Buffett Brain · Research note
Score updated 27 Oct 2026 · analysis from 25 May 2026
GRBK· Consumer Discretionary
Green Brick Partners
Green Brick Partners has a decent ROIC of 13.5%, but its low gross margin of 30.8% raises significant concerns about its pricing power and competitive position.
Buffett fit
Partial fit
Owner
48
Durability
85
Management
31
Price
35
Score updated 27 Oct 2026 · analysis from 25 May 2026
Buffett's checklist
Each number against Buffett's bar, and where it ranks among Consumer Discretionary stocks in our database.
How much profit the business makes on each dollar invested in it. Higher is better.
What is left of each sale after the cost of making the product. A high number often means pricing power.
The cash the business earns for its owners, compared with the price of the whole company.
How fast sales grew each year over the last five years.
How many years of today's profit you pay for at today's price. Lower means cheaper.
How much the company owes compared with what it owns outright. Lower is safer.
The four pillars
How the business measures up on each of Buffett's four tests.
If I owned Green Brick Partners outright, I would focus on maximizing the efficiency of land development and home sales to drive profitability.
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The 10-year outlook suggests that while the company has shown consistent profitability over the last five years, the housing market is cyclical and can be disrupted by economic downturns.
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Management has reduced the share count by 3.6% over the last five years, indicating some commitment to returning value to shareholders, but the yield of only 2.04% is modest.
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The current of 9.2 and yield of 7.61% suggest that the stock is reasonably valued, but I would prefer a closer to an 8-10% owner earnings yield.
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For and against
The strongest points on each side, with the numbers behind them.
In its favor
5- 1 of 13.5% ranks in the top quintile for the Consumer Cyclical sector (p80: 11.4%).
- 25-year average of 17.4% indicates strong historical performance.
- 3 of 19.5% is well above the sector top-quintile cutoff of 11.8%.
- 4Net margin of 14.9% also exceeds the sector average of 8.4%.
Concerns
5- 1 of 30.8% is significantly below the sector top-quintile cutoff of 51.9%, indicating weak .
- 2Management quality score of 31 suggests potential issues with and strategic direction.
- 3Interest coverage ratio of 0.0 indicates a lack of earnings to cover interest expenses, raising red flags about financial health.
- 4/Net income of 0.67 suggests that reported earnings may not be translating into actual cash flow.
Price history
$64.12+146.1%· 5-year return
Weekly closing prices. Touch or hover the line for a date.
The business
How the business works
Green Brick Partners operates as a homebuilder and land developer, focusing on residential neighborhoods and master-planned communities. The company controls approximately 28,600 home sites across key markets like Dallas-Fort Worth and Atlanta. With TTM revenue of $2.04 billion and net income of $313.23 million, the business model appears sound, but the unit economics are challenged by low .
What other investors would say
The same company, judged by three other documented playbooks.
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