NYSE:TPH is probably undervalued for the fundamentals it is displaying.

Last update: Jan 24, 2025

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.

What does the Valuation looks like for NYSE:TPH

ChartMill assigns a proprietary Valuation Rating to each stock. The score is computed by evaluating various valuation aspects, like price to earnings and free cash flow, both absolutely as relative to the market and industry. NYSE:TPH was assigned a score of 9 for valuation:

With a Price/Earnings ratio of 7.82, the valuation of TPH can be described as very cheap.
86.15% of the companies in the same industry are more expensive than TPH, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 28.64, TPH is valued rather cheaply.
The Price/Forward Earnings ratio is 8.22, which indicates a very decent valuation of TPH.
73.85% of the companies in the same industry are more expensive than TPH, based on the Price/Forward Earnings ratio.
TPH's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 24.51.
Based on the Enterprise Value to EBITDA ratio, TPH is valued cheaply inside the industry as 86.15% 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.
TPH's 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.

Profitability Examination for NYSE:TPH

ChartMill assigns a proprietary Profitability Rating to each stock. The score is computed by evaluating various profitability ratios and margins and ranges from 0 to 10. NYSE:TPH was assigned a score of 6 for profitability:

TPH has a better Return On Assets (9.66%) than 75.38% of its industry peers.
TPH's Return On Invested Capital of 10.25% is fine compared to the rest of the industry. TPH outperforms 63.08% of its industry peers.
TPH has a better Profit Margin (10.26%) than 78.46% of its industry peers.
TPH's Profit Margin has improved in the last couple of years.
TPH has a better Operating Margin (12.93%) than 73.85% of its industry peers.

How do we evaluate the Health 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:

An Altman-Z score of 4.60 indicates that TPH is not in any danger for bankruptcy at the moment.
The Altman-Z score of TPH (4.60) is better than 72.31% 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 67.69% 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.
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.

Growth Examination 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:

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.
TPH shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 13.08%.
The Earnings Per Share is expected to grow by 18.67% on average over the next years. This is quite good.
TPH is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 10.34% yearly.
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.

Our Decent Value screener lists more Decent Value stocks and is updated daily.

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

Disclaimer

This article should in no way be interpreted as advice. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.