Fact based stock research
Taylor Morrison Home (NYSE:TMHC)

US87724P1066

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For every stock, we judge its performance against its peers and rank it on a scale of 1 to 100. The higher the rank, the better the stock performs than its peers. And, we do this for six investment strategies:
Value - shows how good of a value the stock is. Green is "inexpensive"; red is "expensive".

Growth - shows a company's growth potential. Green is "high growth" expected; red is "tough times ahead".

Safety - relates to the amount of debt a company has. Green is low debt level; red is high debt level.

Combined Financial - this isn't an average of the first three ranks but rather a consolidated view across several financial indicators. Green = good; red = tread carefully.

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Taylor Morrison Home stock research in summary

investors.taylormorrison.cominvestor-relationsdefault.aspx

ANALYSIS: With an Obermatt Combined Rank of 91 (better than 91% compared with investment alternatives), Taylor Morrison Home (Homebuilding, USA) shares have much better financial characteristics than comparable stocks. Shares of Taylor Morrison Home are a good value (attractively priced) with a consolidated Value Rank of 81 (better than 81% of alternatives), are safely financed (Safety Rank of 55, which means low debt burdens), but show below-average growth (Growth Rank of 39). ...read more

RECOMMENDATION: A Combined Rank of 91, is a strong buy recommendation based on Taylor Morrison Home's financial characteristics. As the company Taylor Morrison Home's key financial metrics exhibit good value (Obermatt Value Rank of 81) but low growth (Obermatt Growth Rank of 39) while being safely financed (Obermatt Safety Rank of 55), it may be a safer investment because companies with low debt can better withstand times of crises. Yet the good value, better than 81% of comparable companies, may also indicate that the company's future is challenging. If you believe that low growth is temporary or just due to a specific current event, you may conclude that the good value of the stock provides an attractive investment opportunity and the downside is limited due to below-average financing risks. Obermatt Premium subscribers can further check the stock’s Sentiment Ranks, which also flow into the Obermatt 360° View for investors. ...read more

Latest Obermatt Ranks


360° View^new
Sentiment Rank^new
Value Rank	n/a
Growth Rank	n/a
Safety Rank	n/a
Combined Rank	n/a

Country	USA
Industry	Homebuilding
Index	S&P MIDCAP
Size class	X-Large

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Research History: Taylor Morrison Home

RESEARCH HISTORY	2021	2022	2023	2024
VALUE
VALUE	69	81	77	n/a
GROWTH
GROWTH	61	97	59	n/a
SAFETY
SAFETY	41	55	55	n/a
SENTIMENT
SENTIMENT	n/a	3	19	^new
360° VIEW
360° VIEW	n/a	71	75	^new

Most recent update of the stock research: . Financial reporting date used for calculating ranks: . Stock research history is based on the Obermatt Method. The higher the rank, the better Taylor Morrison Home is in the corresponding investment strategy.
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Combined financial peformance in Detail

RESEARCH HISTORY	2021	2022	2023	2024
VALUE
VALUE	69	81	77	n/a
GROWTH
GROWTH	61	97	59	n/a
SAFETY
SAFETY	41	55	55	n/a
COMBINED
COMBINED	57	91	91	n/a

Last update of combined financial performance: . Stock analysis on combined financial performance: The higher the rank of Taylor Morrison Home the better the performance.

Value Metrics in Detail

ANALYSIS: With an Obermatt Value Rank of 81 (better than 81% compared with alternatives) for 2022, Taylor Morrison Home shares are significantly less expensive than comparable stocks. The Value Rank is based on consolidating four value indicators, with three out of four indicators above average for Taylor Morrison Home. Price-to-Sales (P/S) is 66, which means that the stock price compared with what market professionals expect for future sales is lower than for 66% of comparable companies, indicating a good value regarding Taylor Morrison Home's revenue size. The same is valid for expected Price to Profits (or Price / Earnings, P/E), more favorable than for 91% of alternatives, and it's also true for the Price-to-Book Capital ratio (also referred to as market-to-book ratio) with a Price-to-Capital Rank of 76. But, compared with other companies in the same industry, dividend yields are expected to be lower than average; only 1% of all competitors have even lower dividend yields than Taylor Morrison Home (a Dividend Yield Rank of 1). 99% alternative investments in the same business provide a higher dividend yield. ...read more

RECOMMENDATION: The overall picture with a consolidated Value Rank of 81, is a buy recommendation based on Taylor Morrison Home's stock price compared with the company's operational size and dividend yields. The below-average dividend yield may be a good sign, as it could mean the company has more attractive investment opportunities for the generated cash than to pay it out as dividends. A low dividend yield can also indicate a growth phase. We recommend further analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks, including the 360° View, before making an investment decision. ...read more

VALUE METRICS	2021	2022	2023	2024
PRICE VS. REVENUES (P/S)
PRICE VS. REVENUES (P/S)	79	89	67	n/a
PRICE VS. PROFITS (P/E)
PRICE VS. PROFITS (P/E)	85	95	91	n/a
PRICE VS. CAPITAL (Market-to-Book)
PRICE VS. CAPITAL (Market-to-Book)	73	90	83	n/a
DIVIDEND YIELD
DIVIDEND YIELD	1	1	1	n/a
CONSOLIDATED RANK: VALUE
CONSOLIDATED RANK: VALUE	69	81	77	n/a

Last update of Value Rank: . Stock analysis on value ratios: The higher the rank, the lower the value ratio of Taylor Morrison Home; except for dividend yield where the rank is higher, the higher the yield.

Growth Metrics in Detail

ANALYSIS: With an Obermatt Growth Rank of 39 (better than 39% compared with alternatives), Taylor Morrison Home shows a below-average growth dynamic in its industry. There is limited momentum in this company. The Growth Rank is based on consolidating four value indicators, with half of the indicators below and half above average for Taylor Morrison Home. Capital Growth has a rank of 69, which means that currently professionals expect the company to grow its invested capital more than 39% of its competitors. Investors welcomed this, visible in the Stock Returns rank of 73 (above 73% of alternative investments). But Sales Growth has only a rank of 16, which means that, currently, professionals expect the company to grow less than 84% of its competitors, and Profit Growth is also low at a rank of 39. ...read more

RECOMMENDATION: The overall picture with a consolidated Growth Rank of 39, is a hold recommendation for growth and momentum investors. This is an ambiguous picture. Revenue growth and capital growth are strong, but the growth in profit, which seems good, can also be an indication that growth momentum may be negative. The fact that stock returns have been above average doesn't help much, as stock returns are less reliable in showing a company’s future growth potential. Prices may perform well for the simple reason that investors were too pessimistic in the past and are now correcting their opinions and moving the stock price to a more reasonable level. As the growth picture is mixed for Taylor Morrison Home, investors may want to look at value and sentiment indicators for a well-rounded picture of this stock. While momentum is a popular investment factor, the value aspect might be the more important one, in the longer term. We recommend analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks to arrive at a 360° View of the stock purchase case, especially since the growth performance is mixed here. ...read more

GROWTH METRICS	2021	2022	2023	2024
REVENUE GROWTH
REVENUE GROWTH	28	75	12	n/a
PROFIT GROWTH
PROFIT GROWTH	33	83	43	n/a
CAPITAL GROWTH
CAPITAL GROWTH	n/a	93	100	n/a
STOCK RETURNS
STOCK RETURNS	63	63	75	n/a
CONSOLIDATED RANK: GROWTH
CONSOLIDATED RANK: GROWTH	61	97	59	n/a

Last update of Growth Rank: . Stock analysis on growth metrics: The higher the rank, the higher the growth and returns of Taylor Morrison Home.

Safety Metrics in Detail

ANALYSIS: With an Obermatt Safety Rank of 55 (better than 55% compared with alternatives), the company Taylor Morrison Home has financing practices on the safer side, which mean that their overall debt burden is lower than average. This doesn't mean that the business of Taylor Morrison Home is safe, it only means that the company is on the safer side regarding possible bankruptcy, assuming that public reporting is correct. The Safety Rank is based on consolidating three financing indicators, with just one indicator above average for Taylor Morrison Home and the other two below average. Refinancing is at 95, meaning the portion of the debt about to be refinanced is below average. It has less debt in the refinancing stage than 95% of its competitors. But Leverage is high with a rank of 36, meaning the company has an above-average debt-to-equity ratio. It has more debt than 64% of its competitors. Liquidity is also on the riskier side with a rank of 48, meaning the company generates less profit to service its debt than 52% of its competitors. ...read more

RECOMMENDATION: With a consolidated Safety Rank of 55 (better than 55% compared with alternatives), Taylor Morrison Home has a financing structure that is safer than that of its competitors. A good Refinancing Rank means that the problems of the company may not be around the corner. But high Leverage is only good if things go well, and low Liquidity is a signal for caution. The financing signals for Taylor Morrison Home are on the riskier side, requiring the company's future to be on the safer side. Investors may want to look at Growth and Sentiment ranks before making an investment decision. In the long-term, investors may have a debt challenge with Taylor Morrison Home and should also compare Obermatt’s Value, Growth, and Sentiment Ranks before making a decision. ...read more

SAFETY METRICS	2021	2022	2023	2024
LEVERAGE
LEVERAGE	10	32	40	n/a
REFINANCING
REFINANCING	98	95	95	n/a
LIQUIDITY
LIQUIDITY	30	20	52	n/a
CONSOLIDATED RANK: SAFETY
CONSOLIDATED RANK: SAFETY	41	55	55	n/a

Last update of Safety Rank: . Stock analysis on safety metrics: The higher the rank, the lower the leverage of Taylor Morrison Home and the more cash is available to service its debt.

Sentiment Metrics in Detail

SENTIMENT	2021	2022	2023	2024
ANALYST OPINIONS
ANALYST OPINIONS	n/a	34	34	^new
OPINIONS CHANGE
OPINIONS CHANGE	n/a	35	50	^new
PRO HOLDINGS
PRO HOLDINGS	n/a	33	61	^new
MARKET PULSE
MARKET PULSE	n/a	6	10	^new
CONSOLIDATED RANK: SENTIMENT
CONSOLIDATED RANK: SENTIMENT	n/a	3	19	^new

Last update of Sentiment Rank: . Stock analysis on sentiment metrics: The higher the rank, the more positive the sentiment for Taylor Morrison Home.
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