In a market where value is scarce, NYSE:TPH offers a refreshing opportunity with its solid fundamentals.

Our stock screener has singled out TRI POINTE HOMES INC (NYSE:TPH) as a stellar value proposition. NYSE:TPH not only scores well in profitability, solvency, and liquidity but also maintains a very reasonable price point. We'll explore this further.

Valuation Analysis for NYSE:TPH

ChartMill employs its own Valuation Rating system for all stocks. This score, ranging from 0 to 10, is determined by evaluating different valuation factors, including price to earnings and free cash flow, both in absolute terms and relative to the market and industry. NYSE:TPH has earned a 9 for valuation:

• The Price/Earnings ratio is 7.51, 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 83.08% 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 30.11.
• A Price/Forward Earnings ratio of 7.96 indicates a rather cheap valuation of TPH.
• Based on the Price/Forward Earnings ratio, TPH is valued a bit cheaper than the industry average as 78.46% of the companies are valued more expensively.
• When comparing the Price/Forward Earnings ratio of TPH to the average of the S&P500 Index (23.58), we can say TPH is valued rather cheaply.
• Based on the Enterprise Value to EBITDA ratio, TPH is valued cheaply inside the industry as 81.54% of the companies are valued more expensively.
• Based on the Price/Free Cash Flow ratio, TPH is valued cheaply inside the industry as 89.23% of the companies are valued more expensively.
• The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
• The decent profitability rating of TPH may justify a higher PE ratio.
• TPH's earnings are expected to grow with 15.27% in the coming years. This may justify a more expensive valuation.

Looking at the Profitability

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:

• TPH's Return On Assets of 9.66% is fine compared to the rest of the industry. TPH outperforms 75.38% of its industry peers.
• TPH has a Return On Equity of 14.20%. This is in the better half of the industry: TPH outperforms 61.54% of its industry peers.
• Looking at the Return On Invested Capital, with a value of 10.25%, TPH is in the better half of the industry, outperforming 63.08% of the companies in the same industry.
• 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's Operating Margin of 12.93% is fine compared to the rest of the industry. TPH outperforms 73.85% of its industry peers.

Health Assessment of 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 4.55. This indicates that TPH is financially healthy and has little risk of bankruptcy at the moment.
• The Altman-Z score of TPH (4.55) is better than 69.23% 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 better Debt to FCF ratio (2.62) than 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.
• 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 86.15% of its industry peers.
• TPH has a better Quick ratio (1.53) than 73.85% of its industry peers.

Understanding NYSE:TPH's Growth Score

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.
• TPH shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 13.52% yearly.
• Looking at the last year, TPH shows a quite strong growth in Revenue. The Revenue has grown by 13.08% in the last year.
• TPH is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 15.27% yearly.
• Based on estimates for the next years, TPH will show a quite strong growth in Revenue. The Revenue will grow by 8.63% on average per year.
• 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.

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.