Don't overlook NYSE:TPH—it's a hidden gem with strong fundamentals and an attractive price tag.

Uncover the hidden value in TRI POINTE HOMES INC (NYSE:TPH) as our stock screening tool recommends it as an undervalued choice. NYSE:TPH maintains a robust financial position and offers an attractive pricing perspective. Let's dig deeper into the analysis.

Understanding NYSE:TPH's Valuation Score

To assess a stock's valuation, ChartMill utilizes a Valuation Rating on a scale of 0 to 10. This comprehensive assessment considers various valuation aspects, comparing price to earnings and cash flows, while factoring in profitability and growth. NYSE:TPH has achieved a 7 out of 10:

• A Price/Earnings ratio of 10.39 indicates a reasonable valuation of TPH.
• Based on the Price/Earnings ratio, TPH is valued a bit cheaper than the industry average as 66.67% of the companies are valued more expensively.
• When comparing the Price/Earnings ratio of TPH to the average of the S&P500 Index (28.52), we can say TPH is valued rather cheaply.
• A Price/Forward Earnings ratio of 8.62 indicates a reasonable valuation of TPH.
• Based on the Price/Forward Earnings ratio, TPH is valued cheaply inside the industry as 81.82% of the companies are valued more expensively.
• TPH is valuated cheaply when we compare the Price/Forward Earnings ratio to 20.13, which is the current average of the S&P500 Index.
• TPH'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 TPH may justify a higher PE ratio.
• TPH's earnings are expected to grow with 20.52% in the coming years. This may justify a more expensive valuation.

Evaluating Profitability: NYSE:TPH

ChartMill assigns a proprietary Profitability Rating to each stock. The score is computed by evaluating various profitability ratios and margins and ranges from 0 to 10. NYSE:TPH was assigned a score of 6 for profitability:

• Looking at the Return On Assets, with a value of 7.40%, TPH is in the better half of the industry, outperforming 60.61% of the companies in the same industry.
• The Profit Margin of TPH (9.50%) is better than 74.24% of its industry peers.
• TPH's Profit Margin has improved in the last couple of years.
• TPH has a Operating Margin of 11.56%. This is in the better half of the industry: TPH outperforms 65.15% of its industry peers.
• TPH's Gross Margin has improved in the last couple of years.

Evaluating Health: NYSE:TPH

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

• An Altman-Z score of 4.05 indicates that TPH is not in any danger for bankruptcy at the moment.
• The Altman-Z score of TPH (4.05) is better than 63.64% of its industry peers.
• A Debt/Equity ratio of 0.45 indicates that TPH is not too dependend on debt financing.
• TPH has a Current Ratio of 8.68. This indicates that TPH is financially healthy and has no problem in meeting its short term obligations.
• TPH has a better Current ratio (8.68) than 90.91% of its industry peers.
• A Quick Ratio of 2.08 indicates that TPH has no problem at all paying its short term obligations.
• Looking at the Quick ratio, with a value of 2.08, TPH is in the better half of the industry, outperforming 77.27% of the companies in the same industry.

What does the Growth looks like for NYSE:TPH

ChartMill employs its own Growth Rating system for all stocks. This score, ranging from 0 to 10, is derived by evaluating different growth factors, such as EPS and revenue growth, taking into account both past performance and future projections. NYSE:TPH has earned a 5 for growth:

• Measured over the past years, TPH shows a quite strong growth in Earnings Per Share. The EPS has been growing by 13.52% on average per year.
• Based on estimates for the next years, TPH will show a very strong growth in Earnings Per Share. The EPS will grow by 20.52% on average per year.
• Based on estimates for the next years, TPH will show a quite strong growth in Revenue. The Revenue will grow by 9.75% on average per year.
• When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
• When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.

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

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

Keep in mind

This article should in no way be interpreted as advice in any way. 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.