Ryland (RYL) is one of the top ten publicly traded homebuilders, in terms of annual home closings. Recently, the company was named the fastest growing publicly traded homebuilder in the United States, based on 2012 results. The company has benefited tremendously from the rebound in the overall housing market. The company just had its first profitable 1st Quarter, Q1 2013, in the last seven years. To someone not familiar with the homebuilding industry, the headlines all seem to be positive these days for Ryland. There is no arguing that the tide has turned, and the homebuilding industry is healthier today. There is, however, reason to believe that the market is overlooking significant headwinds that could quickly...
Ryland: 2 Major Reasons Why This Homebuilder Is At Least 30% Overvalued
May 20 2013, 06:00 | about: RYL
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Editor's notes: With an all-time high price/book ratio and the onset of income taxes that will accompany earnings (and that analyst models haven't accounted for), RYL is poised to fall.