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TAYLOR MORRISON HOME CORP (TMHC) Stock Fundamental Analysis

NYSE:TMHC - New York Stock Exchange, Inc. - US87724P1066 - Common Stock

65.7  +0.03 (+0.05%)

After market: 65.7 0 (0%)

Fundamental Rating

5

TMHC gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 67 industry peers in the Household Durables industry. TMHC scores excellent on profitability, but there are some minor concerns on its financial health. A decent growth rate in combination with a cheap valuation! Better keep an eye on TMHC. These ratings would make TMHC suitable for value investing!


Dividend Valuation Growth Profitability Health

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7

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.
Each year in the past 5 years TMHC had a positive operating cash flow.
TMHC Yearly Net Income VS EBIT VS OCF VS FCFTMHC Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 500M 1B

1.2 Ratios

TMHC's Return On Assets of 8.75% is fine compared to the rest of the industry. TMHC outperforms 66.15% of its industry peers.
TMHC's Return On Equity of 14.26% is fine compared to the rest of the industry. TMHC outperforms 63.08% of its industry peers.
TMHC's Return On Invested Capital of 10.86% is fine compared to the rest of the industry. TMHC outperforms 64.62% of its industry peers.
The Average Return On Invested Capital over the past 3 years for TMHC is in line with the industry average of 11.99%.
Industry RankSector Rank
ROA 8.75%
ROE 14.26%
ROIC 10.86%
ROA(3y)9.63%
ROA(5y)7.38%
ROE(3y)18.03%
ROE(5y)14.21%
ROIC(3y)11.44%
ROIC(5y)8.99%
TMHC Yearly ROA, ROE, ROICTMHC Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 5 10 15 20

1.3 Margins

TMHC has a Profit Margin of 10.39%. This is in the better half of the industry: TMHC outperforms 80.00% of its industry peers.
In the last couple of years the Profit Margin of TMHC has grown nicely.
With a decent Operating Margin value of 14.84%, TMHC is doing good in the industry, outperforming 80.00% of the companies in the same industry.
TMHC's Operating Margin has improved in the last couple of years.
With a Gross Margin value of 24.60%, TMHC perfoms like the industry average, outperforming 43.08% of the companies in the same industry.
In the last couple of years the Gross Margin of TMHC has grown nicely.
Industry RankSector Rank
OM 14.84%
PM (TTM) 10.39%
GM 24.6%
OM growth 3Y25.66%
OM growth 5Y14.69%
PM growth 3Y37.69%
PM growth 5Y16.25%
GM growth 3Y12.41%
GM growth 5Y6.74%
TMHC Yearly Profit, Operating, Gross MarginsTMHC Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 5 10 15 20 25

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5

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.
TMHC has less shares outstanding than it did 1 year ago.
TMHC has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, TMHC has an improved debt to assets ratio.
TMHC Yearly Shares OutstandingTMHC Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 20M 40M 60M 80M 100M
TMHC Yearly Total Debt VS Total AssetsTMHC Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 2B 4B 6B 8B

2.2 Solvency

TMHC has an Altman-Z score of 3.79. This indicates that TMHC is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of TMHC (3.79) is comparable to the rest of the industry.
TMHC has a debt to FCF ratio of 145.77. This is a negative value and a sign of low solvency as TMHC would need 145.77 years to pay back of all of its debts.
TMHC has a Debt to FCF ratio (145.77) which is comparable to the rest of the industry.
TMHC has a Debt/Equity ratio of 0.38. This is a healthy value indicating a solid balance between debt and equity.
Looking at the Debt to Equity ratio, with a value of 0.38, TMHC is in line with its industry, outperforming 43.08% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 0.38
Debt/FCF 145.77
Altman-Z 3.79
ROIC/WACC1.27
WACC8.53%
TMHC Yearly LT Debt VS Equity VS FCFTMHC Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 1B 2B 3B 4B 5B

2.3 Liquidity

A Current Ratio of 6.05 indicates that TMHC has no problem at all paying its short term obligations.
With an excellent Current ratio value of 6.05, TMHC belongs to the best of the industry, outperforming 81.54% of the companies in the same industry.
A Quick Ratio of 0.67 indicates that TMHC may have some problems paying its short term obligations.
TMHC's Quick ratio of 0.67 is on the low side compared to the rest of the industry. TMHC is outperformed by 67.69% of its industry peers.
Industry RankSector Rank
Current Ratio 6.05
Quick Ratio 0.67
TMHC Yearly Current Assets VS Current LiabilitesTMHC Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 2B 4B 6B

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4

3. Growth

3.1 Past

TMHC shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -5.43%.
TMHC shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 22.22% yearly.
TMHC shows a decrease in Revenue. In the last year, the revenue decreased by -0.74%.
TMHC shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 11.90% yearly.
EPS 1Y (TTM)-5.43%
EPS 3Y37.1%
EPS 5Y22.22%
EPS Q2Q%50.96%
Revenue 1Y (TTM)-0.74%
Revenue growth 3Y6.57%
Revenue growth 5Y11.9%
Sales Q2Q%21.1%

3.2 Future

TMHC is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 17.13% yearly.
TMHC is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.97% yearly.
EPS Next Y21.83%
EPS Next 2Y15.94%
EPS Next 3Y17.13%
EPS Next 5YN/A
Revenue Next Year9.29%
Revenue Next 2Y8.27%
Revenue Next 3Y7.97%
Revenue Next 5YN/A

3.3 Evolution

The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
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.
TMHC Yearly Revenue VS EstimatesTMHC Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2B 4B 6B 8B
TMHC Yearly EPS VS EstimatesTMHC Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2 4 6 8 10

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7

4. Valuation

4.1 Price/Earnings Ratio

Based on the Price/Earnings ratio of 8.57, the valuation of TMHC can be described as reasonable.
78.46% 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 28.29, which is the current average of the S&P500 Index.
TMHC is valuated cheaply with a Price/Forward Earnings ratio of 6.97.
83.08% of the companies in the same industry are more expensive than TMHC, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 24.44, TMHC is valued rather cheaply.
Industry RankSector Rank
PE 8.57
Fwd PE 6.97
TMHC Price Earnings VS Forward Price EarningsTMHC Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20 25

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, TMHC is valued a bit cheaper than 72.31% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, TMHC is valued a bit more expensive than the industry average as 60.00% of the companies are valued more cheaply.
Industry RankSector Rank
P/FCF 462.4
EV/EBITDA 7.22
TMHC Per share dataTMHC EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 20 40 60

4.3 Compensation for Growth

The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
The decent profitability rating of TMHC may justify a higher PE ratio.
A more expensive valuation may be justified as TMHC's earnings are expected to grow with 17.13% in the coming years.
PEG (NY)0.39
PEG (5Y)0.39
EPS Next 2Y15.94%
EPS Next 3Y17.13%

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0

5. Dividend

5.1 Amount

No dividends for TMHC!.
Industry RankSector Rank
Dividend Yield N/A

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TAYLOR MORRISON HOME CORP

NYSE:TMHC (1/21/2025, 8:04:00 PM)

After market: 65.7 0 (0%)

65.7

+0.03 (+0.05%)

Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryHousehold Durables
Earnings (Last)10-23 2024-10-23/bmo
Earnings (Next)02-12 2025-02-12/amc
Inst Owners99.61%
Inst Owner Change-0.29%
Ins Owners2.83%
Ins Owner Change-6.82%
Market Cap6.80B
Analysts80
Price Target85.46 (30.08%)
Short Float %2.1%
Short Ratio2.5
Dividend
Industry RankSector 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)2
Avg EPS beat(2)7.07%
Min EPS beat(2)1.56%
Max EPS beat(2)12.59%
EPS beat(4)3
Avg EPS beat(4)2.69%
Min EPS beat(4)-10.92%
Max EPS beat(4)12.59%
EPS beat(8)5
Avg EPS beat(8)7.2%
EPS beat(12)9
Avg EPS beat(12)8.43%
EPS beat(16)10
Avg EPS beat(16)5.81%
Revenue beat(2)2
Avg Revenue beat(2)2.39%
Min Revenue beat(2)2.35%
Max Revenue beat(2)2.43%
Revenue beat(4)3
Avg Revenue beat(4)1.42%
Min Revenue beat(4)-2.43%
Max Revenue beat(4)3.34%
Revenue beat(8)7
Avg Revenue beat(8)4.25%
Revenue beat(12)9
Avg Revenue beat(12)2.55%
Revenue beat(16)11
Avg Revenue beat(16)2.1%
PT rev (1m)0.69%
PT rev (3m)18.72%
EPS NQ rev (1m)0%
EPS NQ rev (3m)4.87%
EPS NY rev (1m)0%
EPS NY rev (3m)3.98%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.61%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.32%
Valuation
Industry RankSector Rank
PE 8.57
Fwd PE 6.97
P/S 0.87
P/FCF 462.4
P/OCF 248.13
P/B 1.19
P/tB 1.35
EV/EBITDA 7.22
EPS(TTM)7.67
EY11.67%
EPS(NY)9.42
Fwd EY14.34%
FCF(TTM)0.14
FCFY0.22%
OCF(TTM)0.26
OCFY0.4%
SpS75.68
BVpS55.13
TBVpS48.72
PEG (NY)0.39
PEG (5Y)0.39
Profitability
Industry RankSector Rank
ROA 8.75%
ROE 14.26%
ROCE 14.34%
ROIC 10.86%
ROICexc 11.22%
ROICexgc 12.25%
OM 14.84%
PM (TTM) 10.39%
GM 24.6%
FCFM 0.19%
ROA(3y)9.63%
ROA(5y)7.38%
ROE(3y)18.03%
ROE(5y)14.21%
ROIC(3y)11.44%
ROIC(5y)8.99%
ROICexc(3y)12.79%
ROICexc(5y)9.97%
ROICexgc(3y)14.76%
ROICexgc(5y)11.36%
ROCE(3y)15.11%
ROCE(5y)11.87%
ROICexcg growth 3Y31.14%
ROICexcg growth 5Y20.11%
ROICexc growth 3Y30.3%
ROICexc growth 5Y17.66%
OM growth 3Y25.66%
OM growth 5Y14.69%
PM growth 3Y37.69%
PM growth 5Y16.25%
GM growth 3Y12.41%
GM growth 5Y6.74%
F-Score6
Asset Turnover0.84
Health
Industry RankSector Rank
Debt/Equity 0.38
Debt/FCF 145.77
Debt/EBITDA 1.78
Cap/Depr 30.82%
Cap/Sales 0.16%
Interest Coverage 250
Cash Conversion 2.28%
Profit Quality 1.81%
Current Ratio 6.05
Quick Ratio 0.67
Altman-Z 3.79
F-Score6
WACC8.53%
ROIC/WACC1.27
Cap/Depr(3y)81.2%
Cap/Depr(5y)88.16%
Cap/Sales(3y)0.37%
Cap/Sales(5y)0.47%
Profit Quality(3y)85.47%
Profit Quality(5y)168.99%
High Growth Momentum
Growth
EPS 1Y (TTM)-5.43%
EPS 3Y37.1%
EPS 5Y22.22%
EPS Q2Q%50.96%
EPS Next Y21.83%
EPS Next 2Y15.94%
EPS Next 3Y17.13%
EPS Next 5YN/A
Revenue 1Y (TTM)-0.74%
Revenue growth 3Y6.57%
Revenue growth 5Y11.9%
Sales Q2Q%21.1%
Revenue Next Year9.29%
Revenue Next 2Y8.27%
Revenue Next 3Y7.97%
Revenue Next 5YN/A
EBIT growth 1Y0.46%
EBIT growth 3Y33.91%
EBIT growth 5Y28.34%
EBIT Next Year17.19%
EBIT Next 3Y9.41%
EBIT Next 5YN/A
FCF growth 1Y-98.39%
FCF growth 3Y-10.71%
FCF growth 5Y46.35%
OCF growth 1Y-97.09%
OCF growth 3Y-10.47%
OCF growth 5Y42.83%