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Taylor Morrison Home Corp (TMHC) Fundamental Analysis & AI Grade 2026

TMHC NYSE Operative Builders DE CIK: 0001562476
Update Pending • Analysis: Apr 29, 2026 • SEC Data: 2026-03-31
Combined AI Grade
C
72% Confidence
N/A
C
72% Conf
Pending
Analysis scheduled

📊 TMHC Key Takeaways

Revenue: $1.4B
Net Margin: 7.1%
Free Cash Flow: $-20.4M
Current Ratio: N/A
Debt/Equity: 0.37x
EPS: $1.01
AI Grade: C with 72% confidence
Taylor Morrison Home Corp (TMHC) receives a C fundamental grade with 72% confidence from our AI analysis based on SEC 10-K filings. With revenue of $1.4B, net profit margin of 7.1%, and return on equity (ROE) of 1.6%, Taylor Morrison Home Corp demonstrates mixed fundamentals in the Market sector. Below is our complete TMHC stock analysis for 2026.

Is Taylor Morrison Home Corp (TMHC) a Good Investment?

Claude

Taylor Morrison faces deteriorating operational fundamentals with revenue and net income declining YoY while burning cash operationally. The negative operating cash flow of -$10.4M and negative free cash flow of -$20.4M despite positive net income signal severe earnings quality issues. Even with a solid balance sheet, the company is destroying shareholder value through poor capital deployment and cash burn.

Taylor Morrison Home Corp Key Strengths (TMHC)

Claude
  • + Manageable debt/equity ratio of 0.37x provides financial flexibility
  • + Strong cash position of $652.9M provides near-term liquidity buffer
  • + Reasonable gross margin of 21.0% maintains production profitability

TMHC Stock Risks: Taylor Morrison Home Corp Investment Risks

Claude
  • ! Operating cash flow negative at -$10.4M despite positive net income signals earnings quality deterioration
  • ! Free cash flow negative at -$20.4M: company burning cash operationally and cannot fund operations from core business
  • ! Revenue and net income both declining YoY (-0.6% and -10.8% respectively) indicate shrinking business
  • ! Abysmal capital efficiency with ROE at 1.6% and ROA at 1.0% shows poor asset deployment
  • ! FCF margin of -1.5% is unsustainable without either business improvement or balance sheet deterioration

Key Metrics to Watch

Claude
  • * Operating cash flow trend - must return to positive territory
  • * Free cash flow trajectory - critical for long-term viability
  • * Revenue growth stabilization
  • * Return on equity and return on assets improvement

Taylor Morrison Home Corp (TMHC) Financial Metrics & Key Ratios

Revenue
$1.4B
Net Income
$98.6M
EPS (Diluted)
$1.01
Free Cash Flow
$-20.4M
Total Assets
$9.8B
Cash Position
$652.9M

💡 AI Analyst Insight

The current ratio below 1.0x warrants monitoring of short-term liquidity.

TMHC Profit Margin, ROE & Profitability Analysis

Gross Margin 21.0%
Operating Margin 73.8%
Net Margin 7.1%
ROE 1.6%
ROA 1.0%
FCF Margin -1.5%

TMHC vs Market Sector: How Taylor Morrison Home Corp Compares

How Taylor Morrison Home Corp compares to Market sector averages

Net Margin
TMHC 7.1%
vs
Sector Avg 12.0%
TMHC Sector
ROE
TMHC 1.6%
vs
Sector Avg 15.0%
TMHC Sector
Current Ratio
TMHC 0.0x
vs
Sector Avg 1.8x
TMHC Sector
Debt/Equity
TMHC 0.4x
vs
Sector Avg 0.7x
TMHC Sector

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.

Return on Equity
1.6%
Sector avg: 15%
Net Profit Margin
7.1%
Sector avg: 12%
Revenue Growth
N/A
Year-over-year
Debt/Equity
0.37x
Sector avg: 0.7x

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

Current Ratio
N/A
Quick Ratio
N/A
Debt/Equity
0.37x
Debt/Assets
36.1%
Interest Coverage
N/A
Long-term Debt
$2.3B

TMHC Revenue & Earnings Growth: 5-Year Financial Trend

TMHC 5-year financial data: Year 2021: Revenue $7.5B, Net Income $254.7M, EPS $2.35. Year 2022: Revenue $8.2B, Net Income $243.4M, EPS $1.88. Year 2023: Revenue $8.2B, Net Income $663.0M, EPS $5.18. Year 2024: Revenue $8.2B, Net Income $1.1B, EPS $9.06. Year 2025: Revenue $8.2B, Net Income $768.9M, EPS $6.98.
Revenue
Net Income
EPS (right axis)

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

Revenue Growth
N/A
Year-over-year
Net Income Growth
N/A
Year-over-year
EPS Growth
N/A
Earnings per share
FCF Margin
-1.5%
Free cash flow / Revenue

TMHC Quarterly Earnings & Performance

Quarterly financial performance data for Taylor Morrison Home Corp including revenue, net income, and earnings per share.
Quarter Revenue Net Income EPS
Q1 2026 $1.4B $98.6M $1.01
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

Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.

Taylor Morrison Home Corp Dividends, Buybacks & Capital Allocation

Operating Cash Flow
-$10.4M
Cash generated from operations
Stock Buybacks
$149.6M
Shares repurchased (TTM)
Capital Expenditures
$10.0M
Investment in assets
Dividends
None
No dividend program

TMHC SEC Filings: Latest 10-K & 10-Q Analysis

Access official SEC EDGAR filings for Taylor Morrison Home Corp (CIK: 0001562476)

📋 Recent SEC Filings

Date Form Document Action
Jun 1, 2026 8-K d111152d8k.htm View →
May 26, 2026 4 xslF345X06/ownership.xml View →
May 26, 2026 4 xslF345X06/ownership.xml View →
May 26, 2026 4 xslF345X06/ownership.xml View →
May 26, 2026 4 xslF345X06/ownership.xml View →

Frequently Asked Questions about TMHC

What is the AI rating for TMHC?

Taylor Morrison Home Corp (TMHC) has an AI grade of C with 72% confidence, based on fundamental analysis of SEC EDGAR filings.

What are TMHC's key strengths?

Claude: Manageable debt/equity ratio of 0.37x provides financial flexibility. Strong cash position of $652.9M provides near-term liquidity buffer.

What are the risks of investing in TMHC?

Claude: Operating cash flow negative at -$10.4M despite positive net income signals earnings quality deterioration. Free cash flow negative at -$20.4M: company burning cash operationally and cannot fund operations from core business.

What is TMHC's revenue and growth?

Taylor Morrison Home Corp reported revenue of $1.4B.

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 $1.01.

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 grade reflects both perspectives for balanced insights.

What is TMHC's fundamental grade?

Based on our AI fundamental analysis in June 2026, Taylor Morrison Home Corp has a C grade with 72% confidence. Review the strengths and risks sections above for full context. This is not investment advice.

Is TMHC stock overvalued or undervalued?

Valuation metrics for TMHC: ROE of 1.6% (sector avg: 15%), net margin of 7.1% (sector avg: 12%). Compare these metrics with sector averages to assess valuation.

What is TMHC's AI grade for 2026?

Our dual AI analysis gives Taylor Morrison Home Corp a combined C grade 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 $-10.4M, with capital expenditures of $10.0M. FCF margin is -1.5%.

How does TMHC compare to other Market stocks?

Vs Default sector averages: Net margin 7.1% (avg: 12%), ROE 1.6% (avg: 15%), current ratio N/A (avg: 1.8).

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Disclaimer: This analysis is generated by Claude AI (Anthropic) and ChatGPT (OpenAI) based on publicly available SEC EDGAR filings. It does not include stock price data and should not be considered financial advice. All fundamental data is sourced from SEC public domain filings. Always conduct your own research and consult with a qualified financial advisor before making investment decisions.
Data Source: SEC EDGAR | Analysis Date: Apr 29, 2026 | Data as of: 2026-03-31 | Powered by Claude AI