TAYLOR MORRISON HOME CORP (TMHC) Fundamental Analysis & Valuation
NYSE:TMHC • US87724P1066
63.57 USD
-1.02 (-1.58%)
At close: Mar 3, 2026
63.57 USD
0 (0%)
After Hours: 3/3/2026, 8:04:00 PM
This TMHC fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.
Overall TMHC gets a fundamental rating of 5 out of 10. We evaluated TMHC against 60 industry peers in the Household Durables industry. While TMHC belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. TMHC has a bad growth rate and is valued cheaply. These ratings would make TMHC suitable for value investing!
1. TMHC Profitability Analysis
1.1 Basic Checks
- In the past year TMHC was profitable.
- TMHC had a positive operating cash flow in the past year.
- In the past 5 years TMHC has always been profitable.
- TMHC had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- Looking at the Return On Assets, with a value of 7.95%, TMHC is in the better half of the industry, outperforming 78.33% of the companies in the same industry.
- With a decent Return On Equity value of 12.43%, TMHC is doing good in the industry, outperforming 68.33% of the companies in the same industry.
- TMHC has a better Return On Invested Capital (9.79%) than 70.00% 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 9.08%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.95% | ||
| ROE | 12.43% | ||
| ROIC | 9.79% |
ROA(3y)8.77%
ROA(5y)9.27%
ROE(3y)13.99%
ROE(5y)16.32%
ROIC(3y)10.7%
ROIC(5y)11.15%
1.3 Margins
- TMHC has a better Profit Margin (9.63%) than 83.33% of its industry peers.
- In the last couple of years the Profit Margin of TMHC has grown nicely.
- TMHC has a Operating Margin of 13.87%. This is amongst the best in the industry. TMHC outperforms 86.67% of its industry peers.
- In the last couple of years the Operating Margin of TMHC has grown nicely.
- TMHC has a Gross Margin of 23.38%. This is in the lower half of the industry: TMHC underperforms 61.67% of its industry peers.
- In the last couple of years the Gross Margin of TMHC has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 13.87% | ||
| PM (TTM) | 9.63% | ||
| GM | 23.38% |
OM growth 3Y-6.43%
OM growth 5Y13.93%
PM growth 3Y-9.03%
PM growth 5Y19.4%
GM growth 3Y-2.77%
GM growth 5Y6.54%
2. TMHC Health Analysis
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.
- Compared to 1 year ago, TMHC has less shares outstanding
- TMHC has less shares outstanding than it did 5 years ago.
- TMHC has a worse debt/assets ratio than last year.
2.2 Solvency
- TMHC has an Altman-Z score of 3.74. This indicates that TMHC is financially healthy and has little risk of bankruptcy at the moment.
- TMHC has a Altman-Z score of 3.74. This is comparable to the rest of the industry: TMHC outperforms 60.00% of its industry peers.
- TMHC has a debt to FCF ratio of 2.95. This is a good value and a sign of high solvency as TMHC would need 2.95 years to pay back of all of its debts.
- TMHC's Debt to FCF ratio of 2.95 is fine compared to the rest of the industry. TMHC outperforms 66.67% of its industry peers.
- TMHC has a Debt/Equity ratio of 0.36. This is a healthy value indicating a solid balance between debt and equity.
- TMHC's Debt to Equity ratio of 0.36 is in line compared to the rest of the industry. TMHC outperforms 41.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.36 | ||
| Debt/FCF | 2.95 | ||
| Altman-Z | 3.74 |
ROIC/WACC1.11
WACC8.82%
2.3 Liquidity
- A Current Ratio of 6.81 indicates that TMHC has no problem at all paying its short term obligations.
- Looking at the Current ratio, with a value of 6.81, TMHC is in the better half of the industry, outperforming 78.33% of the companies in the same industry.
- TMHC has a Quick Ratio of 1.03. This is a normal value and indicates that TMHC is financially healthy and should not expect problems in meeting its short term obligations.
- Looking at the Quick ratio, with a value of 1.03, TMHC is in line with its industry, outperforming 48.33% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 6.81 | ||
| Quick Ratio | 1.03 |
3. TMHC Growth Analysis
3.1 Past
- The earnings per share for TMHC have decreased by -7.51% in the last year.
- TMHC shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 23.33% yearly.
- TMHC shows a decrease in Revenue. In the last year, the revenue decreased by -0.57%.
- TMHC shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 5.79% yearly.
EPS 1Y (TTM)-7.51%
EPS 3Y-5.31%
EPS 5Y23.33%
EPS Q2Q%-23.48%
Revenue 1Y (TTM)-0.57%
Revenue growth 3Y-0.42%
Revenue growth 5Y5.79%
Sales Q2Q%-9.74%
3.2 Future
- TMHC is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 2.57% yearly.
- Based on estimates for the next years, TMHC will show a decrease in Revenue. The Revenue will decrease by -3.50% on average per year.
EPS Next Y-15.13%
EPS Next 2Y2.57%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-14.69%
Revenue Next 2Y-3.5%
Revenue Next 3YN/A
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.
- The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. TMHC Valuation Analysis
4.1 Price/Earnings Ratio
- TMHC is valuated reasonably with a Price/Earnings ratio of 8.19.
- 88.33% of the companies in the same industry are more expensive than TMHC, based on the Price/Earnings ratio.
- TMHC's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 26.83.
- TMHC is valuated reasonably with a Price/Forward Earnings ratio of 9.65.
- Based on the Price/Forward Earnings ratio, TMHC is valued cheaply inside the industry as 83.33% of the companies are valued more expensively.
- The average S&P500 Price/Forward Earnings ratio is at 24.95. TMHC is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.19 | ||
| Fwd PE | 9.65 |
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 71.67% 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 rather cheap valuation: TMHC is cheaper than 85.00% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8 | ||
| EV/EBITDA | 6.56 |
4.3 Compensation for Growth
- TMHC has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.35
EPS Next 2Y2.57%
EPS Next 3YN/A
5. TMHC Dividend Analysis
5.1 Amount
- No dividends for TMHC!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
TMHC Fundamentals: All Metrics, Ratios and Statistics
63.57
-1.02 (-1.58%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryHousehold Durables
Earnings (Last)02-11 2026-02-11/bmo
Earnings (Next)04-21 2026-04-21
Inst Owners100.87%
Inst Owner Change0.9%
Ins Owners0.49%
Ins Owner Change6.58%
Market Cap6.21B
Revenue(TTM)8.12B
Net Income(TTM)782.50M
Analysts78.75
Price Target77.32 (21.63%)
Short Float %5.68%
Short Ratio5.13
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
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)-0.42%
Min EPS beat(2)-1.84%
Max EPS beat(2)1.01%
EPS beat(4)2
Avg EPS beat(4)1.13%
Min EPS beat(4)-2.85%
Max EPS beat(4)8.2%
EPS beat(8)5
Avg EPS beat(8)2.57%
EPS beat(12)7
Avg EPS beat(12)4.91%
EPS beat(16)10
Avg EPS beat(16)6.03%
Revenue beat(2)0
Avg Revenue beat(2)-1.29%
Min Revenue beat(2)-2.35%
Max Revenue beat(2)-0.24%
Revenue beat(4)2
Avg Revenue beat(4)1.08%
Min Revenue beat(4)-2.35%
Max Revenue beat(4)4.54%
Revenue beat(8)5
Avg Revenue beat(8)0.84%
Revenue beat(12)9
Avg Revenue beat(12)3%
Revenue beat(16)12
Avg Revenue beat(16)2.4%
PT rev (1m)0.41%
PT rev (3m)3.2%
EPS NQ rev (1m)-25.14%
EPS NQ rev (3m)-30.39%
EPS NY rev (1m)0%
EPS NY rev (3m)-4.57%
Revenue NQ rev (1m)-13.95%
Revenue NQ rev (3m)-13.41%
Revenue NY rev (1m)-4.5%
Revenue NY rev (3m)-5.73%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.19 | ||
| Fwd PE | 9.65 | ||
| P/S | 0.76 | ||
| P/FCF | 8 | ||
| P/OCF | 7.6 | ||
| P/B | 0.99 | ||
| P/tB | 1.1 | ||
| EV/EBITDA | 6.56 |
EPS(TTM)7.76
EY12.21%
EPS(NY)6.59
Fwd EY10.36%
FCF(TTM)7.95
FCFY12.51%
OCF(TTM)8.36
OCFY13.16%
SpS83.1
BVpS64.39
TBVpS57.61
PEG (NY)N/A
PEG (5Y)0.35
Graham Number106.04
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.95% | ||
| ROE | 12.43% | ||
| ROCE | 12.83% | ||
| ROIC | 9.79% | ||
| ROICexc | 10.84% | ||
| ROICexgc | 11.83% | ||
| OM | 13.87% | ||
| PM (TTM) | 9.63% | ||
| GM | 23.38% | ||
| FCFM | 9.57% |
ROA(3y)8.77%
ROA(5y)9.27%
ROE(3y)13.99%
ROE(5y)16.32%
ROIC(3y)10.7%
ROIC(5y)11.15%
ROICexc(3y)11.72%
ROICexc(5y)12.31%
ROICexgc(3y)13.58%
ROICexgc(5y)14.24%
ROCE(3y)14.02%
ROCE(5y)14.61%
ROICexgc growth 3Y-12.31%
ROICexgc growth 5Y15.36%
ROICexc growth 3Y-12.76%
ROICexc growth 5Y14.64%
OM growth 3Y-6.43%
OM growth 5Y13.93%
PM growth 3Y-9.03%
PM growth 5Y19.4%
GM growth 3Y-2.77%
GM growth 5Y6.54%
F-Score5
Asset Turnover0.83
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.36 | ||
| Debt/FCF | 2.95 | ||
| Debt/EBITDA | 1.96 | ||
| Cap/Depr | 100.47% | ||
| Cap/Sales | 0.5% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 70.07% | ||
| Profit Quality | 99.29% | ||
| Current Ratio | 6.81 | ||
| Quick Ratio | 1.03 | ||
| Altman-Z | 3.74 |
F-Score5
WACC8.82%
ROIC/WACC1.11
Cap/Depr(3y)96.24%
Cap/Depr(5y)86.45%
Cap/Sales(3y)0.46%
Cap/Sales(5y)0.41%
Profit Quality(3y)73.15%
Profit Quality(5y)75.08%
High Growth Momentum
Growth
EPS 1Y (TTM)-7.51%
EPS 3Y-5.31%
EPS 5Y23.33%
EPS Q2Q%-23.48%
EPS Next Y-15.13%
EPS Next 2Y2.57%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)-0.57%
Revenue growth 3Y-0.42%
Revenue growth 5Y5.79%
Sales Q2Q%-9.74%
Revenue Next Year-14.69%
Revenue Next 2Y-3.5%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-6.24%
EBIT growth 3Y-6.83%
EBIT growth 5Y20.52%
EBIT Next Year-28.08%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y347.18%
FCF growth 3Y-10.32%
FCF growth 5Y-6.47%
OCF growth 1Y289.07%
OCF growth 3Y-9.64%
OCF growth 5Y-6.16%
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 5 / 10 to TMHC.
What is the valuation status for 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 7 / 10.
What is the earnings growth outlook for TAYLOR MORRISON HOME CORP?
The Earnings per Share (EPS) of TAYLOR MORRISON HOME CORP (TMHC) is expected to decline by -15.13% in the next year.