TAYLOR MORRISON HOME CORP (TMHC) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:TMHC - US87724P1066 - Common Stock
61.16 USD
-0.96 (-1.55%)
61.16 USD
0 (0%)
We assign a fundamental rating of 6 out of 10 to TMHC. TMHC was compared to 60 industry peers in the Household Durables industry. While TMHC belongs to the best of the industry regarding profitability, 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 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.
- 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.
- TMHC's Return On Equity of 13.76% is fine compared to the rest of the industry. TMHC outperforms 65.00% of its industry peers.
- 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.
- Measured over the past 3 years, the Average Return On Invested Capital 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
- The Profit Margin of TMHC (10.16%) is better than 85.00% of its industry peers.
- In the last couple of years the Profit Margin of TMHC has grown nicely.
- The Operating Margin of TMHC (14.53%) is better than 88.33% of its industry peers.
- In the last couple of years the Operating Margin of TMHC has grown nicely.
- With a Gross Margin value of 23.91%, TMHC perfoms like the industry average, 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.
- TMHC has less shares outstanding than it did 1 year ago.
- Compared to 5 years ago, TMHC has less shares outstanding
- The debt/assets ratio for TMHC has been reduced compared to a year ago.
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 Altman-Z score value of 3.80, TMHC perfoms like the industry average, outperforming 60.00% of the companies in the same 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 in line with its industry peers.
- TMHC has a Debt/Equity ratio of 0.35. This is a healthy value indicating a solid balance between debt and equity.
- TMHC's Debt to Equity ratio of 0.35 is in line compared to the rest of the industry. TMHC outperforms 46.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.35 | ||
| Debt/FCF | 3.84 | ||
| Altman-Z | 3.8 |
ROIC/WACC1.23
WACC8.83%
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's Current ratio of 6.43 is fine compared to the rest 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.
- TMHC has a worse Quick ratio (0.58) than 68.33% of its industry peers.
| 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.
- The Earnings Per Share has been growing by 23.42% on average over the past years. This is a very strong growth
- The Revenue has been growing slightly by 6.98% in the past year.
- 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 decrease in Earnings Per Share. The EPS will decrease by -0.90% on average per year.
- 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
- 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
- The Price/Earnings ratio is 7.37, which indicates a rather cheap valuation of TMHC.
- 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's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 28.87.
- With a Price/Forward Earnings ratio of 9.29, the valuation of TMHC can be described as very reasonable.
- Based on the Price/Forward Earnings ratio, TMHC is valued cheaply inside the industry as 90.00% of the companies are valued more expensively.
- Compared to an average S&P500 Price/Forward Earnings ratio of 25.96, TMHC is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.37 | ||
| Fwd PE | 9.29 |
4.2 Price Multiples
- TMHC's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. TMHC is cheaper than 85.00% of the companies in the same industry.
- 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 | 10.49 | ||
| 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-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.