TAYLOR MORRISON HOME CORP (TMHC) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:TMHC - US87724P1066 - Common Stock
64.36 USD
+1.48 (+2.35%)
64.36 USD
0 (0%)
We assign a fundamental rating of 6 out of 10 to TMHC. TMHC was compared to 60 industry peers in the Household Durables industry. While TMHC belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. TMHC is valued quite cheap, while showing a decent growth score. This is a good combination! With these ratings, TMHC could be worth investigating further for value investing!.
1. Profitability
1.1 Basic Checks
- In the past year TMHC was profitable.
- TMHC had a positive operating cash flow in the past year.
- TMHC had positive earnings in each of the past 5 years.
- In the past 5 years TMHC always reported a positive cash flow from operatings.
1.2 Ratios
- Looking at the Return On Assets, with a value of 8.84%, TMHC is in the better half of the industry, outperforming 78.33% of the companies in the same industry.
- TMHC has a Return On Equity of 13.76%. This is in the better half of the industry: TMHC outperforms 65.00% of its industry peers.
- TMHC's Return On Invested Capital of 10.86% is fine compared to the rest of the industry. TMHC outperforms 68.33% of its industry peers.
- TMHC had an Average Return On Invested Capital over the past 3 years of 12.32%. This is above the industry average of 9.71%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.84% | ||
| ROE | 13.76% | ||
| ROIC | 10.86% |
ROA(3y)10.27%
ROA(5y)8.31%
ROE(3y)17.42%
ROE(5y)15.22%
ROIC(3y)12.32%
ROIC(5y)10.17%
1.3 Margins
- With an excellent Profit Margin value of 10.16%, TMHC belongs to the best of the industry, outperforming 83.33% of the companies in the same industry.
- TMHC's Profit Margin has improved in the last couple of years.
- Looking at the Operating Margin, with a value of 14.53%, TMHC belongs to the top of the industry, outperforming 88.33% of the companies in the same industry.
- TMHC's Operating Margin has improved in the last couple of years.
- The Gross Margin of TMHC (23.91%) is comparable to the rest of the industry.
- In the last couple of years the Gross Margin of TMHC has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 14.53% | ||
| PM (TTM) | 10.16% | ||
| GM | 23.91% |
OM growth 3Y8.83%
OM growth 5Y15.82%
PM growth 3Y6.96%
PM growth 5Y15.12%
GM growth 3Y5.68%
GM growth 5Y6.83%
2. Health
2.1 Basic Checks
- The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so TMHC is still creating some value.
- Compared to 1 year ago, TMHC has less shares outstanding
- Compared to 5 years ago, TMHC has less shares outstanding
- Compared to 1 year ago, TMHC has an improved debt to assets ratio.
2.2 Solvency
- TMHC has an Altman-Z score of 3.83. This indicates that TMHC is financially healthy and has little risk of bankruptcy at the moment.
- The Altman-Z score of TMHC (3.83) is comparable to the rest of the industry.
- TMHC has a debt to FCF ratio of 3.84. This is a good value and a sign of high solvency as TMHC would need 3.84 years to pay back of all of its debts.
- TMHC has a Debt to FCF ratio (3.84) which is comparable to the rest of the industry.
- A Debt/Equity ratio of 0.35 indicates that TMHC is not too dependend on debt financing.
- With a Debt to Equity ratio value of 0.35, TMHC perfoms like the industry average, outperforming 46.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.35 | ||
| Debt/FCF | 3.84 | ||
| Altman-Z | 3.83 |
ROIC/WACC1.19
WACC9.14%
2.3 Liquidity
- TMHC has a Current Ratio of 6.43. This indicates that TMHC is financially healthy and has no problem in meeting its short term obligations.
- With a decent Current ratio value of 6.43, TMHC is doing good in the industry, outperforming 80.00% of the companies in the same industry.
- A Quick Ratio of 0.58 indicates that TMHC may have some problems paying its short term obligations.
- TMHC has a worse Quick ratio (0.58) than 68.33% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 6.43 | ||
| Quick Ratio | 0.58 |
3. Growth
3.1 Past
- The Earnings Per Share has grown by an nice 8.21% over the past year.
- The Earnings Per Share has been growing by 23.42% on average over the past years. This is a very strong growth
- The Revenue has been growing slightly by 6.98% in the past year.
- TMHC shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 11.39% yearly.
EPS 1Y (TTM)8.21%
EPS 3Y17.06%
EPS 5Y23.42%
EPS Q2Q%-15.19%
Revenue 1Y (TTM)6.98%
Revenue growth 3Y2.88%
Revenue growth 5Y11.39%
Sales Q2Q%-1.39%
3.2 Future
- Based on estimates for the next years, TMHC will show a decrease in Earnings Per Share. The EPS will decrease by -0.90% on average per year.
- The Revenue is expected to decrease by -1.31% on average over the next years.
EPS Next Y-5.17%
EPS Next 2Y-11.4%
EPS Next 3Y-0.9%
EPS Next 5YN/A
Revenue Next Year0.4%
Revenue Next 2Y-5.29%
Revenue Next 3Y-1.31%
Revenue Next 5YN/A
3.3 Evolution
- The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
- The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- Based on the Price/Earnings ratio of 7.75, the valuation of TMHC can be described as very cheap.
- Based on the Price/Earnings ratio, TMHC is valued cheaper than 88.33% of the companies in the same industry.
- When comparing the Price/Earnings ratio of TMHC to the average of the S&P500 Index (26.94), we can say TMHC is valued rather cheaply.
- The Price/Forward Earnings ratio is 9.77, which indicates a very decent valuation of TMHC.
- 88.33% of the companies in the same industry are more expensive than TMHC, based on the Price/Forward Earnings ratio.
- Compared to an average S&P500 Price/Forward Earnings ratio of 23.94, TMHC is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.75 | ||
| Fwd PE | 9.77 |
4.2 Price Multiples
- 83.33% of the companies in the same industry are more expensive than TMHC, based on the Enterprise Value to EBITDA ratio.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of TMHC indicates a rather cheap valuation: TMHC is cheaper than 81.67% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.04 | ||
| EV/EBITDA | 6.34 |
4.3 Compensation for Growth
- TMHC has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.33
EPS Next 2Y-11.4%
EPS Next 3Y-0.9%
5. Dividend
5.1 Amount
- TMHC does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
64.36
+1.48 (+2.35%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryHousehold Durables
Earnings (Last)10-22 2025-10-22/bmo
Earnings (Next)02-11 2026-02-11/bmo
Inst Owners100.87%
Inst Owner Change0.76%
Ins Owners0.49%
Ins Owner Change-7.45%
Market Cap6.29B
Revenue(TTM)8.38B
Net Income(TTM)850.94M
Analysts82.5
Price Target77 (19.64%)
Short Float %5.45%
Short Ratio5.5
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-0.92%
Min EPS beat(2)-2.85%
Max EPS beat(2)1.01%
EPS beat(4)2
Avg EPS beat(4)0.19%
Min EPS beat(4)-5.59%
Max EPS beat(4)8.2%
EPS beat(8)5
Avg EPS beat(8)1.44%
EPS beat(12)7
Avg EPS beat(12)4.86%
EPS beat(16)11
Avg EPS beat(16)6.37%
Revenue beat(2)1
Avg Revenue beat(2)1.09%
Min Revenue beat(2)-2.35%
Max Revenue beat(2)4.54%
Revenue beat(4)3
Avg Revenue beat(4)1.14%
Min Revenue beat(4)-2.35%
Max Revenue beat(4)4.54%
Revenue beat(8)6
Avg Revenue beat(8)1.28%
Revenue beat(12)10
Avg Revenue beat(12)3.22%
Revenue beat(16)12
Avg Revenue beat(16)2.2%
PT rev (1m)2.77%
PT rev (3m)-0.85%
EPS NQ rev (1m)0.02%
EPS NQ rev (3m)-13.78%
EPS NY rev (1m)0.01%
EPS NY rev (3m)-3.35%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-6.57%
Revenue NY rev (1m)-0.21%
Revenue NY rev (3m)-0.72%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.75 | ||
| Fwd PE | 9.77 | ||
| P/S | 0.75 | ||
| P/FCF | 11.04 | ||
| P/OCF | 10.33 | ||
| P/B | 1.02 | ||
| P/tB | 1.14 | ||
| EV/EBITDA | 6.34 |
EPS(TTM)8.3
EY12.9%
EPS(NY)6.59
Fwd EY10.23%
FCF(TTM)5.83
FCFY9.06%
OCF(TTM)6.23
OCFY9.68%
SpS85.73
BVpS63.28
TBVpS56.49
PEG (NY)N/A
PEG (5Y)0.33
Graham Number108.71
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.84% | ||
| ROE | 13.76% | ||
| ROCE | 14.26% | ||
| ROIC | 10.86% | ||
| ROICexc | 11.36% | ||
| ROICexgc | 12.36% | ||
| OM | 14.53% | ||
| PM (TTM) | 10.16% | ||
| GM | 23.91% | ||
| FCFM | 6.8% |
ROA(3y)10.27%
ROA(5y)8.31%
ROE(3y)17.42%
ROE(5y)15.22%
ROIC(3y)12.32%
ROIC(5y)10.17%
ROICexc(3y)13.54%
ROICexc(5y)11.21%
ROICexgc(3y)15.61%
ROICexgc(5y)12.91%
ROCE(3y)16.18%
ROCE(5y)13.35%
ROICexgc growth 3Y6.33%
ROICexgc growth 5Y16.78%
ROICexc growth 3Y6.48%
ROICexc growth 5Y14.62%
OM growth 3Y8.83%
OM growth 5Y15.82%
PM growth 3Y6.96%
PM growth 5Y15.12%
GM growth 3Y5.68%
GM growth 5Y6.83%
F-Score7
Asset Turnover0.87
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.35 | ||
| Debt/FCF | 3.84 | ||
| Debt/EBITDA | 1.74 | ||
| Cap/Depr | 100.08% | ||
| Cap/Sales | 0.47% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 48.49% | ||
| Profit Quality | 66.97% | ||
| Current Ratio | 6.43 | ||
| Quick Ratio | 0.58 | ||
| Altman-Z | 3.83 |
F-Score7
WACC9.14%
ROIC/WACC1.19
Cap/Depr(3y)92.93%
Cap/Depr(5y)86.63%
Cap/Sales(3y)0.42%
Cap/Sales(5y)0.43%
Profit Quality(3y)74.16%
Profit Quality(5y)144.41%
High Growth Momentum
Growth
EPS 1Y (TTM)8.21%
EPS 3Y17.06%
EPS 5Y23.42%
EPS Q2Q%-15.19%
EPS Next Y-5.17%
EPS Next 2Y-11.4%
EPS Next 3Y-0.9%
EPS Next 5YN/A
Revenue 1Y (TTM)6.98%
Revenue growth 3Y2.88%
Revenue growth 5Y11.39%
Sales Q2Q%-1.39%
Revenue Next Year0.4%
Revenue Next 2Y-5.29%
Revenue Next 3Y-1.31%
Revenue Next 5YN/A
EBIT growth 1Y4.7%
EBIT growth 3Y11.97%
EBIT growth 5Y29.02%
EBIT Next Year18.94%
EBIT Next 3Y2.89%
EBIT Next 5YN/A
FCF growth 1Y-50.16%
FCF growth 3Y-21.22%
FCF growth 5Y-13.71%
OCF growth 1Y-49.17%
OCF growth 3Y-17.68%
OCF growth 5Y-11.78%
TAYLOR MORRISON HOME CORP / TMHC FAQ
What is the ChartMill fundamental rating of TAYLOR MORRISON HOME CORP (TMHC) stock?
ChartMill assigns a fundamental rating of 6 / 10 to TMHC.
What is the valuation status for TMHC stock?
ChartMill assigns a valuation rating of 8 / 10 to TAYLOR MORRISON HOME CORP (TMHC). This can be considered as Undervalued.
How profitable is TAYLOR MORRISON HOME CORP (TMHC) stock?
TAYLOR MORRISON HOME CORP (TMHC) has a profitability rating of 8 / 10.
What is the earnings growth outlook for TAYLOR MORRISON HOME CORP?
The Earnings per Share (EPS) of TAYLOR MORRISON HOME CORP (TMHC) is expected to decline by -5.17% in the next year.