When you look at NYSE:TPH, it's hard to ignore the strong fundamentals, especially considering its likely undervaluation.

Last update: Oct 29, 2024

Consider TRI POINTE HOMES INC (NYSE:TPH) as a top value stock, identified by our stock screening tool. NYSE:TPH shines in terms of profitability, solvency, and liquidity, all while remaining very reasonably priced. Let's dive deeper into the analysis.

Unpacking NYSE:TPH's Valuation Rating

ChartMill assigns a Valuation Rating to every stock. This score ranges from 0 to 10 and evaluates the different valuation aspects and compares the price to earnings and cash flows, while taking into account profitability and growth. NYSE:TPH scores a 9 out of 10:

Based on the Price/Earnings ratio of 8.60, the valuation of TPH can be described as reasonable.
87.10% of the companies in the same industry are more expensive than TPH, based on the Price/Earnings ratio.
TPH is valuated cheaply when we compare the Price/Earnings ratio to 31.09, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 8.25, the valuation of TPH can be described as very reasonable.
Based on the Price/Forward Earnings ratio, TPH is valued cheaply inside the industry as 85.48% of the companies are valued more expensively.
TPH's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 22.57.
Based on the Enterprise Value to EBITDA ratio, TPH is valued cheaper than 87.10% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, TPH is valued cheaper than 85.48% 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.
A more expensive valuation may be justified as TPH's earnings are expected to grow with 17.98% in the coming years.

Evaluating Profitability: 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 Return On Assets, with a value of 9.66%, TPH is in the better half of the industry, outperforming 70.97% of the companies in the same industry.
The Return On Invested Capital of TPH (10.25%) is better than 61.29% of its industry peers.
TPH's Profit Margin of 10.26% is fine compared to the rest of the industry. TPH outperforms 77.42% of its industry peers.
TPH's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 12.93%, TPH is in the better half of the industry, outperforming 72.58% of the companies in the same industry.

Health Assessment of 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:

TPH has an Altman-Z score of 4.74. This indicates that TPH is financially healthy and has little risk of bankruptcy at the moment.
TPH has a better Altman-Z score (4.74) than 67.74% of its industry peers.
The Debt to FCF ratio of TPH is 2.62, which is a good value as it means it would take TPH, 2.62 years of fcf income to pay off all of its debts.
TPH's Debt to FCF ratio of 2.62 is fine compared to the rest of the industry. TPH outperforms 70.97% of its industry peers.
A Debt/Equity ratio of 0.31 indicates that TPH is not too dependend on debt financing.
A Current Ratio of 8.06 indicates that TPH has no problem at all paying its short term obligations.
TPH has a better Current ratio (8.06) than 87.10% of its industry peers.
TPH has a better Quick ratio (1.53) than 75.81% of its industry peers.

Unpacking NYSE:TPH's Growth Rating

Every stock receives a Growth Rating from ChartMill, ranging from 0 to 10. This rating assesses various growth aspects, including historical and projected EPS and revenue growth. NYSE:TPH boasts a 6 out of 10:

TPH shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 18.43%, which is quite good.
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.
Looking at the last year, TPH shows a quite strong growth in Revenue. The Revenue has grown by 13.08% in the last year.
The Earnings Per Share is expected to grow by 17.98% on average over the next years. This is quite good.
The Revenue is expected to grow by 10.20% 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.

More Decent Value stocks can be found in our Decent Value screener.

For an up to date full fundamental analysis you can check the fundamental report of TPH

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.