TAYLOR MORRISON HOME CORP (TMHC) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:TMHC - US87724P1066 - Common Stock
59.49 USD
+0.63 (+1.07%)
59.49 USD
0 (0%)
TMHC gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 61 industry peers in the Household Durables industry. TMHC has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. TMHC may be a bit undervalued, certainly considering the very reasonable score on growth These ratings could make TMHC a good candidate for value investing.
1. Profitability
1.1 Basic Checks
TMHC had positive earnings in the past year.
In the past year TMHC had a positive cash flow from operations.
In the past 5 years TMHC has always been profitable.
In the past 5 years TMHC always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of TMHC (8.84%) is better than 78.69% of its industry peers.
With a decent Return On Equity value of 13.76%, TMHC is doing good in the industry, outperforming 67.21% of the companies in the same industry.
TMHC has a Return On Invested Capital of 10.86%. This is in the better half of the industry: TMHC outperforms 70.49% of its industry peers.
TMHC had an Average Return On Invested Capital over the past 3 years of 12.32%. This is above the industry average of 9.73%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.84% | ||
| ROE | 13.76% | ||
| ROIC | 10.86% |
ROA(3y)10.27%
ROA(5y)8.31%
ROE(3y)17.42%
ROE(5y)15.22%
ROIC(3y)12.32%
ROIC(5y)10.17%
1.3 Margins
TMHC has a better Profit Margin (10.16%) than 83.61% of its industry peers.
TMHC's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 14.53%, TMHC belongs to the top of the industry, outperforming 88.52% of the companies in the same industry.
In the last couple of years the Operating Margin of TMHC has grown nicely.
TMHC has a Gross Margin (23.91%) which is in line with its industry peers.
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 3Y8.83%
OM growth 5Y15.82%
PM growth 3Y6.96%
PM growth 5Y15.12%
GM growth 3Y5.68%
GM growth 5Y6.83%
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.
TMHC has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, TMHC has less shares outstanding
Compared to 1 year ago, TMHC has an improved debt to assets ratio.
2.2 Solvency
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 60.66% of its industry peers.
TMHC has a debt to FCF ratio of 3.84. This is a good value and a sign of high solvency as TMHC would need 3.84 years to pay back of all of its debts.
With a decent Debt to FCF ratio value of 3.84, TMHC is doing good in the industry, outperforming 60.66% of the companies in the same industry.
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 Debt to Equity ratio (0.35) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.35 | ||
| Debt/FCF | 3.84 | ||
| Altman-Z | 3.77 |
ROIC/WACC1.22
WACC8.88%
2.3 Liquidity
A Current Ratio of 6.43 indicates that TMHC has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 6.43, TMHC belongs to the top of the industry, outperforming 80.33% of the companies in the same industry.
TMHC has a Quick Ratio of 6.43. This is a bad value and indicates that TMHC is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 0.58, TMHC is doing worse than 67.21% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 6.43 | ||
| Quick Ratio | 0.58 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 8.21% over the past year.
Measured over the past years, TMHC shows a very strong growth in Earnings Per Share. The EPS has been growing by 23.42% on average per year.
The Revenue has been growing slightly by 6.98% in the past year.
TMHC shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 11.39% yearly.
EPS 1Y (TTM)8.21%
EPS 3Y17.06%
EPS 5Y23.42%
EPS Q2Q%-15.19%
Revenue 1Y (TTM)6.98%
Revenue growth 3Y2.88%
Revenue growth 5Y11.39%
Sales Q2Q%-1.39%
3.2 Future
The Earnings Per Share is expected to grow by 1.45% on average over the next years.
Based on estimates for the next years, TMHC will show a decrease in Revenue. The Revenue will decrease by -0.61% on average per year.
EPS Next Y-5.17%
EPS Next 2Y-9.3%
EPS Next 3Y1.45%
EPS Next 5YN/A
Revenue Next Year0.61%
Revenue Next 2Y-4.68%
Revenue Next 3Y-0.61%
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
Based on the Price/Earnings ratio of 7.17, the valuation of TMHC can be described as very cheap.
Compared to the rest of the industry, the Price/Earnings ratio of TMHC indicates a rather cheap valuation: TMHC is cheaper than 86.89% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 26.59. TMHC is valued rather cheaply when compared to this.
Based on the Price/Forward Earnings ratio of 8.62, the valuation of TMHC can be described as reasonable.
Based on the Price/Forward Earnings ratio, TMHC is valued cheaper than 88.52% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of TMHC to the average of the S&P500 Index (24.03), we can say TMHC is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.17 | ||
| Fwd PE | 8.62 |
4.2 Price Multiples
TMHC's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. TMHC is cheaper than 81.97% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, TMHC is valued cheaper than 80.33% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.2 | ||
| EV/EBITDA | 6.08 |
4.3 Compensation for Growth
The excellent profitability rating of TMHC may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.31
EPS Next 2Y-9.3%
EPS Next 3Y1.45%
5. Dividend
5.1 Amount
TMHC does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
59.49
+0.63 (+1.07%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryHousehold Durables
Earnings (Last)
Earnings (Next)
Inst Owners100.92%
Inst Owner Change-0.66%
Ins Owners0.49%
Ins Owner Change-7.45%
Market Cap5.81B
Revenue(TTM)8.38B
Net Income(TTM)850.94M
Analysts82.5
Price Target74.93 (25.95%)
Short Float %5.82%
Short Ratio4.99
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%
PT rev (3m)-3.05%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-13.92%
EPS NY rev (1m)0%
EPS NY rev (3m)-3.36%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-6.57%
Revenue NY rev (1m)-0.27%
Revenue NY rev (3m)-0.51%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.17 | ||
| Fwd PE | 8.62 | ||
| P/S | 0.69 | ||
| P/FCF | 10.2 | ||
| P/OCF | 9.54 | ||
| P/B | 0.94 | ||
| P/tB | 1.05 | ||
| EV/EBITDA | 6.08 |
EPS(TTM)8.3
EY13.95%
EPS(NY)6.9
Fwd EY11.6%
FCF(TTM)5.83
FCFY9.8%
OCF(TTM)6.23
OCFY10.48%
SpS85.73
BVpS63.28
TBVpS56.49
PEG (NY)N/A
PEG (5Y)0.31
Graham Number108.71
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.84% | ||
| ROE | 13.76% | ||
| ROCE | 14.26% | ||
| ROIC | 10.86% | ||
| ROICexc | 11.36% | ||
| ROICexgc | 12.36% | ||
| OM | 14.53% | ||
| PM (TTM) | 10.16% | ||
| GM | 23.91% | ||
| FCFM | 6.8% |
ROA(3y)10.27%
ROA(5y)8.31%
ROE(3y)17.42%
ROE(5y)15.22%
ROIC(3y)12.32%
ROIC(5y)10.17%
ROICexc(3y)13.54%
ROICexc(5y)11.21%
ROICexgc(3y)15.61%
ROICexgc(5y)12.91%
ROCE(3y)16.18%
ROCE(5y)13.35%
ROICexgc growth 3Y6.33%
ROICexgc growth 5Y16.78%
ROICexc growth 3Y6.48%
ROICexc growth 5Y14.62%
OM growth 3Y8.83%
OM growth 5Y15.82%
PM growth 3Y6.96%
PM growth 5Y15.12%
GM growth 3Y5.68%
GM growth 5Y6.83%
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 | 3.77 |
F-Score7
WACC8.88%
ROIC/WACC1.22
Cap/Depr(3y)92.93%
Cap/Depr(5y)86.63%
Cap/Sales(3y)0.42%
Cap/Sales(5y)0.43%
Profit Quality(3y)74.16%
Profit Quality(5y)144.41%
High Growth Momentum
Growth
EPS 1Y (TTM)8.21%
EPS 3Y17.06%
EPS 5Y23.42%
EPS Q2Q%-15.19%
EPS Next Y-5.17%
EPS Next 2Y-9.3%
EPS Next 3Y1.45%
EPS Next 5YN/A
Revenue 1Y (TTM)6.98%
Revenue growth 3Y2.88%
Revenue growth 5Y11.39%
Sales Q2Q%-1.39%
Revenue Next Year0.61%
Revenue Next 2Y-4.68%
Revenue Next 3Y-0.61%
Revenue Next 5YN/A
EBIT growth 1Y4.7%
EBIT growth 3Y11.97%
EBIT growth 5Y29.02%
EBIT Next Year22.28%
EBIT Next 3Y3.57%
EBIT Next 5YN/A
FCF growth 1Y-50.16%
FCF growth 3Y-21.22%
FCF growth 5Y-13.71%
OCF growth 1Y-49.17%
OCF growth 3Y-17.68%
OCF growth 5Y-11.78%
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 6 / 10 to TMHC.
What is the valuation status of TAYLOR MORRISON HOME CORP (TMHC) stock?
ChartMill assigns a valuation rating of 8 / 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 valuation of TAYLOR MORRISON HOME CORP based on its PE and PB ratios?
The Price/Earnings (PE) ratio for TAYLOR MORRISON HOME CORP (TMHC) is 7.17 and the Price/Book (PB) ratio is 0.94.
What is the financial health of TAYLOR MORRISON HOME CORP (TMHC) stock?
The financial health rating of TAYLOR MORRISON HOME CORP (TMHC) is 7 / 10.