BETR Stock Analysis: Better Home & Finance | NASDAQ
Mortgage Finance | NASDAQ, USA | Market Cap: 228m USD | 12M Return: -79.2% | US08774B5084 | Charts, Fundamentals & Technical Analysis
Avg Turnover: 9.46M
Warnings
Tailwinds
Seasonality 5.4 years of data
How good or bad each month usually is (without trend). The score below shows how much you can trust it: 0 = pure chance, >40 gets interesting and >55 is strong.
Better Home & Finance Holding Company (BETR) is a US-based homeownership company that originates a wide range of mortgage products, including GSE conforming loans, FHA-insured loans, VA-guaranteed loans, and jumbo loans, and sells them to secondary-market participants such as GSEs, banks, insurance companies, asset managers, and mortgage REITs. The company also offers complementary services including real estate agent representation, title insurance and settlement services, homeowners insurance, and home equity products such as HELOCs and closed-end second-lien loans.
The business operates primarily on an originate-to-sell model typical of mortgage finance companies, generating revenue through loan origination fees and the sale of mortgages to the secondary market, while expanding into adjacent fee-based services to capture more of the homeownership transaction. The company maintains a strategic collaboration with Coinbase Global to develop token-backed mortgage products, signaling an effort to integrate digital-asset technology into home financing. The company, formerly Better Mortgage Corporation, rebranded to its current name in August 2023 and is headquartered in New York.
- Mortgage rate swings drive refinance and purchase volume
- Gain-on-sale margins compress under Rocket and UWM pricing pressure
- Capital raise risk persists as cash burn continues post-IPO
| Net Income: -179.9m TTM > 0 and > 6% of Revenue |
| FCF/TA: -0.15 > 0.02 and ΔFCF/TA 0.09 > 1.0 |
| NWC/Revenue: -155.4% < 20% (prev 30.47%; Δ -185.8% < -1%) |
| CFO/TA -0.15 > 3% & CFO -232.6m > Net Income -179.9m |
| Net Debt/EBITDA: error (EBITDA <= 0) |
| Current Ratio: 0.28 > 1.5 & < 3 |
| Outstanding Shares: last quarter (18.7m) vs 12m ago 22.82% < -2% |
| Gross Margin: 79.05% > 18% (prev -10.70%; Δ 89.75% > 0.5%) |
| Asset Turnover: 15.26% > 50% (prev 13.00%; Δ 2.26% > 0%) |
| Interest Coverage Ratio: -3.21 > 6 (EBIT TTM -122.5m / Interest Expense TTM 38.2m) |
| A: -0.21 (Total Current Assets 130.1m - Total Current Liabilities 458.9m) / Total Assets 1.54b |
| B: -1.41 (Retained Earnings -2.18b / Total Assets 1.54b) |
| C: -0.09 (EBIT TTM -122.5m / Avg Total Assets 1.39b) |
| D: 0.04 (Book Value of Equity 57.9m / Total Liabilities 1.48b) |
| Altman-Z'' = -6.55 = D |
| DSRI: 0.34 (Receivables 18.2m/40.3m, Revenue 211.6m/160.1m) |
| GMI: 1.00 (fallback, negative margins) |
| AQI: 21.89 (AQ_t 0.91 / AQ_t-1 0.04) |
| SGI: 1.32 (Revenue 211.6m / 160.1m) |
| TATA: 0.03 (NI -179.9m - CFO -232.6m) / TA 1.54b) |
| Beneish M = 9.06 (Cap -4..+1) = D |
As of October 22, 2026, the stock is trading at USD 15.58 with a total of 2,397,518 shares traded. Over the past week, the price has changed by +91.87%, over one month by +25.44%, over three months by -34.04% and over the past year by -79.20%.
Current recommended Stop Loss: 13.90 (which is 10.8% or 1.2 ATR below the current price).
Better Home & Finance has received a consensus analysts rating of 4.63. Therefore, it is recommended to buy BETR.
- StrongBuy: 6
- Buy: 1
- Hold: 1
- Sell: 0
- StrongSell: 0
| Analysts Target Price | 22.1 | 42.1% |
P/E Forward = 51.8135
P/S = 1.1787
P/B = 3.9902
Revenue TTM = 211.6m USD
EBIT TTM = -122.5m USD
EBITDA TTM = -110.0m USD
Long Term Debt = 198.8m USD (from longTermDebt, last quarter)
Short Term Debt = 454.3m USD (from shortTermDebt, last quarter)
Debt = 662.3m USD (from shortLongTermDebtTotal, last quarter) + Leases 4.58m
Net Debt = 550.4m USD (calculated: Debt 662.3m - CCE 111.9m)
Enterprise Value = 778.0m USD (227.6m + Debt 662.3m - CCE 111.9m)
Interest Coverage Ratio = -3.21 (Ebit TTM -122.5m / Interest Expense TTM 38.2m)
EV/FCF = -3.29x (Enterprise Value 778.0m / FCF TTM -236.2m)
FCF Yield = -30.36% (FCF TTM -236.2m / Enterprise Value 778.0m)
FCF Margin = -111.6% (FCF TTM -236.2m / Revenue TTM 211.6m)
Net Margin = -85.02% (Net Income TTM -179.9m / Revenue TTM 211.6m)
Gross Margin = 79.05% ((Revenue TTM 211.6m - Cost of Revenue TTM 44.3m) / Revenue TTM)
Gross Margin QoQ = 84.54% (prev 74.21%)
Tobins Q-Ratio = 0.50 (Enterprise Value 778.0m / Total Assets 1.54b)
Interest Expense / Debt = 5.77% (Interest Expense 38.2m / Debt 662.3m)
Taxrate = 21.0% (US federal default 21%)
NOPAT = -96.8m (EBIT -122.5m * (1 - 21.00%)) [loss with tax shield]
Current Ratio = 0.28 (Total Current Assets 130.1m / Total Current Liabilities 458.9m)
Debt / Equity = 11.44 (Debt 662.3m / totalStockholderEquity, last quarter 57.9m)
Debt / EBITDA = -5.00 (negative EBITDA) (Net Debt 550.4m / EBITDA -110.0m)
Debt / FCF = -2.33 (negative FCF - burning cash) (Net Debt 550.4m / FCF TTM -236.2m)
Total Stockholder Equity = 38.7m (last 4 quarters mean from totalStockholderEquity)
RoA = -12.97% (Net Income -179.9m / Total Assets 1.54b)
RoE = -465.3% (Net Income TTM -179.9m / Total Stockholder Equity 38.7m)
RoCE = -51.60% (EBIT -122.5m / Capital Employed (Equity 38.7m + L.T.Debt 198.8m))
RoIC = -6.34% (negative operating profit) (NOPAT -96.8m / Invested Capital 1.53b)
WACC = 6.42% (E(227.6m)/V(889.8m) * Re(11.86%) + D(662.3m)/V(889.8m) * Rd(5.77%) * (1-Tc(0.21)))
Discount Rate = 11.86% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: -69.04 | Cagr: -68.77%
[DCF] Fair Price = unknown (Cash Flow -236.2m)
EPS Correlation: N/A | EPS CAGR: N/A | SUE: -0.18 | # QB: 0
Revenue Correlation: 96.77 | Revenue CAGR: 46.75% | SUE: 0.54 | # QB: 0
EPS current Quarter (2026-09-30): EPS=-1.21 | Chg30d=-1.51% | Revisions=-50% | Analysts=5
EPS current Year (2026-12-31): EPS=-3.92 | Chg30d=-2.29% | Revisions=-40% | GrowthEPS=+54.3% | GrowthRev=+23.5%
EPS next Year (2027-12-31): EPS=-0.72 | Chg30d=-56.33% | Revisions=-50% | GrowthEPS=+81.7% | GrowthRev=+31.9%
[Analyst] Revisions Ratio: -73% (up=0, down=8)