In a market where value is scarce, NYSE:TMHC offers a refreshing opportunity with its solid fundamentals.

Our stock screening tool has pinpointed TAYLOR MORRISON HOME CORP (NYSE:TMHC) as an undervalued stock. NYSE:TMHC maintains a solid financial footing. Furthermore, it remains attractively priced. Let's delve into the specifics below.

Assessing Valuation Metrics for NYSE:TMHC

ChartMill employs its own Valuation Rating system for all stocks. This score, ranging from 0 to 10, is determined by evaluating different valuation factors, including price to earnings and free cash flow, both in absolute terms and relative to the market and industry. NYSE:TMHC has earned a 8 for valuation:

• A Price/Earnings ratio of 4.24 indicates a rather cheap valuation of TMHC.
• Based on the Price/Earnings ratio, TMHC is valued cheaply inside the industry as 92.54% of the companies are valued more expensively.
• TMHC's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 24.91.
• TMHC is valuated cheaply with a Price/Forward Earnings ratio of 5.32.
• Based on the Price/Forward Earnings ratio, TMHC is valued cheaply inside the industry as 89.55% of the companies are valued more expensively.
• TMHC's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 18.49.
• Based on the Enterprise Value to EBITDA ratio, TMHC is valued cheaper than 86.57% of the companies in the same industry.
• Based on the Price/Free Cash Flow ratio, TMHC is valued cheaply inside the industry as 88.06% of the companies are valued more expensively.
• The excellent profitability rating of TMHC may justify a higher PE ratio.

Profitability Examination for NYSE:TMHC

ChartMill utilizes a Profitability Rating to assess stocks, scoring them on a scale of 0 to 10. This rating takes into account a variety of profitability ratios and margins, both in absolute terms and in comparison to industry peers. NYSE:TMHC has earned a 8 out of 10:

• Looking at the Return On Assets, with a value of 11.55%, TMHC is in the better half of the industry, outperforming 71.64% of the companies in the same industry.
• TMHC has a Return On Equity of 19.90%. This is in the better half of the industry: TMHC outperforms 74.63% of its industry peers.
• Looking at the Return On Invested Capital, with a value of 13.69%, TMHC is in the better half of the industry, outperforming 71.64% of the companies in the same industry.
• The last Return On Invested Capital (13.69%) for TMHC is above the 3 year average (9.72%), which is a sign of increasing profitability.
• The Profit Margin of TMHC (12.25%) is better than 82.09% of its industry peers.
• In the last couple of years the Profit Margin of TMHC has grown nicely.
• The Operating Margin of TMHC (16.25%) is better than 80.60% of its industry peers.
• TMHC's Operating Margin has improved in the last couple of years.
• In the last couple of years the Gross Margin of TMHC has grown nicely.

Health Analysis for NYSE:TMHC

ChartMill employs a unique Health Rating system for all stocks. This rating, ranging from 0 to 10, is determined by analyzing various liquidity and solvency ratios. For NYSE:TMHC, the assigned 7 for health provides valuable insights:

• TMHC has an Altman-Z score of 3.45. This indicates that TMHC is financially healthy and has little risk of bankruptcy at the moment.
• Looking at the Altman-Z score, with a value of 3.45, TMHC is in the better half of the industry, outperforming 61.19% of the companies in the same industry.
• TMHC has a debt to FCF ratio of 1.62. This is a very positive value and a sign of high solvency as it would only need 1.62 years to pay back of all of its debts.
• The Debt to FCF ratio of TMHC (1.62) is better than 62.69% of its industry peers.
• A Debt/Equity ratio of 0.47 indicates that TMHC is not too dependend on debt financing.
• TMHC has a Current Ratio of 5.93. This indicates that TMHC is financially healthy and has no problem in meeting its short term obligations.
• TMHC's Current ratio of 5.93 is fine compared to the rest of the industry. TMHC outperforms 79.10% of its industry peers.
• With a decent Quick ratio value of 1.44, TMHC is doing good in the industry, outperforming 70.15% of the companies in the same industry.

Understanding NYSE:TMHC's Growth

Every stock receives a Growth Rating from ChartMill, ranging from 0 to 10. This rating assesses various growth aspects, including historical and projected EPS and revenue growth. NYSE:TMHC boasts a 4 out of 10:

• TMHC shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 28.31%, which is quite impressive.
• TMHC shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 35.79% yearly.
• The Revenue has been growing by 16.18% on average over the past years. This is quite good.

More Decent Value stocks can be found in our Decent Value screener.

For an up to date full fundamental analysis you can check the fundamental report of TMHC

Keep in mind

This article should in no way be interpreted as advice in any way. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.