NYSE:TPH, an undervalued stock with good fundamentals.

TRI POINTE HOMES INC (NYSE:TPH) is a hidden gem identified by our stock screening tool, featuring undervaluation and robust fundamentals. NYSE:TPH showcases decent financial health and profitability, coupled with an attractive price. Let's dig deeper into the analysis.

Assessing Valuation Metrics 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 7 out of 10:

• TPH is valuated reasonably with a Price/Earnings ratio of 10.48.
• Based on the Price/Earnings ratio, TPH is valued a bit cheaper than the industry average as 70.77% of the companies are valued more expensively.
• TPH's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 24.43.
• The Price/Forward Earnings ratio is 9.02, which indicates a very decent valuation of TPH.
• TPH's Price/Forward Earnings ratio is rather cheap when compared to the industry. TPH is cheaper than 84.62% of the companies in the same industry.
• When comparing the Price/Forward Earnings ratio of TPH to the average of the S&P500 Index (20.63), 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.
• 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.

Profitability Insights: 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:

• Looking at the Profit Margin, with a value of 9.50%, TPH is in the better half of the industry, outperforming 73.85% of the companies in the same industry.
• In the last couple of years the Profit Margin of TPH has grown nicely.
• TPH's Operating Margin of 11.56% is fine compared to the rest of the industry. TPH outperforms 64.62% of its industry peers.
• TPH's Gross Margin has improved in the last couple of years.

Assessing Health Metrics for NYSE:TPH

ChartMill employs its own Health Rating for stock assessment. This rating, ranging from 0 to 10, is calculated by examining various liquidity and solvency ratios. In the case of NYSE:TPH, the assigned 7 reflects its health status:

• TPH has an Altman-Z score of 4.26. This indicates that TPH is financially healthy and has little risk of bankruptcy at the moment.
• With a decent Altman-Z score value of 4.26, 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.
• A Current Ratio of 8.68 indicates that TPH has no problem at all paying its short term obligations.
• TPH's Current ratio of 8.68 is amongst the best of the industry. TPH outperforms 87.69% 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.
• TPH has a Quick ratio of 2.08. This is in the better half of the industry: TPH outperforms 80.00% of its industry peers.

Growth Analysis for NYSE:TPH

ChartMill assigns a proprietary Growth Rating to each stock. The score is computed by evaluating various growth aspects, like EPS and revenue growth. We take into account the history as well as the estimated future numbers. NYSE:TPH was assigned a score of 5 for growth:

• TPH shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 13.52% yearly.
• TPH is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 20.52% yearly.
• 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.

Keep in mind

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.