TAYLOR MORRISON HOME CORP (TMHC) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:TMHC - US87724P1066 - Common Stock
62.12 USD
-0.12 (-0.19%)
62.12 USD
0 (0%)
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! With these ratings, TMHC could be worth investigating further 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 Return On Assets of 8.84%. This is in the better half of the industry: TMHC outperforms 78.33% of its industry peers.
- 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.
- The Return On Invested Capital of TMHC (10.86%) is better than 68.33% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for TMHC is above the industry average of 9.70%.
| 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
- TMHC has a Profit Margin of 10.16%. This is amongst the best in the industry. TMHC outperforms 85.00% of its industry peers.
- In the last couple of years the Profit Margin of TMHC has grown nicely.
- With an excellent Operating Margin value of 14.53%, TMHC belongs to the best 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.
- 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
- The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so TMHC is still creating some value.
- Compared to 1 year ago, TMHC has less shares outstanding
- 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 3.81 indicates that TMHC is not in any danger for bankruptcy at the moment.
- The Altman-Z score of TMHC (3.81) is comparable to the rest of the industry.
- TMHC has a debt to FCF ratio of 3.84. This is a good value and a sign of high solvency as TMHC would need 3.84 years to pay back of all of its debts.
- TMHC has a Debt to FCF ratio (3.84) which is comparable to the rest of the industry.
- A Debt/Equity ratio of 0.35 indicates that TMHC is not too dependend on debt financing.
- With a Debt to Equity ratio value of 0.35, TMHC perfoms like the industry average, outperforming 46.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.35 | ||
| Debt/FCF | 3.84 | ||
| Altman-Z | 3.81 |
ROIC/WACC1.23
WACC8.86%
2.3 Liquidity
- A Current Ratio of 6.43 indicates that TMHC has no problem at all paying its short term obligations.
- With a decent Current ratio value of 6.43, TMHC is doing good in the industry, outperforming 80.00% of the companies in the same industry.
- 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.
- TMHC has a Quick ratio of 0.58. This is in the lower half of the industry: TMHC underperforms 68.33% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 6.43 | ||
| Quick Ratio | 0.58 |
3. Growth
3.1 Past
- TMHC shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 8.21%, which is quite good.
- 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
- TMHC is expected to show a decrease in Earnings Per Share. In the coming years, the EPS will decrease by -0.90% yearly.
- TMHC is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -1.31% yearly.
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
- Based on the Price/Earnings ratio of 7.48, the valuation of TMHC can be described as very cheap.
- TMHC's Price/Earnings ratio is rather cheap when compared to the industry. TMHC is cheaper than 90.00% of the companies in the same industry.
- TMHC is valuated cheaply when we compare the Price/Earnings ratio to 27.25, which is the current average of the S&P500 Index.
- A Price/Forward Earnings ratio of 9.43 indicates a reasonable 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.
- TMHC is valuated cheaply when we compare the Price/Forward Earnings ratio to 25.98, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.48 | ||
| Fwd PE | 9.43 |
4.2 Price Multiples
- 85.00% of the companies in the same industry are more expensive than TMHC, based on the Enterprise Value to EBITDA ratio.
- TMHC's Price/Free Cash Flow ratio is rather cheap when compared to the industry. TMHC is cheaper than 81.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.65 | ||
| EV/EBITDA | 6.28 |
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.