Last Updated: 16 Sep 2024
Executive Summary
Taylor Morn Home (TMHC) is a leading homebuilder in the United States. The company has a strong track record of profitability and growth. TMHC's stock is currently trading at $68.66, below its 52-week high of $69.62. The company's fundamentals are strong, and its technical analysis suggests that the stock is undervalued. We believe that TMHC is a good investment for both short-term and long-term investors.
Company Overview
Taylor Morrison Home is a public housing builder in the United States. The company is headquartered in Scottsdale, Arizona. TMHC builds single-family homes, townhomes, and condominiums. The company's homes are sold under the Taylor Morrison and Darling Homes brands. TMHC has a presence in 10 states and 50 markets.
Fundamental Analysis
TMHC's financial performance has been strong in recent years. The company's revenue has grown from $5.8 billion in 2019 to $7.4 billion in 2022. TMHC's net income has also grown significantly, from $625 million in 2019 to $875 million in 2022. The company's gross margin has remained relatively stable in recent years, at around 29%. TMHC's operating margin has also been stable, at around 14%.
TMHC's financial ratios are also strong. The company's debt-to-equity ratio is 0.56, which is below the industry average. TMHC's return on equity is 13.8%, which is above the industry average.
Technical Analysis
TMHC's stock price has been trending higher in recent months. The stock is currently trading above its 50-day and 200-day moving averages. The stock's relative strength index (RSI) is 62, which is in the overbought territory. This suggests that the stock may be due for a pullback. However, the stock's moving average convergence divergence (MACD) is positive, which suggests that the stock is still in a bullish trend.
Short Term Outlook
We believe that TMHC's stock is overvalued in the short term. The stock's RSI is in the overbought territory, and the stock's MACD is positive. This suggests that the stock may be due for a pullback. We recommend that investors wait for a pullback before buying TMHC stock.
Long Term Outlook
We believe that TMHC's stock is a good investment for the long term. The company has a strong track record of profitability and growth. TMHC's fundamentals are strong, and its technical analysis suggests that the stock is undervalued. We believe that TMHC is a good investment for both short-term and long-term investors.
Analyst Recommendations
The majority of analysts have a buy rating on TMHC stock. The average analyst target price for TMHC stock is $70.58. This suggests that analysts believe that TMHC stock is undervalued.
