TAYLOR MORRISON HOME CORP (TMHC) Fundamental Analysis & Valuation
NYSE:TMHC • US87724P1066
Current stock price
63.24 USD
-1.09 (-1.69%)
At close:
63.24 USD
0 (0%)
After Hours:
This TMHC fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.
1. TMHC Profitability Analysis
1.1 Basic Checks
- In the past year TMHC was profitable.
- In the past year TMHC had a positive cash flow from operations.
- TMHC had positive earnings in each of the past 5 years.
- TMHC had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- With a decent Return On Assets value of 6.83%, TMHC is doing good in the industry, outperforming 75.00% of the companies in the same industry.
- With a decent Return On Equity value of 10.70%, TMHC is doing good in the industry, outperforming 65.00% of the companies in the same industry.
- With a decent Return On Invested Capital value of 8.54%, TMHC is doing good in the industry, outperforming 70.00% of the companies in the same industry.
- Measured over the past 3 years, the Average Return On Invested Capital for TMHC is in line with the industry average of 8.92%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.83% | ||
| ROE | 10.7% | ||
| ROIC | 8.54% |
ROA(3y)8.77%
ROA(5y)9.27%
ROE(3y)13.99%
ROE(5y)16.32%
ROIC(3y)10.7%
ROIC(5y)11.15%
1.3 Margins
- TMHC's Profit Margin of 8.77% is fine compared to the rest of the industry. TMHC outperforms 80.00% of its industry peers.
- In the last couple of years the Profit Margin of TMHC has grown nicely.
- TMHC's Operating Margin of 12.86% is amongst the best of the industry. TMHC outperforms 81.67% of its industry peers.
- In the last couple of years the Operating Margin of TMHC has grown nicely.
- Looking at the Gross Margin, with a value of 22.59%, TMHC is doing worse than 63.33% of the companies in the same industry.
- TMHC's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 12.86% | ||
| PM (TTM) | 8.77% | ||
| GM | 22.59% |
OM growth 3Y-6.43%
OM growth 5Y13.93%
PM growth 3Y-9.03%
PM growth 5Y19.4%
GM growth 3Y-2.77%
GM growth 5Y6.54%
2. TMHC Health Analysis
2.1 Basic Checks
- With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), TMHC is creating some value.
- TMHC has less shares outstanding than it did 1 year ago.
- TMHC has less shares outstanding than it did 5 years ago.
- The debt/assets ratio for TMHC is higher compared to a year ago.
2.2 Solvency
- TMHC has an Altman-Z score of 3.64. This indicates that TMHC is financially healthy and has little risk of bankruptcy at the moment.
- TMHC's Altman-Z score of 3.64 is in line compared to the rest of the industry. TMHC outperforms 58.33% of its industry peers.
- The Debt to FCF ratio of TMHC is 3.40, which is a good value as it means it would take TMHC, 3.40 years of fcf income to pay off all of its debts.
- Looking at the Debt to FCF ratio, with a value of 3.40, TMHC is in line with its industry, outperforming 60.00% of the companies in the same industry.
- TMHC has a Debt/Equity ratio of 0.38. This is a healthy value indicating a solid balance between debt and equity.
- TMHC's Debt to Equity ratio of 0.38 is in line compared to the rest of the industry. TMHC outperforms 41.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.38 | ||
| Debt/FCF | 3.4 | ||
| Altman-Z | 3.64 |
ROIC/WACC0.9
WACC9.45%
2.3 Liquidity
- A Current Ratio of 7.00 indicates that TMHC has no problem at all paying its short term obligations.
- TMHC has a better Current ratio (7.00) than 80.00% of its industry peers.
- A Quick Ratio of 0.90 indicates that TMHC may have some problems paying its short term obligations.
- TMHC has a Quick ratio (0.90) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 7 | ||
| Quick Ratio | 0.9 |
3. TMHC Growth Analysis
3.1 Past
- The earnings per share for TMHC have decreased strongly by -21.81% in the last year.
- The Earnings Per Share has been growing by 23.33% on average over the past years. This is a very strong growth
- TMHC shows a decrease in Revenue. In the last year, the revenue decreased by -8.99%.
- Measured over the past years, TMHC shows a small growth in Revenue. The Revenue has been growing by 5.79% on average per year.
EPS 1Y (TTM)-21.81%
EPS 3Y-5.31%
EPS 5Y23.33%
EPS Q2Q%-45.89%
Revenue 1Y (TTM)-8.99%
Revenue growth 3Y-0.42%
Revenue growth 5Y5.79%
Sales Q2Q%-24.21%
3.2 Future
- TMHC is expected to show a decrease in Earnings Per Share. In the coming years, the EPS will decrease by -7.38% yearly.
- Based on estimates for the next years, TMHC will show a decrease in Revenue. The Revenue will decrease by -4.12% on average per year.
EPS Next Y-31.59%
EPS Next 2Y-7.38%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-15.63%
Revenue Next 2Y-4.12%
Revenue Next 3YN/A
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.
- The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. TMHC Valuation Analysis
4.1 Price/Earnings Ratio
- With a Price/Earnings ratio of 9.29, the valuation of TMHC can be described as very reasonable.
- 86.67% of the companies in the same industry are more expensive than TMHC, based on the Price/Earnings ratio.
- TMHC's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.42.
- A Price/Forward Earnings ratio of 9.50 indicates a reasonable valuation of TMHC.
- Based on the Price/Forward Earnings ratio, TMHC is valued cheaply inside the industry as 81.67% of the companies are valued more expensively.
- When comparing the Price/Forward Earnings ratio of TMHC to the average of the S&P500 Index (22.29), we can say TMHC is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.29 | ||
| Fwd PE | 9.5 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of TMHC indicates a somewhat cheap valuation: TMHC is cheaper than 68.33% of the companies listed in the same industry.
- 81.67% of the companies in the same industry are more expensive than TMHC, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.71 | ||
| EV/EBITDA | 7.52 |
4.3 Compensation for Growth
- TMHC has a very decent profitability rating, which may justify a higher PE ratio.
- TMHC's earnings are expected to decrease with -7.38% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)0.4
EPS Next 2Y-7.38%
EPS Next 3YN/A
5. TMHC Dividend Analysis
5.1 Amount
- No dividends for TMHC!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
TMHC Fundamentals: All Metrics, Ratios and Statistics
63.24
-1.09 (-1.69%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryHousehold Durables
Earnings (Last)04-22 2026-04-22/bmo
Earnings (Next)07-21 2026-07-21
Inst Owners101.83%
Inst Owner Change1.69%
Ins Owners0.59%
Ins Owner Change13.67%
Market Cap5.99B
Revenue(TTM)7.61B
Net Income(TTM)667.66M
Analysts78.82
Price Target74.06 (17.11%)
Short Float %5.46%
Short Ratio4.21
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)13.44%
Min EPS beat(2)-1.84%
Max EPS beat(2)28.73%
EPS beat(4)2
Avg EPS beat(4)6.26%
Min EPS beat(4)-2.85%
Max EPS beat(4)28.73%
EPS beat(8)5
Avg EPS beat(8)5.23%
EPS beat(12)7
Avg EPS beat(12)5.09%
EPS beat(16)10
Avg EPS beat(16)7.06%
Revenue beat(2)1
Avg Revenue beat(2)0.54%
Min Revenue beat(2)-0.24%
Max Revenue beat(2)1.32%
Revenue beat(4)2
Avg Revenue beat(4)0.82%
Min Revenue beat(4)-2.35%
Max Revenue beat(4)4.54%
Revenue beat(8)6
Avg Revenue beat(8)1.31%
Revenue beat(12)9
Avg Revenue beat(12)2.67%
Revenue beat(16)12
Avg Revenue beat(16)2.24%
PT rev (1m)-4.22%
PT rev (3m)-3.83%
EPS NQ rev (1m)-2.07%
EPS NQ rev (3m)-21%
EPS NY rev (1m)0.47%
EPS NY rev (3m)-19.4%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-4.99%
Revenue NY rev (1m)-0.09%
Revenue NY rev (3m)-5.55%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.29 | ||
| Fwd PE | 9.5 | ||
| P/S | 0.79 | ||
| P/FCF | 8.71 | ||
| P/OCF | 8.21 | ||
| P/B | 0.96 | ||
| P/tB | 1.07 | ||
| EV/EBITDA | 7.52 |
EPS(TTM)6.81
EY10.77%
EPS(NY)6.66
Fwd EY10.53%
FCF(TTM)7.26
FCFY11.48%
OCF(TTM)7.7
OCFY12.18%
SpS80.35
BVpS65.86
TBVpS58.86
PEG (NY)N/A
PEG (5Y)0.4
Graham Number100.458 (58.85%)
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.83% | ||
| ROE | 10.7% | ||
| ROCE | 11.19% | ||
| ROIC | 8.54% | ||
| ROICexc | 9.23% | ||
| ROICexgc | 10.05% | ||
| OM | 12.86% | ||
| PM (TTM) | 8.77% | ||
| GM | 22.59% | ||
| FCFM | 9.04% |
ROA(3y)8.77%
ROA(5y)9.27%
ROE(3y)13.99%
ROE(5y)16.32%
ROIC(3y)10.7%
ROIC(5y)11.15%
ROICexc(3y)11.72%
ROICexc(5y)12.31%
ROICexgc(3y)13.58%
ROICexgc(5y)14.24%
ROCE(3y)14.02%
ROCE(5y)14.61%
ROICexgc growth 3Y-12.31%
ROICexgc growth 5Y15.36%
ROICexc growth 3Y-12.76%
ROICexc growth 5Y14.64%
OM growth 3Y-6.43%
OM growth 5Y13.93%
PM growth 3Y-9.03%
PM growth 5Y19.4%
GM growth 3Y-2.77%
GM growth 5Y6.54%
F-Score5
Asset Turnover0.78
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.38 | ||
| Debt/FCF | 3.4 | ||
| Debt/EBITDA | 2.29 | ||
| Cap/Depr | 99.82% | ||
| Cap/Sales | 0.55% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 71.47% | ||
| Profit Quality | 103.03% | ||
| Current Ratio | 7 | ||
| Quick Ratio | 0.9 | ||
| Altman-Z | 3.64 |
F-Score5
WACC9.45%
ROIC/WACC0.9
Cap/Depr(3y)96.24%
Cap/Depr(5y)86.45%
Cap/Sales(3y)0.46%
Cap/Sales(5y)0.41%
Profit Quality(3y)73.15%
Profit Quality(5y)75.08%
High Growth Momentum
Growth
EPS 1Y (TTM)-21.81%
EPS 3Y-5.31%
EPS 5Y23.33%
EPS Q2Q%-45.89%
EPS Next Y-31.59%
EPS Next 2Y-7.38%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)-8.99%
Revenue growth 3Y-0.42%
Revenue growth 5Y5.79%
Sales Q2Q%-24.21%
Revenue Next Year-15.63%
Revenue Next 2Y-4.12%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-21.99%
EBIT growth 3Y-6.83%
EBIT growth 5Y20.52%
EBIT Next Year-28.23%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y129.83%
FCF growth 3Y-10.32%
FCF growth 5Y-6.47%
OCF growth 1Y122.44%
OCF growth 3Y-9.64%
OCF growth 5Y-6.16%
TAYLOR MORRISON HOME CORP / TMHC Fundamental Analysis FAQ
What is the ChartMill fundamental rating of TAYLOR MORRISON HOME CORP (TMHC) stock?
ChartMill assigns a fundamental rating of 5 / 10 to TMHC.
What is the valuation status for TMHC stock?
ChartMill assigns a valuation rating of 7 / 10 to TAYLOR MORRISON HOME CORP (TMHC). This can be considered as Undervalued.
Can you provide the profitability details for TAYLOR MORRISON HOME CORP?
TAYLOR MORRISON HOME CORP (TMHC) has a profitability rating of 7 / 10.
Can you provide the financial health for TMHC stock?
The financial health rating of TAYLOR MORRISON HOME CORP (TMHC) is 5 / 10.