TAYLOR MORRISON HOME CORP (TMHC)
US87724P1066 - Common Stock
Taking everything into account, TMHC scores 5 out of 10 in our fundamental rating. TMHC was compared to 66 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. This makes TMHC very considerable 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.
In the past 5 years TMHC always reported a positive cash flow from operatings.
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 65.63% of the companies in the same industry.
TMHC's Return On Equity of 14.26% is fine compared to the rest of the industry. TMHC outperforms 62.50% of its industry peers.
TMHC has a better Return On Invested Capital (10.86%) than 64.06% 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 11.80%.
| 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
Looking at the Profit Margin, with a value of 10.39%, TMHC is in the better half of the industry, outperforming 79.69% of the companies in the same industry.
TMHC's Profit Margin has improved in the last couple of years.
TMHC has a better Operating Margin (14.84%) than 79.69% 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.
TMHC's Gross Margin has improved in the last couple of years.
| 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
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.
The number of shares outstanding for TMHC has been reduced compared to 5 years ago.
Compared to 1 year ago, TMHC has an improved debt to assets ratio.
2.2 Solvency
TMHC has an Altman-Z score of 3.69. This indicates that TMHC is financially healthy and has little risk of bankruptcy at the moment.
TMHC's Altman-Z score of 3.69 is in line compared to the rest of the industry. TMHC outperforms 59.38% of its industry peers.
The Debt to FCF ratio of TMHC is 145.77, which is on the high side as it means it would take TMHC, 145.77 years of fcf income to pay off all of its debts.
TMHC's Debt to FCF ratio of 145.77 is in line compared to the rest of the industry. TMHC outperforms 43.75% of its industry peers.
TMHC has a Debt/Equity ratio of 0.38. This is a healthy value indicating a solid balance between debt and equity.
TMHC has a Debt to Equity ratio (0.38) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.38 | ||
| Debt/FCF | 145.77 | ||
| Altman-Z | 3.69 |
ROIC/WACC1.28
WACC8.49%
2.3 Liquidity
A Current Ratio of 6.05 indicates that TMHC has no problem at all paying its short term obligations.
TMHC has a Current ratio of 6.05. This is amongst the best in the industry. TMHC outperforms 81.25% of its industry peers.
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 67.19% 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.
The Revenue has decreased by -0.74% in the past year.
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.
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.
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
TMHC is valuated cheaply with a Price/Earnings ratio of 7.79.
81.25% 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 27.73, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 6.34 indicates a rather cheap valuation of TMHC.
Based on the Price/Forward Earnings ratio, TMHC is valued cheaply inside the industry as 93.75% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.83, TMHC is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.79 | ||
| Fwd PE | 6.34 |
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 76.56% of the companies listed in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of TMHC is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 420.38 | ||
| EV/EBITDA | 6.7 |
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.
TMHC has a very decent profitability rating, which 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)0.36
PEG (5Y)0.35
EPS Next 2Y15.94%
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 (12/20/2024, 7:42:21 PM)
After market: 59.73 0 (0%)59.73
+0.49 (+0.83%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryHousehold Durables
Earnings (Last)
Earnings (Next)
Inst Owners99.61%
Inst Owner Change-1.41%
Ins Owners2.83%
Ins Owner Change-6.82%
Market Cap6.18B
Analysts78.75
Price Target84.88 (42.11%)
Short Float %2.37%
Short Ratio3.04
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/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)17.91%
PT rev (3m)17.91%
EPS NQ rev (1m)0%
EPS NQ rev (3m)4.87%
EPS NY rev (1m)-0.01%
EPS NY rev (3m)3.98%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.61%
Revenue NY rev (1m)0.29%
Revenue NY rev (3m)0.32%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.79 | ||
| Fwd PE | 6.34 | ||
| P/S | 0.79 | ||
| P/FCF | 420.38 | ||
| P/OCF | 225.59 | ||
| P/B | 1.08 | ||
| P/tB | 1.23 | ||
| EV/EBITDA | 6.7 |
EPS(TTM)7.67
EY12.84%
EPS(NY)9.42
Fwd EY15.77%
FCF(TTM)0.14
FCFY0.24%
OCF(TTM)0.26
OCFY0.44%
SpS75.68
BVpS55.13
TBVpS48.72
PEG (NY)0.36
PEG (5Y)0.35
Profitability
| Industry Rank | Sector 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 Rank | Sector 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 | 3.69 |
F-Score6
WACC8.49%
ROIC/WACC1.28
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 Year21.93%
EBIT Next 3Y11.47%
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%