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TAYLOR MORRISON HOME CORP (TMHC) Stock Fundamental Analysis

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

62.56  -0.03 (-0.05%)

After market: 62.56 0 (0%)

Fundamental Rating

6

We assign a fundamental rating of 6 out of 10 to TMHC. TMHC was compared to 63 industry peers in the Household Durables industry. TMHC has an excellent profitability rating, 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 could make TMHC a good candidate for value investing.


Dividend Valuation Growth Profitability Health

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.
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.
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 2024 0 500M 1B

1.2 Ratios

TMHC has a better Return On Assets (9.66%) than 74.60% of its industry peers.
Looking at the Return On Equity, with a value of 15.25%, TMHC is in the better half of the industry, outperforming 68.25% of the companies in the same industry.
The Return On Invested Capital of TMHC (11.62%) is better than 74.60% 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 10.55%.
Industry RankSector Rank
ROA 9.66%
ROE 15.25%
ROIC 11.62%
ROA(3y)10.27%
ROA(5y)8.31%
ROE(3y)17.42%
ROE(5y)15.22%
ROIC(3y)12.32%
ROIC(5y)10.17%
TMHC Yearly ROA, ROE, ROICTMHC Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 5 10 15 20

1.3 Margins

TMHC has a Profit Margin of 10.84%. This is amongst the best in the industry. TMHC outperforms 84.13% of its industry peers.
In the last couple of years the Profit Margin of TMHC has grown nicely.
TMHC has a Operating Margin of 15.01%. This is amongst the best in the industry. TMHC outperforms 85.71% of its industry peers.
In the last couple of years the Operating Margin of TMHC has grown nicely.
With a Gross Margin value of 24.52%, TMHC perfoms like the industry average, outperforming 42.86% 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 15.01%
PM (TTM) 10.84%
GM 24.52%
OM growth 3Y8.83%
OM growth 5Y15.82%
PM growth 3Y6.96%
PM growth 5Y15.12%
GM growth 3Y5.68%
GM growth 5Y6.83%
TMHC Yearly Profit, Operating, Gross MarginsTMHC Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 5 10 15 20 25

6

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.
The number of shares outstanding for TMHC has been reduced compared to 1 year ago.
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.
TMHC Yearly Shares OutstandingTMHC Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 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 2024 2B 4B 6B 8B

2.2 Solvency

An Altman-Z score of 3.86 indicates that TMHC is not in any danger for bankruptcy at the moment.
TMHC's Altman-Z score of 3.86 is fine compared to the rest of the industry. TMHC outperforms 66.67% of its industry peers.
TMHC has a debt to FCF ratio of 5.45. This is a neutral value as TMHC would need 5.45 years to pay back of all of its debts.
TMHC's Debt to FCF ratio of 5.45 is in line compared to the rest of the industry. TMHC outperforms 58.73% 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 in line with its industry peers.
Industry RankSector Rank
Debt/Equity 0.35
Debt/FCF 5.45
Altman-Z 3.86
ROIC/WACC1.4
WACC8.3%
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 2024 0 2B 4B

2.3 Liquidity

TMHC has a Current Ratio of 5.98. This indicates that TMHC is financially healthy and has no problem in meeting its short term obligations.
TMHC has a better Current ratio (5.98) than 79.37% of its industry peers.
TMHC has a Quick Ratio of 5.98. 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 0.51 is on the low side compared to the rest of the industry. TMHC is outperformed by 71.43% of its industry peers.
Industry RankSector Rank
Current Ratio 5.98
Quick Ratio 0.51
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 2024 2B 4B 6B

6

3. Growth

3.1 Past

The Earnings Per Share has grown by an impressive 24.07% 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 grown by 12.19% in the past year. This is quite good.
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)24.07%
EPS 3Y17.06%
EPS 5Y23.42%
EPS Q2Q%18.29%
Revenue 1Y (TTM)12.19%
Revenue growth 3Y2.88%
Revenue growth 5Y11.39%
Sales Q2Q%11.84%

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 8.92% yearly.
TMHC is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 0.71% yearly.
EPS Next Y2.3%
EPS Next 2Y1.77%
EPS Next 3Y8.92%
EPS Next 5YN/A
Revenue Next Year0.48%
Revenue Next 2Y0.71%
Revenue Next 3YN/A
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.
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 2027 2 4 6 8 10

7

4. Valuation

4.1 Price/Earnings Ratio

With a Price/Earnings ratio of 7.18, the valuation of TMHC can be described as very cheap.
Based on the Price/Earnings ratio, TMHC is valued cheaply inside the industry as 80.95% of the companies are valued more expensively.
TMHC is valuated cheaply when we compare the Price/Earnings ratio to 27.30, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 7.20, the valuation of TMHC can be described as very cheap.
87.30% of the companies in the same industry are more expensive than TMHC, based on the Price/Forward Earnings ratio.
TMHC's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 21.76.
Industry RankSector Rank
PE 7.18
Fwd PE 7.2
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

Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of TMHC indicates a somewhat cheap valuation: TMHC is cheaper than 74.60% of the companies listed in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of TMHC indicates a somewhat cheap valuation: TMHC is cheaper than 68.25% of the companies listed in the same industry.
Industry RankSector Rank
P/FCF 16.42
EV/EBITDA 6.17
TMHC Per share dataTMHC EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 20 40 60 80

4.3 Compensation for Growth

The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The decent profitability rating of TMHC may justify a higher PE ratio.
PEG (NY)3.12
PEG (5Y)0.31
EPS Next 2Y1.77%
EPS Next 3Y8.92%

0

5. Dividend

5.1 Amount

TMHC does not give a dividend.
Industry RankSector Rank
Dividend Yield N/A

TAYLOR MORRISON HOME CORP

NYSE:TMHC (7/8/2025, 8:04:00 PM)

After market: 62.56 0 (0%)

62.56

-0.03 (-0.05%)

Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryHousehold Durables
Earnings (Last)04-23 2025-04-23/bmo
Earnings (Next)07-23 2025-07-23/bmo
Inst Owners100.3%
Inst Owner Change0%
Ins Owners0.53%
Ins Owner Change12.16%
Market Cap6.28B
Analysts83.53
Price Target75.11 (20.06%)
Short Float %3.27%
Short Ratio3.27
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)1
Avg EPS beat(2)1.3%
Min EPS beat(2)-5.59%
Max EPS beat(2)8.2%
EPS beat(4)3
Avg EPS beat(4)4.19%
Min EPS beat(4)-5.59%
Max EPS beat(4)12.59%
EPS beat(8)5
Avg EPS beat(8)4.5%
EPS beat(12)8
Avg EPS beat(12)7.33%
EPS beat(16)11
Avg EPS beat(16)6.64%
Revenue beat(2)2
Avg Revenue beat(2)1.19%
Min Revenue beat(2)0.03%
Max Revenue beat(2)2.35%
Revenue beat(4)4
Avg Revenue beat(4)1.79%
Min Revenue beat(4)0.03%
Max Revenue beat(4)2.43%
Revenue beat(8)7
Avg Revenue beat(8)3.6%
Revenue beat(12)10
Avg Revenue beat(12)2.72%
Revenue beat(16)12
Avg Revenue beat(16)2.27%
PT rev (1m)0%
PT rev (3m)-3.98%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-11.96%
EPS NY rev (1m)0%
EPS NY rev (3m)-6.87%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-8.37%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-5.32%
Valuation
Industry RankSector Rank
PE 7.18
Fwd PE 7.2
P/S 0.75
P/FCF 16.42
P/OCF 15.02
P/B 1.06
P/tB 1.19
EV/EBITDA 6.17
EPS(TTM)8.71
EY13.92%
EPS(NY)8.69
Fwd EY13.89%
FCF(TTM)3.81
FCFY6.09%
OCF(TTM)4.17
OCFY6.66%
SpS83.34
BVpS59.24
TBVpS52.63
PEG (NY)3.12
PEG (5Y)0.31
Profitability
Industry RankSector Rank
ROA 9.66%
ROE 15.25%
ROCE 15.26%
ROIC 11.62%
ROICexc 12.18%
ROICexgc 13.31%
OM 15.01%
PM (TTM) 10.84%
GM 24.52%
FCFM 4.57%
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%
ROICexcg growth 3Y6.33%
ROICexcg 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-Score8
Asset Turnover0.89
Health
Industry RankSector Rank
Debt/Equity 0.35
Debt/FCF 5.45
Debt/EBITDA 1.61
Cap/Depr 89.42%
Cap/Sales 0.43%
Interest Coverage 250
Cash Conversion 32.28%
Profit Quality 42.17%
Current Ratio 5.98
Quick Ratio 0.51
Altman-Z 3.86
F-Score8
WACC8.3%
ROIC/WACC1.4
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)24.07%
EPS 3Y17.06%
EPS 5Y23.42%
EPS Q2Q%18.29%
EPS Next Y2.3%
EPS Next 2Y1.77%
EPS Next 3Y8.92%
EPS Next 5YN/A
Revenue 1Y (TTM)12.19%
Revenue growth 3Y2.88%
Revenue growth 5Y11.39%
Sales Q2Q%11.84%
Revenue Next Year0.48%
Revenue Next 2Y0.71%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y16.4%
EBIT growth 3Y11.97%
EBIT growth 5Y29.02%
EBIT Next Year22.96%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-71.86%
FCF growth 3Y-21.22%
FCF growth 5Y-13.71%
OCF growth 1Y-70.09%
OCF growth 3Y-17.68%
OCF growth 5Y-11.78%