TAYLOR MORRISON HOME CORP (TMHC) Stock Fundamental Analysis
USA - NYSE:TMHC - US87724P1066 - Common Stock
65.59 USD
-0.39 (-0.59%)
Taking everything into account, TMHC scores 6 out of 10 in our fundamental rating. TMHC was compared to 63 industry peers in the Household Durables industry. TMHC scores excellent on profitability, but there are some minor concerns on its financial health. TMHC may be a bit undervalued, certainly considering the very reasonable score on growth These ratings could make TMHC a good candidate 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.
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
TMHC has a Return On Assets of 9.53%. This is in the better half of the industry: TMHC outperforms 77.78% of its industry peers.
Looking at the Return On Equity, with a value of 14.89%, TMHC is in the better half of the industry, outperforming 69.84% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 11.58%, TMHC is in the better half of the industry, outperforming 74.60% 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 10.52%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.53% | ||
| ROE | 14.89% | ||
| ROIC | 11.58% |
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 10.72%, TMHC belongs to the best of the industry, outperforming 85.71% of the companies in the same industry.
In the last couple of years the Profit Margin of TMHC has grown nicely.
The Operating Margin of TMHC (15.01%) is better than 87.30% of its industry peers.
TMHC's Operating Margin has improved in the last couple of years.
TMHC has a Gross Margin of 24.40%. This is in the lower half of the industry: TMHC underperforms 60.32% of its industry peers.
TMHC's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 15.01% | ||
| PM (TTM) | 10.72% | ||
| GM | 24.4% |
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
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
An Altman-Z score of 3.92 indicates that TMHC is not in any danger for bankruptcy at the moment.
The Altman-Z score of TMHC (3.92) is better than 65.08% of its industry peers.
TMHC has a debt to FCF ratio of 4.28. This is a neutral value as TMHC would need 4.28 years to pay back of all of its debts.
TMHC has a Debt to FCF ratio of 4.28. This is in the better half of the industry: TMHC outperforms 65.08% of 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 (0.35) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.35 | ||
| Debt/FCF | 4.28 | ||
| Altman-Z | 3.92 |
ROIC/WACC1.31
WACC8.84%
2.3 Liquidity
A Current Ratio of 5.97 indicates that TMHC has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 5.97, TMHC is in the better half of the industry, outperforming 79.37% of the companies in the same industry.
A Quick Ratio of 0.32 indicates that TMHC may have some problems paying its short term obligations.
With a Quick ratio value of 0.32, TMHC is not doing good in the industry: 90.48% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 5.97 | ||
| Quick Ratio | 0.32 |
3. Growth
3.1 Past
TMHC shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 26.06%, which is quite impressive.
Measured over the past years, TMHC shows a very strong growth in Earnings Per Share. The EPS has been growing by 23.42% on average per year.
Looking at the last year, TMHC shows a quite strong growth in Revenue. The Revenue has grown by 13.77% 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)26.06%
EPS 3Y17.06%
EPS 5Y23.42%
EPS Q2Q%-2.54%
Revenue 1Y (TTM)13.77%
Revenue growth 3Y2.88%
Revenue growth 5Y11.39%
Sales Q2Q%5.73%
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 3.88% on average per year.
TMHC is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 0.75% yearly.
EPS Next Y-1.88%
EPS Next 2Y-3.35%
EPS Next 3Y3.88%
EPS Next 5YN/A
Revenue Next Year1.13%
Revenue Next 2Y-1.78%
Revenue Next 3Y0.75%
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
Based on the Price/Earnings ratio of 7.57, the valuation of TMHC can be described as very cheap.
87.30% of the companies in the same industry are more expensive than TMHC, based on the Price/Earnings ratio.
TMHC's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.41.
TMHC is valuated reasonably with a Price/Forward Earnings ratio of 8.37.
TMHC's Price/Forward Earnings ratio is rather cheap when compared to the industry. TMHC is cheaper than 85.71% of the companies in the same industry.
TMHC is valuated cheaply when we compare the Price/Forward Earnings ratio to 22.87, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.57 | ||
| Fwd PE | 8.37 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, TMHC is valued a bit cheaper than the industry average as 79.37% of the companies are valued more expensively.
85.71% 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 | 13.22 | ||
| EV/EBITDA | 6.53 |
4.3 Compensation for Growth
The decent profitability rating of TMHC may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.32
EPS Next 2Y-3.35%
EPS Next 3Y3.88%
5. Dividend
5.1 Amount
TMHC does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
NYSE:TMHC (9/24/2025, 9:33:00 AM)
65.59
-0.39 (-0.59%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryHousehold Durables
Earnings (Last)
Earnings (Next)
Inst Owners101.23%
Inst Owner Change-0.46%
Ins Owners0.53%
Ins Owner Change-6.73%
Market Cap6.48B
Analysts82.5
Price Target77.28 (17.82%)
Short Float %3.24%
Short Ratio2.59
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)2.68%
Min EPS beat(2)-2.85%
Max EPS beat(2)8.2%
EPS beat(4)2
Avg EPS beat(4)3.09%
Min EPS beat(4)-5.59%
Max EPS beat(4)12.59%
EPS beat(8)4
Avg EPS beat(8)1.22%
EPS beat(12)7
Avg EPS beat(12)5.38%
EPS beat(16)11
Avg EPS beat(16)6.9%
Revenue beat(2)2
Avg Revenue beat(2)3.44%
Min Revenue beat(2)2.35%
Max Revenue beat(2)4.54%
Revenue beat(4)4
Avg Revenue beat(4)2.34%
Min Revenue beat(4)0.03%
Max Revenue beat(4)4.54%
Revenue beat(8)7
Avg Revenue beat(8)1.7%
Revenue beat(12)10
Avg Revenue beat(12)3.01%
Revenue beat(16)13
Avg Revenue beat(16)2.58%
PT rev (1m)0%
PT rev (3m)2.89%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-6.31%
EPS NY rev (1m)0%
EPS NY rev (3m)-4.09%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.15%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.65%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.57 | ||
| Fwd PE | 8.37 | ||
| P/S | 0.77 | ||
| P/FCF | 13.22 | ||
| P/OCF | 12.34 | ||
| P/B | 1.07 | ||
| P/tB | 1.2 | ||
| EV/EBITDA | 6.53 |
EPS(TTM)8.66
EY13.2%
EPS(NY)7.84
Fwd EY11.95%
FCF(TTM)4.96
FCFY7.56%
OCF(TTM)5.32
OCFY8.1%
SpS85.02
BVpS61.18
TBVpS54.47
PEG (NY)N/A
PEG (5Y)0.32
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.53% | ||
| ROE | 14.89% | ||
| ROCE | 15.2% | ||
| ROIC | 11.58% | ||
| ROICexc | 11.76% | ||
| ROICexgc | 12.8% | ||
| OM | 15.01% | ||
| PM (TTM) | 10.72% | ||
| GM | 24.4% | ||
| FCFM | 5.83% |
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 | 4.28 | ||
| Debt/EBITDA | 1.61 | ||
| Cap/Depr | 90.47% | ||
| Cap/Sales | 0.42% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 40.41% | ||
| Profit Quality | 54.44% | ||
| Current Ratio | 5.97 | ||
| Quick Ratio | 0.32 | ||
| Altman-Z | 3.92 |
F-Score8
WACC8.84%
ROIC/WACC1.31
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)26.06%
EPS 3Y17.06%
EPS 5Y23.42%
EPS Q2Q%-2.54%
EPS Next Y-1.88%
EPS Next 2Y-3.35%
EPS Next 3Y3.88%
EPS Next 5YN/A
Revenue 1Y (TTM)13.77%
Revenue growth 3Y2.88%
Revenue growth 5Y11.39%
Sales Q2Q%5.73%
Revenue Next Year1.13%
Revenue Next 2Y-1.78%
Revenue Next 3Y0.75%
Revenue Next 5YN/A
EBIT growth 1Y20.35%
EBIT growth 3Y11.97%
EBIT growth 5Y29.02%
EBIT Next Year18.65%
EBIT Next 3Y4.41%
EBIT Next 5YN/A
FCF growth 1Y-66.88%
FCF growth 3Y-21.22%
FCF growth 5Y-13.71%
OCF growth 1Y-65.42%
OCF growth 3Y-17.68%
OCF growth 5Y-11.78%