TRI POINTE HOMES INC (TPH) Stock Fundamental Analysis
NYSE:TPH - New York Stock Exchange, Inc. - US87265H1095 - Common Stock - Currency: USD
Taking everything into account, TPH scores 6 out of 10 in our fundamental rating. TPH was compared to 63 industry peers in the Household Durables industry. TPH gets an excellent profitability rating and is at the same time showing great financial health properties. TPH is valued quite cheap, but it does not seem to be growing. These ratings would make TPH suitable for value investing!
1. Profitability
1.1 Basic Checks
TPH had positive earnings in the past year.
In the past year TPH had a positive cash flow from operations.
TPH had positive earnings in each of the past 5 years.
Each year in the past 5 years TPH had a positive operating cash flow.
1.2 Ratios
TPH has a better Return On Assets (8.77%) than 66.67% of its industry peers.
The Return On Equity of TPH (12.73%) is comparable to the rest of the industry.
TPH has a Return On Invested Capital of 9.27%. This is in the better half of the industry: TPH outperforms 63.49% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for TPH is in line with the industry average of 10.29%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.77% | ||
| ROE | 12.73% | ||
| ROIC | 9.27% |
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's Profit Margin of 9.85% is amongst the best of the industry. TPH outperforms 82.54% of its industry peers.
In the last couple of years the Profit Margin of TPH has grown nicely.
TPH's Operating Margin of 12.54% is fine compared to the rest of the industry. TPH outperforms 79.37% of its industry peers.
TPH's Operating Margin has improved in the last couple of years.
TPH has a worse Gross Margin (23.52%) than 60.32% of its industry peers.
TPH's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 12.54% | ||
| PM (TTM) | 9.85% | ||
| GM | 23.52% |
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.
Compared to 1 year ago, TPH has less shares outstanding
TPH has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, TPH has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 4.35 indicates that TPH is not in any danger for bankruptcy at the moment.
TPH has a Altman-Z score of 4.35. This is in the better half of the industry: TPH outperforms 71.43% of its industry peers.
TPH has a debt to FCF ratio of 1.99. This is a very positive value and a sign of high solvency as it would only need 1.99 years to pay back of all of its debts.
With a decent Debt to FCF ratio value of 1.99, TPH is doing good in the industry, outperforming 77.78% of the companies in the same industry.
TPH has a Debt/Equity ratio of 0.30. This is a healthy value indicating a solid balance between debt and equity.
With a Debt to Equity ratio value of 0.30, TPH perfoms like the industry average, outperforming 52.38% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.3 | ||
| Debt/FCF | 1.99 | ||
| Altman-Z | 4.35 |
ROIC/WACC1.12
WACC8.28%
2.3 Liquidity
TPH has a Current Ratio of 8.42. This indicates that TPH is financially healthy and has no problem in meeting its short term obligations.
TPH's Current ratio of 8.42 is amongst the best of the industry. TPH outperforms 88.89% of its industry peers.
A Quick Ratio of 1.89 indicates that TPH should not have too much problems paying its short term obligations.
TPH's Quick ratio of 1.89 is amongst the best of the industry. TPH outperforms 80.95% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 8.42 | ||
| Quick Ratio | 1.89 |
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.
Measured over the past years, TPH shows a very strong growth in Earnings Per Share. The EPS has been growing by 26.86% on average per year.
TPH shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 10.83%.
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)10.83%
Revenue growth 3Y4.1%
Revenue growth 5Y7.82%
Sales Q2Q%-22.99%
3.2 Future
TPH is expected to show a very negative growth in Earnings Per Share. In the coming years, the EPS will decrease by -16.12% yearly.
TPH is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -7.92% yearly.
EPS Next Y-36.73%
EPS Next 2Y-16.12%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-21.32%
Revenue Next 2Y-7.92%
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.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
TPH is valuated cheaply with a Price/Earnings ratio of 7.40.
Based on the Price/Earnings ratio, TPH is valued a bit cheaper than the industry average as 79.37% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of TPH to the average of the S&P500 Index (27.48), we can say TPH is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 9.80, the valuation of TPH can be described as reasonable.
Based on the Price/Forward Earnings ratio, TPH is valued a bit cheaper than 65.08% of the companies in the same industry.
TPH is valuated cheaply when we compare the Price/Forward Earnings ratio to 36.52, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.4 | ||
| Fwd PE | 9.8 |
4.2 Price Multiples
TPH's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. TPH is cheaper than 88.89% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of TPH indicates a rather cheap valuation: TPH is cheaper than 88.89% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.1 | ||
| EV/EBITDA | 5.6 |
4.3 Compensation for Growth
TPH has a very decent profitability rating, which may justify a higher PE ratio.
TPH's earnings are expected to decrease with -16.12% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)0.28
EPS Next 2Y-16.12%
EPS Next 3YN/A
5. Dividend
5.1 Amount
No dividends for TPH!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
33.3
+0.23 (+0.7%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryHousehold Durables
Earnings (Last)
Earnings (Next)
Inst Owners100%
Inst Owner Change0%
Ins Owners2.53%
Ins Owner Change5.71%
Market Cap3.02B
Analysts81.82
Price Target39.95 (19.97%)
Short Float %4.2%
Short Ratio3.75
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)23.48%
Min EPS beat(2)5.38%
Max EPS beat(2)41.57%
EPS beat(4)4
Avg EPS beat(4)17.57%
Min EPS beat(4)5.38%
Max EPS beat(4)41.57%
EPS beat(8)8
Avg EPS beat(8)19.14%
EPS beat(12)12
Avg EPS beat(12)23.35%
EPS beat(16)16
Avg EPS beat(16)22.97%
Revenue beat(2)1
Avg Revenue beat(2)-0.21%
Min Revenue beat(2)-0.53%
Max Revenue beat(2)0.1%
Revenue beat(4)3
Avg Revenue beat(4)2.94%
Min Revenue beat(4)-0.53%
Max Revenue beat(4)6.64%
Revenue beat(8)7
Avg Revenue beat(8)5.63%
Revenue beat(12)11
Avg Revenue beat(12)8.57%
Revenue beat(16)15
Avg Revenue beat(16)7.68%
PT rev (1m)0%
PT rev (3m)-0.84%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-8.54%
EPS NY rev (1m)0%
EPS NY rev (3m)-5.03%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-9.15%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-7.88%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.4 | ||
| Fwd PE | 9.8 | ||
| P/S | 0.7 | ||
| P/FCF | 6.1 | ||
| P/OCF | 5.8 | ||
| P/B | 0.91 | ||
| P/tB | 0.95 | ||
| EV/EBITDA | 5.6 |
EPS(TTM)4.5
EY13.51%
EPS(NY)3.4
Fwd EY10.2%
FCF(TTM)5.46
FCFY16.4%
OCF(TTM)5.74
OCFY17.23%
SpS47.36
BVpS36.64
TBVpS34.91
PEG (NY)N/A
PEG (5Y)0.28
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.77% | ||
| ROE | 12.73% | ||
| ROCE | 12.45% | ||
| ROIC | 9.27% | ||
| ROICexc | 11.42% | ||
| ROICexgc | 12.25% | ||
| OM | 12.54% | ||
| PM (TTM) | 9.85% | ||
| GM | 23.52% | ||
| FCFM | 11.53% |
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 Turnover0.89
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.3 | ||
| Debt/FCF | 1.99 | ||
| Debt/EBITDA | 1.73 | ||
| Cap/Depr | 80.4% | ||
| Cap/Sales | 0.58% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 91.33% | ||
| Profit Quality | 117.06% | ||
| Current Ratio | 8.42 | ||
| Quick Ratio | 1.89 | ||
| Altman-Z | 4.35 |
F-Score8
WACC8.28%
ROIC/WACC1.12
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-36.73%
EPS Next 2Y-16.12%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)10.83%
Revenue growth 3Y4.1%
Revenue growth 5Y7.82%
Sales Q2Q%-22.99%
Revenue Next Year-21.32%
Revenue Next 2Y-7.92%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y20.21%
EBIT growth 3Y-1.86%
EBIT growth 5Y15.56%
EBIT Next Year-17.75%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-24.79%
FCF growth 3Y19.93%
FCF growth 5Y18.68%
OCF growth 1Y-25.26%
OCF growth 3Y18.39%
OCF growth 5Y17.11%