TAYLOR MORRISON HOME CORP (TMHC) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:TMHC - US87724P1066 - Common Stock
63.27 USD
-0.88 (-1.37%)
63.27 USD
0 (0%)
We assign a fundamental rating of 6 out of 10 to TMHC. TMHC was compared to 60 industry peers in the Household Durables industry. TMHC scores excellent on profitability, but there are some minor concerns on its financial health. A decent growth rate in combination with a cheap valuation! Better keep an eye on TMHC. With these ratings, TMHC could be worth investigating further 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.
- Each year in the past 5 years TMHC has been profitable.
- Each year in the past 5 years TMHC had a positive operating cash flow.
1.2 Ratios
- TMHC's Return On Assets of 8.84% is fine compared to the rest of the industry. TMHC outperforms 78.33% of its industry peers.
- The Return On Equity of TMHC (13.76%) is better than 65.00% of its industry peers.
- TMHC has a Return On Invested Capital of 10.86%. This is in the better half of the industry: TMHC outperforms 68.33% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for TMHC is above the industry average of 9.71%.
| 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
- Looking at the Profit Margin, with a value of 10.16%, TMHC belongs to the top of the industry, outperforming 83.33% of the companies in the same industry.
- In the last couple of years the Profit Margin of TMHC has grown nicely.
- Looking at the Operating Margin, with a value of 14.53%, TMHC belongs to the top of the industry, outperforming 88.33% of the companies in the same industry.
- TMHC's Operating Margin has improved in the last couple of years.
- Looking at the Gross Margin, with a value of 23.91%, TMHC is in line with its industry, outperforming 41.67% 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 | 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
- Compared to 5 years ago, TMHC has less shares outstanding
- The debt/assets ratio for TMHC has been reduced compared to a year ago.
2.2 Solvency
- TMHC has an Altman-Z score of 3.85. This indicates that TMHC is financially healthy and has little risk of bankruptcy at the moment.
- The Altman-Z score of TMHC (3.85) is comparable to the rest of the industry.
- 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.
- TMHC has a Debt to FCF ratio (3.84) which is in line with its industry peers.
- 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 46.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.35 | ||
| Debt/FCF | 3.84 | ||
| Altman-Z | 3.85 |
ROIC/WACC1.23
WACC8.8%
2.3 Liquidity
- TMHC has a Current Ratio of 6.43. This indicates that TMHC is financially healthy and has no problem in meeting its short term obligations.
- TMHC's Current ratio of 6.43 is fine compared to the rest of the industry. TMHC outperforms 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.
- With a Quick ratio value of 0.58, TMHC is not doing good in the industry: 68.33% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 6.43 | ||
| Quick Ratio | 0.58 |
3. Growth
3.1 Past
- The Earnings Per Share has grown by an nice 8.21% 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
- TMHC shows a small growth in Revenue. In the last year, the Revenue has grown by 6.98%.
- Measured over the past years, TMHC shows a quite strong growth in Revenue. The Revenue has been growing by 11.39% on average per year.
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
- A Price/Earnings ratio of 7.62 indicates a rather cheap valuation of TMHC.
- Based on the Price/Earnings ratio, TMHC is valued cheaper than 88.33% of the companies in the same industry.
- TMHC's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.47.
- The Price/Forward Earnings ratio is 9.20, which indicates a very decent valuation of TMHC.
- Based on the Price/Forward Earnings ratio, TMHC is valued cheaply inside the industry as 91.67% of the companies are valued more expensively.
- The average S&P500 Price/Forward Earnings ratio is at 24.26. TMHC is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.62 | ||
| Fwd PE | 9.2 |
4.2 Price Multiples
- TMHC's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. TMHC is cheaper than 83.33% of the companies in the same industry.
- Based on the Price/Free Cash Flow ratio, TMHC is valued cheaper than 81.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.85 | ||
| EV/EBITDA | 6.44 |
4.3 Compensation for Growth
- TMHC has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.33
EPS Next 2Y-9.44%
EPS Next 3Y1.45%
5. Dividend
5.1 Amount
- No dividends for TMHC!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
63.27
-0.88 (-1.37%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryHousehold Durables
Earnings (Last)10-22 2025-10-22/bmo
Earnings (Next)02-10 2026-02-10/bmo
Inst Owners100.87%
Inst Owner Change0.72%
Ins Owners0.49%
Ins Owner Change-7.45%
Market Cap6.18B
Revenue(TTM)8.38B
Net Income(TTM)850.94M
Analysts82.5
Price Target75.87 (19.91%)
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 | 7.62 | ||
| Fwd PE | 9.2 | ||
| P/S | 0.74 | ||
| P/FCF | 10.85 | ||
| P/OCF | 10.15 | ||
| P/B | 1 | ||
| P/tB | 1.12 | ||
| EV/EBITDA | 6.44 |
EPS(TTM)8.3
EY13.12%
EPS(NY)6.88
Fwd EY10.87%
FCF(TTM)5.83
FCFY9.22%
OCF(TTM)6.23
OCFY9.85%
SpS85.73
BVpS63.28
TBVpS56.49
PEG (NY)N/A
PEG (5Y)0.33
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 | 3.85 |
F-Score7
WACC8.8%
ROIC/WACC1.23
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 8 / 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.