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1. Company Snapshot

1.a. Company Description

Taylor Morrison Home Corporation, together with its subsidiaries, operates as a public homebuilder in the United States.The company designs, builds, and sells single and multi-family detached and attached homes; and develops lifestyle and master-planned communities.It also develops and constructs multi-use properties consisting of commercial space, retail, and multi-family properties under the Urban Form brand name; and offers title insurance and closing settlement services, as well as financial services.


In addition, the company operates under the Taylor Morrison, William Lyon Signature, and Darling Homes brand names in Arizona, California, Colorado, Florida, Georgia, Nevada, North and South Carolina, Oregon, Texas, and Washington.Taylor Morrison Home Corporation was founded in 1936 and is headquartered in Scottsdale, Arizona.

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1.b. Last Insights on TMHC

Breaking News: Taylor Morrison Home Corporation recently saw Assetmark Inc. reduce its stake by 6.1% through the sale of 50243 shares. Following this transaction, Assetmark Inc. holds 776847 shares, representing about 0.79% of the company. There is no recent earnings release available. Analysts recommendations on the stock are not provided in the data. Several analysts have recently issued ratings on the stock.

1.c. Company Highlights

2. Taylor Morrison's Strong Q4 2025 Earnings: A Closer Look

Taylor Morrison Home Corporation's fourth-quarter 2025 financial performance was robust, with revenues reaching $2 billion, driven by the delivery of 3,285 homes at an average price of $596,000. For the full year, the company delivered 12,997 homes, generating $7.8 billion in revenue and achieving a 23% adjusted home closings gross margin. The company's reported net income was $174 million, or $1.76 per diluted share, while adjusted net income was $188 million, or $1.91 per diluted share, beating analyst estimates of $1.73. The actual EPS came out at $1.8.

Publication Date: Feb -15

📋 Highlights
  • Strong Revenue Growth:: Full-year 2025 revenue reached $7.8 billion, up from $2 billion in Q4, driven by 12,997 home deliveries at an average price of $597,000.
  • Healthy Profit Margins:: Achieved 23% adjusted home closings gross margin for 2025, with Q4 gross margin at 23.4%, despite a decline from 24.4% in the prior-year period.
  • Shareholder Returns:: Generated $381 million in share repurchases in 2025 and plans to repurchase $400 million in 2026, driving a 13% ROE and 14% growth in book value per share.
  • Community Expansion & Mix Shift:: Aims to open over 100 new communities in 2026, including 20 Esplanade outlets, to balance spec and to-be-built home orders, despite potential short-term margin pressure.
  • Liquidity & Financial Strength:: Ended 2025 with $1.8 billion in liquidity, including $850 million in unrestricted cash, and reduced net debt-to-capitalization ratio to 17.8% (from 20%).

Operational Highlights

The company had a strong operational performance, with a 40 basis point improvement in SG&A expense leverage, which contributed to a 13% return on equity and 14% growth in book value per share. Taylor Morrison's focus on prime locations within core submarkets and its significant land bank positioned it well for future growth. Its build-to-rent business, Yardley, also has a substantial land bank, providing a growth opportunity.

Guidance and Outlook

For 2026, the company expects to deliver around 11,000 homes, with an average closing price of $580,000 to $590,000. It plans to open over 100 new communities, which should help shift its sales mix back to a more balanced mix of spec and to-be-built orders, driving long-term margin potential. However, this mix shift may temporarily impact gross margins in the first half of the year due to inventory management.

Valuation and Growth Prospects

With a P/E Ratio of 8.52 and an ROE of 12.83%, Taylor Morrison's valuation appears reasonable. Analysts estimate revenue growth at 8.9% for next year, indicating a positive outlook. The company's commitment to disciplined capital allocation strategies and its strong liquidity position, with approximately $1.8 billion in liquidity, support its growth prospects.

Land Investment and Market Dynamics

The company is seeing stabilization in the land market, with low single-digit land appreciation expectations. Taylor Morrison's shift away from investing in non-core submarkets, particularly in entry-level segments, and its focus on move-up and resort lifestyle markets, driven by less competition and a more favorable return on investment, should contribute to its long-term success.

3. NewsRoom

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Assetmark Inc. Sells 50,243 Shares of Taylor Morrison Home Corporation $TMHC

Feb -14

Source: defenseworld.net

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Taylor Morrison Home Corporation (TMHC) Q4 2025 Earnings Call Transcript

Feb -11

Source: seekingalpha.com

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Here's What Key Metrics Tell Us About Taylor Morrison (TMHC) Q4 Earnings

Feb -11

Source: zacks.com

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Taylor Morrison Home (TMHC) Beats Q4 Earnings and Revenue Estimates

Feb -11

Source: zacks.com

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Taylor Morrison Reports Fourth Quarter and Full Year 2025 Results

Feb -11

Source: prnewswire.com

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Taylor Morrison Home Corporation (NYSE:TMHC) Given Average Rating of “Moderate Buy” by Analysts

Feb -09

Source: defenseworld.net

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These Homebuilder Stocks Climb Following Report of Plan to Build 'Trump Homes'

Feb -03

Source: investopedia.com

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Market Today: Disney picks D'Amaro; PepsiCo trims prices

Feb -03

Source: gurufocus.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (2.13%)

6. Segments

East

Expected Growth: 2%

Taylor Morrison Home Corporation's East segment growth is driven by increasing demand for new homes, particularly in the Southeast and Texas regions, where the company has a strong presence. Additionally, the segment benefits from a favorable demographic trend, with millennials and baby boomers seeking affordable housing options, and a strong job market, which supports consumer confidence and purchasing power.

West

Expected Growth: 3%

Taylor Morrison Home Corporation's West segment growth is driven by increasing demand for new homes in Western states, particularly in California and Arizona, fueled by job growth, low unemployment, and migration to these regions. Additionally, the company's strategic land acquisition and development efforts, as well as its focus on first-time homebuyers and move-up buyers, contribute to its growth.

Central

Expected Growth: 1%

Taylor Morrison Home Corporation's central segment growth is driven by increasing demand for new homes, fueled by low interest rates, government incentives, and a strong economy. Additionally, the company's strategic expansion into new markets, focus on first-time homebuyers, and investments in digital marketing and sales platforms contribute to its growth momentum.

Financial Services

Expected Growth: 4%

Taylor Morrison Home Corporation's 4% growth in Financial Services is driven by increasing mortgage originations, rising interest rates, and expanding title and insurance services. Additionally, the company's strategic partnerships and digital platform enhancements have improved customer engagement, leading to higher revenue and profitability.

Corporate and Unallocated

Expected Growth: 1%

Taylor Morrison Home Corporation's Corporate and Unallocated segment growth is driven by strategic land acquisition, increasing community count, and operational efficiencies. The company's focus on expanding its footprint in high-growth markets, coupled with its ability to manage construction costs and improve pricing power, contributes to its growth momentum.

7. Detailed Products

Single-Family Homes

Taylor Morrison offers a wide range of single-family homes, from starter homes to luxury estates, designed to meet the needs of various lifestyles and budgets.

Townhomes

Taylor Morrison's townhomes offer a low-maintenance lifestyle with shared walls, perfect for those who want the benefits of homeownership without the upkeep of a single-family home.

Condominiums

Taylor Morrison's condominiums provide a carefree lifestyle with shared amenities and services, ideal for those who want to own their home without the burden of exterior maintenance.

Active Adult Communities

Taylor Morrison's active adult communities cater to adults 55+, offering resort-style amenities and low-maintenance living, allowing residents to focus on their passions and interests.

Rental Communities

Taylor Morrison's rental communities offer a range of apartments and townhomes for rent, providing flexibility and convenience for those who prefer renting over homeownership.

8. Taylor Morrison Home Corporation's Porter Forces

Forces Ranking

Threat Of Substitutes

Taylor Morrison Home Corporation faces moderate threat from substitutes, as customers have limited alternatives for new home purchases. However, the company's focus on customer experience and quality construction helps to mitigate this threat.

Bargaining Power Of Customers

Taylor Morrison Home Corporation's customers have limited bargaining power due to the company's strong brand reputation and limited competition in the new home construction market.

Bargaining Power Of Suppliers

Taylor Morrison Home Corporation's suppliers have moderate bargaining power due to the company's dependence on a few large suppliers for materials and labor. However, the company's scale and negotiating power help to mitigate this threat.

Threat Of New Entrants

Taylor Morrison Home Corporation faces a low threat from new entrants due to the high barriers to entry in the new home construction market, including regulatory hurdles and significant capital requirements.

Intensity Of Rivalry

Taylor Morrison Home Corporation operates in a highly competitive market with several established players, leading to a high intensity of rivalry. The company must focus on differentiating itself through quality, customer experience, and innovative products to maintain market share.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 28.28%
Debt Cost 3.95%
Equity Weight 71.72%
Equity Cost 13.28%
WACC 10.64%
Leverage 39.42%

11. Quality Control: Taylor Morrison Home Corporation passed 4 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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Green Brick Partners

A-Score: 5.5/10

Value: 6.8

Growth: 8.3

Quality: 7.9

Yield: 0.0

Momentum: 4.5

Volatility: 5.7

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M/I Homes

A-Score: 5.4/10

Value: 8.0

Growth: 8.2

Quality: 7.0

Yield: 0.0

Momentum: 3.5

Volatility: 6.0

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Meritage Homes

A-Score: 5.4/10

Value: 8.6

Growth: 5.3

Quality: 6.5

Yield: 4.0

Momentum: 2.5

Volatility: 5.7

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Tri Pointe Homes

A-Score: 5.2/10

Value: 8.0

Growth: 8.2

Quality: 6.0

Yield: 0.0

Momentum: 2.5

Volatility: 6.3

1-Year Total Return ->

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Taylor Morrison

A-Score: 5.1/10

Value: 8.0

Growth: 5.7

Quality: 6.4

Yield: 0.0

Momentum: 3.5

Volatility: 7.0

1-Year Total Return ->

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Century Communities

A-Score: 5.1/10

Value: 8.0

Growth: 7.6

Quality: 4.7

Yield: 3.0

Momentum: 2.0

Volatility: 5.3

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

68.86$

Current Price

68.86$

Potential

-0.00%

Expected Cash-Flows