Homex's growth comes at a steep price. The firm must invest huge amounts of cash in construction and land. Because of this, it has generated positive cash flow from operations only twice over the last nine years.Although it is maturing, the Mexican mortgage lending market is still not nearly as
Homebuilders operate in a highly cyclical, low-barrier-to-entry business, creating volatile and unrewarding financial performance for many participants.If problems in Europe spill into the U.S., the current nascent recovery could be set back by several quarters, if not a year or two.Horton can
NVR remains a high-quality builder, but its growth may lag peers as the market recovers.
Lennar is among the very best positioned builders to benefit from expanding production.
Bloated shadow inventories and tepid economic growth provide ongoing headwinds for homebuilders like Toll. These headwinds could continue for some time.If problems in Europe spill into the US, the current nascent recovery could be set back by several quarters, if not a year or two. Toll should post
Timing a housing recovery is tough, but when it comes, Ryland will do well.
Struggling to post steady profit, Pulte should gain momentum slowly as housing eventually firms.
KB Home is still struggling with slack demand, but positioned for a rebound
Gafisa's profit margins may be choppy in the near-term as it works through excess inventory.
Xinyuan's fortunes are inextricably linked to the state of the Chinese economy. If China enters a recession, Xinyuan will likely suffer.If prices of land and residential properties drop dramatically, Xinyuan's results could be affected.If Xinyuan fails to commence development within one or two