Nobility Homes (NOBH, $24.80) sales climb +18%; but supply chain issues weigh on completion of homes
Nobility Homes, Inc. posted its diluted earnings for its third quarter (ended August 6) of $0.56 per share compared to $0.29 per in the year-ago quarter.
Sales increased +18% from the year-ago period to $13.8 million. Net income after taxes was $1.9 million as compared to $1.0 million for the same period last year.
Nobility's cash and cash equivalents, certificate of deposits and short term investments were $22.9 million as of the third quarter and no outstanding debt. Working capital stood at $31.2 million.
Terry Trexler, President, stated, 'The demand for affordable manufactured housing in Florida and the U.S. continues to be strong. According to the Florida Manufactured Housing Association, shipments for the industry in Florida for the period from November 2021 through July 2022 were up approximately 22% from the same period last year. Although net sales increased during the three months ended August 6, 2022 as compared to the same period last year, we continued to experience the negative impact of limitations being placed on certain key production materials from suppliers, the delay or lack of key components from vendors as well as back orders, delayed shipments, price increases and labor shortages”. Trexler noted that the supply chain -related challenges in the completion of the homes are expected to continue for the remainder of fiscal year 2022 and potentially beyond until the industry supply chain normalizes.
Trexler said “maintaining our strong financial position is vital for future growth and success”. He added, “Our many years of experience in the Florida market, combined with home buyers' increased need for more affordable housing, should serve the Company well in the coming years”.
Notable companies
The most notable companies in this group are DR Horton (NYSE:DHI), Lennar Corp (NYSE:LEN), Pultegroup (NYSE:PHM), KB Home (NYSE:KBH).
Industry description
Homebuilding includes companies residential home construction companies, renovators and repair firms. The companies may be building single-family or multifamily homes, condominiums or mobile homes. Over the five years to 2019, the Home Builders industry is estimated to have grown at an annualized rate of 2.5% to reach $89.4 billion, (including expected growth of 2.6% in 2019), according to a study by IbisWorld. After having suffered one of its worst crises a decade ago during the last macroeconomic recession–which had much of its origins in U.S. real estate – the homebuilding industry has been recovering steadily so far. Higher disposable incomes and improving economic activity have bolstered consumers’ purchases of homes. While revenue of the Home Builders industry remains well below its prerecession high, demand growth estimates show promise.
Market Cap
The average market capitalization across the Homebuilding Industry is 6.99B. The market cap for tickers in the group ranges from 66.68K to 54.6B. DHI holds the highest valuation in this group at 54.6B. The lowest valued company is ASCK at 66.68K.
High and low price notable news
The average weekly price growth across all stocks in the Homebuilding Industry was 1%. For the same Industry, the average monthly price growth was 4%, and the average quarterly price growth was 28%. DFH experienced the highest price growth at 10%, while STHI experienced the biggest fall at -10%.
Volume
The average weekly volume growth across all stocks in the Homebuilding Industry was -3%. For the same stocks of the Industry, the average monthly volume growth was 27% and the average quarterly volume growth was 18%
Fundamental Analysis Ratings
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
Valuation Rating: 39
P/E Growth Rating: 36
Price Growth Rating: 43
SMR Rating: 55
Profit Risk Rating: 53
Seasonality Score: -27 (-100 ... +100)