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

Last update: Oct 24, 2023

Our stock screening tool has identified TRI POINTE HOMES INC (NYSE:TPH) as an undervalued gem with strong fundamentals. NYSE:TPH boasts decent financial health and profitability while maintaining an attractive price point. We'll break it down further.

Valuation Analysis for NYSE:TPH

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. NYSE:TPH has received a 8 out of 10:

With a Price/Earnings ratio of 5.24, the valuation of TPH can be described as very cheap.
86.57% of the companies in the same industry are more expensive than TPH, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 24.91, TPH is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 5.85, the valuation of TPH can be described as very cheap.
Based on the Price/Forward Earnings ratio, TPH is valued cheaply inside the industry as 85.07% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of TPH to the average of the S&P500 Index (18.49), we can say TPH is valued rather cheaply.
83.58% of the companies in the same industry are more expensive than TPH, based on the Enterprise Value to EBITDA ratio.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of TPH indicates a rather cheap valuation: TPH is cheaper than 85.07% of the companies listed in the same industry.
TPH has a very decent profitability rating, which may justify a higher PE ratio.

Assessing Profitability for NYSE:TPH

ChartMill assigns a Profitability Rating to every stock. This score ranges from 0 to 10 and evaluates the different profitability ratios and margins, both absolutely, but also relative to the industry peers. NYSE:TPH scores a 7 out of 10:

TPH's Return On Assets of 10.20% is fine compared to the rest of the industry. TPH outperforms 68.66% of its industry peers.
Looking at the Return On Equity, with a value of 16.84%, TPH is in the better half of the industry, outperforming 67.16% of the companies in the same industry.
The Return On Invested Capital of TPH (11.15%) is better than 65.67% of its industry peers.
The Profit Margin of TPH (11.58%) is better than 79.10% of its industry peers.
TPH's Profit Margin has improved in the last couple of years.
With a decent Operating Margin value of 15.10%, TPH is doing good in the industry, outperforming 79.10% of the companies in the same industry.
TPH's Operating Margin has improved in the last couple of years.
TPH's Gross Margin has improved in the last couple of years.

Understanding NYSE:TPH's Health

ChartMill assigns a Health Rating to every stock. This score ranges from 0 to 10 and evaluates the different health aspects like liquidity and solvency, both absolutely, but also relative to the industry peers. NYSE:TPH scores a 8 out of 10:

TPH has an Altman-Z score of 3.91. This indicates that TPH is financially healthy and has little risk of bankruptcy at the moment.
TPH has a better Altman-Z score (3.91) than 73.13% of its industry peers.
TPH has a debt to FCF ratio of 1.76. This is a very positive value and a sign of high solvency as it would only need 1.76 years to pay back of all of its debts.
A Debt/Equity ratio of 0.48 indicates that TPH is not too dependend on debt financing.
A Current Ratio of 8.76 indicates that TPH has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 8.76, TPH belongs to the top of the industry, outperforming 91.04% of the companies in the same industry.
A Quick Ratio of 2.26 indicates that TPH has no problem at all paying its short term obligations.
TPH has a Quick ratio of 2.26. This is amongst the best in the industry. TPH outperforms 85.07% of its industry peers.

Assessing Growth for NYSE:TPH

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:TPH, the assigned 4 reflects its growth potential:

Measured over the past years, TPH shows a very strong growth in Earnings Per Share. The EPS has been growing by 31.07% on average per year.
The Revenue has been growing by 9.12% on average over the past years. This is quite good.

Every day, new Decent Value stocks can be found on ChartMill in our Decent Value screener.

Check the latest full fundamental report of TPH 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.