NYSE:TPH appears to be flying under the radar despite its strong fundamentals.

Uncover the potential of TRI POINTE HOMES INC (NYSE:TPH) as our stock screener's choice for an undervalued stock. NYSE:TPH maintains a strong financial position and offers an appealing valuation. We'll delve into the specifics below.

Valuation Analysis for NYSE:TPH

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 8 out of 10:

• The Price/Earnings ratio is 9.73, which indicates a very decent valuation of TPH.
• 64.62% of the companies in the same industry are more expensive than TPH, based on the Price/Earnings ratio.
• The average S&P500 Price/Earnings ratio is at 28.29. TPH is valued rather cheaply when compared to this.
• Based on the Price/Forward Earnings ratio of 7.14, the valuation of TPH can be described as very cheap.
• 86.15% of the companies in the same industry are more expensive than TPH, based on the Price/Forward Earnings ratio.
• The average S&P500 Price/Forward Earnings ratio is at 20.15. TPH is valued rather cheaply when compared to this.
• Based on the Enterprise Value to EBITDA ratio, TPH is valued a bit cheaper than 61.54% of the companies in the same industry.
• The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
• TPH has a very decent profitability rating, which 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.

Understanding NYSE:TPH's Profitability

ChartMill employs its own Profitability Rating system for stock evaluation. This score, ranging from 0 to 10, is derived from an analysis of diverse profitability metrics and margins. In the case of NYSE:TPH, the assigned 6 is noteworthy for profitability:

• TPH has a Profit Margin of 9.50%. This is in the better half of the industry: TPH outperforms 75.38% of its industry peers.
• TPH's Profit Margin has improved in the last couple of years.
• TPH's Operating Margin of 11.56% is fine compared to the rest of the industry. TPH outperforms 66.15% of its industry peers.
• TPH's Gross Margin has improved in the last couple of years.

Unpacking NYSE:TPH's Health Rating

To gauge a stock's financial health, ChartMill utilizes a Health Rating on a scale of 0 to 10. This comprehensive evaluation encompasses liquidity and solvency, both in absolute terms and in comparison to industry peers. NYSE:TPH has earned a 7 out of 10:

• An Altman-Z score of 3.98 indicates that TPH is not in any danger for bankruptcy at the moment.
• With a decent Altman-Z score value of 3.98, TPH is doing good in the industry, outperforming 66.15% of the companies in the same industry.
• 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.
• The Current ratio of TPH (8.68) is better than 90.77% of its industry peers.
• A Quick Ratio of 2.08 indicates that TPH has no problem at all paying its short term obligations.
• TPH has a Quick ratio of 2.08. This is in the better half of the industry: TPH outperforms 78.46% of its industry peers.

Understanding NYSE:TPH's Growth

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. NYSE:TPH has received 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.
• 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.

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

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.