TAYLOR MORRISON HOME CORP (TMHC) Stock Fundamental Analysis
NYSE:TMHC • US87724P1066
67.91 USD
+0.82 (+1.22%)
At close: Feb 20, 2026
67.91 USD
0 (0%)
After Hours: 2/20/2026, 8:07:41 PM
TMHC gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals 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 is valued quite cheap, but it does not seem to be growing. These ratings could make TMHC a good candidate for value investing.
1. Profitability
1.1 Basic Checks
- In the past year TMHC was profitable.
- TMHC had a positive operating cash flow in the past year.
- TMHC had positive earnings in each of the past 5 years.
- TMHC had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
- TMHC has a Return On Assets of 8.84%. This is in the better half of the industry: TMHC outperforms 78.33% of its industry peers.
- With a decent Return On Equity value of 13.76%, TMHC is doing good in the industry, outperforming 71.67% of the companies in the same industry.
- TMHC has a Return On Invested Capital of 10.88%. This is in the better half of the industry: TMHC outperforms 73.33% of its industry peers.
- TMHC had an Average Return On Invested Capital over the past 3 years of 10.69%. This is in line with the industry average of 9.17%.
- The last Return On Invested Capital (10.88%) for TMHC is above the 3 year average (10.69%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.84% | ||
| ROE | 13.76% | ||
| ROIC | 10.88% |
ROA(3y)8.77%
ROA(5y)9.27%
ROE(3y)13.98%
ROE(5y)16.31%
ROIC(3y)10.69%
ROIC(5y)11.14%
1.3 Margins
- TMHC's Profit Margin of 10.16% is amongst the best of the industry. TMHC outperforms 85.00% of its industry peers.
- In the last couple of years the Profit Margin of TMHC has grown nicely.
- With an excellent Operating Margin value of 14.53%, TMHC belongs to the best of the industry, outperforming 88.33% of the companies in the same industry.
- TMHC's Operating Margin has improved in the last couple of years.
- With a Gross Margin value of 23.91%, TMHC perfoms like the industry average, outperforming 45.00% of the companies in the same industry.
- 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 3Y-6.84%
OM growth 5Y13.63%
PM growth 3Y-9.03%
PM growth 5Y19.4%
GM growth 3Y-2.77%
GM growth 5Y6.54%
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.
- TMHC has less shares outstanding than it did 5 years ago.
- The debt/assets ratio for TMHC is higher compared to a year ago.
2.2 Solvency
- TMHC has an Altman-Z score of 3.91. This indicates that TMHC is financially healthy and has little risk of bankruptcy at the moment.
- With a Altman-Z score value of 3.91, TMHC perfoms like the industry average, outperforming 60.00% of the companies in the same industry.
- The Debt to FCF ratio of TMHC is 3.84, which is a good value as it means it would take TMHC, 3.84 years of fcf income to pay off all of its debts.
- TMHC's Debt to FCF ratio of 3.84 is in line compared to the rest of the industry. TMHC outperforms 60.00% of its industry peers.
- TMHC has a Debt/Equity ratio of 0.35. This is a healthy value indicating a solid balance between debt and equity.
- TMHC's Debt to Equity ratio of 0.35 is in line compared to the rest of the industry. TMHC outperforms 43.33% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.35 | ||
| Debt/FCF | 3.84 | ||
| Altman-Z | 3.91 |
ROIC/WACC1.21
WACC9.03%
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 78.33% 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 75.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 6.43 | ||
| Quick Ratio | 0.58 |
3. Growth
3.1 Past
- TMHC shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -7.51%.
- Measured over the past years, TMHC shows a very strong growth in Earnings Per Share. The EPS has been growing by 23.33% on average per year.
- Looking at the last year, TMHC shows a decrease in Revenue. The Revenue has decreased by -0.57% in the last year.
- Measured over the past years, TMHC shows a small growth in Revenue. The Revenue has been growing by 5.79% on average per year.
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
- 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.
- 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
- TMHC is valuated reasonably with a Price/Earnings ratio of 8.75.
- Based on the Price/Earnings ratio, TMHC is valued cheaply inside the industry as 86.67% of the companies are valued more expensively.
- The average S&P500 Price/Earnings ratio is at 26.99. TMHC is valued rather cheaply when compared to this.
- TMHC is valuated reasonably with a Price/Forward Earnings ratio of 10.31.
- Based on the Price/Forward Earnings ratio, TMHC is valued cheaper than 86.67% of the companies in the same industry.
- When comparing the Price/Forward Earnings ratio of TMHC to the average of the S&P500 Index (28.02), we can say TMHC is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.75 | ||
| Fwd PE | 10.31 |
4.2 Price Multiples
- 75.00% of the companies in the same industry are more expensive than TMHC, based on the Enterprise Value to EBITDA ratio.
- 83.33% 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 | 11.65 | ||
| EV/EBITDA | 6.73 |
4.3 Compensation for Growth
- The excellent profitability rating of TMHC may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.38
EPS Next 2Y2.57%
EPS Next 3YN/A
5. Dividend
5.1 Amount
- TMHC does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
67.91
+0.82 (+1.22%)
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 Change0.5%
Ins Owners0.49%
Ins Owner Change-2.67%
Market Cap6.64B
Revenue(TTM)8.12B
Net Income(TTM)850.94M
Analysts78.75
Price Target77.23 (13.72%)
Short Float %5.1%
Short Ratio4.63
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)-0.92%
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)0.29%
PT rev (3m)3.07%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0.02%
EPS NY rev (1m)0%
EPS NY rev (3m)-4.57%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)-4.5%
Revenue NY rev (3m)-5.73%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.75 | ||
| Fwd PE | 10.31 | ||
| P/S | 0.79 | ||
| P/FCF | 11.65 | ||
| P/OCF | 10.9 | ||
| P/B | 1.07 | ||
| P/tB | 1.2 | ||
| EV/EBITDA | 6.73 |
EPS(TTM)7.76
EY11.43%
EPS(NY)6.59
Fwd EY9.7%
FCF(TTM)5.83
FCFY8.59%
OCF(TTM)6.23
OCFY9.18%
SpS85.73
BVpS63.28
TBVpS56.49
PEG (NY)N/A
PEG (5Y)0.38
Graham Number105.11
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.84% | ||
| ROE | 13.76% | ||
| ROCE | 14.26% | ||
| ROIC | 10.88% | ||
| ROICexc | 11.38% | ||
| ROICexgc | 12.38% | ||
| OM | 14.53% | ||
| PM (TTM) | 10.16% | ||
| GM | 23.91% | ||
| FCFM | 6.8% |
ROA(3y)8.77%
ROA(5y)9.27%
ROE(3y)13.98%
ROE(5y)16.31%
ROIC(3y)10.69%
ROIC(5y)11.14%
ROICexc(3y)11.72%
ROICexc(5y)12.31%
ROICexgc(3y)13.29%
ROICexgc(5y)14.07%
ROCE(3y)14.01%
ROCE(5y)14.6%
ROICexgc growth 3Y-14.33%
ROICexgc growth 5Y13.76%
ROICexc growth 3Y-12.76%
ROICexc growth 5Y14.64%
OM growth 3Y-6.84%
OM growth 5Y13.63%
PM growth 3Y-9.03%
PM growth 5Y19.4%
GM growth 3Y-2.77%
GM growth 5Y6.54%
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 | 3.91 |
F-Score7
WACC9.03%
ROIC/WACC1.21
Cap/Depr(3y)N/A
Cap/Depr(5y)N/A
Cap/Sales(3y)N/A
Cap/Sales(5y)N/A
Profit Quality(3y)N/A
Profit Quality(5y)N/A
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 1Y4.7%
EBIT growth 3Y-7.23%
EBIT growth 5Y20.21%
EBIT Next Year-12.03%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y3775.83%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y2123.3%
OCF growth 3YN/A
OCF growth 5YN/A
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 8 / 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.