TAYLOR MORRISON HOME CORP (TMHC) Stock Fundamental Analysis
NYSE:TMHC - US87724P1066 - Common Stock
67.38 USD
-0.62 (-0.91%)
67.38 USD
0 (0%)
We assign a fundamental rating of 6 out of 10 to TMHC. TMHC was compared to 63 industry peers in the Household Durables industry. TMHC has an excellent profitability rating, but there are some minor concerns on its financial health. TMHC may be a bit undervalued, certainly considering the very reasonable score on growth These ratings would make TMHC suitable for value 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.
Each year in the past 5 years TMHC has been profitable.
In the past 5 years TMHC always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 9.53%, TMHC is in the better half of the industry, outperforming 79.37% of the companies in the same industry.
The Return On Equity of TMHC (14.89%) is better than 69.84% of its industry peers.
TMHC's Return On Invested Capital of 11.58% is fine compared to the rest of the industry. TMHC outperforms 74.60% of its industry peers.
The Average Return On Invested Capital over the past 3 years for TMHC is in line with the industry average of 10.45%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.53% | ||
| ROE | 14.89% | ||
| ROIC | 11.58% |
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's Profit Margin of 10.72% is amongst the best of the industry. TMHC outperforms 85.71% 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 87.30% of its industry peers.
TMHC's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 24.40%, TMHC is doing worse than 60.32% of the companies in the same industry.
In the last couple of years the Gross Margin of TMHC has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 15.01% | ||
| PM (TTM) | 10.72% | ||
| GM | 24.4% |
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.
TMHC has less shares outstanding than it did 1 year ago.
TMHC has less shares outstanding than it did 5 years ago.
The debt/assets ratio for TMHC has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 3.95 indicates that TMHC is not in any danger for bankruptcy at the moment.
The Altman-Z score of TMHC (3.95) is better than 68.25% of its industry peers.
TMHC has a debt to FCF ratio of 4.28. This is a neutral value as TMHC would need 4.28 years to pay back of all of its debts.
The Debt to FCF ratio of TMHC (4.28) is better than 65.08% 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's Debt to Equity ratio of 0.35 is in line compared to the rest of the industry. TMHC outperforms 44.44% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.35 | ||
| Debt/FCF | 4.28 | ||
| Altman-Z | 3.95 |
ROIC/WACC1.34
WACC8.63%
2.3 Liquidity
TMHC has a Current Ratio of 5.97. This indicates that TMHC is financially healthy and has no problem in meeting its short term obligations.
With a decent Current ratio value of 5.97, TMHC is doing good in the industry, outperforming 79.37% of the companies in the same industry.
TMHC has a Quick Ratio of 5.97. This is a bad value and indicates that TMHC is not financially healthy enough and could expect problems in meeting its short term obligations.
TMHC has a Quick ratio of 0.32. This is amonst the worse of the industry: TMHC underperforms 90.48% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 5.97 | ||
| Quick Ratio | 0.32 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 26.06% over the past year.
TMHC shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 23.42% yearly.
The Revenue has grown by 13.77% in the past year. This is quite good.
The Revenue has been growing by 11.39% on average over the past years. This is quite good.
EPS 1Y (TTM)26.06%
EPS 3Y17.06%
EPS 5Y23.42%
EPS Q2Q%-2.54%
Revenue 1Y (TTM)13.77%
Revenue growth 3Y2.88%
Revenue growth 5Y11.39%
Sales Q2Q%5.73%
3.2 Future
Based on estimates for the next years, TMHC will show a small growth in Earnings Per Share. The EPS will grow by 3.88% on average per year.
The Revenue is expected to grow by 0.75% on average over the next years.
EPS Next Y-1.88%
EPS Next 2Y-3.35%
EPS Next 3Y3.88%
EPS Next 5YN/A
Revenue Next Year1.13%
Revenue Next 2Y-1.78%
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
The Price/Earnings ratio is 7.78, which indicates a rather cheap valuation of TMHC.
Based on the Price/Earnings ratio, TMHC is valued cheaper than 87.30% of the companies in the same industry.
TMHC is valuated cheaply when we compare the Price/Earnings ratio to 27.08, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 8.60, the valuation of TMHC can be described as very reasonable.
Based on the Price/Forward Earnings ratio, TMHC is valued cheaper than 85.71% of the companies in the same industry.
TMHC's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 22.67.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.78 | ||
| Fwd PE | 8.6 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, TMHC is valued a bit cheaper than the industry average as 79.37% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, TMHC is valued cheaper than 84.13% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.58 | ||
| EV/EBITDA | 6.68 |
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)0.33
EPS Next 2Y-3.35%
EPS Next 3Y3.88%
5. Dividend
5.1 Amount
TMHC does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
67.38
-0.62 (-0.91%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryHousehold Durables
Earnings (Last)
Earnings (Next)
Inst Owners101.23%
Inst Owner Change-0.46%
Ins Owners0.53%
Ins Owner Change0.02%
Market Cap6.66B
Analysts82.5
Price Target77.28 (14.69%)
Short Float %3.58%
Short Ratio2.94
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)2.68%
Min EPS beat(2)-2.85%
Max EPS beat(2)8.2%
EPS beat(4)2
Avg EPS beat(4)3.09%
Min EPS beat(4)-5.59%
Max EPS beat(4)12.59%
EPS beat(8)4
Avg EPS beat(8)1.22%
EPS beat(12)7
Avg EPS beat(12)5.38%
EPS beat(16)11
Avg EPS beat(16)6.9%
Revenue beat(2)2
Avg Revenue beat(2)3.44%
Min Revenue beat(2)2.35%
Max Revenue beat(2)4.54%
Revenue beat(4)4
Avg Revenue beat(4)2.34%
Min Revenue beat(4)0.03%
Max Revenue beat(4)4.54%
Revenue beat(8)7
Avg Revenue beat(8)1.7%
Revenue beat(12)10
Avg Revenue beat(12)3.01%
Revenue beat(16)13
Avg Revenue beat(16)2.58%
PT rev (1m)2.89%
PT rev (3m)2.89%
EPS NQ rev (1m)-5.25%
EPS NQ rev (3m)-15.95%
EPS NY rev (1m)-3.35%
EPS NY rev (3m)-4.09%
Revenue NQ rev (1m)0.2%
Revenue NQ rev (3m)-6.87%
Revenue NY rev (1m)0.52%
Revenue NY rev (3m)0.65%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.78 | ||
| Fwd PE | 8.6 | ||
| P/S | 0.79 | ||
| P/FCF | 13.58 | ||
| P/OCF | 12.68 | ||
| P/B | 1.1 | ||
| P/tB | 1.24 | ||
| EV/EBITDA | 6.68 |
EPS(TTM)8.66
EY12.85%
EPS(NY)7.84
Fwd EY11.63%
FCF(TTM)4.96
FCFY7.36%
OCF(TTM)5.32
OCFY7.89%
SpS85.02
BVpS61.18
TBVpS54.47
PEG (NY)N/A
PEG (5Y)0.33
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.53% | ||
| ROE | 14.89% | ||
| ROCE | 15.2% | ||
| ROIC | 11.58% | ||
| ROICexc | 11.76% | ||
| ROICexgc | 12.8% | ||
| OM | 15.01% | ||
| PM (TTM) | 10.72% | ||
| GM | 24.4% | ||
| FCFM | 5.83% |
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%
ROICexcg growth 3Y6.33%
ROICexcg 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-Score8
Asset Turnover0.89
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.35 | ||
| Debt/FCF | 4.28 | ||
| Debt/EBITDA | 1.61 | ||
| Cap/Depr | 90.47% | ||
| Cap/Sales | 0.42% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 40.41% | ||
| Profit Quality | 54.44% | ||
| Current Ratio | 5.97 | ||
| Quick Ratio | 0.32 | ||
| Altman-Z | 3.95 |
F-Score8
WACC8.63%
ROIC/WACC1.34
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)26.06%
EPS 3Y17.06%
EPS 5Y23.42%
EPS Q2Q%-2.54%
EPS Next Y-1.88%
EPS Next 2Y-3.35%
EPS Next 3Y3.88%
EPS Next 5YN/A
Revenue 1Y (TTM)13.77%
Revenue growth 3Y2.88%
Revenue growth 5Y11.39%
Sales Q2Q%5.73%
Revenue Next Year1.13%
Revenue Next 2Y-1.78%
Revenue Next 3Y0.75%
Revenue Next 5YN/A
EBIT growth 1Y20.35%
EBIT growth 3Y11.97%
EBIT growth 5Y29.02%
EBIT Next Year18.65%
EBIT Next 3Y4.41%
EBIT Next 5YN/A
FCF growth 1Y-66.88%
FCF growth 3Y-21.22%
FCF growth 5Y-13.71%
OCF growth 1Y-65.42%
OCF growth 3Y-17.68%
OCF growth 5Y-11.78%