TAYLOR MORRISON HOME CORP (TMHC) Stock Fundamental Analysis
USA - NYSE:TMHC - US87724P1066 - Common Stock
67.665 USD
-1.53 (-2.22%)
TMHC gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 63 industry peers in the Household Durables industry. TMHC scores excellent on profitability, 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! This makes TMHC very considerable for value investing!
1. Profitability
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.
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 9.53%, TMHC is in the better half of the industry, outperforming 77.78% of the companies in the same industry.
With a decent Return On Equity value of 14.89%, TMHC is doing good in the industry, outperforming 69.84% of the companies in the same industry.
TMHC has a better Return On Invested Capital (11.58%) than 74.60% of its industry peers.
The Average Return On Invested Capital over the past 3 years for TMHC is in line with the industry average of 10.52%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.53% | ||
| ROE | 14.89% | ||
| ROIC | 11.58% |
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
TMHC's Profit Margin of 10.72% is amongst the best of the industry. TMHC outperforms 85.71% of its industry peers.
TMHC's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 15.01%, TMHC belongs to the top of the industry, outperforming 87.30% of the companies in the same industry.
In the last couple of years the Operating Margin of TMHC has grown nicely.
With a Gross Margin value of 24.40%, TMHC is not doing good in the industry: 60.32% of the companies in the same industry are doing better.
In the last couple of years the Gross Margin of TMHC has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 15.01% | ||
| PM (TTM) | 10.72% | ||
| GM | 24.4% |
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
TMHC has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
The number of shares outstanding for TMHC has been reduced compared to 1 year ago.
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 3.97. This indicates that TMHC is financially healthy and has little risk of bankruptcy at the moment.
TMHC's Altman-Z score of 3.97 is fine compared to the rest of the industry. TMHC outperforms 65.08% of its industry peers.
TMHC has a debt to FCF ratio of 4.28. This is a neutral value as TMHC would need 4.28 years to pay back of all of its debts.
The Debt to FCF ratio of TMHC (4.28) is better than 65.08% of 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 of 0.35. This is comparable to the rest of the industry: TMHC outperforms 44.44% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.35 | ||
| Debt/FCF | 4.28 | ||
| Altman-Z | 3.97 |
ROIC/WACC1.34
WACC8.62%
2.3 Liquidity
TMHC has a Current Ratio of 5.97. This indicates that TMHC is financially healthy and has no problem in meeting its short term obligations.
TMHC's Current ratio of 5.97 is fine compared to the rest of the industry. TMHC outperforms 79.37% of its industry peers.
TMHC has a Quick Ratio of 5.97. This is a bad value and indicates that TMHC is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Quick ratio value of 0.32, TMHC is not doing good in the industry: 90.48% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 5.97 | ||
| Quick Ratio | 0.32 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 26.06% 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
Looking at the last year, TMHC shows a quite strong growth in Revenue. The Revenue has grown by 13.77% in the last year.
Measured over the past years, TMHC shows a quite strong growth in Revenue. The Revenue has been growing by 11.39% on average per year.
EPS 1Y (TTM)26.06%
EPS 3Y17.06%
EPS 5Y23.42%
EPS Q2Q%-2.54%
Revenue 1Y (TTM)13.77%
Revenue growth 3Y2.88%
Revenue growth 5Y11.39%
Sales Q2Q%5.73%
3.2 Future
Based on estimates for the next years, TMHC will show a small growth in Earnings Per Share. The EPS will grow by 3.88% on average per year.
The Revenue is expected to grow by 0.75% on average over the next years.
EPS Next Y-1.88%
EPS Next 2Y-3.35%
EPS Next 3Y3.88%
EPS Next 5YN/A
Revenue Next Year1.13%
Revenue Next 2Y-1.78%
Revenue Next 3Y0.75%
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.
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
Based on the Price/Earnings ratio of 7.81, the valuation of TMHC can be described as very cheap.
Based on the Price/Earnings ratio, TMHC is valued cheaply inside the industry as 85.71% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of TMHC to the average of the S&P500 Index (27.41), we can say TMHC is valued rather cheaply.
A Price/Forward Earnings ratio of 8.63 indicates a reasonable valuation of TMHC.
Based on the Price/Forward Earnings ratio, TMHC is valued cheaply inside the industry as 87.30% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of TMHC to the average of the S&P500 Index (22.88), we can say TMHC is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.81 | ||
| Fwd PE | 8.63 |
4.2 Price Multiples
79.37% 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 84.13% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.64 | ||
| EV/EBITDA | 6.78 |
4.3 Compensation for Growth
The decent profitability rating of TMHC may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.33
EPS Next 2Y-3.35%
EPS Next 3Y3.88%
5. Dividend
5.1 Amount
No dividends for TMHC!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
NYSE:TMHC (9/19/2025, 2:16:55 PM)
67.665
-1.53 (-2.22%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryHousehold Durables
Earnings (Last)
Earnings (Next)
Inst Owners101.23%
Inst Owner Change-0.46%
Ins Owners0.53%
Ins Owner Change-4.28%
Market Cap6.69B
Analysts82.5
Price Target77.28 (14.21%)
Short Float %3.24%
Short Ratio2.59
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
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)2.68%
Min EPS beat(2)-2.85%
Max EPS beat(2)8.2%
EPS beat(4)2
Avg EPS beat(4)3.09%
Min EPS beat(4)-5.59%
Max EPS beat(4)12.59%
EPS beat(8)4
Avg EPS beat(8)1.22%
EPS beat(12)7
Avg EPS beat(12)5.38%
EPS beat(16)11
Avg EPS beat(16)6.9%
Revenue beat(2)2
Avg Revenue beat(2)3.44%
Min Revenue beat(2)2.35%
Max Revenue beat(2)4.54%
Revenue beat(4)4
Avg Revenue beat(4)2.34%
Min Revenue beat(4)0.03%
Max Revenue beat(4)4.54%
Revenue beat(8)7
Avg Revenue beat(8)1.7%
Revenue beat(12)10
Avg Revenue beat(12)3.01%
Revenue beat(16)13
Avg Revenue beat(16)2.58%
PT rev (1m)0%
PT rev (3m)2.89%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-6.31%
EPS NY rev (1m)-3.35%
EPS NY rev (3m)-4.09%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.15%
Revenue NY rev (1m)-0.12%
Revenue NY rev (3m)0.65%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.81 | ||
| Fwd PE | 8.63 | ||
| P/S | 0.8 | ||
| P/FCF | 13.64 | ||
| P/OCF | 12.73 | ||
| P/B | 1.11 | ||
| P/tB | 1.24 | ||
| EV/EBITDA | 6.78 |
EPS(TTM)8.66
EY12.8%
EPS(NY)7.84
Fwd EY11.58%
FCF(TTM)4.96
FCFY7.33%
OCF(TTM)5.32
OCFY7.86%
SpS85.02
BVpS61.18
TBVpS54.47
PEG (NY)N/A
PEG (5Y)0.33
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.53% | ||
| ROE | 14.89% | ||
| ROCE | 15.2% | ||
| ROIC | 11.58% | ||
| ROICexc | 11.76% | ||
| ROICexgc | 12.8% | ||
| OM | 15.01% | ||
| PM (TTM) | 10.72% | ||
| GM | 24.4% | ||
| FCFM | 5.83% |
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%
ROICexcg growth 3Y6.33%
ROICexcg 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-Score8
Asset Turnover0.89
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.35 | ||
| Debt/FCF | 4.28 | ||
| Debt/EBITDA | 1.61 | ||
| Cap/Depr | 90.47% | ||
| Cap/Sales | 0.42% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 40.41% | ||
| Profit Quality | 54.44% | ||
| Current Ratio | 5.97 | ||
| Quick Ratio | 0.32 | ||
| Altman-Z | 3.97 |
F-Score8
WACC8.62%
ROIC/WACC1.34
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)26.06%
EPS 3Y17.06%
EPS 5Y23.42%
EPS Q2Q%-2.54%
EPS Next Y-1.88%
EPS Next 2Y-3.35%
EPS Next 3Y3.88%
EPS Next 5YN/A
Revenue 1Y (TTM)13.77%
Revenue growth 3Y2.88%
Revenue growth 5Y11.39%
Sales Q2Q%5.73%
Revenue Next Year1.13%
Revenue Next 2Y-1.78%
Revenue Next 3Y0.75%
Revenue Next 5YN/A
EBIT growth 1Y20.35%
EBIT growth 3Y11.97%
EBIT growth 5Y29.02%
EBIT Next Year18.65%
EBIT Next 3Y4.41%
EBIT Next 5YN/A
FCF growth 1Y-66.88%
FCF growth 3Y-21.22%
FCF growth 5Y-13.71%
OCF growth 1Y-65.42%
OCF growth 3Y-17.68%
OCF growth 5Y-11.78%