TAYLOR MORRISON HOME CORP (TMHC) Stock Fundamental Analysis
USA - NYSE:TMHC - US87724P1066 - Common Stock
60.56 USD
+0.08 (+0.13%)
60.56 USD
0 (0%)
Overall TMHC gets a fundamental rating of 6 out of 10. We evaluated TMHC against 61 industry peers in the Household Durables industry. While TMHC has a great profitability rating, there are some minor concerns on its financial health. 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.
In the past year TMHC had a positive cash flow from operations.
In the past 5 years TMHC has always been profitable.
TMHC had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With a decent Return On Assets value of 8.84%, TMHC is doing good in the industry, outperforming 77.05% of the companies in the same industry.
The Return On Equity of TMHC (13.76%) is better than 67.21% of its industry peers.
The Return On Invested Capital of TMHC (10.86%) is better than 70.49% 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 9.86%.
| 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
Looking at the Profit Margin, with a value of 10.16%, TMHC belongs to the top of the industry, outperforming 83.61% of the companies in the same industry.
In the last couple of years the Profit Margin of TMHC has grown nicely.
TMHC's Operating Margin of 14.53% is amongst the best of the industry. TMHC outperforms 88.52% of its industry peers.
TMHC's Operating Margin has improved in the last couple of years.
TMHC's Gross Margin of 23.91% is in line compared to the rest of the industry. TMHC outperforms 42.62% 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 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.
Compared to 1 year ago, TMHC has less shares outstanding
The number of shares outstanding for TMHC has been reduced compared to 5 years ago.
TMHC has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 3.80 indicates that TMHC is not in any danger for bankruptcy at the moment.
With a decent Altman-Z score value of 3.80, 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 Debt to FCF ratio value of 3.84, TMHC perfoms like the industry average, outperforming 59.02% of the companies in the same industry.
TMHC has a Debt/Equity ratio of 0.35. This is a healthy value indicating a solid balance between debt and equity.
With a Debt to Equity ratio value of 0.35, TMHC perfoms like the industry average, outperforming 47.54% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.35 | ||
| Debt/FCF | 3.84 | ||
| Altman-Z | 3.8 |
ROIC/WACC1.3
WACC8.33%
2.3 Liquidity
A Current Ratio of 6.43 indicates that TMHC has no problem at all paying its short term obligations.
TMHC has a Current ratio of 6.43. This is amongst the best in the industry. TMHC outperforms 80.33% of its industry peers.
A Quick Ratio of 0.58 indicates that TMHC may have some problems paying its short term obligations.
With a Quick ratio value of 0.58, TMHC is not doing good in the industry: 63.93% 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
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.
TMHC shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 23.42% yearly.
Looking at the last year, TMHC shows a small growth in Revenue. The Revenue has grown by 6.98% in the last year.
The Revenue has been growing by 11.39% on average over the past years. This is quite good.
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
The Earnings Per Share is expected to grow by 1.45% on average over the next years.
Based on estimates for the next years, TMHC will show a decrease in Revenue. The Revenue will decrease by -0.61% on average per year.
EPS Next Y-5.17%
EPS Next 2Y-9.3%
EPS Next 3Y1.45%
EPS Next 5YN/A
Revenue Next Year0.89%
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.
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
With a Price/Earnings ratio of 7.30, the valuation of TMHC can be described as very cheap.
83.61% of the companies in the same industry are more expensive than TMHC, based on the Price/Earnings ratio.
TMHC is valuated cheaply when we compare the Price/Earnings ratio to 26.34, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 8.77, which indicates a very decent valuation of TMHC.
TMHC's Price/Forward Earnings ratio is rather cheap when compared to the industry. TMHC is cheaper than 83.61% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of TMHC to the average of the S&P500 Index (34.43), we can say TMHC is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.3 | ||
| Fwd PE | 8.77 |
4.2 Price Multiples
77.05% of the companies in the same industry are more expensive than TMHC, based on the Enterprise Value to EBITDA ratio.
78.69% of the companies in the same industry are more expensive than TMHC, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.5 | ||
| EV/EBITDA | 6.21 |
4.3 Compensation for Growth
TMHC has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.31
EPS Next 2Y-9.3%
EPS Next 3Y1.45%
5. Dividend
5.1 Amount
No dividends for TMHC!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
60.56
+0.08 (+0.13%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryHousehold Durables
Earnings (Last)
Earnings (Next)
Inst Owners100.58%
Inst Owner Change0.02%
Ins Owners0.47%
Ins Owner Change-6.67%
Market Cap5.99B
Revenue(TTM)8.38B
Net Income(TTM)850.94M
Analysts82.5
Price Target74.93 (23.73%)
Short Float %3.81%
Short Ratio3.08
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)-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)-3.52%
PT rev (3m)-0.25%
EPS NQ rev (1m)-13.8%
EPS NQ rev (3m)-13.92%
EPS NY rev (1m)-3.36%
EPS NY rev (3m)-6.6%
Revenue NQ rev (1m)-6.57%
Revenue NQ rev (3m)-7.36%
Revenue NY rev (1m)-0.24%
Revenue NY rev (3m)-0.36%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.3 | ||
| Fwd PE | 8.77 | ||
| P/S | 0.71 | ||
| P/FCF | 10.5 | ||
| P/OCF | 9.83 | ||
| P/B | 0.97 | ||
| P/tB | 1.08 | ||
| EV/EBITDA | 6.21 |
EPS(TTM)8.3
EY13.71%
EPS(NY)6.9
Fwd EY11.4%
FCF(TTM)5.77
FCFY9.52%
OCF(TTM)6.16
OCFY10.18%
SpS84.77
BVpS62.57
TBVpS55.86
PEG (NY)N/A
PEG (5Y)0.31
Graham Number108.09
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 | 3.8 |
F-Score7
WACC8.33%
ROIC/WACC1.3
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 Year0.89%
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 Year18.65%
EBIT Next 3Y4.41%
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 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 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 7.3 and the Price/Book (PB) ratio is 0.97.
What is the financial health of TAYLOR MORRISON HOME CORP (TMHC) stock?
The financial health rating of TAYLOR MORRISON HOME CORP (TMHC) is 6 / 10.