NYSE:TMHC stands out as a stock that provides good value for the fundamentals it showcases.

Last update: Dec 24, 2024

Our stock screening tool has pinpointed TAYLOR MORRISON HOME CORP (NYSE:TMHC) as an undervalued stock. NYSE:TMHC maintains a solid financial footing. Furthermore, it remains attractively priced. Let's delve into the specifics below.

Valuation Examination for NYSE:TMHC

ChartMill assigns a Valuation Rating to every stock. This score ranges from 0 to 10 and evaluates the different valuation aspects and compares the price to earnings and cash flows, while taking into account profitability and growth. NYSE:TMHC scores a 8 out of 10:

Based on the Price/Earnings ratio of 7.90, the valuation of TMHC can be described as very cheap.
TMHC's Price/Earnings ratio is a bit cheaper when compared to the industry. TMHC is cheaper than 79.69% of the companies in the same industry.
TMHC's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.29.
TMHC is valuated cheaply with a Price/Forward Earnings ratio of 6.43.
93.75% of the companies in the same industry are more expensive than TMHC, based on the Price/Forward Earnings ratio.
TMHC is valuated cheaply when we compare the Price/Forward Earnings ratio to 23.78, which is the current average of the S&P500 Index.
TMHC's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. TMHC is cheaper than 76.56% of the companies in the same industry.
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
The decent profitability rating of TMHC may justify a higher PE ratio.
TMHC's earnings are expected to grow with 17.13% in the coming years. This may justify a more expensive valuation.

Understanding NYSE:TMHC's Profitability

ChartMill's Profitability Rating offers a unique perspective on stock analysis, providing scores from 0 to 10. These ratings consider a wide range of profitability metrics and margins, both in comparison to industry peers and on their own merits. For NYSE:TMHC, the assigned 7 is a significant indicator of profitability:

TMHC has a Return On Assets of 8.75%. This is in the better half of the industry: TMHC outperforms 65.63% of its industry peers.
TMHC has a better Return On Equity (14.26%) than 62.50% of its industry peers.
The Return On Invested Capital of TMHC (10.86%) is better than 64.06% of its industry peers.
TMHC has a better Profit Margin (10.39%) than 79.69% of its industry peers.
In the last couple of years the Profit Margin of TMHC has grown nicely.
TMHC has a Operating Margin of 14.84%. This is in the better half of the industry: TMHC outperforms 79.69% of its industry peers.
TMHC's Operating Margin has improved in the last couple of years.
In the last couple of years the Gross Margin of TMHC has grown nicely.

Deciphering NYSE:TMHC's Health Rating

ChartMill employs a unique Health Rating system for all stocks. This rating, ranging from 0 to 10, is determined by analyzing various liquidity and solvency ratios. For NYSE:TMHC, the assigned 5 for health provides valuable insights:

An Altman-Z score of 3.71 indicates that TMHC is not in any danger for bankruptcy at the moment.
TMHC has a Debt/Equity ratio of 0.38. This is a healthy value indicating a solid balance between debt and equity.
A Current Ratio of 6.05 indicates that TMHC has no problem at all paying its short term obligations.
TMHC's Current ratio of 6.05 is amongst the best of the industry. TMHC outperforms 81.25% of its industry peers.

Growth Examination for NYSE:TMHC

A key component of ChartMill's stock assessment is the Growth Rating, which spans from 0 to 10. This rating evaluates diverse growth factors, such as EPS and revenue growth, considering both past performance and future projections. NYSE:TMHC has received a 4 out of 10:

The Earnings Per Share has been growing by 22.22% on average over the past years. This is a very strong growth
TMHC shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 11.90% yearly.
TMHC is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 17.13% yearly.

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Check the latest full fundamental report of TMHC for a complete fundamental analysis.

Disclaimer

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.