TAYLOR MORRISON HOME CORP (TMHC) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:TMHC - US87724P1066 - Common Stock
60.76 USD
+2.89 (+4.99%)
60.76 USD
0 (0%)
Taking everything into account, TMHC scores 6 out of 10 in our fundamental rating. TMHC was compared to 61 industry peers in the Household Durables industry. TMHC scores excellent on profitability, 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.
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.
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
The Return On Assets of TMHC (8.84%) is better than 77.05% of its industry peers.
Looking at the Return On Equity, with a value of 13.76%, TMHC is in the better half of the industry, outperforming 67.21% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 10.86%, TMHC is in the better half of the industry, outperforming 70.49% of the companies in the same industry.
TMHC had an Average Return On Invested Capital over the past 3 years of 12.32%. This is above the industry average of 9.78%.
| 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
With an excellent Profit Margin value of 10.16%, TMHC belongs to the best of the industry, outperforming 83.61% 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 (14.53%) than 88.52% 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 in line compared to the rest of the industry. TMHC outperforms 42.62% of its industry peers.
TMHC's Gross Margin has improved in the last couple of years.
| 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
The number of shares outstanding for TMHC has been reduced compared to 5 years ago.
The debt/assets ratio for TMHC has been reduced compared to a year ago.
2.2 Solvency
TMHC has an Altman-Z score of 3.75. This indicates that TMHC is financially healthy and has little risk of bankruptcy at the moment.
TMHC has a Altman-Z score of 3.75. This is in the better half of the industry: TMHC outperforms 60.66% of its industry peers.
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.
Looking at the Debt to FCF ratio, with a value of 3.84, TMHC is in line with its industry, outperforming 59.02% of the companies in the same industry.
A Debt/Equity ratio of 0.35 indicates that TMHC is not too dependend on debt financing.
TMHC has a Debt to Equity ratio of 0.35. This is comparable to the rest of the industry: TMHC outperforms 47.54% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.35 | ||
| Debt/FCF | 3.84 | ||
| Altman-Z | 3.75 |
ROIC/WACC1.33
WACC8.15%
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.
The Current ratio of TMHC (6.43) is better than 80.33% of its industry peers.
A Quick Ratio of 0.58 indicates that TMHC may have some problems paying its short term obligations.
TMHC has a worse Quick ratio (0.58) than 65.57% 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.
TMHC shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 23.42% yearly.
Looking at the last year, TMHC shows a small growth in Revenue. The Revenue has grown by 6.98% in the last 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
TMHC is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 1.45% yearly.
TMHC is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -0.61% yearly.
EPS Next Y-5.17%
EPS Next 2Y-9.3%
EPS Next 3Y1.45%
EPS Next 5YN/A
Revenue Next Year0.89%
Revenue Next 2Y-4.68%
Revenue Next 3Y-0.61%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last 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
With a Price/Earnings ratio of 7.32, the valuation of TMHC can be described as very cheap.
85.25% 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 25.45, TMHC is valued rather cheaply.
TMHC is valuated reasonably with a Price/Forward Earnings ratio of 8.80.
Based on the Price/Forward Earnings ratio, TMHC is valued cheaply inside the industry as 83.61% of the companies are valued more expensively.
TMHC is valuated cheaply when we compare the Price/Forward Earnings ratio to 34.46, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.32 | ||
| Fwd PE | 8.8 |
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 75.41% of the companies listed in the same industry.
78.69% of the companies in the same industry are more expensive than TMHC, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.54 | ||
| EV/EBITDA | 6 |
4.3 Compensation for Growth
The excellent profitability rating of TMHC may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.31
EPS Next 2Y-9.3%
EPS Next 3Y1.45%
5. Dividend
5.1 Amount
TMHC does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
60.76
+2.89 (+4.99%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryHousehold Durables
Earnings (Last)
Earnings (Next)
Inst Owners100.58%
Inst Owner Change-0.96%
Ins Owners0.47%
Ins Owner Change-7.15%
Market Cap5.94B
Revenue(TTM)8.38B
Net Income(TTM)850.94M
Analysts82.5
Price Target74.93 (23.32%)
Short Float %4.49%
Short Ratio3.69
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)-3.52%
PT rev (3m)-3.05%
EPS NQ rev (1m)-13.8%
EPS NQ rev (3m)-13.92%
EPS NY rev (1m)-3.36%
EPS NY rev (3m)-6.6%
Revenue NQ rev (1m)-6.57%
Revenue NQ rev (3m)-7.36%
Revenue NY rev (1m)-0.24%
Revenue NY rev (3m)-0.36%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.32 | ||
| Fwd PE | 8.8 | ||
| P/S | 0.72 | ||
| P/FCF | 10.54 | ||
| P/OCF | 9.86 | ||
| P/B | 0.97 | ||
| P/tB | 1.09 | ||
| EV/EBITDA | 6 |
EPS(TTM)8.3
EY13.66%
EPS(NY)6.9
Fwd EY11.36%
FCF(TTM)5.77
FCFY9.49%
OCF(TTM)6.16
OCFY10.14%
SpS84.77
BVpS62.57
TBVpS55.86
PEG (NY)N/A
PEG (5Y)0.31
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 | 3.75 |
F-Score7
WACC8.15%
ROIC/WACC1.33
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-5.17%
EPS Next 2Y-9.3%
EPS Next 3Y1.45%
EPS Next 5YN/A
Revenue 1Y (TTM)6.98%
Revenue growth 3Y2.88%
Revenue growth 5Y11.39%
Sales Q2Q%-1.39%
Revenue Next Year0.89%
Revenue Next 2Y-4.68%
Revenue Next 3Y-0.61%
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 7 / 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 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 7.32 and the Price/Book (PB) ratio is 0.97.
What is the financial health of TAYLOR MORRISON HOME CORP (TMHC) stock?
The financial health rating of TAYLOR MORRISON HOME CORP (TMHC) is 6 / 10.