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. While TMHC belongs to the best of the industry regarding profitability, 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! 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.
TMHC had positive earnings in each of the past 5 years.
In the past 5 years TMHC always reported a positive cash flow from operatings.
1.2 Ratios
TMHC has a Return On Assets of 9.66%. This is in the better half of the industry: TMHC outperforms 68.75% of its industry peers.
TMHC has a Return On Equity of 15.25%. This is in the better half of the industry: TMHC outperforms 64.06% of its industry peers.
Looking at the Return On Invested Capital, with a value of 11.62%, TMHC is in the better half of the industry, outperforming 71.88% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for TMHC is in line with the industry average of 12.29%.
| 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
TMHC's Profit Margin of 10.84% is amongst the best of the industry. TMHC outperforms 82.81% 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 82.81% 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 comparable to the rest of the industry.
TMHC's Gross Margin has improved in the last couple of years.
| 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.
Compared to 1 year ago, TMHC has less shares outstanding
The number of shares outstanding for TMHC has been reduced compared to 5 years ago.
TMHC has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 3.77 indicates that TMHC is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 3.77, TMHC is in the better half of the industry, outperforming 67.19% of the companies in the same industry.
The Debt to FCF ratio of TMHC is 5.45, which is a neutral value as it means it would take TMHC, 5.45 years of fcf income to pay off all of its debts.
With a Debt to FCF ratio value of 5.45, TMHC perfoms like the industry average, outperforming 57.81% of the companies in the same industry.
TMHC has a Debt/Equity ratio of 0.35. This is a healthy value indicating a solid balance between debt and equity.
TMHC has a Debt to Equity ratio of 0.35. This is comparable to the rest of the industry: TMHC outperforms 45.31% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.35 | ||
| Debt/FCF | 5.45 | ||
| Altman-Z | 3.77 |
ROIC/WACC1.41
WACC8.24%
2.3 Liquidity
A Current Ratio of 5.98 indicates that TMHC has no problem at all paying its short term obligations.
TMHC has a better Current ratio (5.98) than 78.13% of its industry peers.
A Quick Ratio of 0.51 indicates that TMHC may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.51, TMHC is doing worse than 76.56% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 5.98 | ||
| Quick Ratio | 0.51 |
3. Growth
3.1 Past
TMHC shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 25.64%, which is quite impressive.
TMHC shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 23.42% yearly.
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)25.64%
EPS 3Y17.06%
EPS 5Y23.42%
EPS Q2Q%24.57%
Revenue 1Y (TTM)12.19%
Revenue growth 3Y2.88%
Revenue growth 5Y11.39%
Sales Q2Q%15.88%
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 8.86% yearly.
The Revenue is expected to grow by 4.68% on average over the next years.
EPS Next Y9.41%
EPS Next 2Y8.86%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year5.17%
Revenue Next 2Y4.68%
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
Based on the Price/Earnings ratio of 6.68, 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 somewhat cheap valuation: TMHC is cheaper than 79.69% 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 28.22.
TMHC is valuated cheaply with a Price/Forward Earnings ratio of 5.92.
Compared to the rest of the industry, the Price/Forward Earnings ratio of TMHC indicates a rather cheap valuation: TMHC is cheaper than 85.94% of the companies listed 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 20.86.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.68 | ||
| Fwd PE | 5.92 |
4.2 Price Multiples
71.88% of the companies in the same industry are more expensive than TMHC, based on the Enterprise Value to EBITDA ratio.
64.06% 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 | 15.46 | ||
| EV/EBITDA | 5.77 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
The decent profitability rating of TMHC may justify a higher PE ratio.
PEG (NY)0.71
PEG (5Y)0.29
EPS Next 2Y8.86%
EPS Next 3YN/A
5. Dividend
5.1 Amount
No dividends for TMHC!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
58.9
+1.46 (+2.54%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryHousehold Durables
Earnings (Last)
Earnings (Next)
Inst Owners98.11%
Inst Owner Change-0.4%
Ins Owners0.64%
Ins Owner Change9.53%
Market Cap5.91B
Analysts82.5
Price Target74.35 (26.23%)
Short Float %2.21%
Short Ratio1.89
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)3.88%
Min EPS beat(2)-5.59%
Max EPS beat(2)13.35%
EPS beat(4)3
Avg EPS beat(4)5.48%
Min EPS beat(4)-5.59%
Max EPS beat(4)13.35%
EPS beat(8)5
Avg EPS beat(8)5.14%
EPS beat(12)8
Avg EPS beat(12)7.76%
EPS beat(16)11
Avg EPS beat(16)6.96%
Revenue beat(2)2
Avg Revenue beat(2)2.95%
Min Revenue beat(2)0.03%
Max Revenue beat(2)5.86%
Revenue beat(4)4
Avg Revenue beat(4)2.67%
Min Revenue beat(4)0.03%
Max Revenue beat(4)5.86%
Revenue beat(8)7
Avg Revenue beat(8)4.04%
Revenue beat(12)10
Avg Revenue beat(12)3.01%
Revenue beat(16)12
Avg Revenue beat(16)2.49%
PT rev (1m)-4.95%
PT rev (3m)-13.01%
EPS NQ rev (1m)-0.1%
EPS NQ rev (3m)5.39%
EPS NY rev (1m)-0.41%
EPS NY rev (3m)-2.58%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)3.47%
Revenue NY rev (1m)-0.9%
Revenue NY rev (3m)-1.26%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.68 | ||
| Fwd PE | 5.92 | ||
| P/S | 0.71 | ||
| P/FCF | 15.46 | ||
| P/OCF | 14.14 | ||
| P/B | 0.99 | ||
| P/tB | 1.12 | ||
| EV/EBITDA | 5.77 |
EPS(TTM)8.82
EY14.97%
EPS(NY)9.94
Fwd EY16.88%
FCF(TTM)3.81
FCFY6.47%
OCF(TTM)4.17
OCFY7.07%
SpS83.34
BVpS59.24
TBVpS52.63
PEG (NY)0.71
PEG (5Y)0.29
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 | 3.77 |
F-Score8
WACC8.24%
ROIC/WACC1.41
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)25.64%
EPS 3Y17.06%
EPS 5Y23.42%
EPS Q2Q%24.57%
EPS Next Y9.41%
EPS Next 2Y8.86%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)12.19%
Revenue growth 3Y2.88%
Revenue growth 5Y11.39%
Sales Q2Q%15.88%
Revenue Next Year5.17%
Revenue Next 2Y4.68%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y16.4%
EBIT growth 3Y11.97%
EBIT growth 5Y29.02%
EBIT Next Year33.66%
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%