TAYLOR MORRISON HOME CORP (TMHC) Stock Fundamental Analysis
USA - NYSE:TMHC - US87724P1066 - Common Stock
59.27 USD
+0.13 (+0.22%)
59.27 USD
0 (0%)
Overall TMHC gets a fundamental rating of 6 out of 10. We evaluated TMHC against 61 industry peers in the Household Durables industry. TMHC gets an excellent profitability rating and is at the same time showing great financial health properties. A decent growth rate in combination with a cheap valuation! Better keep an eye on TMHC. These ratings could make TMHC a good candidate for value and quality investing.
1. Profitability
1.1 Basic Checks
TMHC had positive earnings in the past year.
TMHC had a positive operating cash flow in the past year.
TMHC had positive earnings in each of the past 5 years.
Each year in the past 5 years TMHC had a positive operating cash flow.
1.2 Ratios
TMHC has a Return On Assets of 8.84%. This is in the better half of the industry: TMHC outperforms 72.13% of its industry peers.
TMHC's Return On Equity of 13.76% is fine compared to the rest of the industry. TMHC outperforms 60.66% of its industry peers.
With a decent Return On Invested Capital value of 10.86%, TMHC is doing good in the industry, outperforming 68.85% of the companies in the same industry.
TMHC had an Average Return On Invested Capital over the past 3 years of 12.32%. This is above the industry average of 10.29%.
| 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.
TMHC's Operating Margin of 14.53% is amongst the best of the industry. TMHC outperforms 86.89% of its industry peers.
In the last couple of years the Operating Margin of TMHC has grown nicely.
Looking at the Gross Margin, with a value of 23.91%, TMHC is doing worse than 60.66% of the companies in the same industry.
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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), TMHC is creating some value.
Compared to 1 year ago, TMHC has less shares outstanding
Compared to 5 years ago, TMHC has less shares outstanding
The debt/assets ratio for TMHC has been reduced compared to a year ago.
2.2 Solvency
TMHC has an Altman-Z score of 3.78. This indicates that TMHC is financially healthy and has little risk of bankruptcy at the moment.
TMHC's Altman-Z score of 3.78 is fine compared to the rest of the industry. TMHC outperforms 63.93% of its industry peers.
The Debt to FCF ratio of TMHC is 3.84, which is a good value as it means it would take TMHC, 3.84 years of fcf income to pay off all of its debts.
TMHC has a better Debt to FCF ratio (3.84) than 62.30% 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.
Looking at the Debt to Equity ratio, with a value of 0.35, TMHC is in line with its industry, outperforming 45.90% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.35 | ||
| Debt/FCF | 3.84 | ||
| Altman-Z | 3.78 |
ROIC/WACC1.27
WACC8.57%
2.3 Liquidity
A Current Ratio of 6.43 indicates that TMHC has no problem at all paying its short term obligations.
TMHC has a better Current ratio (6.43) than 80.33% of its industry peers.
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.
The Quick ratio of TMHC (0.58) is worse than 62.30% of its industry peers.
| 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.
Measured over the past years, TMHC shows a quite strong growth in Revenue. The Revenue has been growing by 11.39% on average per year.
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
TMHC is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 3.88% yearly.
TMHC is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 0.75% yearly.
EPS Next Y-1.88%
EPS Next 2Y-3.46%
EPS Next 3Y3.88%
EPS Next 5YN/A
Revenue Next Year1.56%
Revenue Next 2Y-1.84%
Revenue Next 3Y0.75%
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
With a Price/Earnings ratio of 7.14, 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 81.97% of the companies listed in the same industry.
TMHC's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 26.11.
TMHC is valuated cheaply with a Price/Forward Earnings ratio of 7.58.
Based on the Price/Forward Earnings ratio, TMHC is valued cheaply inside the industry as 90.16% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 22.55. TMHC is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.14 | ||
| Fwd PE | 7.58 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, TMHC is valued a bit cheaper than the industry average as 75.41% of the companies are valued more expensively.
TMHC's Price/Free Cash Flow ratio is rather cheap when compared to the industry. TMHC is cheaper than 80.33% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.28 | ||
| EV/EBITDA | 6.11 |
4.3 Compensation for Growth
TMHC has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.3
EPS Next 2Y-3.46%
EPS Next 3Y3.88%
5. Dividend
5.1 Amount
No dividends for TMHC!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
59.27
+0.13 (+0.22%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryHousehold Durables
Earnings (Last)
Earnings (Next)
Inst Owners100.58%
Inst Owner Change0.71%
Ins Owners0.47%
Ins Owner Change-6.67%
Market Cap5.86B
Revenue(TTM)8.38B
Net Income(TTM)850.94M
Analysts82.5
Price Target74.93 (26.42%)
Short Float %3.81%
Short Ratio3.08
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
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)-3.05%
PT rev (3m)-0.25%
EPS NQ rev (1m)-13.8%
EPS NQ rev (3m)-20.94%
EPS NY rev (1m)0%
EPS NY rev (3m)-3.35%
Revenue NQ rev (1m)-6.57%
Revenue NQ rev (3m)-8.61%
Revenue NY rev (1m)0.42%
Revenue NY rev (3m)0.95%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.14 | ||
| Fwd PE | 7.58 | ||
| P/S | 0.7 | ||
| P/FCF | 10.28 | ||
| P/OCF | 9.62 | ||
| P/B | 0.95 | ||
| P/tB | 1.06 | ||
| EV/EBITDA | 6.11 |
EPS(TTM)8.3
EY14%
EPS(NY)7.82
Fwd EY13.19%
FCF(TTM)5.77
FCFY9.73%
OCF(TTM)6.16
OCFY10.4%
SpS84.77
BVpS62.57
TBVpS55.86
PEG (NY)N/A
PEG (5Y)0.3
Graham Number108.09
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 | 3.78 |
F-Score7
WACC8.57%
ROIC/WACC1.27
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-1.88%
EPS Next 2Y-3.46%
EPS Next 3Y3.88%
EPS Next 5YN/A
Revenue 1Y (TTM)6.98%
Revenue growth 3Y2.88%
Revenue growth 5Y11.39%
Sales Q2Q%-1.39%
Revenue Next Year1.56%
Revenue Next 2Y-1.84%
Revenue Next 3Y0.75%
Revenue Next 5YN/A
EBIT growth 1Y4.7%
EBIT growth 3Y11.97%
EBIT growth 5Y29.02%
EBIT Next Year18.65%
EBIT Next 3Y4.41%
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 7 / 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 7.14 and the Price/Book (PB) ratio is 0.95.
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.