TAYLOR MORRISON HOME CORP (TMHC)
US87724P1066 - Common Stock
Taking everything into account, TMHC scores 5 out of 10 in our fundamental rating. TMHC was compared to 67 industry peers in the Household Durables industry. TMHC scores excellent on profitability, but there are some minor concerns on its financial health. TMHC has a bad growth rate and is valued cheaply. 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.
In the past 5 years TMHC has always been profitable.
TMHC had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of TMHC (8.62%) is better than 69.70% of its industry peers.
TMHC's Return On Equity of 14.20% is fine compared to the rest of the industry. TMHC outperforms 65.15% of its industry peers.
The Return On Invested Capital of TMHC (9.77%) is better than 62.12% of its industry peers.
TMHC had an Average Return On Invested Capital over the past 3 years of 11.44%. This is in line with the industry average of 10.04%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.62% | ||
| ROE | 14.2% | ||
| ROIC | 9.77% |
ROA(3y)9.63%
ROA(5y)7.38%
ROE(3y)18.03%
ROE(5y)14.21%
ROIC(3y)11.44%
ROIC(5y)8.99%
1.3 Margins
The Profit Margin of TMHC (10.30%) is better than 77.27% of its industry peers.
TMHC's Profit Margin has improved in the last couple of years.
TMHC has a better Operating Margin (13.38%) than 78.79% of its industry peers.
TMHC's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 24.15%, TMHC is in line with its industry, outperforming 40.91% of the companies in the same industry.
In the last couple of years the Gross Margin of TMHC has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 13.38% | ||
| PM (TTM) | 10.3% | ||
| GM | 24.15% |
OM growth 3Y25.66%
OM growth 5Y14.69%
PM growth 3Y37.69%
PM growth 5Y16.25%
GM growth 3Y12.41%
GM growth 5Y6.74%
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.
Compared to 1 year ago, TMHC has less shares outstanding
TMHC has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, TMHC has an improved debt to assets ratio.
2.2 Solvency
TMHC has an Altman-Z score of 3.61. This indicates that TMHC is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of TMHC (3.61) is comparable to the rest of the industry.
TMHC has a debt to FCF ratio of 6.99. This is a slightly negative value and a sign of low solvency as TMHC would need 6.99 years to pay back of all of its debts.
TMHC's Debt to FCF ratio of 6.99 is on the low side compared to the rest of the industry. TMHC is outperformed by 62.12% of its industry peers.
A Debt/Equity ratio of 0.39 indicates that TMHC is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.39, TMHC is in line with its industry, outperforming 45.45% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.39 | ||
| Debt/FCF | 6.99 | ||
| Altman-Z | 3.61 |
ROIC/WACC0.97
WACC10.06%
2.3 Liquidity
TMHC has a Current Ratio of 5.98. This indicates that TMHC is financially healthy and has no problem in meeting its short term obligations.
With an excellent Current ratio value of 5.98, TMHC belongs to the best of the industry, outperforming 83.33% of the companies in the same industry.
A Quick Ratio of 0.88 indicates that TMHC may have some problems paying its short term obligations.
TMHC has a Quick ratio of 0.88. This is in the lower half of the industry: TMHC underperforms 63.64% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 5.98 | ||
| Quick Ratio | 0.88 |
3. Growth
3.1 Past
TMHC shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -25.64%.
TMHC shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 22.22% yearly.
TMHC shows a decrease in Revenue. In the last year, the revenue decreased by -8.89%.
The Revenue has been growing by 11.90% on average over the past years. This is quite good.
EPS 1Y (TTM)-25.64%
EPS 3Y37.1%
EPS 5Y22.22%
EPS growth Q2Q0.57%
Revenue 1Y (TTM)-8.89%
Revenue growth 3Y6.57%
Revenue growth 5Y11.9%
Revenue growth Q2Q2.28%
3.2 Future
TMHC is expected to show a decrease in Earnings Per Share. In the coming years, the EPS will decrease by -3.44% yearly.
Based on estimates for the next years, TMHC will show a small growth in Revenue. The Revenue will grow by 1.25% on average per year.
EPS Next Y7.46%
EPS Next 2Y9.13%
EPS Next 3Y-3.44%
EPS Next 5YN/A
Revenue Next Year3.49%
Revenue Next 2Y5.46%
Revenue Next 3Y1.25%
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
With a Price/Earnings ratio of 8.39, the valuation of TMHC can be described as very reasonable.
Compared to the rest of the industry, the Price/Earnings ratio of TMHC indicates a rather cheap valuation: TMHC is cheaper than 87.88% 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 27.73.
A Price/Forward Earnings ratio of 7.05 indicates a rather cheap valuation of TMHC.
93.94% of the companies in the same industry are more expensive than TMHC, based on the Price/Forward Earnings ratio.
TMHC is valuated cheaply when we compare the Price/Forward Earnings ratio to 20.41, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.39 | ||
| Fwd PE | 7.05 |
4.2 Price Multiples
TMHC's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. TMHC is cheaper than 74.24% of the companies in the same industry.
The rest of the industry has a similar Price/Free Cash Flow ratio as TMHC.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 20.86 | ||
| EV/EBITDA | 7.35 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The decent profitability rating of TMHC may justify a higher PE ratio.
A cheap valuation may be justified as TMHC's earnings are expected to decrease with -3.44% in the coming years.
PEG (NY)1.12
PEG (5Y)0.38
EPS Next 2Y9.13%
EPS Next 3Y-3.44%
5. Dividend
5.1 Amount
No dividends for TMHC!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
TAYLOR MORRISON HOME CORP
NYSE:TMHC (5/6/2024, 10:45:10 AM)
58.865
+1.66 (+2.91%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryHousehold Durables
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap6.24B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
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Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.39 | ||
| Fwd PE | 7.05 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)1.12
PEG (5Y)0.38
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.62% | ||
| ROE | 14.2% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 13.38% | ||
| PM (TTM) | 10.3% | ||
| GM | 24.15% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.84
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.39 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 5.98 | ||
| Quick Ratio | 0.88 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)-25.64%
EPS 3Y37.1%
EPS 5Y
EPS growth Q2Q
EPS Next Y7.46%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-8.89%
Revenue growth 3Y6.57%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
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OCF growth 5Y