TAYLOR MORRISON HOME CORP (TMHC) Stock Fundamental Analysis
USA - NYSE:TMHC - US87724P1066 - Common Stock
59.08 USD
-0.77 (-1.29%)
59.08 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. Both the health and profitability get an excellent rating, making TMHC a very profitable company, without any liquidiy or solvency issues. TMHC scores decently on growth, while it is valued quite cheap. This could make an interesting combination. With these ratings, TMHC could be worth investigating further for value and quality 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.
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's Return On Assets of 8.84% is fine compared to the rest of the industry. TMHC outperforms 72.13% of its industry peers.
TMHC has a better Return On Equity (13.76%) than 60.66% of its industry peers.
TMHC has a better Return On Invested Capital (10.86%) than 68.85% of its industry peers.
TMHC had an Average Return On Invested Capital over the past 3 years of 12.32%. This is in line with the industry average of 10.34%.
| 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 better Profit Margin (10.16%) than 83.61% of its industry peers.
In the last couple of years the Profit Margin of TMHC has grown nicely.
TMHC has a better Operating Margin (14.53%) than 86.89% of its industry peers.
In the last couple of years the Operating Margin of TMHC has grown nicely.
TMHC's Gross Margin of 23.91% is on the low side compared to the rest of the industry. TMHC is outperformed by 60.66% 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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), TMHC is creating some value.
Compared to 1 year ago, TMHC has less shares outstanding
Compared to 5 years ago, TMHC has less shares outstanding
TMHC has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 3.79 indicates that TMHC is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 3.79, TMHC is in the better half of the industry, outperforming 63.93% 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.
The Debt to FCF ratio of TMHC (3.84) is better than 62.30% of its industry peers.
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 | 3.79 |
ROIC/WACC1.27
WACC8.53%
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.
With an excellent Current ratio value of 6.43, TMHC belongs to the best of the industry, outperforming 80.33% 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 62.30% 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.
The Earnings Per Share has been growing by 23.42% on average over the past years. This is a very strong growth
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 small growth in Earnings Per Share. In the coming years, the EPS will grow by 3.88% yearly.
The Revenue is expected to grow by 0.75% on average over the next years.
EPS Next Y-1.88%
EPS Next 2Y-3.46%
EPS Next 3Y3.88%
EPS Next 5YN/A
Revenue Next Year1.56%
Revenue Next 2Y-1.84%
Revenue Next 3Y0.75%
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
A Price/Earnings ratio of 7.12 indicates a rather cheap valuation of TMHC.
86.89% of the companies in the same industry are more expensive than TMHC, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 26.76, TMHC is valued rather cheaply.
The Price/Forward Earnings ratio is 7.56, which indicates a rather cheap 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 90.16% of the companies listed 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 22.63.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.12 | ||
| Fwd PE | 7.56 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, TMHC is valued a bit cheaper than the industry average as 77.05% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, TMHC is valued cheaply inside the industry as 80.33% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.25 | ||
| EV/EBITDA | 6.16 |
4.3 Compensation for Growth
The decent profitability rating of TMHC may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.3
EPS Next 2Y-3.46%
EPS Next 3Y3.88%
5. Dividend
5.1 Amount
TMHC does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
59.08
-0.77 (-1.29%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryHousehold Durables
Earnings (Last)
Earnings (Next)
Inst Owners100.58%
Inst Owner Change0.66%
Ins Owners0.47%
Ins Owner Change-6.67%
Market Cap5.84B
Revenue(TTM)8.38B
Net Income(TTM)850.94M
Analysts82.5
Price Target74.93 (26.83%)
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)0.49%
PT rev (3m)3.39%
EPS NQ rev (1m)0.22%
EPS NQ rev (3m)-6.11%
EPS NY rev (1m)0%
EPS NY rev (3m)-3.35%
Revenue NQ rev (1m)0.79%
Revenue NQ rev (3m)0.64%
Revenue NY rev (1m)0.42%
Revenue NY rev (3m)0.95%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.12 | ||
| Fwd PE | 7.56 | ||
| P/S | 0.7 | ||
| P/FCF | 10.25 | ||
| P/OCF | 9.59 | ||
| P/B | 0.94 | ||
| P/tB | 1.06 | ||
| EV/EBITDA | 6.16 |
EPS(TTM)8.3
EY14.05%
EPS(NY)7.82
Fwd EY13.23%
FCF(TTM)5.77
FCFY9.76%
OCF(TTM)6.16
OCFY10.43%
SpS84.77
BVpS62.57
TBVpS55.86
PEG (NY)N/A
PEG (5Y)0.3
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 | 3.79 |
F-Score7
WACC8.53%
ROIC/WACC1.27
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-1.88%
EPS Next 2Y-3.46%
EPS Next 3Y3.88%
EPS Next 5YN/A
Revenue 1Y (TTM)6.98%
Revenue growth 3Y2.88%
Revenue growth 5Y11.39%
Sales Q2Q%-1.39%
Revenue Next Year1.56%
Revenue Next 2Y-1.84%
Revenue Next 3Y0.75%
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 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 7 / 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 7.12 and the Price/Book (PB) ratio is 0.94.
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.