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 has a great profitability rating, there are some minor concerns on its financial health. TMHC may be a bit undervalued, certainly considering the very reasonable score on growth This makes TMHC very considerable for value investing!
1. Profitability
1.1 Basic Checks
In the past year TMHC was profitable.
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 Return On Assets of 9.66%. This is in the better half of the industry: TMHC outperforms 70.31% of its industry peers.
TMHC's Return On Equity of 15.25% is fine compared to the rest of the industry. TMHC outperforms 65.63% of its industry peers.
The Return On Invested Capital of TMHC (11.62%) is better than 73.44% of its industry peers.
TMHC had an Average Return On Invested Capital over the past 3 years of 12.32%. This is in line with the industry average of 11.93%.
| 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
With an excellent Profit Margin value of 10.84%, TMHC belongs to the best of the industry, outperforming 82.81% of the companies in the same industry.
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 84.38% of its industry peers.
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
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.
Compared to 5 years ago, TMHC has less shares outstanding
TMHC has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 3.75 indicates that TMHC is not in any danger for bankruptcy at the moment.
TMHC's Altman-Z score of 3.75 is fine compared to the rest of the industry. TMHC outperforms 64.06% 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 has a Debt to FCF ratio of 5.45. This is comparable to the rest of the industry: TMHC outperforms 54.69% of its industry peers.
A Debt/Equity ratio of 0.35 indicates that TMHC is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.35, TMHC is in line with its industry, outperforming 46.88% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.35 | ||
| Debt/FCF | 5.45 | ||
| Altman-Z | 3.75 |
ROIC/WACC1.33
WACC8.75%
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.
TMHC has a Quick Ratio of 5.98. 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 0.51. This is in the lower half of the industry: TMHC underperforms 71.88% 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.
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 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
Based on estimates for the next years, TMHC will show a quite strong growth in Earnings Per Share. The EPS will grow by 8.92% on average per year.
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
With a Price/Earnings ratio of 6.48, 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.
The average S&P500 Price/Earnings ratio is at 25.82. TMHC is valued rather cheaply when compared to this.
The Price/Forward Earnings ratio is 6.49, which indicates a rather cheap valuation of TMHC.
Based on the Price/Forward Earnings ratio, TMHC is valued cheaply inside the industry as 82.81% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of TMHC to the average of the S&P500 Index (21.76), we can say TMHC is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.48 | ||
| Fwd PE | 6.49 |
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 76.56% of the companies listed in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of TMHC indicates a somewhat cheap valuation: TMHC is cheaper than 64.06% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.81 | ||
| EV/EBITDA | 5.7 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates TMHC does not grow enough to justify the current Price/Earnings ratio.
The decent profitability rating of TMHC may justify a higher PE ratio.
PEG (NY)2.81
PEG (5Y)0.28
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 |
56.43
-0.09 (-0.16%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryHousehold Durables
Earnings (Last)
Earnings (Next)
Inst Owners98.11%
Inst Owner Change-0.02%
Ins Owners0.64%
Ins Owner Change9.53%
Market Cap5.66B
Analysts82.5
Price Target75.11 (33.1%)
Short Float %2.24%
Short Ratio2.03
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)-3.98%
PT rev (3m)-7.63%
EPS NQ rev (1m)-11.81%
EPS NQ rev (3m)-11.8%
EPS NY rev (1m)-6.49%
EPS NY rev (3m)-8%
Revenue NQ rev (1m)-8.37%
Revenue NQ rev (3m)-8.84%
Revenue NY rev (1m)-5.32%
Revenue NY rev (3m)-5.77%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.48 | ||
| Fwd PE | 6.49 | ||
| P/S | 0.68 | ||
| P/FCF | 14.81 | ||
| P/OCF | 13.55 | ||
| P/B | 0.95 | ||
| P/tB | 1.07 | ||
| EV/EBITDA | 5.7 |
EPS(TTM)8.71
EY15.44%
EPS(NY)8.69
Fwd EY15.4%
FCF(TTM)3.81
FCFY6.75%
OCF(TTM)4.17
OCFY7.38%
SpS83.34
BVpS59.24
TBVpS52.63
PEG (NY)2.81
PEG (5Y)0.28
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 | 3.75 |
F-Score8
WACC8.75%
ROIC/WACC1.33
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 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%