TAYLOR MORRISON HOME CORP (TMHC) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:TMHC - US87724P1066 - Common Stock
62.6 USD
-0.43 (-0.68%)
62.6 USD
0 (0%)
TMHC gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 61 industry peers in the Household Durables industry. TMHC gets an excellent profitability rating and is at the same time showing great financial health properties. TMHC may be a bit undervalued, certainly considering the very reasonable score on growth These ratings could make TMHC a good candidate 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.
In the past 5 years TMHC has always been profitable.
Each year in the past 5 years TMHC had a positive operating cash flow.
1.2 Ratios
TMHC's Return On Assets of 8.84% is fine compared to the rest of the industry. TMHC outperforms 78.69% of its industry peers.
TMHC has a better Return On Equity (13.76%) than 67.21% of its industry peers.
With a decent Return On Invested Capital value of 10.86%, TMHC is doing good in the industry, outperforming 70.49% of the companies in the same industry.
TMHC had an Average Return On Invested Capital over the past 3 years of 12.32%. This is above the industry average of 9.73%.
| 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's Profit Margin of 10.16% is amongst the best of the industry. TMHC outperforms 83.61% 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 14.53%, TMHC belongs to the top of the industry, outperforming 88.52% of the companies in the same industry.
TMHC's Operating Margin has improved in the last couple of years.
TMHC has a Gross Margin (23.91%) which is comparable to the rest of the 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
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.
The number of shares outstanding for TMHC has been reduced compared to 5 years ago.
Compared to 1 year ago, TMHC has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 3.82 indicates that TMHC is not in any danger for bankruptcy at the moment.
With a decent Altman-Z score value of 3.82, TMHC is doing good in the industry, outperforming 60.66% of the companies in the same 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.
With a decent Debt to FCF ratio value of 3.84, TMHC is doing good in the industry, outperforming 60.66% of the companies in the same industry.
A Debt/Equity ratio of 0.35 indicates that TMHC is not too dependend on debt financing.
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/WACC1.24
WACC8.74%
2.3 Liquidity
A Current Ratio of 6.43 indicates that TMHC has no problem at all paying its short term obligations.
TMHC's Current ratio of 6.43 is amongst the best of the industry. TMHC outperforms 80.33% 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.
Looking at the Quick ratio, with a value of 0.58, TMHC is doing worse than 67.21% of the companies in the same industry.
| 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%.
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)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
Based on estimates for the next years, TMHC will show a small growth in Earnings Per Share. The EPS will grow by 1.45% on average per year.
The Revenue is expected to decrease by -0.61% on average over the next years.
EPS Next Y-5.17%
EPS Next 2Y-9.3%
EPS Next 3Y1.45%
EPS Next 5YN/A
Revenue Next Year0.61%
Revenue Next 2Y-4.68%
Revenue Next 3Y-0.61%
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
Based on the Price/Earnings ratio of 7.54, the valuation of TMHC can be described as very cheap.
Based on the Price/Earnings ratio, TMHC is valued cheaply inside the industry as 86.89% of the companies are valued more expensively.
TMHC's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 26.54.
TMHC is valuated reasonably with a Price/Forward Earnings ratio of 9.07.
TMHC's Price/Forward Earnings ratio is rather cheap when compared to the industry. TMHC is cheaper than 86.89% of the companies in the same industry.
TMHC's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 23.78.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.54 | ||
| Fwd PE | 9.07 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, TMHC is valued cheaper than 85.25% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of TMHC indicates a rather cheap valuation: TMHC is cheaper than 80.33% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.74 | ||
| EV/EBITDA | 6.32 |
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-9.3%
EPS Next 3Y1.45%
5. Dividend
5.1 Amount
TMHC does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
62.6
-0.43 (-0.68%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryHousehold Durables
Earnings (Last)
Earnings (Next)
Inst Owners100.92%
Inst Owner Change-0.67%
Ins Owners0.49%
Ins Owner Change-7.45%
Market Cap6.12B
Revenue(TTM)8.38B
Net Income(TTM)850.94M
Analysts82.5
Price Target74.93 (19.7%)
Short Float %5.53%
Short Ratio4.85
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)0%
PT rev (3m)-3.05%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-13.92%
EPS NY rev (1m)0%
EPS NY rev (3m)-3.36%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-6.57%
Revenue NY rev (1m)-0.27%
Revenue NY rev (3m)-0.51%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.54 | ||
| Fwd PE | 9.07 | ||
| P/S | 0.73 | ||
| P/FCF | 10.74 | ||
| P/OCF | 10.04 | ||
| P/B | 0.99 | ||
| P/tB | 1.11 | ||
| EV/EBITDA | 6.32 |
EPS(TTM)8.3
EY13.26%
EPS(NY)6.9
Fwd EY11.02%
FCF(TTM)5.83
FCFY9.31%
OCF(TTM)6.23
OCFY9.96%
SpS85.73
BVpS63.28
TBVpS56.49
PEG (NY)N/A
PEG (5Y)0.32
Graham Number108.71
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.84% | ||
| ROE | 13.76% | ||
| ROCE | 14.26% | ||
| ROIC | 10.86% | ||
| ROICexc | 11.36% | ||
| ROICexgc | 12.36% | ||
| OM | 14.53% | ||
| PM (TTM) | 10.16% | ||
| GM | 23.91% | ||
| FCFM | 6.8% |
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%
ROICexgc growth 3Y6.33%
ROICexgc 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-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 | 3.82 |
F-Score7
WACC8.74%
ROIC/WACC1.24
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)8.21%
EPS 3Y17.06%
EPS 5Y23.42%
EPS Q2Q%-15.19%
EPS Next Y-5.17%
EPS Next 2Y-9.3%
EPS Next 3Y1.45%
EPS Next 5YN/A
Revenue 1Y (TTM)6.98%
Revenue growth 3Y2.88%
Revenue growth 5Y11.39%
Sales Q2Q%-1.39%
Revenue Next Year0.61%
Revenue Next 2Y-4.68%
Revenue Next 3Y-0.61%
Revenue Next 5YN/A
EBIT growth 1Y4.7%
EBIT growth 3Y11.97%
EBIT growth 5Y29.02%
EBIT Next Year22.28%
EBIT Next 3Y3.57%
EBIT Next 5YN/A
FCF growth 1Y-50.16%
FCF growth 3Y-21.22%
FCF growth 5Y-13.71%
OCF growth 1Y-49.17%
OCF growth 3Y-17.68%
OCF growth 5Y-11.78%
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 of TAYLOR MORRISON HOME CORP (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 valuation of TAYLOR MORRISON HOME CORP based on its PE and PB ratios?
The Price/Earnings (PE) ratio for TAYLOR MORRISON HOME CORP (TMHC) is 7.54 and the Price/Book (PB) ratio is 0.99.
What is the financial health of TAYLOR MORRISON HOME CORP (TMHC) stock?
The financial health rating of TAYLOR MORRISON HOME CORP (TMHC) is 7 / 10.