Investors should take notice of NYSE:TPH—it offers a great deal for the fundamentals it presents.

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.

ChartMill's Evaluation of Valuation

ChartMill provides a Valuation Rating to every stock, ranging from 0 to 10. This rating assesses various valuation aspects, comparing price to earnings and cash flows, while considering factors like profitability and growth. NYSE:TPH boasts a 8 out of 10:

• A Price/Earnings ratio of 8.32 indicates a reasonable valuation of TPH.
• Based on the Price/Earnings ratio, TPH is valued cheaper than 87.69% of the companies in the same industry.
• Compared to an average S&P500 Price/Earnings ratio of 29.13, TPH is valued rather cheaply.
• A Price/Forward Earnings ratio of 8.75 indicates a reasonable valuation of TPH.
• TPH's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. TPH is cheaper than 80.00% of the companies in the same industry.
• TPH's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 23.71.
• Based on the Enterprise Value to EBITDA ratio, TPH is valued cheaply inside the industry as 89.23% of the companies are valued more expensively.
• Based on the Price/Free Cash Flow ratio, TPH is valued cheaper than 89.23% 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 18.67% in the coming years.

Assessing Profitability for NYSE:TPH

ChartMill's Profitability Rating offers a unique perspective on stock analysis, providing scores from 0 to 10. These ratings consider a wide range of profitability metrics and margins, both in comparison to industry peers and on their own merits. For NYSE:TPH, the assigned 6 is a significant indicator of profitability:

• TPH has a Return On Assets of 9.66%. This is in the better half of the industry: TPH outperforms 75.38% of its industry peers.
• The Return On Invested Capital of TPH (10.25%) is better than 63.08% of its industry peers.
• With a decent Profit Margin value of 10.26%, TPH is doing good in the industry, outperforming 78.46% 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 12.93% is fine compared to the rest of the industry. TPH outperforms 73.85% of its industry peers.

A Closer Look at Health for NYSE:TPH

ChartMill assigns a Health Rating to every stock. This score ranges from 0 to 10 and evaluates the different health aspects like liquidity and solvency, both absolutely, but also relative to the industry peers. NYSE:TPH scores a 7 out of 10:

• TPH has an Altman-Z score of 4.69. This indicates that TPH is financially healthy and has little risk of bankruptcy at the moment.
• TPH has a better Altman-Z score (4.69) than 67.69% 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 has a Debt to FCF ratio of 2.62. This is in the better half of the industry: TPH outperforms 69.23% of its industry peers.
• TPH has a Debt/Equity ratio of 0.31. This is a healthy value indicating a solid balance between debt and equity.
• TPH has a Current Ratio of 8.06. This indicates that TPH is financially healthy and has no problem in meeting its short term obligations.
• The Current ratio of TPH (8.06) is better than 87.69% of its industry peers.
• With a decent Quick ratio value of 1.53, TPH is doing good in the industry, outperforming 72.31% of the companies in the same industry.

Assessing Growth Metrics for NYSE:TPH

ChartMill employs its own Growth Rating system for all stocks. This score, ranging from 0 to 10, is derived by evaluating different growth factors, such as EPS and revenue growth, taking into account both past performance and future projections. NYSE:TPH has earned a 6 for growth:

• The Earnings Per Share has grown by an nice 18.43% over the past year.
• The Earnings Per Share has been growing by 13.52% on average over the past years. This is quite good.
• The Revenue has grown by 13.08% in the past year. This is quite good.
• TPH is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 18.67% yearly.
• The Revenue is expected to grow by 10.34% 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.
• The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.

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.

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.