TRI POINTE HOMES INC (TPH) Stock Fundamental Analysis
NYSE:TPH - New York Stock Exchange, Inc. - US87265H1095 - Common Stock - Currency: USD
TPH gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 64 industry peers in the Household Durables industry. While TPH has a great health rating, its profitability is only average at the moment. TPH may be a bit undervalued, certainly considering the very reasonable score on growth With these ratings, TPH could be worth investigating further for value investing!.
1. Profitability
1.1 Basic Checks
TPH had positive earnings in the past year.
TPH had a positive operating cash flow in the past year.
Each year in the past 5 years TPH has been profitable.
Each year in the past 5 years TPH had a positive operating cash flow.
1.2 Ratios
With a decent Return On Assets value of 9.36%, TPH is doing good in the industry, outperforming 67.19% of the companies in the same industry.
The Return On Equity of TPH (13.73%) is comparable to the rest of the industry.
TPH has a Return On Invested Capital of 9.82%. This is in the better half of the industry: TPH outperforms 62.50% of its industry peers.
The Average Return On Invested Capital over the past 3 years for TPH is below the industry average of 12.29%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.36% | ||
| ROE | 13.73% | ||
| ROIC | 9.82% |
ROA(3y)9.52%
ROA(5y)9.28%
ROE(3y)15.16%
ROE(5y)15.46%
ROIC(3y)10.2%
ROIC(5y)10.07%
1.3 Margins
TPH has a Profit Margin of 10.19%. This is in the better half of the industry: TPH outperforms 78.13% of its industry peers.
TPH's Profit Margin has improved in the last couple of years.
The Operating Margin of TPH (12.84%) is better than 73.44% of its industry peers.
TPH's Operating Margin has improved in the last couple of years.
The Gross Margin of TPH (23.36%) is worse than 60.94% of its industry peers.
TPH's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 12.84% | ||
| PM (TTM) | 10.19% | ||
| GM | 23.36% |
OM growth 3Y-5.72%
OM growth 5Y7.18%
PM growth 3Y-4.72%
PM growth 5Y8.69%
GM growth 3Y-2.33%
GM growth 5Y2.47%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so TPH is still creating some value.
The number of shares outstanding for TPH has been reduced compared to 1 year ago.
Compared to 5 years ago, TPH has less shares outstanding
TPH has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 4.26 indicates that TPH is not in any danger for bankruptcy at the moment.
TPH has a better Altman-Z score (4.26) than 71.88% of its industry peers.
The Debt to FCF ratio of TPH is 1.52, which is an excellent value as it means it would take TPH, only 1.52 years of fcf income to pay off all of its debts.
TPH has a better Debt to FCF ratio (1.52) than 75.00% of its industry peers.
A Debt/Equity ratio of 0.31 indicates that TPH is not too dependend on debt financing.
With a Debt to Equity ratio value of 0.31, TPH perfoms like the industry average, outperforming 48.44% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.31 | ||
| Debt/FCF | 1.52 | ||
| Altman-Z | 4.26 |
ROIC/WACC1.21
WACC8.14%
2.3 Liquidity
A Current Ratio of 8.21 indicates that TPH has no problem at all paying its short term obligations.
TPH has a better Current ratio (8.21) than 84.38% of its industry peers.
A Quick Ratio of 2.10 indicates that TPH has no problem at all paying its short term obligations.
With an excellent Quick ratio value of 2.10, TPH belongs to the best of the industry, outperforming 85.94% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 8.21 | ||
| Quick Ratio | 2.1 |
3. Growth
3.1 Past
TPH shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 20.00%, which is quite good.
TPH shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 26.86% yearly.
TPH shows a strong growth in Revenue. In the last year, the Revenue has grown by 20.93%.
The Revenue has been growing slightly by 7.82% on average over the past years.
EPS 1Y (TTM)20%
EPS 3Y5.7%
EPS 5Y26.86%
EPS Q2Q%-32.04%
Revenue 1Y (TTM)20.93%
Revenue growth 3Y4.1%
Revenue growth 5Y7.82%
Sales Q2Q%-23.27%
3.2 Future
Based on estimates for the next years, TPH will show a very negative growth in Earnings Per Share. The EPS will decrease by -11.77% on average per year.
TPH is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -4.88% yearly.
EPS Next Y-33.38%
EPS Next 2Y-11.77%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-15.32%
Revenue Next 2Y-4.88%
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
A Price/Earnings ratio of 7.00 indicates a rather cheap valuation of TPH.
TPH's Price/Earnings ratio is a bit cheaper when compared to the industry. TPH is cheaper than 71.88% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 28.22. TPH is valued rather cheaply when compared to this.
Based on the Price/Forward Earnings ratio of 8.38, the valuation of TPH can be described as reasonable.
Based on the Price/Forward Earnings ratio, TPH is valued a bit cheaper than 68.75% of the companies in the same industry.
TPH is valuated cheaply when we compare the Price/Forward Earnings ratio to 20.86, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7 | ||
| Fwd PE | 8.38 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, TPH is valued cheaply inside the industry as 89.06% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, TPH is valued cheaper than 95.31% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 4.25 | ||
| EV/EBITDA | 4.7 |
4.3 Compensation for Growth
The decent profitability rating of TPH may justify a higher PE ratio.
TPH's earnings are expected to decrease with -11.77% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)0.26
EPS Next 2Y-11.77%
EPS Next 3YN/A
5. Dividend
5.1 Amount
TPH does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
31.5
+0.59 (+1.91%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryHousehold Durables
Earnings (Last)
Earnings (Next)
Inst Owners100.19%
Inst Owner Change0.28%
Ins Owners2.2%
Ins Owner Change4.06%
Market Cap2.86B
Analysts81.82
Price Target40.29 (27.9%)
Short Float %3.82%
Short Ratio2.87
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)2
Avg EPS beat(2)7.54%
Min EPS beat(2)5.38%
Max EPS beat(2)9.7%
EPS beat(4)4
Avg EPS beat(4)15.67%
Min EPS beat(4)5.38%
Max EPS beat(4)33.95%
EPS beat(8)8
Avg EPS beat(8)23.35%
EPS beat(12)12
Avg EPS beat(12)22.58%
EPS beat(16)16
Avg EPS beat(16)22%
Revenue beat(2)1
Avg Revenue beat(2)2.5%
Min Revenue beat(2)-0.53%
Max Revenue beat(2)5.53%
Revenue beat(4)3
Avg Revenue beat(4)4.48%
Min Revenue beat(4)-0.53%
Max Revenue beat(4)6.64%
Revenue beat(8)7
Avg Revenue beat(8)9.4%
Revenue beat(12)11
Avg Revenue beat(12)9.39%
Revenue beat(16)14
Avg Revenue beat(16)7.47%
PT rev (1m)-1.25%
PT rev (3m)-18.39%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-37.26%
EPS NY rev (1m)0%
EPS NY rev (3m)-29.77%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-19.38%
Revenue NY rev (1m)-1.25%
Revenue NY rev (3m)-15.19%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7 | ||
| Fwd PE | 8.38 | ||
| P/S | 0.64 | ||
| P/FCF | 4.25 | ||
| P/OCF | 4.1 | ||
| P/B | 0.86 | ||
| P/tB | 0.9 | ||
| EV/EBITDA | 4.7 |
EPS(TTM)4.5
EY14.29%
EPS(NY)3.76
Fwd EY11.94%
FCF(TTM)7.42
FCFY23.56%
OCF(TTM)7.68
OCFY24.37%
SpS49.55
BVpS36.79
TBVpS35.06
PEG (NY)N/A
PEG (5Y)0.26
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.36% | ||
| ROE | 13.73% | ||
| ROCE | 13.18% | ||
| ROIC | 9.82% | ||
| ROICexc | 12.62% | ||
| ROICexgc | 13.57% | ||
| OM | 12.84% | ||
| PM (TTM) | 10.19% | ||
| GM | 23.36% | ||
| FCFM | 14.97% |
ROA(3y)9.52%
ROA(5y)9.28%
ROE(3y)15.16%
ROE(5y)15.46%
ROIC(3y)10.2%
ROIC(5y)10.07%
ROICexc(3y)12.93%
ROICexc(5y)12.56%
ROICexgc(3y)13.88%
ROICexgc(5y)13.51%
ROCE(3y)13.7%
ROCE(5y)13.52%
ROICexcg growth 3Y-4.63%
ROICexcg growth 5Y13.56%
ROICexc growth 3Y-4.66%
ROICexc growth 5Y13.81%
OM growth 3Y-5.72%
OM growth 5Y7.18%
PM growth 3Y-4.72%
PM growth 5Y8.69%
GM growth 3Y-2.33%
GM growth 5Y2.47%
F-Score8
Asset Turnover0.92
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.31 | ||
| Debt/FCF | 1.52 | ||
| Debt/EBITDA | 1.68 | ||
| Cap/Depr | 75.11% | ||
| Cap/Sales | 0.52% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 114.51% | ||
| Profit Quality | 146.88% | ||
| Current Ratio | 8.21 | ||
| Quick Ratio | 2.1 | ||
| Altman-Z | 4.26 |
F-Score8
WACC8.14%
ROIC/WACC1.21
Cap/Depr(3y)108.44%
Cap/Depr(5y)98.73%
Cap/Sales(3y)0.73%
Cap/Sales(5y)0.73%
Profit Quality(3y)88.62%
Profit Quality(5y)109.85%
High Growth Momentum
Growth
EPS 1Y (TTM)20%
EPS 3Y5.7%
EPS 5Y26.86%
EPS Q2Q%-32.04%
EPS Next Y-33.38%
EPS Next 2Y-11.77%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)20.93%
Revenue growth 3Y4.1%
Revenue growth 5Y7.82%
Sales Q2Q%-23.27%
Revenue Next Year-15.32%
Revenue Next 2Y-4.88%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y34.77%
EBIT growth 3Y-1.86%
EBIT growth 5Y15.56%
EBIT Next Year-8.71%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y296.01%
FCF growth 3Y19.93%
FCF growth 5Y18.68%
OCF growth 1Y256.48%
OCF growth 3Y18.39%
OCF growth 5Y17.11%