TAYLOR MORRISON HOME CORP (TMHC) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:TMHC - US87724P1066 - Common Stock
62.24 USD
-1.06 (-1.67%)
62.24 USD
0 (0%)
Overall TMHC gets a fundamental rating of 6 out of 10. We evaluated TMHC against 60 industry peers in the Household Durables industry. TMHC scores excellent on profitability, but there are some minor concerns on its financial health. TMHC scores decently on growth, while it is valued quite cheap. This could make an interesting 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.
- Each year in the past 5 years TMHC has been profitable.
- In the past 5 years TMHC always reported a positive cash flow from operatings.
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.
- With a decent Return On Equity value of 13.76%, TMHC is doing good in the industry, outperforming 65.00% of the companies in the same industry.
- 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.
- In the last couple of years the Profit Margin of TMHC has grown nicely.
- TMHC has a Operating Margin of 14.53%. This is amongst the best in the industry. TMHC outperforms 88.33% of its industry peers.
- In the last couple of years the Operating Margin of TMHC has grown nicely.
- TMHC has a Gross Margin of 23.91%. This is comparable to the rest of the industry: TMHC outperforms 41.67% of its industry peers.
- TMHC's Gross Margin has improved in the last couple of years.
| 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.
- The number of shares outstanding for TMHC has been reduced compared to 5 years ago.
- The debt/assets ratio for TMHC has been reduced compared to a year ago.
2.2 Solvency
- TMHC has an Altman-Z score of 3.82. This indicates that TMHC is financially healthy and has little risk of bankruptcy at the moment.
- TMHC has a Altman-Z score of 3.82. This is comparable to the rest of the industry: TMHC outperforms 60.00% of its industry peers.
- 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.
- The Debt to FCF ratio of TMHC (3.84) is comparable to the rest of the industry.
- TMHC has a Debt/Equity ratio of 0.35. This is a healthy value indicating a solid balance between debt and equity.
- 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 | 3.82 |
ROIC/WACC1.2
WACC9.08%
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 has a Current ratio of 6.43. This is in the better half of the industry: TMHC outperforms 80.00% of its industry peers.
- TMHC has a Quick Ratio of 6.43. 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 0.58, TMHC is not doing good in the industry: 68.33% of the companies in the same industry are doing better.
| 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.
- TMHC shows a small growth in Revenue. In the last year, the Revenue has grown by 6.98%.
- 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
- TMHC is expected to show a decrease in Earnings Per Share. In the coming years, the EPS will decrease by -0.90% yearly.
- 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
- The Price/Earnings ratio is 7.50, which indicates a rather cheap valuation of TMHC.
- Compared to the rest of the industry, the Price/Earnings ratio of TMHC indicates a rather cheap valuation: TMHC is cheaper than 90.00% of the companies listed in the same industry.
- Compared to an average S&P500 Price/Earnings ratio of 27.21, TMHC is valued rather cheaply.
- The Price/Forward Earnings ratio is 9.45, which indicates a very decent valuation of TMHC.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of TMHC indicates a rather cheap valuation: TMHC is cheaper than 90.00% of the companies listed in the same industry.
- When comparing the Price/Forward Earnings ratio of TMHC to the average of the S&P500 Index (25.98), we can say TMHC is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.5 | ||
| Fwd PE | 9.45 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, TMHC is valued cheaply inside the industry as 83.33% of the companies are valued more expensively.
- Based on the Price/Free Cash Flow ratio, TMHC is valued cheaper than 81.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.67 | ||
| EV/EBITDA | 6.29 |
4.3 Compensation for Growth
- The excellent profitability rating of TMHC may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.32
EPS Next 2Y-11.4%
EPS Next 3Y-0.9%
5. Dividend
5.1 Amount
- No dividends for TMHC!.
| 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.