Does TAYLOR MORRISON HOME CORP (NYSE:TMHC) meet Peter Lynch’s stock-picking criteria?

Peter Lynch’s approach focused on identifying undervalued growth stocks with simple, scalable businesses. We examine whether TAYLOR MORRISON HOME CORP (NYSE:TMHC) fits the characteristics of a Lynch-approved investment.

How does TAYLOR MORRISON HOME CORP (NYSE:TMHC) stack up against Peter Lynch’s investment principles?

• TMHC exhibits a strong Return on Equity (ROE) of 15.06%, indicating the company's ability to generate solid returns on shareholder investments. This metric reflects the company's efficient utilization of equity capital and its profitability.
• With a current Debt-to-Equity ratio at 0.36, TMHC showcases its disciplined capital structure. The company's prudent management of debt obligations contributes to its financial stability and long-term sustainability.
• Over the past 5 years, TMHC has demonstrated 23.42 growth in EPS, signifying its positive financial trajectory and potential for future profitability.
• With a PEG ratio of 0.3, TMHC appears to be fairly valued given its strong growth prospects.
• TMHC maintains a healthy liquidity position with a Current Ratio of 5.89.

Fundamental analysis of TMHC

Every day ChartMill assigns a Fundamental Rating to every stock. The score ranges from 0 to 10 and is determined by evaluating multiple fundamental indicators and properties.

Taking everything into account, TMHC scores 6 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. With these ratings, TMHC could be worth investigating further for value investing!.

Our latest full fundamental report of TMHC contains the most current fundamental analsysis.

More Affordable Growth stocks can be found in our Peter Lynch screener.

Disclaimer

This article should in no way be interpreted as advice. 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.