📊 TMHC Key Takeaways
Is Taylor Morrison Home Corp (TMHC) a Good Investment?
Taylor Morrison demonstrates a fortress-like balance sheet with 0.36x Debt/Equity ratio and exceptional free cash flow generation of $777M, but is experiencing concerning operational headwinds with net income declining 10.8% YoY while revenue barely declined 0.6%, signaling margin compression. The company's solid profitability margins and cash generation provide a buffer, but downward earnings trajectory requires monitoring for signs of stabilization.
Why Buy Taylor Morrison Home Corp Stock? TMHC Key Strengths
- Conservative leverage with 0.36x Debt/Equity ratio and $850M cash reserves provides significant financial flexibility
- Exceptional free cash flow generation of $777M with 9.6% FCF margin demonstrates strong underlying business cash generation
- Healthy profitability across all levels: 23% gross margin, 12.6% operating margin, 9.6% net margin
TMHC Stock Risks: Taylor Morrison Home Corp Investment Risks
- Net income declined 10.8% YoY while revenue only declined 0.6%, indicating significant margin compression and operational challenges
- Homebuilder sector exposure to interest rate cycles and housing demand volatility creates cyclical downturn risk
- Earnings per share declining 6.0% YoY despite strong cash flow suggests profitability pressures may persist
Key Metrics to Watch
- Revenue growth stabilization - critical to reverse -0.6% YoY decline trend
- Gross and operating margin trends - monitor for continued compression below current levels
- Free cash flow conversion ratio - ensure earnings decline does not translate to cash flow deterioration
Taylor Morrison Home Corp (TMHC) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The current ratio below 1.0x warrants monitoring of short-term liquidity.
TMHC Profit Margin, ROE & Profitability Analysis
TMHC vs Market Sector: How Taylor Morrison Home Corp Compares
How Taylor Morrison Home Corp compares to Market sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Taylor Morrison Home Corp Stock Overvalued? TMHC Valuation Analysis 2026
Based on fundamental analysis, Taylor Morrison Home Corp has mixed fundamental signals relative to the Market sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Taylor Morrison Home Corp Balance Sheet: TMHC Debt, Cash & Liquidity
TMHC Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Taylor Morrison Home Corp's revenue has shown modest growth of 9% over the 5-year period. The most recent EPS of $6.98 reflects profitable operations.
TMHC Revenue Growth, EPS Growth & YoY Performance
TMHC Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2025 | $2.1B | $201.4M | $2.01 |
| Q2 2025 | $2.0B | $193.6M | $1.86 |
| Q1 2025 | $1.7B | $190.3M | $1.75 |
| Q3 2024 | $1.7B | $170.7M | $1.54 |
| Q2 2024 | $2.0B | $199.5M | $1.86 |
| Q1 2024 | $1.7B | $190.3M | $1.74 |
| Q3 2023 | $1.7B | $170.7M | $1.54 |
| Q2 2023 | $2.0B | $234.6M | $2.12 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Taylor Morrison Home Corp Dividends, Buybacks & Capital Allocation
TMHC SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Taylor Morrison Home Corp (CIK: 0001562476)
📋 Recent SEC Filings
❓ Frequently Asked Questions about TMHC
What is the AI rating for TMHC?
Taylor Morrison Home Corp (TMHC) has an AI rating of HOLD with 72% confidence, based on fundamental analysis of SEC EDGAR filings.
What are TMHC's key strengths?
Claude: Conservative leverage with 0.36x Debt/Equity ratio and $850M cash reserves provides significant financial flexibility. Exceptional free cash flow generation of $777M with 9.6% FCF margin demonstrates strong underlying business cash generation.
What are the risks of investing in TMHC?
Claude: Net income declined 10.8% YoY while revenue only declined 0.6%, indicating significant margin compression and operational challenges. Homebuilder sector exposure to interest rate cycles and housing demand volatility creates cyclical downturn risk.
What is TMHC's revenue and growth?
Taylor Morrison Home Corp reported revenue of $8.1B.
Does TMHC pay dividends?
Taylor Morrison Home Corp does not currently pay dividends.
Where can I find TMHC SEC filings?
Official SEC filings for Taylor Morrison Home Corp (CIK: 0001562476) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is TMHC's EPS?
Taylor Morrison Home Corp has a diluted EPS of $7.77.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is TMHC a good stock to buy right now?
Based on our AI fundamental analysis in April 2026, Taylor Morrison Home Corp has a HOLD rating with 72% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.
Is TMHC stock overvalued or undervalued?
Valuation metrics for TMHC: ROE of 12.4% (sector avg: 15%), net margin of 9.6% (sector avg: 12%). Compare these metrics with sector averages to assess valuation.
Should I buy TMHC stock in 2026?
Our dual AI analysis gives Taylor Morrison Home Corp a combined HOLD rating for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is TMHC's free cash flow?
Taylor Morrison Home Corp's operating cash flow is $817.3M, with capital expenditures of $40.4M. FCF margin is 9.6%.
How does TMHC compare to other Market stocks?
Vs Default sector averages: Net margin 9.6% (avg: 12%), ROE 12.4% (avg: 15%), current ratio N/A (avg: 1.8).