TAYLOR MORRISON HOME CORP (NYSE:TMHC): good value for what you're paying.

Our stock screener has spotted TAYLOR MORRISON HOME CORP (NYSE:TMHC) as an undervalued stock with solid fundamentals. TMHC shows decent health and profitability. At the same time it remains remains attractively priced. We'll dive into each aspect below.

Assessing Valuation Metrics for TMHC

An integral part of ChartMill's stock analysis is the Valuation Rating, which spans from 0 to 10. This rating evaluates diverse valuation factors, including price to earnings and cash flows, while considering the stock's profitability and growth. TMHC has received a 8 out of 10:

• A Price/Earnings ratio of 7.09 indicates a rather cheap valuation of TMHC.
• Based on the Price/Earnings ratio, TMHC is valued cheaper than 80.30% 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 28.62.
• With a Price/Forward Earnings ratio of 6.47, the valuation of TMHC can be described as very cheap.
• TMHC's Price/Forward Earnings ratio is rather cheap when compared to the industry. TMHC is cheaper than 87.88% of the companies in the same industry.
• TMHC's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 21.72.
• 72.73% of the companies in the same industry are more expensive than TMHC, based on the Enterprise Value to EBITDA ratio.
• TMHC's 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.

A Closer Look at Profitability for TMHC

ChartMill utilizes a Profitability Rating to assess stocks, scoring them on a scale of 0 to 10. This rating takes into account a variety of profitability ratios and margins, both in absolute terms and in comparison to industry peers. TMHC has earned a 7 out of 10:

• TMHC's Return On Assets of 9.50% is fine compared to the rest of the industry. TMHC outperforms 74.24% of its industry peers.
• The Return On Equity of TMHC (15.06%) is better than 68.18% 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 69.70% of the companies in the same industry.
• TMHC has a Profit Margin of 10.81%. This is amongst the best in the industry. TMHC outperforms 80.30% of its industry peers.
• In the last couple of years the Profit Margin of TMHC has grown nicely.
• TMHC has a Operating Margin of 14.71%. This is amongst the best in the industry. TMHC outperforms 83.33% of its industry peers.
• TMHC's Operating Margin has improved in the last couple of years.
• TMHC's Gross Margin has improved in the last couple of years.

Understanding TMHC's Health Score

Every stock is evaluated by ChartMill, receiving a Health Rating on a scale of 0 to 10. This assessment considers different health aspects, including liquidity and solvency, both in absolute terms and relative to industry peers. TMHC has achieved a 6 out of 10:

• An Altman-Z score of 3.77 indicates that TMHC is not in any danger for bankruptcy at the moment.
• TMHC has a Altman-Z score of 3.77. This is in the better half of the industry: TMHC outperforms 62.12% of its industry peers.
• A Debt/Equity ratio of 0.36 indicates that TMHC is not too dependend on debt financing.
• TMHC has a Current Ratio of 5.89. This indicates that TMHC is financially healthy and has no problem in meeting its short term obligations.
• Looking at the Current ratio, with a value of 5.89, TMHC belongs to the top of the industry, outperforming 80.30% of the companies in the same industry.

How do we evaluate the Growth for 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. TMHC has received a 5 out of 10:

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

More Decent Value stocks can be found in our Decent Value screener.

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

Keep in mind

This article should in no way be interpreted as advice. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.