Company Overview
Taylor Morrison Home Corporation functions as a dedicated homebuilder and land developer operating primarily within the United States, where it designs, constructs, and sells detached and attached single-family and multifamily residences. The company targets specific consumer segments, including entry-level buyers, move-up purchasers, and resort lifestyle seekers across various geographic markets. It operates within the Consumer Cyclical sector and the Residential Construction industry, positioning it as a company whose performance is intrinsically linked to broader housing market cycles and consumer discretionary spending power. With a market capitalization of $5.64B and annual revenue reaching $8.12B, the firm manages a workforce of 3,000 employees. These valuation and revenue figures indicate that Taylor Morrison maintains a significant operational footprint within the residential real estate landscape, reflecting a substantial scale relative to peers in the specialized homebuilding niche.
Financial Health
The company reported a trailing twelve-month revenue of $8.12B, accompanied by a net income of $782.50M and an EBITDA of $1.20B. The substantial gap between the $8.12B in revenue and the $782.50M in net income reveals a cost structure where operating expenses, including construction costs, labor, and overhead, consume a significant portion of top-line sales before reaching the bottom line. This operational reality is further highlighted by a gross margin of 23.4%, an operating margin of 12.3%, and a profit margin of 9.6%. The gross margin indicates the efficiency of the core construction business in covering direct costs, while the operating margin reflects the effectiveness of managing broader corporate functions, and the profit margin demonstrates the final ability to convert sales into shareholder value. The firm generated free cash flow of $737.67M, which provides a critical measure of financial flexibility by showing the cash remaining after capital expenditures, essential for funding new builds or debt servicing. On the balance sheet, the company holds $850.04M in cash against total debt of $2.36B, resulting in a debt-to-equity ratio of 37.45. This leverage profile suggests a balance sheet that utilizes borrowed capital to finance operations, indicating a leveraged position common in capital-intensive industries like homebuilding. Liquidity is robust as evidenced by a current ratio of 6.76, which signals a strong ability to meet short-term obligations with current assets. Management effectiveness is further quantified by a return on equity of 13.0% and a return on assets of 7.6%, metrics that reveal how efficiently the company generates profits from its shareholders' investments and its total asset base.
Valuation Assessment
Valuation metrics for Taylor Morrison Home Corporation include a P/E ratio of 7.53 on a trailing twelve-month basis and a forward P/E of 8.98. The difference between the trailing and forward P/E implies that the market expects earnings to recover or grow slightly, as the forward multiple is higher than the current multiple, suggesting anticipated improvements in profitability relative to current earnings. The price-to-book ratio stands at 0.90, indicating that the market values the company at approximately 90% of its book value, which suggests the stock is trading at a discount to the accounting value of its assets. Alternative valuation perspectives are provided by a price-to-sales ratio of 0.69 and an EV/EBITDA of 5.95, metrics that suggest the stock is priced conservatively relative to both its sales generation and its operating earnings power. In terms of trading range, the 52-week high is $72.50 and the 52-week low is $51.90, placing the current price context within a range of approximately 28.5% below the 52-week high. The beta of 1.56 indicates that the stock's price volatility is significantly higher than the broader market, meaning it is expected to move with greater intensity than the overall market index.
Growth & Income
Recent performance data shows a revenue growth rate of -10.9% year-over-year and an earnings growth rate of -23.4% year-over-year. Earnings are growing slower than revenue in a negative sense, as the decline in earnings is more pronounced than the decline in revenue, implying that cost pressures or margin compression are currently impacting profitability more severely than sales volume. As a non-dividend payer, the company reports a dividend yield of N/A and a payout ratio of 0.0%, indicating that the firm reinvests all earnings back into the business for growth or debt reduction rather than distributing income to shareholders. The overall growth and income profile is characterized by current contraction in both revenue and earnings, coupled with an absence of dividend distribution, reflecting a strategy focused on operational restructuring or capital allocation rather than income generation for investors.