TAYLOR MORRISON HOME CORP (TMHC) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:TMHC - US87724P1066 - Common Stock
65.35 USD
+4.62 (+7.61%)
65.72 USD
+0.37 (+0.57%)
Taking everything into account, TMHC scores 6 out of 10 in our fundamental rating. TMHC was compared to 60 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 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
In the past year TMHC was profitable.
TMHC had a positive operating cash flow in the past year.
TMHC had positive earnings in each of the past 5 years.
Each year in the past 5 years TMHC had a positive operating cash flow.
1.2 Ratios
The Return On Assets of TMHC (8.84%) is better than 78.33% of its industry peers.
Looking at the Return On Equity, with a value of 13.76%, TMHC is in the better half of the industry, outperforming 66.67% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 10.86%, TMHC is in the better half of the industry, outperforming 70.00% of the companies in the same industry.
TMHC had an Average Return On Invested Capital over the past 3 years of 12.32%. This is above the industry average of 9.69%.
| 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 Profit Margin of 10.16%. This is amongst the best in the industry. TMHC outperforms 83.33% of its industry peers.
In the last couple of years the Profit Margin of TMHC has grown nicely.
The Operating Margin of TMHC (14.53%) is better than 88.33% of its industry peers.
TMHC's Operating Margin has improved in the last couple of years.
TMHC has a Gross Margin (23.91%) 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 | 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.
Compared to 1 year ago, TMHC has less shares outstanding
TMHC has less shares outstanding than it did 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 3.79 indicates that TMHC is not in any danger for bankruptcy at the moment.
TMHC's Altman-Z score of 3.79 is in line compared to the rest of the industry. TMHC outperforms 60.00% 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.
Looking at the Debt to FCF ratio, with a value of 3.84, TMHC is in line with its industry, outperforming 58.33% of the companies in the same industry.
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 | 3.79 |
ROIC/WACC1.25
WACC8.67%
2.3 Liquidity
A Current Ratio of 6.43 indicates that TMHC has no problem at all paying its short term obligations.
TMHC has a better Current ratio (6.43) than 80.00% 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.
TMHC has a worse Quick ratio (0.58) than 68.33% of its industry peers.
| 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.
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 small growth in Revenue. The Revenue has grown by 6.98% 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)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
Based on estimates for the next years, TMHC will show a small growth in Earnings Per Share. The EPS will grow by 1.45% on average per year.
The Revenue is expected to decrease by -0.53% on average over the next years.
EPS Next Y-5.17%
EPS Next 2Y-9.44%
EPS Next 3Y1.45%
EPS Next 5YN/A
Revenue Next Year0.78%
Revenue Next 2Y-4.7%
Revenue Next 3Y-0.53%
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
The Price/Earnings ratio is 7.87, which indicates a rather cheap valuation of TMHC.
Compared to the rest of the industry, the Price/Earnings ratio of TMHC indicates a rather cheap valuation: TMHC is cheaper than 88.33% of the companies listed in the same industry.
TMHC is valuated cheaply when we compare the Price/Earnings ratio to 27.19, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 9.50, which indicates a very decent valuation of TMHC.
Based on the Price/Forward Earnings ratio, TMHC is valued cheaper than 90.00% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.88, TMHC is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.87 | ||
| Fwd PE | 9.5 |
4.2 Price Multiples
85.00% of the companies in the same industry are more expensive than TMHC, based on the Enterprise Value to EBITDA ratio.
TMHC's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. TMHC is cheaper than 80.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.21 | ||
| EV/EBITDA | 6.17 |
4.3 Compensation for Growth
TMHC has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.34
EPS Next 2Y-9.44%
EPS Next 3Y1.45%
5. Dividend
5.1 Amount
TMHC does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
65.35
+4.62 (+7.61%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryHousehold Durables
Earnings (Last)
Earnings (Next)
Inst Owners100.87%
Inst Owner Change0%
Ins Owners0.49%
Ins Owner Change-7.45%
Market Cap6.39B
Revenue(TTM)8.38B
Net Income(TTM)850.94M
Analysts82.5
Price Target75.87 (16.1%)
Short Float %5.54%
Short Ratio4.78
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
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)1.26%
PT rev (3m)-2.31%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-13.8%
EPS NY rev (1m)0%
EPS NY rev (3m)-3.36%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-6.57%
Revenue NY rev (1m)0.16%
Revenue NY rev (3m)-0.35%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.87 | ||
| Fwd PE | 9.5 | ||
| P/S | 0.76 | ||
| P/FCF | 11.21 | ||
| P/OCF | 10.48 | ||
| P/B | 1.03 | ||
| P/tB | 1.16 | ||
| EV/EBITDA | 6.17 |
EPS(TTM)8.3
EY12.7%
EPS(NY)6.88
Fwd EY10.53%
FCF(TTM)5.83
FCFY8.92%
OCF(TTM)6.23
OCFY9.54%
SpS85.73
BVpS63.28
TBVpS56.49
PEG (NY)N/A
PEG (5Y)0.34
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 | 3.79 |
F-Score7
WACC8.67%
ROIC/WACC1.25
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-9.44%
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 Year0.78%
Revenue Next 2Y-4.7%
Revenue Next 3Y-0.53%
Revenue Next 5YN/A
EBIT growth 1Y4.7%
EBIT growth 3Y11.97%
EBIT growth 5Y29.02%
EBIT Next Year18.94%
EBIT Next 3Y2.89%
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 for TMHC stock?
ChartMill assigns a valuation rating of 7 / 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 earnings growth outlook for TAYLOR MORRISON HOME CORP?
The Earnings per Share (EPS) of TAYLOR MORRISON HOME CORP (TMHC) is expected to decline by -5.17% in the next year.