GRBK - Green Brick Partners: Multiple Discrete Catalysts On The Horizon With Potential For Massive Cash Deployment
- Green Brick is a homebuilding company with operations primarily in Dallas with smaller operations in Atlanta, Florida, and Colorado. Dallas is the largest housing market in the U.S.
- Green Brick has a market cap of just over $1B. The company is rapidly growing revenue and earnings with industry leading profitability metrics for all mid or small cap homebuilders.
- David Einhorn owns ~35% of the total outstanding shares. Green Brick is Einhorn's largest holding. His outsized ownership is one of the keys for why shares should rip higher.
- Green Brick differs from most other builders in that the company owns over 75% of it's land inventory. Given rapid increases in home values, and land acquired far below market value, Green Brick is on the path to generating industry leading 30%+ Gross Margins.
- There is a strong likelihood Green Brick will generate over $1.1B in cash flow from Q3 2021 to Q4 2022. This cash flow is equal to the companies current market cap. With Einhorn's ownership, and this cash needing to find a home, Green Brick is an acquisition target or worst case the company will likely return massive amounts of cash to shareholders.
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Green Brick Partners: Multiple Discrete Catalysts On The Horizon With Potential For Massive Cash Deployment