TAYLOR MORRISON HOME CORP (TMHC) Stock Fundamental Analysis
NYSE:TMHC • US87724P1066
67.91 USD
+0.82 (+1.22%)
At close: Feb 20, 2026
67.91 USD
0 (0%)
After Hours: 2/20/2026, 8:07:41 PM
We assign a fundamental rating of 5 out of 10 to TMHC. TMHC was compared to 60 industry peers in the Household Durables industry. While TMHC has a great profitability rating, there are some minor concerns on its financial health. TMHC is valued quite cheap, but it does not seem to be growing. With these ratings, TMHC could be worth investigating further for value investing!.
1. Profitability
1.1 Basic Checks
- TMHC had positive earnings in the past year.
- TMHC had a positive operating cash flow in the past year.
- TMHC had positive earnings in each of the past 5 years.
- Of the past 5 years TMHC 4 years had a positive operating cash flow.
1.2 Ratios
- With a decent Return On Assets value of 8.84%, TMHC is doing good in the industry, outperforming 78.33% of the companies in the same industry.
- TMHC's Return On Equity of 13.76% is fine compared to the rest of the industry. TMHC outperforms 71.67% of its industry peers.
- Looking at the Return On Invested Capital, with a value of 10.88%, TMHC is in the better half of the industry, outperforming 73.33% of the companies in the same industry.
- The Average Return On Invested Capital over the past 3 years for TMHC is in line with the industry average of 9.21%.
- The 3 year average ROIC (10.69%) for TMHC is below the current ROIC(10.88%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.84% | ||
| ROE | 13.76% | ||
| ROIC | 10.88% |
ROA(3y)8.77%
ROA(5y)9.27%
ROE(3y)13.98%
ROE(5y)16.31%
ROIC(3y)10.69%
ROIC(5y)11.14%
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.
- 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.
- TMHC has a Gross Margin of 23.91%. This is comparable to the rest of the industry: TMHC outperforms 43.33% of its industry peers.
- 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 3Y-6.84%
OM growth 5Y13.63%
PM growth 3Y-9.03%
PM growth 5Y19.4%
GM growth 3Y-2.77%
GM growth 5Y6.54%
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.
- The number of shares outstanding for TMHC has been reduced compared to 5 years ago.
- Compared to 1 year ago, TMHC has a worse debt to assets ratio.
2.2 Solvency
- An Altman-Z score of 3.90 indicates that TMHC is not in any danger for bankruptcy at the moment.
- TMHC has a Altman-Z score (3.90) which is comparable to the rest of the 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's Debt to FCF ratio of 3.84 is in line compared to the rest of the industry. TMHC outperforms 60.00% of its industry peers.
- TMHC has a Debt/Equity ratio of 0.35. This is a healthy value indicating a solid balance between debt and equity.
- The Debt to Equity ratio of TMHC (0.35) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.35 | ||
| Debt/FCF | 3.84 | ||
| Altman-Z | 3.9 |
ROIC/WACC1.21
WACC9.02%
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.
- TMHC's Current ratio of 6.43 is fine compared to the rest of the industry. TMHC outperforms 78.33% 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 75.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 6.43 | ||
| Quick Ratio | 0.58 |
3. Growth
3.1 Past
- TMHC shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -7.51%.
- The Earnings Per Share has been growing by 23.33% on average over the past years. This is a very strong growth
- Looking at the last year, TMHC shows a decrease in Revenue. The Revenue has decreased by -0.57% in the last year.
- 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)-7.51%
EPS 3Y-5.31%
EPS 5Y23.33%
EPS Q2Q%-23.48%
Revenue 1Y (TTM)-0.57%
Revenue growth 3Y-0.42%
Revenue growth 5Y5.79%
Sales Q2Q%-9.74%
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 2.57% on average per year.
- The Revenue is expected to decrease by -3.50% on average over the next years.
EPS Next Y-15.13%
EPS Next 2Y2.57%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-14.69%
Revenue Next 2Y-3.5%
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. Valuation
4.1 Price/Earnings Ratio
- TMHC is valuated reasonably with a Price/Earnings ratio of 8.75.
- 86.67% of the companies in the same industry are more expensive than TMHC, based on the Price/Earnings ratio.
- Compared to an average S&P500 Price/Earnings ratio of 26.99, TMHC is valued rather cheaply.
- Based on the Price/Forward Earnings ratio of 10.31, the valuation of TMHC can be described as reasonable.
- Based on the Price/Forward Earnings ratio, TMHC is valued cheaper than 88.33% of the companies in the same industry.
- Compared to an average S&P500 Price/Forward Earnings ratio of 28.06, TMHC is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.75 | ||
| Fwd PE | 10.31 |
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 75.00% of the companies listed 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 | 11.65 | ||
| EV/EBITDA | 6.67 |
4.3 Compensation for Growth
- The excellent profitability rating of TMHC may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.38
EPS Next 2Y2.57%
EPS Next 3YN/A
5. Dividend
5.1 Amount
- TMHC does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
67.91
+0.82 (+1.22%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryHousehold Durables
Earnings (Last)02-11 2026-02-11/bmo
Earnings (Next)04-21 2026-04-21
Inst Owners100.87%
Inst Owner Change0.1%
Ins Owners0.49%
Ins Owner Change-7.5%
Market Cap6.64B
Revenue(TTM)8.12B
Net Income(TTM)850.94M
Analysts78.75
Price Target77.23 (13.72%)
Short Float %5.1%
Short Ratio4.63
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)1.79%
PT rev (3m)3.07%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0.02%
EPS NY rev (1m)0%
EPS NY rev (3m)0.01%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.48%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.75 | ||
| Fwd PE | 10.31 | ||
| P/S | 0.79 | ||
| P/FCF | 11.65 | ||
| P/OCF | 10.9 | ||
| P/B | 1.07 | ||
| P/tB | 1.2 | ||
| EV/EBITDA | 6.67 |
EPS(TTM)7.76
EY11.43%
EPS(NY)6.59
Fwd EY9.7%
FCF(TTM)5.83
FCFY8.59%
OCF(TTM)6.23
OCFY9.18%
SpS85.73
BVpS63.28
TBVpS56.49
PEG (NY)N/A
PEG (5Y)0.38
Graham Number105.11
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.84% | ||
| ROE | 13.76% | ||
| ROCE | 14.26% | ||
| ROIC | 10.88% | ||
| ROICexc | 11.38% | ||
| ROICexgc | 12.38% | ||
| OM | 14.53% | ||
| PM (TTM) | 10.16% | ||
| GM | 23.91% | ||
| FCFM | 6.8% |
ROA(3y)8.77%
ROA(5y)9.27%
ROE(3y)13.98%
ROE(5y)16.31%
ROIC(3y)10.69%
ROIC(5y)11.14%
ROICexc(3y)11.72%
ROICexc(5y)12.31%
ROICexgc(3y)13.29%
ROICexgc(5y)14.07%
ROCE(3y)14.01%
ROCE(5y)14.6%
ROICexgc growth 3Y-14.33%
ROICexgc growth 5Y13.76%
ROICexc growth 3Y-12.76%
ROICexc growth 5Y14.64%
OM growth 3Y-6.84%
OM growth 5Y13.63%
PM growth 3Y-9.03%
PM growth 5Y19.4%
GM growth 3Y-2.77%
GM growth 5Y6.54%
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 | 3.9 |
F-Score7
WACC9.02%
ROIC/WACC1.21
Cap/Depr(3y)N/A
Cap/Depr(5y)N/A
Cap/Sales(3y)N/A
Cap/Sales(5y)N/A
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-7.51%
EPS 3Y-5.31%
EPS 5Y23.33%
EPS Q2Q%-23.48%
EPS Next Y-15.13%
EPS Next 2Y2.57%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)-0.57%
Revenue growth 3Y-0.42%
Revenue growth 5Y5.79%
Sales Q2Q%-9.74%
Revenue Next Year-14.69%
Revenue Next 2Y-3.5%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y4.7%
EBIT growth 3Y-7.23%
EBIT growth 5Y20.21%
EBIT Next Year-12.03%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y3775.83%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y2123.3%
OCF growth 3YN/A
OCF growth 5YN/A
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 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.
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 -15.13% in the next year.