Don't overlook TAYLOR MORRISON HOME CORP (NYSE:TMHC)—it's a hidden gem with strong fundamentals and an attractive price tag.

TAYLOR MORRISON HOME CORP (NYSE:TMHC) was identified as a decent value stock by our stock screener. NYSE:TMHC scores well on profitability, solvency and liquidity. At the same time it seems to be priced very reasonably. We'll explore this a bit deeper below.

How We Gauge Valuation for NYSE:TMHC

ChartMill provides a Valuation Rating to every stock, ranging from 0 to 10. This rating assesses various valuation aspects, comparing price to earnings and cash flows, while considering factors like profitability and growth. NYSE:TMHC boasts a 7 out of 10:

• The Price/Earnings ratio is 7.43, which indicates a rather cheap valuation of TMHC.
• 79.69% of the companies in the same industry are more expensive than TMHC, based on the Price/Earnings ratio.
• Compared to an average S&P500 Price/Earnings ratio of 29.36, TMHC is valued rather cheaply.
• The Price/Forward Earnings ratio is 6.78, which indicates a rather cheap valuation of TMHC.
• Compared to the rest of the industry, the Price/Forward Earnings ratio of TMHC indicates a rather cheap valuation: TMHC is cheaper than 87.50% of the companies listed in the same industry.
• TMHC is valuated cheaply when we compare the Price/Forward Earnings ratio to 22.65, which is the current average of the S&P500 Index.
• Based on the Enterprise Value to EBITDA ratio, TMHC is valued a bit cheaper than the industry average as 73.44% of the companies are valued more expensively.
• The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
• TMHC has a very decent profitability rating, which may justify a higher PE ratio.

Evaluating Profitability: NYSE:TMHC

ChartMill employs its own Profitability Rating system for stock evaluation. This score, ranging from 0 to 10, is derived from an analysis of diverse profitability metrics and margins. In the case of NYSE:TMHC, the assigned 7 is noteworthy for profitability:

• TMHC has a better Return On Assets (9.50%) than 75.00% of its industry peers.
• TMHC has a better Return On Equity (15.06%) than 65.63% of its industry peers.
• Looking at the Return On Invested Capital, with a value of 11.27%, TMHC is in the better half of the industry, outperforming 65.63% of the companies in the same industry.
• Looking at the Profit Margin, with a value of 10.81%, TMHC is in the better half of the industry, outperforming 79.69% of the companies in the same industry.
• TMHC's Profit Margin has improved in the last couple of years.
• Looking at the Operating Margin, with a value of 14.71%, TMHC is in the better half of the industry, outperforming 79.69% of the companies in the same industry.
• In the last couple of years the Operating Margin of TMHC has grown nicely.
• In the last couple of years the Gross Margin of TMHC has grown nicely.

How We Gauge Health for NYSE:TMHC

To gauge a stock's financial health, ChartMill utilizes a Health Rating on a scale of 0 to 10. This comprehensive evaluation encompasses liquidity and solvency, both in absolute terms and in comparison to industry peers. NYSE:TMHC has earned a 5 out of 10:

• An Altman-Z score of 3.84 indicates that TMHC is not in any danger for bankruptcy at the moment.
• TMHC's Altman-Z score of 3.84 is fine compared to the rest of the industry. TMHC outperforms 62.50% of its industry peers.
• A Debt/Equity ratio of 0.36 indicates that TMHC is not too dependend on debt financing.
• A Current Ratio of 5.89 indicates that TMHC has no problem at all paying its short term obligations.
• TMHC has a Current ratio of 5.89. This is in the better half of the industry: TMHC outperforms 79.69% of its industry peers.

Exploring NYSE:TMHC's Growth

ChartMill assigns a Growth Rating to each stock, ranging from 0 to 10. This rating is determined by analyzing different growth elements, including EPS and revenue growth, spanning both historical and future figures. In the case of NYSE:TMHC, the assigned 5 reflects its growth potential:

• The Earnings Per Share has grown by an nice 19.69% over the past year.
• Measured over the past years, TMHC shows a very strong growth in Earnings Per Share. The EPS has been growing by 23.42% on average per year.
• The Revenue has grown by 10.11% in the past year. This is quite good.
• The Revenue has been growing by 11.39% on average over the past years. This is quite good.
• TMHC is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 9.58% yearly.

Our Decent Value screener lists more Decent Value stocks and is updated daily.

Our latest full fundamental report of TMHC contains the most current fundamental analsysis.

Keep in mind

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.