TAYLOR MORRISON HOME CORP (TMHC)
US87724P1066 - Common Stock
TMHC gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 64 industry peers in the Household Durables industry. TMHC has an excellent profitability rating, but 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. With these ratings, TMHC could be worth investigating further 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.
Each year in the past 5 years TMHC has been profitable.
Each year in the past 5 years TMHC had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 8.75%, TMHC is in the better half of the industry, outperforming 64.52% of the companies in the same industry.
Looking at the Return On Equity, with a value of 14.26%, TMHC is in line with its industry, outperforming 59.68% of the companies in the same industry.
TMHC has a better Return On Invested Capital (10.86%) than 64.52% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for TMHC is in line with the industry average of 10.82%.
| Industry Rank | Sector 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%
1.3 Margins
TMHC's Profit Margin of 10.39% is fine compared to the rest of the industry. TMHC outperforms 79.03% of its industry peers.
In the last couple of years the Profit Margin of TMHC has grown nicely.
TMHC's Operating Margin of 14.84% is amongst the best of the industry. TMHC outperforms 80.65% of its industry peers.
TMHC's Operating Margin has improved in the last couple of years.
TMHC has a Gross Margin (24.60%) which is in line with its industry peers.
In the last couple of years the Gross Margin of TMHC has grown nicely.
| Industry Rank | Sector 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%
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.
The number of shares outstanding for TMHC has been reduced compared to 1 year ago.
TMHC has less shares outstanding than it did 5 years ago.
The debt/assets ratio for TMHC has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 3.86 indicates that TMHC is not in any danger for bankruptcy at the moment.
The Altman-Z score of TMHC (3.86) 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.
Looking at the Debt to FCF ratio, with a value of 145.77, TMHC is doing worse than 62.90% of the companies in the same 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 48.39% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.38 | ||
| Debt/FCF | 145.77 | ||
| Altman-Z | 3.86 |
ROIC/WACC1.22
WACC8.87%
2.3 Liquidity
A Current Ratio of 6.05 indicates that TMHC has no problem at all paying its short term obligations.
With a decent Current ratio value of 6.05, TMHC is doing good in the industry, outperforming 79.03% of the companies in the same industry.
TMHC has a Quick Ratio of 6.05. 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's Quick ratio of 0.67 is on the low side compared to the rest of the industry. TMHC is outperformed by 66.13% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 6.05 | ||
| Quick Ratio | 0.67 |
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
The Earnings Per Share is expected to grow by 17.13% on average over the next years. This is quite good.
The Revenue is expected to grow by 8.47% on average over the next years. This is quite good.
EPS Next Y21.84%
EPS Next 2Y16.24%
EPS Next 3Y17.13%
EPS Next 5YN/A
Revenue Next Year8.97%
Revenue Next 2Y8.15%
Revenue Next 3Y8.47%
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.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 9.19, the valuation of TMHC can be described as reasonable.
TMHC's Price/Earnings ratio is rather cheap when compared to the industry. TMHC is cheaper than 80.65% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 28.96, TMHC is valued rather cheaply.
The Price/Forward Earnings ratio is 7.44, 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 93.55% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of TMHC to the average of the S&P500 Index (23.82), we can say TMHC is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.19 | ||
| Fwd PE | 7.44 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, TMHC is valued a bit cheaper than 72.58% of the companies in the same industry.
62.90% of the companies in the same industry are cheaper than TMHC, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 495.83 | ||
| EV/EBITDA | 7.54 |
4.3 Compensation for Growth
TMHC's 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.
TMHC's earnings are expected to grow with 17.13% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.42
PEG (5Y)0.41
EPS Next 2Y16.24%
EPS Next 3Y17.13%
5. Dividend
5.1 Amount
TMHC does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
TAYLOR MORRISON HOME CORP
NYSE:TMHC (11/22/2024, 12:11:56 PM)
70.45
+1.01 (+1.45%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryHousehold Durables
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap7.29B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
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Revenue NY rev (1m)
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Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.19 | ||
| Fwd PE | 7.44 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)0.42
PEG (5Y)0.41
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.75% | ||
| ROE | 14.26% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 14.84% | ||
| PM (TTM) | 10.39% | ||
| GM | 24.6% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.84
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.38 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 6.05 | ||
| Quick Ratio | 0.67 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)-5.43%
EPS 3Y37.1%
EPS 5Y
EPS Q2Q%
EPS Next Y21.84%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-0.74%
Revenue growth 3Y6.57%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y