Evaluating TAYLOR MORRISON HOME CORP (NYSE:TMHC) using Peter Lynch’s legendary strategy

Peter Lynch’s investment philosophy combines fundamental analysis with a deep understanding of business models. Let’s analyze if TAYLOR MORRISON HOME CORP (NYSE:TMHC) meets his criteria for a solid investment.

Does TAYLOR MORRISON HOME CORP (NYSE:TMHC) meet Peter Lynch’s stock-picking criteria?

• TMHC demonstrates a strong Return on Equity(ROE) of 15.06%. This indicates the company's ability to generate favorable returns for shareholders and reflects its efficient utilization of capital. TAYLOR MORRISON HOME CORP shows promising potential for continued success.
• With a current Debt-to-Equity ratio at 0.36, TMHC showcases its disciplined capital structure. The company's prudent management of debt obligations contributes to its financial stability and long-term sustainability.
• TMHC has achieved 23.42 growth in EPS over the past 5 years, reflecting a sustained improvement in earnings performance.
• A PEG ratio of 0.29 suggests that TMHC offers an attractive balance between growth and valuation.
• A Current Ratio of 5.89 suggests that TMHC is in a solid financial position to handle short-term market fluctuations.

Zooming in on the fundamentals.

At ChartMill, a crucial aspect of their analysis is the assignment of a Fundamental Rating to each stock. This rating, ranging from 0 to 10, is calculated daily by considering numerous fundamental indicators and properties.

TMHC gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 64 industry peers in the Household Durables industry. While TMHC has a great profitability rating, there are some minor concerns on its financial health. A decent growth rate in combination with a cheap valuation! Better keep an eye on TMHC. These ratings could make TMHC a good candidate for value investing.

For an up to date full fundamental analysis you can check the fundamental report of TMHC

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Disclaimer

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.