TPH Intrinsic Value – Tri Pointe Homes Announces $250M Stock Repurchase Program to Boost Shareholder Value
December 22, 2023
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Tri Pointe Homes ($NYSE:TPH) has announced a stock repurchase program worth $250 million, designed to increase shareholder value. Tri Pointe Homes is a leading national homebuilder that creates high-quality homes for a range of buyer types. Through the repurchase program, Tri Pointe Homes will acquire shares of its common stock in the open market or in privately negotiated transactions. The company’s goal is to return value to shareholders and increase value of its shares. The company believes that the repurchase of common stock is an effective use of capital and that it will benefit shareholders.
Additionally, the program provides the company with flexibility in responding to market conditions and other factors. The stock repurchase program does not obligate the company to acquire a specific number of shares and the program may be suspended or discontinued at any time. The period of the program has not been announced by the company.
Price History
The company’s stock opened at $35.2 and closed at $35.0, representing a 2.9% increase from the prior closing price of 34.0. The company plans to purchase up to $250M of its common stock over the course of the next year, subject to certain conditions. This move is expected to significantly enhance the value of the company’s existing shares. As part of the program, TRI POINTE HOMES will repurchase shares at prevailing market prices, depending on market conditions and corporate objectives. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for TPH. More…
| Total Revenues | Net Income | Net Margin |
| 3.98k | 413.84 | 10.4% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for TPH. More…
| Operations | Investing | Financing |
| 750.63 | -28.95 | -100.78 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for TPH. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 4.87k | 1.95k | 30.12 |
Key Ratios Snapshot
Some of the financial key ratios for TPH are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 6.0% | 12.3% | 13.3% |
| FCF Margin | ROE | ROA |
| 18.2% | 11.3% | 6.8% |
Analysis – TPH Intrinsic Value
GoodWhale has conducted an in-depth analysis of TRI POINTE HOMES’ financials. Based on our proprietary Valuation Line, the intrinsic value of TRI POINTE HOMES share is estimated to be around $28.6. However, the stock is currently traded at $35.0, implying that the stock is overvalued by 22.4%. Therefore, investors should consider taking profits or reducing exposure to TRI POINTE HOMES stock at this time. More…
Peers
The company has a strong commitment to customer satisfaction and offers a wide range of homebuilding services, including new home construction, home financing, and customer service. Tri Pointe Homes Inc competes with other large homebuilders, such as Hovnanian Enterprises Inc, Bellway PLC, and Redrow PLC.
– Hovnanian Enterprises Inc ($NYSE:HOV)
Hovnanian Enterprises Inc is a homebuilding company that has been in operation since 1959. The company is headquartered in New Jersey and builds homes in the United States. As of 2022, the company has a market cap of 240.44M and a ROE of 74.13%. The company’s primary business is the construction of single-family homes.
– Bellway PLC ($LSE:BWY)
The company’s market cap is 2.39B as of 2022. The company’s ROE is 5.88%.
The company is engaged in the business of building and selling homes in the United Kingdom. The company has a wide range of products and services, including new homes, resales, part exchange, and investment properties. The company also provides a range of services to its customers, including mortgage advice, conveyancing, surveying, and energy performance certificates.
– Redrow PLC ($LSE:RDW)
Redrow PLC is a homebuilding company headquartered in the United Kingdom. The company was founded in 1974 and has since grown to become one of the largest homebuilders in the country. Redrow focuses on building homes for families and first-time buyers in the UK. The company is listed on the London Stock Exchange and is a constituent of the FTSE 250 Index. As of 2022, Redrow’s market cap was 1.48 billion pounds and its ROE was 8.07%.
Summary
TRI Pointe Homes, a leading homebuilder, has announced a $250 million stock repurchase program. This program will allow TRI Pointe to buy back its outstanding common shares in the open market. The company believes this will help increase shareholder value. For investors, this could be a good opportunity to acquire shares at a potentially discounted price and make a return on their investment.
Additionally, it could also signal increased confidence from management in the company’s future performance. It is important for investors to research TRI Pointe before making any decisions.
