NYSE:TPH: good value for what you're paying.

Discover TRI POINTE HOMES INC (NYSE:TPH)—an undervalued stock our stock screener has picked out. NYSE:TPH demonstrates solid fundamentals, including health and profitability, all while staying attractively priced. Let's explore the details.

Looking at the Valuation

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:

• With a Price/Earnings ratio of 10.18, the valuation of TPH can be described as very reasonable.
• TPH's Price/Earnings ratio is a bit cheaper when compared to the industry. TPH is cheaper than 65.15% of the companies in the same industry.
• TPH's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 28.40.
• TPH is valuated cheaply with a Price/Forward Earnings ratio of 7.47.
• 84.85% of the companies in the same industry are more expensive than TPH, based on the Price/Forward Earnings ratio.
• When comparing the Price/Forward Earnings ratio of TPH to the average of the S&P500 Index (20.03), we can say TPH is valued rather cheaply.
• The 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.

A Closer Look at Profitability for NYSE:TPH

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. NYSE:TPH has earned a 6 out of 10:

• TPH's Return On Assets of 7.40% is fine compared to the rest of the industry. TPH outperforms 60.61% of its industry peers.
• TPH has a better Return On Equity (12.07%) than 60.61% of its industry peers.
• The Profit Margin of TPH (9.50%) is better than 75.76% 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 66.67% of its industry peers.
• In the last couple of years the Gross Margin of TPH has grown nicely.

Analyzing Health Metrics

A critical element of ChartMill's stock evaluation is the Health Rating, which spans from 0 to 10. This rating considers multiple health factors, including liquidity and solvency, both in absolute terms and relative to industry peers. NYSE:TPH has received a 7 out of 10:

• TPH has an Altman-Z score of 4.03. This indicates that TPH is financially healthy and has little risk of bankruptcy at the moment.
• The Altman-Z score of TPH (4.03) is better than 63.64% of its industry peers.
• TPH has a Debt/Equity ratio of 0.45. This is a healthy value indicating a solid balance between debt and equity.
• 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's Current ratio of 8.68 is amongst the best of the industry. TPH outperforms 90.91% of its industry peers.
• TPH has a Quick Ratio of 2.08. This indicates that TPH is financially healthy and has no problem in meeting 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.

Growth Assessment of NYSE:TPH

To evaluate a stock's growth potential, ChartMill utilizes a Growth Rating on a scale of 0 to 10. This comprehensive assessment considers various growth aspects, including historical and estimated EPS and revenue growth. NYSE:TPH has achieved a 5 out of 10:

• 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.
• The Revenue is expected to grow by 9.75% on average over the next years. This is quite good.
• The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
• 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.

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

Disclaimer

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.