NYSE:TPH is an undervalued gem with solid fundamentals.

Last update: Nov 20, 2024

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

An integral part of ChartMill's stock analysis is the Valuation Rating, which spans from 0 to 10. This rating evaluates diverse valuation factors, including price to earnings and cash flows, while considering the stock's profitability and growth. NYSE:TPH has received a 8 out of 10:

TPH is valuated reasonably with a Price/Earnings ratio of 8.65.
Compared to the rest of the industry, the Price/Earnings ratio of TPH indicates a rather cheap valuation: TPH is cheaper than 83.87% of the companies listed in the same industry.
TPH is valuated cheaply when we compare the Price/Earnings ratio to 28.58, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 9.10, the valuation of TPH can be described as reasonable.
TPH's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. TPH is cheaper than 79.03% of the companies in the same industry.
TPH is valuated cheaply when we compare the Price/Forward Earnings ratio to 23.52, which is the current average of the S&P500 Index.
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of TPH indicates a rather cheap valuation: TPH is cheaper than 83.87% of the companies listed in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of TPH indicates a rather cheap valuation: TPH is cheaper than 83.87% of the companies listed 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 18.67% in the coming years. This may justify a more expensive valuation.

Looking at the 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:

With a decent Return On Assets value of 9.66%, TPH is doing good in the industry, outperforming 74.19% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 10.25%, TPH is in the better half of the industry, outperforming 62.90% of the companies in the same industry.
Looking at the Profit Margin, with a value of 10.26%, TPH is in the better half of the industry, outperforming 77.42% of the companies in the same industry.
In the last couple of years the Profit Margin of TPH has grown nicely.
With a decent Operating Margin value of 12.93%, TPH is doing good in the industry, outperforming 74.19% of the companies in the same industry.

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 4.75. This indicates that TPH is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of TPH (4.75) is better than 67.74% of its industry peers.
TPH has a debt to FCF ratio of 2.62. This is a good value and a sign of high solvency as TPH would need 2.62 years to pay back of all of its debts.
With a decent Debt to FCF ratio value of 2.62, TPH is doing good in the industry, outperforming 69.35% of the companies in the same industry.
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.
The Current ratio of TPH (8.06) is better than 87.10% of its industry peers.
With a decent Quick ratio value of 1.53, TPH is doing good in the industry, outperforming 75.81% of the companies in the same industry.

How We Gauge Growth for NYSE:TPH

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:

The Earnings Per Share has grown by an nice 18.43% over the past year.
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 shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 13.08%.
Based on estimates for the next years, TPH will show a quite strong growth in Earnings Per Share. The EPS will grow by 18.67% 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 10.34% on average per year.
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.

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

Check the latest full fundamental report of TPH for a complete fundamental analysis.

Disclaimer

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.