Despite its impressive fundamentals,TRI POINTE HOMES INC (NYSE:TPH) remains undervalued.

Our stock screener has spotted TRI POINTE HOMES INC (NYSE:TPH) as an undervalued stock with solid fundamentals. TPH shows decent health and profitability. At the same time it remains remains attractively priced. We'll dive into each aspect below.

Unpacking TPH's Valuation Rating

An integral part of ChartMill's stock analysis is the Valuation Rating, which spans from 0 to 10. This rating evaluates diverse valuation factors, including price to earnings and cash flows, while considering the stock's profitability and growth. TPH has received a 7 out of 10:

• With a Price/Earnings ratio of 6.58, the valuation of TPH can be described as very cheap.
• Based on the Price/Earnings ratio, TPH is valued cheaper than 87.88% of the companies in the same industry.
• TPH is valuated cheaply when we compare the Price/Earnings ratio to 28.64, which is the current average of the S&P500 Index.
• TPH is valuated reasonably with a Price/Forward Earnings ratio of 8.55.
• TPH's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. TPH is cheaper than 71.21% of the companies in the same industry.
• TPH's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 21.42.
• TPH's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. TPH is cheaper than 92.42% of the companies in the same industry.
• Compared to the rest of the industry, the Price/Free Cash Flow ratio of TPH indicates a rather cheap valuation: TPH is cheaper than 93.94% of the companies listed in the same industry.
• The decent profitability rating of TPH may justify a higher PE ratio.

Assessing Profitability for TPH

ChartMill employs its own Profitability Rating system for stock evaluation. This score, ranging from 0 to 10, is derived from an analysis of diverse profitability metrics and margins. In the case of TPH, the assigned 7 is noteworthy for profitability:

• With a decent Return On Assets value of 9.36%, TPH is doing good in the industry, outperforming 69.70% of the companies in the same industry.
• Looking at the Return On Equity, with a value of 13.73%, TPH is in the better half of the industry, outperforming 62.12% of the companies in the same industry.
• TPH has a better Return On Invested Capital (9.82%) than 63.64% of its industry peers.
• The Profit Margin of TPH (10.19%) is better than 78.79% of its industry peers.
• TPH's Profit Margin has improved in the last couple of years.
• TPH has a better Operating Margin (12.84%) than 74.24% of its industry peers.
• TPH's Operating Margin has improved in the last couple of years.
• TPH's Gross Margin has improved in the last couple of years.

Health Analysis for TPH

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 TPH, the assigned 8 for health provides valuable insights:

• TPH has an Altman-Z score of 4.30. This indicates that TPH is financially healthy and has little risk of bankruptcy at the moment.
• TPH has a Altman-Z score of 4.30. This is in the better half of the industry: TPH outperforms 69.70% of its industry peers.
• The Debt to FCF ratio of TPH is 1.52, which is an excellent value as it means it would take TPH, only 1.52 years of fcf income to pay off all of its debts.
• With a decent Debt to FCF ratio value of 1.52, TPH is doing good in the industry, outperforming 77.27% of the companies in the same industry.
• A Debt/Equity ratio of 0.31 indicates that TPH is not too dependend on debt financing.
• TPH has a Current Ratio of 8.21. This indicates that TPH is financially healthy and has no problem in meeting its short term obligations.
• TPH has a Current ratio of 8.21. This is amongst the best in the industry. TPH outperforms 84.85% of its industry peers.
• TPH has a Quick Ratio of 2.10. This indicates that TPH is financially healthy and has no problem in meeting its short term obligations.
• TPH's Quick ratio of 2.10 is amongst the best of the industry. TPH outperforms 81.82% of its industry peers.

Deciphering TPH's Growth Rating

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. TPH boasts a 4 out of 10:

• The Earnings Per Share has grown by an impressive 40.00% over the past year.
• TPH shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 26.86% yearly.
• The Revenue has grown by 20.93% in the past year. This is a very strong growth!

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

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

Disclaimer

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.