TAYLOR MORRISON HOME CORP (TMHC) Stock Fundamental Analysis
USA • New York Stock Exchange • NYSE:TMHC • US87724P1066
60.95 USD
-0.6 (-0.97%)
At close: Jan 30, 2026
60.95 USD
0 (0%)
After Hours: 1/30/2026, 8:21:30 PM
TMHC gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 60 industry peers in the Household Durables industry. TMHC has an excellent profitability rating, but 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! These ratings would make TMHC suitable 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
- TMHC has a better Return On Assets (8.84%) than 78.33% of its industry peers.
- TMHC's Return On Equity of 13.76% is fine compared to the rest of the industry. TMHC outperforms 68.33% of its industry peers.
- TMHC's Return On Invested Capital of 10.86% is fine compared to the rest of the industry. TMHC outperforms 71.67% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for TMHC is above the industry average of 9.52%.
| 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
- Looking at the Profit Margin, with a value of 10.16%, TMHC belongs to the top of the industry, outperforming 85.00% of the companies in the same industry.
- In the last couple of years the Profit Margin of TMHC has grown nicely.
- TMHC's Operating Margin of 14.53% is amongst the best of the industry. TMHC outperforms 88.33% of its industry peers.
- TMHC's Operating Margin has improved in the last couple of years.
- Looking at the Gross Margin, with a value of 23.91%, TMHC is in line with its industry, outperforming 43.33% of the companies in the same 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
- With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), TMHC is creating some value.
- The number of shares outstanding for TMHC has been reduced compared to 1 year ago.
- TMHC has less shares outstanding than it did 5 years ago.
- TMHC has a better debt/assets ratio than last year.
2.2 Solvency
- An Altman-Z score of 3.79 indicates that TMHC is not in any danger for bankruptcy at the moment.
- With a Altman-Z score value of 3.79, TMHC perfoms like the industry average, outperforming 60.00% of the companies in the same industry.
- The Debt to FCF ratio of TMHC is 3.84, which is a good value as it means it would take TMHC, 3.84 years of fcf income to pay off all of its debts.
- TMHC has a Debt to FCF ratio (3.84) which is in line with its industry peers.
- A Debt/Equity ratio of 0.35 indicates that TMHC is not too dependend on debt financing.
- TMHC has a Debt to Equity ratio (0.35) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.35 | ||
| Debt/FCF | 3.84 | ||
| Altman-Z | 3.79 |
ROIC/WACC1.23
WACC8.85%
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.
- The Current ratio of TMHC (6.43) is better than 80.00% of its industry peers.
- A Quick Ratio of 0.58 indicates that TMHC may have some problems paying its short term obligations.
- TMHC's Quick ratio of 0.58 is on the low side compared to the rest of the industry. TMHC is outperformed by 70.00% 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.
- Measured over the past years, TMHC shows a very strong growth in Earnings Per Share. The EPS has been growing by 23.42% on average per year.
- Looking at the last year, TMHC shows a small growth in Revenue. The Revenue has grown by 6.98% in the last 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
- The Earnings Per Share is expected to decrease by -0.90% on average over the next years.
- Based on estimates for the next years, TMHC will show a decrease in Revenue. The Revenue will decrease by -1.31% on average per year.
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
- When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
- When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
- A Price/Earnings ratio of 7.34 indicates a rather cheap valuation of TMHC.
- 90.00% of the companies in the same industry are more expensive than TMHC, based on the Price/Earnings ratio.
- When comparing the Price/Earnings ratio of TMHC to the average of the S&P500 Index (28.32), we can say TMHC is valued rather cheaply.
- TMHC is valuated reasonably with a Price/Forward Earnings ratio of 9.25.
- TMHC's Price/Forward Earnings ratio is rather cheap when compared to the industry. TMHC is cheaper than 88.33% of the companies in the same industry.
- Compared to an average S&P500 Price/Forward Earnings ratio of 25.57, TMHC is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.34 | ||
| Fwd PE | 9.25 |
4.2 Price Multiples
- TMHC's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. TMHC is cheaper than 78.33% of the companies in the same industry.
- Based on the Price/Free Cash Flow ratio, TMHC is valued cheaply inside the industry as 81.67% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.45 | ||
| EV/EBITDA | 6.19 |
4.3 Compensation for Growth
- TMHC has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.31
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% |
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.