NYSE:TPH is an undervalued gem with solid fundamentals.

Last update: Jan 3, 2025

Our stock screening tool has pinpointed TRI POINTE HOMES INC (NYSE:TPH) as an undervalued stock option. NYSE:TPH retains a strong financial foundation and an attractive price tag. Let's delve into the specifics below.

Evaluating Valuation: NYSE:TPH

ChartMill assigns a Valuation Rating to each stock, ranging from 0 to 10. This rating is calculated by analyzing different valuation elements, such as price to earnings and free cash flow, both in absolute terms and relative to the market and industry. In the case of NYSE:TPH, the assigned 9 reflects its valuation:

The Price/Earnings ratio is 7.45, which indicates a rather cheap valuation of TPH.
Compared to the rest of the industry, the Price/Earnings ratio of TPH indicates a rather cheap valuation: TPH is cheaper than 84.38% of the companies listed in the same industry.
TPH's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.09.
The Price/Forward Earnings ratio is 7.83, which indicates a rather cheap valuation of TPH.
TPH's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. TPH is cheaper than 79.69% 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 23.45.
Based on the Enterprise Value to EBITDA ratio, TPH is valued cheaply inside the industry as 87.50% of the companies are valued more expensively.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of TPH indicates a rather cheap valuation: TPH is cheaper than 89.06% 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.

Profitability Insights: NYSE:TPH

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's Return On Assets of 9.66% is fine compared to the rest of the industry. TPH outperforms 75.00% of its industry peers.
With a decent Return On Invested Capital value of 10.25%, TPH is doing good in the industry, outperforming 62.50% of the companies in the same industry.
With a decent Profit Margin value of 10.26%, TPH is doing good in the industry, outperforming 78.13% of the companies in the same industry.
TPH's Profit Margin has improved in the last couple of years.
TPH has a Operating Margin of 12.93%. This is in the better half of the industry: TPH outperforms 73.44% of its industry peers.

A Closer Look at Health for NYSE:TPH

A critical element of ChartMill's stock evaluation is the Health Rating, which spans from 0 to 10. This rating considers multiple health factors, including liquidity and solvency, both in absolute terms and relative to industry peers. NYSE:TPH has received a 7 out of 10:

TPH has an Altman-Z score of 4.54. This indicates that TPH is financially healthy and has little risk of bankruptcy at the moment.
TPH has a Altman-Z score of 4.54. This is in the better half of the industry: TPH outperforms 67.19% 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 70.31% of the companies in the same industry.
TPH has a Debt/Equity ratio of 0.31. This is a healthy value indicating a solid balance between debt and equity.
A Current Ratio of 8.06 indicates that TPH has no problem at all paying its short term obligations.
With an excellent Current ratio value of 8.06, TPH belongs to the best of the industry, outperforming 87.50% of the companies in the same industry.
With a decent Quick ratio value of 1.53, TPH is doing good in the industry, outperforming 71.88% of the companies in the same industry.

Deciphering NYSE:TPH's Growth Rating

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 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.
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.
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.
The Revenue is expected to grow by 10.34% 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.

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

Keep in mind

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.