Tri Pointe Homes, Inc.
Tri Pointe Homes, Inc. Fundamental Analysis
Tri Pointe Homes, Inc. (TPH) shows moderate financial fundamentals with a PE ratio of 16.40, profit margin of 6.95%, and ROE of 7.29%. The company generates $3.5B in annual revenue with strong year-over-year growth of 19.04%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 59.9/100 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 TPH's fundamental strength across five key dimensions:
Efficiency Score
WeakTPH struggles to generate sufficient returns from assets.
Valuation Score
ExcellentTPH trades at attractive valuation levels.
Growth Score
ExcellentTPH delivers strong and consistent growth momentum.
Financial Health Score
ExcellentTPH maintains a strong and stable balance sheet.
Profitability Score
WeakTPH struggles to sustain strong margins.
Key Financial Metrics
Is TPH Expensive or Cheap?
P/E Ratio
TPH trades at 16.40 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, TPH's PEG of -0.83 indicates potential undervaluation.
Price to Book
The market values Tri Pointe Homes, Inc. at 1.19 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 10.12 times EBITDA. This signals the market has high growth expectations.
How Well Does TPH Make Money?
Net Profit Margin
For every $100 in sales, Tri Pointe Homes, Inc. keeps $6.95 as profit after all expenses.
Operating Margin
Core operations generate 9.43 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $7.29 in profit for every $100 of shareholder equity.
ROA
Tri Pointe Homes, Inc. generates $4.79 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Tri Pointe Homes, Inc. generates limited operating cash flow of $162.71M, signaling weaker underlying cash strength.
Free Cash Flow
Tri Pointe Homes, Inc. produces free cash flow of $129.54M, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $1.51 in free cash annually.
FCF Yield
TPH converts 3.23% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
16.40
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-0.83
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.19
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.15
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.39
vs 25 benchmark
Current Ratio
Current assets to current liabilities
12.68
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.07
vs 25 benchmark
ROA
Return on assets percentage
0.05
vs 25 benchmark
ROCE
Return on capital employed
0.07
vs 25 benchmark
How TPH Stacks Against Its Sector Peers
| Metric | TPH Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 16.40 | 23.52 | Better (Cheaper) |
| ROE | 7.29% | 1156.00% | Weak |
| Net Margin | 6.95% | 670.00% | Weak |
| Debt/Equity | 0.39 | 0.73 | Strong (Low Leverage) |
| Current Ratio | 12.68 | 2.56 | Strong Liquidity |
| ROA | 4.79% | -8289.00% (disorted) | Weak |
TPH outperforms its industry in 3 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Tri Pointe Homes, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
114.98%
Industry Style: Cyclical, Growth, Discretionary
High GrowthEPS CAGR
231.31%
Industry Style: Cyclical, Growth, Discretionary
High GrowthFCF CAGR
230.13%
Industry Style: Cyclical, Growth, Discretionary
High Growth