown their revenues by 21%, operating income by 192%, and net income by 246%. Despite the rapid growth, the stock has traded poorly in the last couple of months falling from $38.43 per share this past December to $21.60 per share today. That’s an enormous 44% price decline. I believe that this is largely, if not purely due to the overall sentiment of the homebuilder’s market.
Larger companies like Toll Brothers, Inc. TOL 0.00%↑ , PulteGroup, Inc. PHM 0.00%↑, and the Lennar Corporation LEN 0.00%↑ have seen similar slumps in their share prices. While LEN, PHM, and TOL have all seen their revenues, operating income, and net income stagnate over this time period, the company I will be diving into today has seen dramatic and meaningful rises in all of these sections of their income statement. Once the market begins to favor home builders again and investors begin to look through the financials' of the company I’m talking about today, this business could see a huge boost in its share price. What’s even better is that unlike many of the companies that I talk about on The Value Road, this company’s stock is probably worth holding onto over the long-term as they’re ran by a good management team that enjoys the comforts of many moats that have formed around its business over the years.