TAYLOR MORRISON HOME CORP (TMHC) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:TMHC - US87724P1066 - Common Stock
63.37 USD
+1.13 (+1.82%)
63.37 USD
0 (0%)
Taking everything into account, TMHC scores 6 out of 10 in our fundamental rating. TMHC was compared to 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. A decent growth rate in combination with a cheap valuation! Better keep an eye on TMHC. With these ratings, TMHC could be worth investigating further 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.
TMHC had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
TMHC has a better Return On Assets (8.84%) than 78.69% of its industry peers.
TMHC has a better Return On Equity (13.76%) than 67.21% of its industry peers.
With a decent Return On Invested Capital value of 10.86%, TMHC is doing good in the industry, outperforming 70.49% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for TMHC is above the industry average of 9.75%.
| 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 88.52% of its industry peers.
TMHC's Operating Margin has improved in the last couple of years.
The Gross Margin of TMHC (23.91%) is comparable to the rest of the industry.
In the last couple of years the Gross Margin of TMHC has grown nicely.
| 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.
The number of shares outstanding for TMHC has been reduced compared to 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 3.83 indicates that TMHC is not in any danger for bankruptcy at the moment.
TMHC's Altman-Z score of 3.83 is fine compared to the rest of the industry. TMHC outperforms 60.66% 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 60.66% of its industry peers.
A Debt/Equity ratio of 0.35 indicates that TMHC is not too dependend on debt financing.
The Debt to Equity ratio of TMHC (0.35) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.35 | ||
| Debt/FCF | 3.84 | ||
| Altman-Z | 3.83 |
ROIC/WACC1.32
WACC8.2%
2.3 Liquidity
TMHC has a Current Ratio of 6.43. This indicates that TMHC is financially healthy and has no problem in meeting its short term obligations.
The Current ratio of TMHC (6.43) is better 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.
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
TMHC shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 8.21%, which is quite good.
The Earnings Per Share has been growing by 23.42% on average over the past years. This is a very strong growth
TMHC shows a small growth in Revenue. In the last year, the Revenue has grown by 6.98%.
The Revenue has been growing by 11.39% on average over the past years. This is quite good.
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 1.45% yearly.
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 Year0.89%
Revenue Next 2Y-4.68%
Revenue Next 3Y-0.61%
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
A Price/Earnings ratio of 7.63 indicates a rather cheap valuation of TMHC.
Based on the Price/Earnings ratio, TMHC is valued cheaper than 85.25% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.15, TMHC is valued rather cheaply.
With a Price/Forward Earnings ratio of 9.18, the valuation of TMHC can be described as very reasonable.
Based on the Price/Forward Earnings ratio, TMHC is valued cheaply inside the industry as 83.61% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 36.12. TMHC is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.63 | ||
| Fwd PE | 9.18 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of TMHC indicates a somewhat cheap valuation: TMHC is cheaper than 75.41% of the companies listed in the same industry.
TMHC's Price/Free Cash Flow ratio is rather cheap when compared to the industry. TMHC is cheaper than 81.97% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.87 | ||
| EV/EBITDA | 6.38 |
4.3 Compensation for Growth
TMHC has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.33
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 | N/A |
63.37
+1.13 (+1.82%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryHousehold Durables
Earnings (Last)
Earnings (Next)
Inst Owners100.58%
Inst Owner Change-0.88%
Ins Owners0.47%
Ins Owner Change-7.45%
Market Cap6.19B
Revenue(TTM)8.38B
Net Income(TTM)850.94M
Analysts82.5
Price Target74.93 (18.24%)
Short Float %4.49%
Short Ratio3.69
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)-3.52%
PT rev (3m)-3.05%
EPS NQ rev (1m)-13.8%
EPS NQ rev (3m)-13.92%
EPS NY rev (1m)-3.36%
EPS NY rev (3m)-3.36%
Revenue NQ rev (1m)-6.57%
Revenue NQ rev (3m)-6.57%
Revenue NY rev (1m)-0.65%
Revenue NY rev (3m)-0.24%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.63 | ||
| Fwd PE | 9.18 | ||
| P/S | 0.74 | ||
| P/FCF | 10.87 | ||
| P/OCF | 10.17 | ||
| P/B | 1 | ||
| P/tB | 1.12 | ||
| EV/EBITDA | 6.38 |
EPS(TTM)8.3
EY13.1%
EPS(NY)6.9
Fwd EY10.89%
FCF(TTM)5.83
FCFY9.2%
OCF(TTM)6.23
OCFY9.84%
SpS85.73
BVpS63.28
TBVpS56.49
PEG (NY)N/A
PEG (5Y)0.33
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 | 3.83 |
F-Score7
WACC8.2%
ROIC/WACC1.32
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 Year0.89%
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 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 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 7.63 and the Price/Book (PB) ratio is 1.
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.