TAYLOR MORRISON HOME CORP (TMHC) Stock Fundamental Analysis
NYSE:TMHC - New York Stock Exchange, Inc. - US87724P1066 - Common Stock - Currency: USD
Overall TMHC gets a fundamental rating of 6 out of 10. We evaluated TMHC against 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 scores decently on growth, while it is valued quite cheap. This could make an interesting combination. This makes TMHC very considerable 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 (9.53%) than 77.78% of its industry peers.
With a decent Return On Equity value of 14.89%, TMHC is doing good in the industry, outperforming 71.43% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 11.58%, TMHC is in the better half of the industry, outperforming 76.19% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for TMHC is above the industry average of 10.05%.
| 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
The Profit Margin of TMHC (10.72%) is better than 85.71% of its industry peers.
In the last couple of years the Profit Margin of TMHC has grown nicely.
TMHC has a better Operating Margin (15.01%) than 87.30% of its industry peers.
In the last couple of years the Operating Margin of TMHC has grown nicely.
The Gross Margin of TMHC (24.40%) 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 | 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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so TMHC is still 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
TMHC has an Altman-Z score of 3.87. This indicates that TMHC is financially healthy and has little risk of bankruptcy at the moment.
TMHC has a Altman-Z score of 3.87. This is in the better half of the industry: TMHC outperforms 65.08% of its industry peers.
The Debt to FCF ratio of TMHC is 4.28, which is a neutral value as it means it would take TMHC, 4.28 years of fcf income to pay off all of its debts.
TMHC has a Debt to FCF ratio of 4.28. This is in the better half of the industry: TMHC outperforms 65.08% of its industry peers.
A Debt/Equity ratio of 0.35 indicates that TMHC is not too dependend on debt financing.
With a Debt to Equity ratio value of 0.35, TMHC perfoms like the industry average, outperforming 46.03% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.35 | ||
| Debt/FCF | 4.28 | ||
| Altman-Z | 3.87 |
ROIC/WACC1.37
WACC8.43%
2.3 Liquidity
A Current Ratio of 5.97 indicates that TMHC has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 5.97, TMHC is in the better half of the industry, outperforming 79.37% of the companies in the same industry.
A Quick Ratio of 0.32 indicates that TMHC may have some problems paying its short term obligations.
TMHC has a worse Quick ratio (0.32) than 88.89% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 5.97 | ||
| Quick Ratio | 0.32 |
3. Growth
3.1 Past
TMHC shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 26.06%, which is quite impressive.
The Earnings Per Share has been growing by 23.42% on average over the past years. This is a very strong growth
Looking at the last year, TMHC shows a quite strong growth in Revenue. The Revenue has grown by 13.77% in the last year.
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
TMHC is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 8.96% yearly.
TMHC is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.62% yearly.
EPS Next Y1.53%
EPS Next 2Y1.11%
EPS Next 3Y8.96%
EPS Next 5YN/A
Revenue Next Year1.25%
Revenue Next 2Y-1.34%
Revenue Next 3Y2.62%
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
A Price/Earnings ratio of 7.48 indicates a rather cheap valuation of TMHC.
Based on the Price/Earnings ratio, TMHC is valued cheaply inside the industry as 82.54% of the companies are valued more expensively.
TMHC's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.24.
Based on the Price/Forward Earnings ratio of 7.55, the valuation of TMHC can be described as very cheap.
Based on the Price/Forward Earnings ratio, TMHC is valued cheaply inside the industry as 85.71% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 36.42, TMHC is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.48 | ||
| Fwd PE | 7.55 |
4.2 Price Multiples
TMHC's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. TMHC is cheaper than 77.78% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, TMHC is valued cheaply inside the industry as 85.71% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.06 | ||
| EV/EBITDA | 6.31 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
TMHC has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)4.9
PEG (5Y)0.32
EPS Next 2Y1.11%
EPS Next 3Y8.96%
5. Dividend
5.1 Amount
TMHC does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
64.78
+1.72 (+2.73%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryHousehold Durables
Earnings (Last)
Earnings (Next)
Inst Owners100.3%
Inst Owner Change-0.23%
Ins Owners0.53%
Ins Owner Change12.16%
Market Cap6.40B
Analysts83.53
Price Target75.11 (15.95%)
Short Float %2.92%
Short Ratio2.55
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)0%
PT rev (3m)1.03%
EPS NQ rev (1m)-6.31%
EPS NQ rev (3m)-15.95%
EPS NY rev (1m)-0.76%
EPS NY rev (3m)-7.2%
Revenue NQ rev (1m)0.1%
Revenue NQ rev (3m)-6.64%
Revenue NY rev (1m)0.77%
Revenue NY rev (3m)-3.72%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.48 | ||
| Fwd PE | 7.55 | ||
| P/S | 0.76 | ||
| P/FCF | 13.06 | ||
| P/OCF | 12.19 | ||
| P/B | 1.06 | ||
| P/tB | 1.19 | ||
| EV/EBITDA | 6.31 |
EPS(TTM)8.66
EY13.37%
EPS(NY)8.58
Fwd EY13.24%
FCF(TTM)4.96
FCFY7.66%
OCF(TTM)5.32
OCFY8.21%
SpS85.02
BVpS61.18
TBVpS54.47
PEG (NY)4.9
PEG (5Y)0.32
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 | 3.87 |
F-Score8
WACC8.43%
ROIC/WACC1.37
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 Y1.53%
EPS Next 2Y1.11%
EPS Next 3Y8.96%
EPS Next 5YN/A
Revenue 1Y (TTM)13.77%
Revenue growth 3Y2.88%
Revenue growth 5Y11.39%
Sales Q2Q%5.73%
Revenue Next Year1.25%
Revenue Next 2Y-1.34%
Revenue Next 3Y2.62%
Revenue Next 5YN/A
EBIT growth 1Y20.35%
EBIT growth 3Y11.97%
EBIT growth 5Y29.02%
EBIT Next Year22.96%
EBIT Next 3YN/A
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%