Taylor Morrison Home Corporation
Taylor Morrison Home Corporation Fundamental Analysis
Taylor Morrison Home Corporation (TMHC) shows moderate financial fundamentals with a PE ratio of 7.33, profit margin of 9.67%, and ROE of 12.83%. The company generates $8.1B in annual revenue with weak year-over-year growth of -0.57%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 58.1/100 based on profitability, valuation, growth, and balance sheet metrics. The C grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze TMHC's fundamental strength across five key dimensions:
Efficiency Score
WeakTMHC struggles to generate sufficient returns from assets.
Valuation Score
ExcellentTMHC trades at attractive valuation levels.
Growth Score
WeakTMHC faces weak or negative growth trends.
Financial Health Score
ExcellentTMHC maintains a strong and stable balance sheet.
Profitability Score
WeakTMHC struggles to sustain strong margins.
Key Financial Metrics
Is TMHC Expensive or Cheap?
P/E Ratio
TMHC trades at 7.33 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, TMHC's PEG of -1.11 indicates potential undervaluation.
Price to Book
The market values Taylor Morrison Home Corporation at 0.91 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 3.61 times EBITDA. This is generally considered low.
How Well Does TMHC Make Money?
Net Profit Margin
For every $100 in sales, Taylor Morrison Home Corporation keeps $9.67 as profit after all expenses.
Operating Margin
Core operations generate 14.15 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $12.83 in profit for every $100 of shareholder equity.
ROA
Taylor Morrison Home Corporation generates $7.98 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Taylor Morrison Home Corporation produces operating cash flow of $832.46M, showing steady but balanced cash generation.
Free Cash Flow
Taylor Morrison Home Corporation produces free cash flow of $792.41M, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $8.23 in free cash annually.
FCF Yield
TMHC converts 14.05% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
7.33
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-1.11
vs 25 benchmark
P/B Ratio
Price to book value ratio
0.91
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.70
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.37
vs 25 benchmark
Current Ratio
Current assets to current liabilities
6.24
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.13
vs 25 benchmark
ROA
Return on assets percentage
0.08
vs 25 benchmark
ROCE
Return on capital employed
0.13
vs 25 benchmark
How TMHC Stacks Against Its Sector Peers
| Metric | TMHC Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 7.33 | 23.52 | Better (Cheaper) |
| ROE | 12.83% | 1156.00% | Weak |
| Net Margin | 9.67% | 670.00% | Weak |
| Debt/Equity | 0.37 | 0.73 | Strong (Low Leverage) |
| Current Ratio | 6.24 | 2.56 | Strong Liquidity |
| ROA | 7.98% | -8289.00% (disorted) | Weak |
TMHC outperforms its industry in 3 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Taylor Morrison Home Corporation's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
70.95%
Industry Style: Cyclical, Growth, Discretionary
High GrowthEPS CAGR
319.34%
Industry Style: Cyclical, Growth, Discretionary
High GrowthFCF CAGR
-100.00%
Industry Style: Cyclical, Growth, Discretionary
Declining