In a market where value is scarce, TAYLOR MORRISON HOME CORP (NYSE:TMHC) offers a refreshing opportunity with its solid fundamentals.

Consider TAYLOR MORRISON HOME CORP (NYSE:TMHC) as a top value stock, identified by our stock screening tool. TMHC shines in terms of profitability, solvency, and liquidity, all while remaining very reasonably priced. Let's dive deeper into the analysis.

Valuation Assessment of TMHC

To assess a stock's valuation, ChartMill utilizes a Valuation Rating on a scale of 0 to 10. This comprehensive assessment considers various valuation aspects, comparing price to earnings and cash flows, while factoring in profitability and growth. TMHC has achieved a 8 out of 10:

• TMHC is valuated cheaply with a Price/Earnings ratio of 6.50.
• 81.25% 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 28.88, TMHC is valued rather cheaply.
• The Price/Forward Earnings ratio is 5.77, which indicates a rather cheap valuation of TMHC.
• Based on the Price/Forward Earnings ratio, TMHC is valued cheaply inside the industry as 85.94% of the companies are valued more expensively.
• When comparing the Price/Forward Earnings ratio of TMHC to the average of the S&P500 Index (21.20), we can say TMHC is valued rather cheaply.
• 73.44% of the companies in the same industry are more expensive than TMHC, based on the Enterprise Value to EBITDA ratio.
• Based on the Price/Free Cash Flow ratio, TMHC is valued a bit cheaper than 64.06% of the companies in the same industry.
• TMHC's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
• The decent profitability rating of TMHC may justify a higher PE ratio.

What does the Profitability looks like for 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. TMHC has earned a 7 out of 10:

• TMHC has a better Return On Assets (9.66%) than 68.75% of its industry peers.
• TMHC has a Return On Equity of 15.25%. This is in the better half of the industry: TMHC outperforms 64.06% of its industry peers.
• Looking at the Return On Invested Capital, with a value of 11.62%, TMHC is in the better half of the industry, outperforming 71.88% of the companies in the same industry.
• TMHC has a Profit Margin of 10.84%. This is amongst the best in the industry. TMHC outperforms 82.81% of its industry peers.
• TMHC's Profit Margin has improved in the last couple of years.
• TMHC has a Operating Margin of 15.01%. This is amongst the best in the industry. TMHC outperforms 82.81% of its industry peers.
• TMHC's Operating Margin has improved in the last couple of years.
• TMHC's Gross Margin has improved in the last couple of years.

ChartMill's Evaluation of Health

ChartMill assigns a proprietary Health Rating to each stock. The score is computed by evaluating various liquidity and solvency ratios and ranges from 0 to 10. TMHC was assigned a score of 6 for health:

• TMHC has an Altman-Z score of 3.77. This indicates that TMHC is financially healthy and has little risk of bankruptcy at the moment.
• TMHC's Altman-Z score of 3.77 is fine compared to the rest of the industry. TMHC outperforms 67.19% 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 has a Current Ratio of 5.98. This indicates that TMHC is financially healthy and has no problem in meeting its short term obligations.
• TMHC has a better Current ratio (5.98) than 78.13% of its industry peers.

How do we evaluate the Growth for TMHC?

ChartMill assigns a Growth Rating to each stock, ranging from 0 to 10. This rating is determined by analyzing different growth elements, including EPS and revenue growth, spanning both historical and future figures. In the case of TMHC, the assigned 6 reflects its growth potential:

• TMHC shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 25.64%, which is quite impressive.
• The Earnings Per Share has been growing by 23.42% on average over the past years. This is a very strong growth
• The Revenue has grown by 12.19% in the past year. This is quite good.
• TMHC shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 11.39% yearly.
• The Earnings Per Share is expected to grow by 8.86% on average over the next years. This is quite good.

Our Decent Value screener lists more Decent Value stocks and is updated daily.

Check the latest full fundamental report of TMHC for a complete fundamental analysis.

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.