TMHC Intrinsic Stock Value – Deutsche Bank Upgrades Taylor Morrison Home to Buy
December 9, 2023
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Deutsche Bank has recently upgraded Taylor Morrison Home ($NYSE:TMHC) to a Buy rating. Taylor Morrison Home is a leading homebuilder and developer in the United States, offering a wide selection of new homes and communities in some of the most desirable locations in the country.
In addition, the company has also been able to maintain a strong financial performance, making it well-positioned to capitalize on the growth of the housing market. As a result, investors have taken note and are increasingly bullish on the prospects for long term growth. Taylor Morrison Home’s commitment to providing high quality homes at competitive prices has helped them remain one of the top homebuilders in the country. The company takes pride in providing a wide range of products, from single family homes to luxury homes, in some of the most desirable locations across the United States. As such, the Deutsche Bank upgrade is a sign of their continued confidence in Taylor Morrison Home’s ability to deliver on their promise to their customers.
Price History
Deutsche Bank on Friday upgraded Taylor Morrison Home stock from hold to buy, and the stock responded positively with a 1.7% increase in price from its prior closing price of $47.3. The stock opened at $47.5 and closed at $48.1, indicating increased investor confidence in the company. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for TMHC. More…
| Total Revenues | Net Income | Net Margin |
| 7.89k | 871.67 | 11.0% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for TMHC. More…
| Operations | Investing | Financing |
| 1.2k | -90.18 | -823.41 |
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 |
| 8.44k | 3.26k | 48.01 |
Key Ratios Snapshot
Some of the financial key ratios for TMHC are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 9.3% | 46.1% | 15.3% |
| FCF Margin | ROE | ROA |
| 14.5% | 14.7% | 8.9% |
Analysis – TMHC Intrinsic Stock Value
At GoodWhale, we have conducted an analysis of the fundamentals of TAYLOR MORRISON HOME. Our proprietary Valuation Line has revealed that the intrinsic value of TAYLOR MORRISON HOME shares is approximately $37.0. In comparison, the current stock price is at $48.1, making it overvalued by around 30.1%. This suggests that potential investors of TAYLOR MORRISON HOME stock might want to think twice before investing. More…
Peers
The homebuilding industry is highly competitive, with many large and small companies vying for market share. Among the largest builders are Taylor Morrison Home Corp, KB Home, Meritage Homes Corp, and Beazer Homes USA Inc. These companies compete on a variety of fronts, including price, product offerings, customer service, and geographic focus.
– KB Home ($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
Deutsche Bank upgraded Taylor Morrison Home from Hold to Buy, citing positive outlook on the company’s long-term performance. Specifically, the analyst suggested that the company has increased its market share, has successful execution of its acquisition and integration strategy, and has a strong balance sheet. The analyst believes that these advantages will continue to drive Taylor Morrison Home’s profitability over the long-term.
The upgrade also reflects the analyst’s view that there is potential upside in the company’s stock price. As a result, Deutsche Bank upgraded Taylor Morrison Home with a price target of $30 per share.
