TAYLOR MORRISON HOME Reports Fourth Quarter FY2022 Earnings Results on December 31, 2022
February 24, 2023
Earnings Overview
TAYLOR MORRISON HOME ($NYSE:TMHC) announced their FY2022 fourth quarter earnings results on December 31 2022, for the period ending February 15 2023. Revenue for the quarter was USD 275.3 million, a slight rise of 1.0% compared to the same period in the previous year. Despite this, net income decreased by 0.5% year-over-year to USD 2492.1 million.
Transcripts Simplified
Taylor Morrison is seeing a decent sized backlog going into ’23. There are strong margins on the to-be-built side and strong deposits from customers. The vintage land bank is also expected to provide good margin. Operational enhancements have been put in place to reduce costs, such as reducing options by over 50%, and simplifying plans by 20%.
There are some front end cost reduction opportunities, but they will help more in ’24. Elevated incentives are being offered due to the softening demand environment and mortgage rates have been helpful in terms of buying down those rates.
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for TMHC. More…
| Total Revenues | Net Income | Net Margin |
| 8.22k | 1.05k | 12.7% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for TMHC. More…
| Operations | Investing | Financing |
| 940.18 | -74.26 | -0.15 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for TMHC. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 8.47k | 3.82k | 40.05 |
Key Ratios Snapshot
Some of the financial key ratios for TMHC are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 20.0% | 63.1% | 17.1% |
| FCF Margin | ROE | ROA |
| 11.1% | 20.1% | 10.4% |
Price History
The stock opened up at $35.7 and closed at $36.6, which is an increase of 1.8% from the previous day’s closing price of $36.0. This represents a significant milestone for the company, as their stock has been steadily growing since the start of the fiscal year. During this quarter, Taylor Morrison Home has managed to improve their financial performance by expanding their portfolio and growing their brand presence, all while meeting the needs of their customers. This improvement was driven by a combination of higher average sales prices, higher absorption rates, and lower overhead costs.
The company’s strong performance can be attributed to their continued focus on providing an excellent customer experience while ensuring they remain profitable. Trust in their brand and service have been key drivers of growth and they remain committed to providing quality and value to their customers each quarter. Live Quote…
Analysis
We at GoodWhale have conducted a thorough analysis of Taylor Morrison Home. Based on our Risk Rating, Taylor Morrison Home is a medium risk investment in terms of financial and business aspects. While this may not be an ideal rating, it is still indicative of a stable and secure investment. During our analysis, we detected one risk warning in the balance sheet. To find out exactly what this risk is, we encourage our users to register with us and view the detailed information that we have collected. We are confident that our analysis is correct and reliable, giving users the confidence to make informed investment decisions. More…
Peers
The homebuilding industry is highly competitive, with many large and small companies vying for market share. Among the largest builders are Taylor Morrison Home Corp, KB Home, Meritage Homes Corp, and Beazer Homes USA Inc. These companies compete on a variety of fronts, including price, product offerings, customer service, and geographic focus.
– KB Home ($NYSE:KBH)
KB Home is a homebuilding company that was founded in 1957. The company has a market cap of $2.46 billion and a return on equity of 18.25%. KB Home builds and sells both single-family and multi-family homes in the United States. The company has operations in 35 markets across nine states.
– Meritage Homes Corp ($NYSE:MTH)
Meritage Homes is a homebuilding company that was founded in 1985 and is headquartered in Scottsdale, Arizona. The company builds and sells single-family homes and multi-family homes in the United States. As of 2022, the company has a market cap of 2.65 billion and a return on equity of 22.62%. The company operates in over 50 markets across the United States and has built over 115,000 homes since its inception. Meritage Homes is a publicly-traded company and its stock is listed on the New York Stock Exchange.
– Beazer Homes USA Inc ($NYSE:BZH)
Beazer Homes USA Inc is a homebuilder that operates in the United States. The company has a market capitalization of $345.59 million and a return on equity of 15.8%. Beazer Homes builds and sells single-family homes, townhomes, and condominiums. The company operates in Arizona, California, Colorado, Delaware, Florida, Georgia, Indiana, Maryland, Nevada, North Carolina, South Carolina, Tennessee, Texas, and Virginia.
Summary
Taylor Morrison Home reported their fourth quarter earnings for Fiscal Year 2022, with total revenue of USD 275.3 million, a 1.0% increase from the prior year. Net income decreased 0.5% to USD 2492.1 million. This slight decrease in income could be attributed to higher labor costs, as well as weaker demand in certain areas in the US housing market.
Investors can look to Taylor Morrison Home’s past performance and financials to assess whether it would be a beneficial investment. With its expanding portfolio of new homes and strong share price performance, Taylor Morrison Home might be worth consideration for those looking to invest in the US housing market.
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