TAYLOR MORRISON HOME CORP (TMHC) Stock Fundamental Analysis
NYSE:TMHC - New York Stock Exchange, Inc. - US87724P1066 - Common Stock - Currency: USD
TMHC gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 64 industry peers in the Household Durables industry. TMHC scores excellent on profitability, but there are some minor concerns on its financial health. TMHC is valued quite cheap, while showing a decent growth score. This is a good combination! These ratings would make TMHC suitable 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.
Each year in the past 5 years TMHC had a positive operating cash flow.
1.2 Ratios
TMHC has a better Return On Assets (9.66%) than 75.00% of its industry peers.
Looking at the Return On Equity, with a value of 15.25%, TMHC is in the better half of the industry, outperforming 68.75% of the companies in the same industry.
The Return On Invested Capital of TMHC (11.62%) is better than 75.00% 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 10.34%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.66% | ||
| ROE | 15.25% | ||
| ROIC | 11.62% |
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
The Profit Margin of TMHC (10.84%) is better than 84.38% of its industry peers.
In the last couple of years the Profit Margin of TMHC has grown nicely.
Looking at the Operating Margin, with a value of 15.01%, TMHC belongs to the top of the industry, outperforming 85.94% 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 (24.52%) which is in line with its industry peers.
In the last couple of years the Gross Margin of TMHC has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 15.01% | ||
| PM (TTM) | 10.84% | ||
| GM | 24.52% |
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.
The number of shares outstanding for TMHC has been reduced compared to 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 3.87 indicates that TMHC is not in any danger for bankruptcy at the moment.
TMHC's Altman-Z score of 3.87 is fine compared to the rest of the industry. TMHC outperforms 67.19% of its industry peers.
TMHC has a debt to FCF ratio of 5.45. This is a neutral value as TMHC would need 5.45 years to pay back of all of its debts.
TMHC's Debt to FCF ratio of 5.45 is in line compared to the rest of the industry. TMHC outperforms 59.38% of its industry peers.
A Debt/Equity ratio of 0.35 indicates that TMHC is not too dependend on debt financing.
TMHC's Debt to Equity ratio of 0.35 is in line compared to the rest of the industry. TMHC outperforms 48.44% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.35 | ||
| Debt/FCF | 5.45 | ||
| Altman-Z | 3.87 |
ROIC/WACC1.39
WACC8.35%
2.3 Liquidity
A Current Ratio of 5.98 indicates that TMHC has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 5.98, TMHC is in the better half of the industry, outperforming 79.69% of the companies in the same industry.
A Quick Ratio of 0.51 indicates that TMHC may have some problems paying its short term obligations.
The Quick ratio of TMHC (0.51) is worse than 70.31% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 5.98 | ||
| Quick Ratio | 0.51 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 24.07% 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.
Looking at the last year, TMHC shows a quite strong growth in Revenue. The Revenue has grown by 12.19% in the last 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)24.07%
EPS 3Y17.06%
EPS 5Y23.42%
EPS Q2Q%18.29%
Revenue 1Y (TTM)12.19%
Revenue growth 3Y2.88%
Revenue growth 5Y11.39%
Sales Q2Q%11.84%
3.2 Future
TMHC is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 8.92% yearly.
TMHC is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 0.71% yearly.
EPS Next Y2.3%
EPS Next 2Y1.77%
EPS Next 3Y8.92%
EPS Next 5YN/A
Revenue Next Year0.48%
Revenue Next 2Y0.71%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
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 7.28, which indicates a rather cheap valuation of TMHC.
Compared to the rest of the industry, the Price/Earnings ratio of TMHC indicates a rather cheap valuation: TMHC is cheaper than 81.25% of the companies listed in the same industry.
TMHC is valuated cheaply when we compare the Price/Earnings ratio to 27.45, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 7.30, the valuation of TMHC can be described as very cheap.
85.94% of the companies in the same industry are more expensive than TMHC, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of TMHC to the average of the S&P500 Index (21.90), we can say TMHC is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.28 | ||
| Fwd PE | 7.3 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, TMHC is valued a bit cheaper than the industry average as 75.00% of the companies are valued more expensively.
67.19% of the companies in the same industry are more expensive than TMHC, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.66 | ||
| EV/EBITDA | 6.23 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The decent profitability rating of TMHC may justify a higher PE ratio.
PEG (NY)3.16
PEG (5Y)0.31
EPS Next 2Y1.77%
EPS Next 3Y8.92%
5. Dividend
5.1 Amount
TMHC does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
63.45
-1.48 (-2.28%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryHousehold Durables
Earnings (Last)
Earnings (Next)
Inst Owners100.3%
Inst Owner Change-0.86%
Ins Owners0.53%
Ins Owner Change12.16%
Market Cap6.37B
Analysts83.53
Price Target75.11 (18.38%)
Short Float %3.27%
Short Ratio3.27
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)1.3%
Min EPS beat(2)-5.59%
Max EPS beat(2)8.2%
EPS beat(4)3
Avg EPS beat(4)4.19%
Min EPS beat(4)-5.59%
Max EPS beat(4)12.59%
EPS beat(8)5
Avg EPS beat(8)4.5%
EPS beat(12)8
Avg EPS beat(12)7.33%
EPS beat(16)11
Avg EPS beat(16)6.64%
Revenue beat(2)2
Avg Revenue beat(2)1.19%
Min Revenue beat(2)0.03%
Max Revenue beat(2)2.35%
Revenue beat(4)4
Avg Revenue beat(4)1.79%
Min Revenue beat(4)0.03%
Max Revenue beat(4)2.43%
Revenue beat(8)7
Avg Revenue beat(8)3.6%
Revenue beat(12)10
Avg Revenue beat(12)2.72%
Revenue beat(16)12
Avg Revenue beat(16)2.27%
PT rev (1m)0%
PT rev (3m)-3.98%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-11.96%
EPS NY rev (1m)0%
EPS NY rev (3m)-6.65%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-8.37%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-5.32%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.28 | ||
| Fwd PE | 7.3 | ||
| P/S | 0.76 | ||
| P/FCF | 16.66 | ||
| P/OCF | 15.23 | ||
| P/B | 1.07 | ||
| P/tB | 1.21 | ||
| EV/EBITDA | 6.23 |
EPS(TTM)8.71
EY13.73%
EPS(NY)8.69
Fwd EY13.7%
FCF(TTM)3.81
FCFY6%
OCF(TTM)4.17
OCFY6.56%
SpS83.34
BVpS59.24
TBVpS52.63
PEG (NY)3.16
PEG (5Y)0.31
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.66% | ||
| ROE | 15.25% | ||
| ROCE | 15.26% | ||
| ROIC | 11.62% | ||
| ROICexc | 12.18% | ||
| ROICexgc | 13.31% | ||
| OM | 15.01% | ||
| PM (TTM) | 10.84% | ||
| GM | 24.52% | ||
| FCFM | 4.57% |
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 | 5.45 | ||
| Debt/EBITDA | 1.61 | ||
| Cap/Depr | 89.42% | ||
| Cap/Sales | 0.43% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 32.28% | ||
| Profit Quality | 42.17% | ||
| Current Ratio | 5.98 | ||
| Quick Ratio | 0.51 | ||
| Altman-Z | 3.87 |
F-Score8
WACC8.35%
ROIC/WACC1.39
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)24.07%
EPS 3Y17.06%
EPS 5Y23.42%
EPS Q2Q%18.29%
EPS Next Y2.3%
EPS Next 2Y1.77%
EPS Next 3Y8.92%
EPS Next 5YN/A
Revenue 1Y (TTM)12.19%
Revenue growth 3Y2.88%
Revenue growth 5Y11.39%
Sales Q2Q%11.84%
Revenue Next Year0.48%
Revenue Next 2Y0.71%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y16.4%
EBIT growth 3Y11.97%
EBIT growth 5Y29.02%
EBIT Next Year22.96%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-71.86%
FCF growth 3Y-21.22%
FCF growth 5Y-13.71%
OCF growth 1Y-70.09%
OCF growth 3Y-17.68%
OCF growth 5Y-11.78%