NYSE:TMHC

Stock Analysis Report

Executive Summary

Taylor Morrison Home Corporation, together with its subsidiary, operates as a public homebuilder in the United States.

Snowflake

Fundamentals

Good value with adequate balance sheet.


Similar Companies

Share Price & News

How has Taylor Morrison Home's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: TMHC has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

5.5%

TMHC

2.0%

US Consumer Durables

0.2%

US Market


1 Year Return

44.8%

TMHC

38.6%

US Consumer Durables

12.2%

US Market

Return vs Industry: TMHC exceeded the US Consumer Durables industry which returned 38.6% over the past year.

Return vs Market: TMHC exceeded the US Market which returned 12.2% over the past year.


Shareholder returns

TMHCIndustryMarket
7 Day5.5%2.0%0.2%
30 Day-15.4%3.6%3.5%
90 Day2.4%16.9%6.3%
1 Year44.8%44.8%40.7%38.6%14.7%12.2%
3 Year16.9%16.9%31.7%25.7%47.8%38.3%
5 Year16.3%16.3%33.5%24.9%62.1%44.1%

Price Volatility Vs. Market

How volatile is Taylor Morrison Home's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Taylor Morrison Home undervalued compared to its fair value and its price relative to the market?

11.83x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: TMHC ($23) is trading above our estimate of fair value ($21.8)

Significantly Below Fair Value: TMHC is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: TMHC is good value based on its PE Ratio (11.8x) compared to the Consumer Durables industry average (13x).

PE vs Market: TMHC is good value based on its PE Ratio (11.8x) compared to the US market (18.1x).


Price to Earnings Growth Ratio

PEG Ratio: TMHC is good value based on its PEG Ratio (0.8x)


Price to Book Ratio

PB vs Industry: TMHC is good value based on its PB Ratio (1x) compared to the US Consumer Durables industry average (1.4x).


Next Steps

Future Growth

How is Taylor Morrison Home forecast to perform in the next 1 to 3 years based on estimates from 8 analysts?

14.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: TMHC's forecast earnings growth (14.1% per year) is above the savings rate (2.7%).

Earnings vs Market: TMHC's earnings (14.1% per year) are forecast to grow slower than the US market (14.3% per year).

High Growth Earnings: TMHC's earnings are forecast to grow, but not significantly.

Revenue vs Market: TMHC's revenue (3.1% per year) is forecast to grow slower than the US market (7.3% per year).

High Growth Revenue: TMHC's revenue (3.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if TMHC's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Taylor Morrison Home performed over the past 5 years?

38.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: TMHC has high quality earnings.

Growing Profit Margin: TMHC's current net profit margins (4.4%) are lower than last year (5.4%).


Past Earnings Growth Analysis

Earnings Trend: TMHC's earnings have grown significantly by 38.1% per year over the past 5 years.

Accelerating Growth: TMHC's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: TMHC had negative earnings growth (-4.1%) over the past year, making it difficult to compare to the Consumer Durables industry average (1.2%).


Return on Equity

High ROE: TMHC's Return on Equity (8.4%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Taylor Morrison Home's financial position?


Financial Position Analysis

Short Term Liabilities: TMHC's short term assets ($4.8B) exceeds its short term liabilities ($689.6M)

Long Term Liabilities: TMHC's short term assets (4.8B) exceeds its long term liabilities (2.2B)


Debt to Equity History and Analysis

Debt Level: TMHC's debt to equity ratio (85.1%) is considered high

Reducing Debt: TMHC's debt to equity ratio has reduced from 107.6% to 85.1% over the past 5 years.

Debt Coverage: TMHC's debt is not well covered by operating cash flow (11%).

Interest Coverage: TMHC earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet

Inventory Level: TMHC has a high level of physical assets or inventory.

Debt Coverage by Assets: TMHC's debt is covered by short term assets (assets are 2.3x debt).


Next Steps

Dividend

What is Taylor Morrison Home's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%1.4%markettop25%3.6%industryaverage1.9%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate TMHC's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate TMHC's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if TMHC's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if TMHC's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of TMHC's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

What is the CEO of Taylor Morrison Home's salary, the management and board of directors tenure and is there insider trading?

5.2yrs

Average management tenure


CEO

Sheryl Palmer (57yo)

7yrs

Tenure

US$6,772,865

Compensation

Ms. Sheryl D. Palmer has been the Chief Executive Officer and President of Taylor Morrison Inc. at Monarch Development Corporation since August 2007. Ms. Palmer has been Chief Executive Officer of Taylor M ...


CEO Compensation Analysis

Compensation vs Market: Sheryl's total compensation ($USD6.77M) is above average for companies of similar size in the US market ($USD5.10M).

Compensation vs Earnings: Sheryl's compensation has been consistent with company performance over the past year.


Management Age and Tenure

5.2yrs

Average Tenure

54.5yo

Average Age

Experienced Management: TMHC's management team is seasoned and experienced (5.2 years average tenure).


Board Age and Tenure

2.5yrs

Average Tenure

56yo

Average Age

Experienced Board: TMHC's board of directors are not considered experienced ( 2.5 years average tenure), which suggests a new board.


Insider Trading

Insider Buying: TMHC insiders have only sold shares in the past 3 months.


Recent Insider Transactions

SellUS$1,19623 Aug 19
Joseph Terracciano
EntityIndividual
Role
Chief Accounting Officer
Chief Accounting Officer
Shares51
Max PriceUS$23.45
SellUS$39,11911 Mar 19
Joseph Terracciano
EntityIndividual
Role
Chief Accounting Officer
Chief Accounting Officer
Shares2,323
Max PriceUS$16.84

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 4%.


Management Team

  • Graham Hughes (59yo)

    Chief Customer Officer

    • Tenure: 3.5yrs
  • Sheryl Palmer (57yo)

    Chairman & CEO

    • Tenure: 7yrs
    • Compensation: US$6.77m
  • Dave Cone (47yo)

    Executive VP & CFO

    • Tenure: 7.1yrs
    • Compensation: US$2.36m
  • Darrell Sherman (55yo)

    Chief Legal Officer

    • Tenure: 10.4yrs
    • Compensation: US$1.71m
  • Erik Heuser (47yo)

    Chief Strategy Officer & Executive VP

    • Tenure: 3.5yrs
  • Bob Witte (54yo)

    VP & Chief Information Officer

    • Tenure: 15.4yrs
  • Tawn Kelley (55yo)

    Executive VP & President of Mortgage Operations

    • Tenure: 2.6yrs
    • Compensation: US$2.50m
  • Joseph Terracciano (47yo)

    Chief Accounting Officer

    • Tenure: 5.2yrs
  • Jason Lenderman

    Vice President of Investor Relations

    • Tenure: 0yrs
  • Stephanie McCarty

    Chief Communications Officer

    • Tenure: 1.8yrs

Board Members

  • Dave Merritt (64yo)

    Independent Director

    • Tenure: 6.4yrs
    • Compensation: US$248.32k
  • Anne Mariucci (61yo)

    Independent Director

    • Tenure: 5.7yrs
    • Compensation: US$260.82k
  • Denise Warren (55yo)

    Independent Director

    • Tenure: 1.3yrs
    • Compensation: US$107.51k
  • Sheryl Palmer (57yo)

    Chairman & CEO

    • Tenure: 7yrs
    • Compensation: US$6.77m
  • Peter Lane (54yo)

    Lead Independent Director

    • Tenure: 2.5yrs
    • Compensation: US$289.15k
  • Andi Owen (54yo)

    Independent Director

    • Tenure: 1.3yrs
    • Compensation: US$107.51k
  • Jeff Flake (56yo)

    Independent Director

    • Tenure: 0.8yrs

Company Information

Taylor Morrison Home Corporation's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Taylor Morrison Home Corporation
  • Ticker: TMHC
  • Exchange: NYSE
  • Founded: 1936
  • Industry: Homebuilding
  • Sector: Consumer Durables
  • Market Cap: US$2.434b
  • Shares outstanding: 105.84m
  • Website: https://www.taylormorrison.com

Number of Employees


Location

  • Taylor Morrison Home Corporation
  • 4900 North Scottsdale Road
  • Suite 2000
  • Scottsdale
  • Arizona
  • 85251
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
TMHCNYSE (New York Stock Exchange)YesClass A Common StockUSUSDApr 2013
THMDB (Deutsche Boerse AG)YesClass A Common StockDEEURApr 2013

Biography

Taylor Morrison Home Corporation, together with its subsidiary, operates as a public homebuilder in the United States. The company designs, builds, and sells single-family and multi-family attached and det ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/11/15 00:31
End of Day Share Price2019/11/14 00:00
Earnings2019/09/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.