Anywhere Real Estate Inc. (NYSE: HOUS), a global leader in residential real estate services, has reported its financial results for the full year 2023, ending December 31, 2023. The company's revenue for the year was $5.6 billion, reflecting an 18% decrease year-over-year, largely impacted by homesale transaction volume declines versus the prior year of 19%.
Ryan Schneider, Anywhere's President and CEO, stated, "Anywhere demonstrated our leadership strength in 2023, driving meaningful results in a tough real estate market. In a potentially improving housing market, we are excited to build on our competitive advantages, accelerate our strategic agenda, and deliver even greater value to Anywhere affiliated agents, franchisees, and shareholders in the year ahead."
Charlotte Simonelli, Anywhere's Executive Vice President, Chief Financial Officer, and Treasurer, added, "In 2023, Anywhere achieved differentiated results, generating significant operating EBITDA and free cash flow, reducing debt and over-delivering on our savings target, mitigating litigation risk, and prudently managing our cash. We continue to execute on our controllables as we drive efficiencies and prioritize investing for growth to set Anywhere up for an even stronger future."
Financial Highlights for the Full Year 2023: - Generated revenue of $5.6 billion, a decrease of 18% year-over-year - Reported a net loss of $97 million - Operating EBITDA of $200 million, meaningfully impacted by approximately $50 million of litigation reserves - Realized cost savings of approximately $220 million - Free cash flow of $67 million - Reduced debt by $308 million
Looking ahead to 2024, the company expects more normal seasonal volumes throughout the year. With the first quarter still at historically low unit volume, the company expects the first quarter EBITDA to be negative and anticipates further cost savings of approximately $100 million in 2024.
The company's shares have moved -2.6%, and are now trading at a price of $7.44.
The company's full 8-K submission is available here.
| 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | |
|---|---|---|---|---|---|---|
| Revenue (M) | $6,079 | $5,870 | $6,221 | $7,983 | $6,908 | $5,709 |
| Interest Income (M) | $190 | $250 | $246 | $190 | $113 | $151 |
| Operating Margins | 3% | -3% | -10% | 5% | -5% | -10% |
| Net Margins | 2% | -3% | -6% | 4% | -4% | -8% |
| Net Income (M) | $137 | -$188 | -$360 | $343 | -$287 | -$443 |
| Depreciation & Amort. (M) | $195 | $195 | $186 | $204 | $214 | $204 |
| Diluted Shares (M) | 125 | 114 | 115 | 120 | 114 | 112 |
| Earnings Per Share | $1.09 | -$1.65 | -$3.13 | $2.85 | -$2.52 | -$3.88 |
| EPS Growth | n/a | -251.38% | -89.7% | 191.05% | -188.42% | -53.97% |
| Avg. Price | $21.81 | $9.68 | $8.89 | $17.01 | $14.09 | $7.32 |
| P/E Ratio | 19.83 | -5.87 | -2.84 | 5.77 | -5.59 | -1.88 |
| Free Cash Flow (M) | $289 | $252 | $653 | $542 | -$201 | $26 |
| EV / EBITDA | 17.73 | 752.42 | -9.69 | 6.68 | -42.16 | -9.33 |
| Total Debt (M) | $4,527 | $3,679 | $3,419 | $2,957 | $3,206 | $2,560 |
| Current Ratio | 0.5 | 0.68 | 0.92 | 1.13 | 0.64 | 0.54 |
Anywhere Real Estate is likely overvalued at a price of $7.44 per share due to its stable revenues with a current yearly growth rate of -0.9%, decreasing capital expenditures at a rate of -7.0%, and consistently low operating margins, averaging -3.3% over the last 6 years. Additionally, the company's earnings per share have declined with an annualized growth rate of -12.8% and it has a negative PEG ratio.
On the positive side, Anywhere Real Estate exhibits a poor record of retained earnings with a value of $-2.98 Billion and its free cash flows have a decent average of $260.17 Million over the last 5 years, albeit with a negative compounded average growth rate of -37.4% and a high year-on-year growth variability coefficient of 669.51%. However, the company's total liabilities of $4.27 Billion far exceed its current assets of 695.0 Million, with a net current asset level of $-3.58 Billion and a current ratio of 0.54, indicating insufficient current assets to cover current liabilities.
It's important to note that this analysis is not personalized financial advice and individuals should conduct their own research or consult with a financial advisor before making investment decisions.
