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Taylor Morrison Home Corporatio (TMHC) Stock Fundamentals, Analysis & Risk Signals

Health score, competitive moat, risk signals, and key metrics at a glance.

NYSE•Consumer Cyclical•Residential Construction
C
AverageMetricSide Score: 44/100
ProfitabilityProfit15/30
GrowthGrowth6/25
Balance SheetBalance17/25
Cash QualityCash6/20
Price & Volume
Market Cap $6.90B

Taylor Morrison Home Corporation, together with its subsidiaries, operates as a homebuilder and land developer in the United States. It designs, builds, and sells single, and multifamily detached and attached homes in markets for entry-level, move-up, and resort lifestyle buyers under the Taylor Morrison and Esplanade brand names; and develops lifestyle and master-planned communities with single, and multi-family detached and attached homes. The company is also involved in the Build-to-Rent homebuilding business under the Yardly brand name; and provision of financial services, title insurance, and closing settlement services. Taylor Morrison Home Corporation was founded in 1936 and is headquartered in Scottsdale, Arizona.

Moat Signals

Competitive analysis based on 52 quarters of fundamental data

Pricing Power

Moderate Moat

Operating margins are positive at ~13.3% on average, but show some variability — pricing power may be sensitive to market conditions.

Competitive Advantage

Moderate Moat

ROE is positive at ~13.7% on average, adequate but below the threshold typically associated with wide moats.

Cash Generation

Moderate Moat

5 of the last 8 quarters generated positive FCF. The company generally funds itself but has occasional cash consumption quarters.

Demand Durability

Moderate Moat

Revenue shows resilience with 4 of 7 quarters posting growth — demand is generally stable but has seen some soft patches.

Risk Signals

Data-driven red flags and warnings across 52 quarters

Some Concerns

Margin Pressure

Watch

Operating margins declined 19.2% — watch for continued compression, which may signal competitive or cost pressure.

Earnings Quality

Red Flag

FCF consistently trails net income (avg 0.6x) — earnings may be inflated by non-cash items or aggressive accounting.

Leverage Risk

Healthy

D/E ratio is 0.4 — conservative capital structure with low financial risk.

Revenue Decline

Healthy

Revenue is stable or growing over recent quarters — demand appears durable.

Cash Burn

Watch

FCF turned negative in 3 of the last 8 quarters — occasional cash consumption.

Share Dilution

Healthy

Shares decreased 9.0% — net buybacks are reducing shares outstanding and boosting per-share value.

Metrics at a Glance

as of March 2026

Revenue & Profit

Revenue, EBITDA, operating income, net income, EPS, and shares

TTM Revenue
$7.61B
9.0%
Q. Revenue
$1.39B
TTM EBITDA
$985.29M
24.0%
TTM Op. Income
$922.84M
25.3%
Q. Op. Income
$131.71M
TTM Net Income
$667.66M
26.3%
Q. Net Income
$98.63M
EPS
$1.03
Shares Out.
$96.03M
5.1%
$7.61B in TTM revenue declined 9.0% YoY, reaching $1.39B last quarter. TTM EBITDA of $985.29M and TTM operating income of $922.84M shows growth is flowing through. Net income of $667.66M TTM confirms the company is converting revenue into profit. Revenue is contracting — assess whether this is cyclical or structural.

Margins

Gross, EBITDA, operating, and net margin trends

Gross Margin
21.0%
14.2%
EBITDA Margin
10.3%
Op. Margin
9.5%
35.7%
Net Margin
7.1%
36.8%
Op. margin of 9.5% is down 5.3% YoY — costs are rising relative to revenue. Net margin at 7.1% and gross margin of 21.0% — earnings take a bigger bite when COGS stays lean..

Price Ratios

P/E, P/S, P/B, EV/EBITDA, FCF yield, and earnings yield

P/E Ratio
10.3x
P/S Ratio
0.9x
P/B Ratio
1.1x
At 10.3x P/E, the stock trades below market averages — potentially undervalued. P/S of 0.9x and P/B of 1.1x provide additional context. Assess whether the current multiple is justified by the company's growth and profitability trajectory.

Assets & Liabilities

Total assets, cash, debt, book value, and leverage

Total Assets
$9.77B
Cash
$652.93M
Long-Term Debt
$2.34B
Book Value
$6.25B
D/E Ratio
0.4
Debt/EBITDA
16.4
With $9.77B in assets and $2.34B in long-term debt, the D/E of 0.4and book value of $6.25B — shows a conservative capital structure — the company has a strong financial cushion to weather downturns.

Cash Flow

Operating cash flow, free cash flow, FCF margin, and earnings quality

Op. Cash Flow
$-10.43M
Free Cash Flow
$-20.39M
129.7%
FCF Margin
-0.3%
FCF / Net Income
-0.2
FCF of $-20.39M on $-10.43M in operating cash flow. The FCF / Net Income ratio of -0.0x shows cash consumption — the business is not yet self-funding.

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