(BETR) Better Home & Finance - Ratings and Ratios
Mortgage Loans, Title Insurance, Homeowners Insurance, Real Estate Services
Description: BETR Better Home & Finance
Better Home & Finance Holding Company (NYSE:BETR) is a US-based homeownership company that offers a range of mortgage products, including GSE conforming loans, FHA insured loans, VA guaranteed loans, and jumbo loans to various financial institutions. The company also provides ancillary services such as real estate agent services, title insurance, settlement services, and homeowners insurance.
From a business perspective, BETRs revenue streams are likely driven by origination fees, servicing fees, and insurance premiums. Key performance indicators (KPIs) to watch include loan origination volume, revenue per loan, and customer acquisition costs. The companys ability to maintain a strong market share in the competitive mortgage finance industry will be crucial to its success.
Given the companys recent name change from Better Mortgage Corporation to Better Home & Finance Holding Company, it is likely that BETR is expanding its product offerings and rebranding itself as a more comprehensive homeownership company. This strategic shift may be aimed at increasing customer engagement, improving cross-selling opportunities, and driving long-term growth.
To evaluate BETRs financial health, we can examine metrics such as return on equity (RoE), which is currently reported at 714.16%. While this figure appears unusually high, it may indicate a significant improvement in the companys profitability. Other relevant KPIs include debt-to-equity ratio, interest coverage ratio, and operating expenses as a percentage of revenue. A closer examination of these metrics will provide a more nuanced understanding of BETRs financial performance and potential for future growth.
From a valuation perspective, BETRs market capitalization stands at $200.40M, and the absence of a reported P/E ratio suggests that the company may be in a growth phase or have negative earnings. As a Trading Analyst, it is essential to consider multiple valuation multiples, such as price-to-book or price-to-sales, to determine whether BETR is fairly valued relative to its peers and industry benchmarks.
BETR Stock Overview
| Market Cap in USD | 300m |
| Sub-Industry | Commercial & Residential Mortgage Finance |
| IPO / Inception | 2023-08-24 |
BETR Stock Ratings
| Growth Rating | -42.2% |
| Fundamental | 24.9% |
| Dividend Rating | - |
| Return 12m vs S&P 500 | 20.2% |
| Analyst Rating | - |
BETR Dividends
Currently no dividends paidBETR Growth Ratios
| Growth Correlation 3m | 75% |
| Growth Correlation 12m | -10.6% |
| Growth Correlation 5y | -74.8% |
| CAGR 5y | -51.56% |
| CAGR/Max DD 5y | -0.52 |
| Sharpe Ratio 12m | -0.05 |
| Alpha | 22.42 |
| Beta | 0.929 |
| Volatility | 113.67% |
| Current Volume | 116.2k |
| Average Volume 20d | 62.9k |
| Stop Loss | 21 (-7.2%) |
| Signal | 2.52 |
Piotroski VR‑10 (Strict, 0-10) 1.5
| Net Income (-200.3m TTM) > 0 and > 6% of Revenue (6% = 9.67m TTM) |
| FCFTA -0.32 (>2.0%) and ΔFCFTA -14.14pp (YES ≥ +1.0pp, WARN ≥ +0.5pp) |
| NWC/Revenue 30.28% (prev 659.3%; Δ -629.0pp) (YES ≤20% & Δ≤-1pp; WARN ≤25% & Δ≤0 oder ≤40% & Δ≤-3pp) |
| CFO/TA -0.14 (>3.0%) and CFO -178.5m > Net Income -200.3m (YES >=105%, WARN >=100%) |
| NO Net Debt/EBITDA fails (EBITDA <= 0) |
| Current Ratio 1.04 (target 1.5–3.0; WARN 1.2–<1.5 or >3.0–5.0; CFO/TA gate active) |
| Outstanding Shares last Quarter (15.2m) change vs 12m ago -97.99% (target <= -2.0% for YES) |
| Gross Margin 11.06% (prev -96.30%; Δ 107.4pp) >=18% & Δ>=+0.5pp (WARN >=15% & Δ>=0) |
| Asset Turnover 14.65% (prev 8.01%; Δ 6.64pp) >=50% & Δ>=+2pp (WARN >=35% & Δ>=0) |
| Interest Coverage Ratio -15.89 (EBITDA TTM -136.5m / Interest Expense TTM 10.1m) >= 6 (WARN >= 3) |
Altman Z'' -7.82
| (A) 0.04 = (Total Current Assets 1.17b - Total Current Liabilities 1.13b) / Total Assets 1.23b |
| (B) -1.62 = Retained Earnings (Balance) -2.00b / Total Assets 1.23b |
| warn (B) unusual magnitude: -1.62 — check mapping/units |
| (C) -0.15 = EBIT TTM -160.2m / Avg Total Assets 1.10b |
| (D) -1.73 = Book Value of Equity -2.00b / Total Liabilities 1.16b |
| Total Rating: -7.82 = (6.56 * A) + (3.26 * B) + (6.72 * C) + (1.05 * D) |
ValueRay F-Score (Strict, 0-100) 24.93
| 1. Piotroski 1.50pt = -3.50 |
| 2. FCF Yield -47.85% = -5.0 |
| 3. FCF Margin data missing |
| 4. Debt/Equity 7.86 = -2.50 |
| 5. Debt/Ebitda -4.41 = -2.50 |
| 6. ROIC - WACC -28.10% = -12.50 |
| 7. RoE data missing |
| 8. Rev. Trend 55.73% = 2.79 |
| 9. Rev. CAGR 20.28% = 2.50 |
| 10. EPS Trend -74.06% = -1.85 |
| 11. EPS CAGR -110.8% = -2.50 |
What is the price of BETR shares?
Over the past week, the price has changed by +26.21%, over one month by +65.30%, over three months by +54.10% and over the past year by +40.56%.
Is Better Home & Finance a good stock to buy?
Based on momentum, paid dividends and discounted-cash-flow analyses, the fair value of BETR is around 17.76 USD . This means that BETR is currently overvalued and has a potential downside of -21.52%.
Is BETR a buy, sell or hold?
What are the forecasts/targets for the BETR price?
| Issuer | Target | Up/Down from current |
|---|---|---|
| Wallstreet Target Price | - | - |
| Analysts Target Price | - | - |
| ValueRay Target Price | 19 | -16% |
Last update: 2025-08-27 02:50
BETR Fundamental Data Overview
CCE Cash And Equivalents = 87.1m USD (Cash only, last quarter)
P/S = 2.2989
P/B = 3.9239
Beta = 1.535
Revenue TTM = 161.1m USD
EBIT TTM = -160.2m USD
EBITDA TTM = -136.5m USD
Long Term Debt = 30.3m USD (from nonCurrentLiabilitiesTotal, last quarter)
Short Term Debt = 571.6m USD (from shortLongTermDebt, last quarter)
Debt = 601.9m USD (Calculated: Short Term 571.6m + Long Term 30.3m)
Net Debt = 484.5m USD (from netDebt column, last quarter)
Enterprise Value = 815.1m USD (300.4m + Debt 601.9m - CCE 87.1m)
Interest Coverage Ratio = -15.89 (Ebit TTM -160.2m / Interest Expense TTM 10.1m)
FCF Yield = -47.85% (FCF TTM -390.1m / Enterprise Value 815.1m)
FCF Margin = -242.1% (FCF TTM -390.1m / Revenue TTM 161.1m)
Net Margin = -124.3% (Net Income TTM -200.3m / Revenue TTM 161.1m)
Gross Margin = 11.06% ((Revenue TTM 161.1m - Cost of Revenue TTM 143.3m) / Revenue TTM)
Tobins Q-Ratio = -0.41 (set to none) (Enterprise Value 815.1m / Book Value Of Equity -2.00b)
Interest Expense / Debt = 1.67% (Interest Expense 10.1m / Debt 601.9m)
Taxrate = 21.0% (US default)
NOPAT = -160.2m (EBIT -160.2m, no tax applied on loss)
Current Ratio = 1.04 (Total Current Assets 1.17b / Total Current Liabilities 1.13b)
Debt / Equity = 7.86 (Debt 601.9m / last Quarter total Stockholder Equity 76.6m)
Debt / EBITDA = -4.41 (Net Debt 484.5m / EBITDA -136.5m)
Debt / FCF = -1.54 (Debt 601.9m / FCF TTM -390.1m)
Total Stockholder Equity = -20.8m (last 4 quarters mean)
RoA = -16.26% (Net Income -200.3m, Total Assets 1.23b )
RoE = unknown (Net Income TTM -200.3m / Total Stockholder Equity -20.8m)
RoCE = -1702 % (set to none) (Ebit -160.2m / (Equity -20.8m + L.T.Debt 30.3m))
RoIC = -24.07% (NOPAT -160.2m / Invested Capital 665.5m)
WACC = 4.03% (E(300.4m)/V(902.3m) * Re(9.44%)) + (D(601.9m)/V(902.3m) * Rd(1.67%) * (1-Tc(0.21)))
Shares Correlation 5-Years: -60.0 | Cagr: -18.69%
Discount Rate = 9.44% (= CAPM, Blume Beta Adj.)
Fair Price DCF = unknown (Cash Flow -390.1m)
Revenue Correlation: 55.73 | Revenue CAGR: 20.28%
Rev Growth-of-Growth: 63.10
EPS Correlation: -74.06 | EPS CAGR: -110.8%
EPS Growth-of-Growth: -147.6
Additional Sources for BETR Stock
Tweets: X | Stocktwits
Fund Manager Positions: Dataroma | Stockcircle