Tri Pointe (TPH) AI Stock Analysis

• Market Cap: $2.83B
• Dividend Yield: N/A
• Average Volume (3M): 796.43K
• Price to Earnings (P/E): 9.7
• Beta (1Y): 0.77
• Revenue Growth: -16.60%
• EPS Growth: -29.85%
• Country: US
• Employees: 1,750
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Residential Construction
• EPS (TTM): 0.64
• Shares Outstanding: 85,953,500
• 10 Day Avg. Volume: 885,406
• 30 Day Avg. Volume: 796,431
• PEG Ratio: 0.19
• Price to Book (P/B): 1.02
• Price to Sales (P/S): 0.76
• P/FCF Ratio: 5.07
• Enterprise Value/Market Cap: 1.22
• Enterprise Value/Revenue: 0.92
• Enterprise Value/Gross Profit: 4.07
• Enterprise Value/Ebitda: 7.61
• 1Y Price Target: $38.00
• Price Target Upside: 15.75% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3
• EPS Forecast (FY): 2.8
• Revenue Forecast (FY): $3.38B

• Rating: 73 Outperform
• Price Target: $38.00 ▲(15.75% Upside)

Tri Pointe Homes demonstrates a solid overall performance with strong technical indicators and a favorable valuation. While financial performance shows some challenges, the company's strategic growth plans and financial strength, as highlighted in the earnings call, contribute positively to the stock's outlook.

Positive Factors

Strong Financial Position

A robust liquidity position with significant cash reserves enhances Tri Pointe's ability to invest in growth opportunities and weather economic downturns, supporting long-term stability.

Community Expansion Plans

Expanding community count indicates strategic growth, potentially increasing market share and revenue streams, reinforcing Tri Pointe's competitive position in the residential construction industry.

Stable Profit Margins

Maintaining stable profit margins amidst revenue challenges reflects operational efficiency and cost management, ensuring profitability and financial health over the long term.

Negative Factors

Declining Revenue Growth

A decline in revenue growth suggests potential challenges in market demand or competitive pressures, which could impact future earnings and market positioning if not addressed.

Negative Free Cash Flow Growth

Declining free cash flow generation can limit Tri Pointe's ability to reinvest in business operations, affecting long-term growth and financial flexibility.

Soft Market Conditions

Persistent soft market conditions can hinder sales growth and profitability, posing a challenge to achieving strategic objectives and maintaining competitive advantage.

Tri Pointe Business Overview & Revenue Model

Company Description

Tri Pointe Homes, Inc. engages in the design, construction, and sale of single-family attached and detached homes in the United States. The company operates through a portfolio of six brands comprising Maracay in Arizona; Pardee Homes in California and Nevada; Quadrant Homes in Washington; Trendmaker Homes in Texas; TRI Pointe Homes in California, Colorado, and the Carolinas; and Winchester Homes in Maryland, Virginia, and the District of Columbia. As of December 31, 2021, its operations consisted of 112 active selling communities and 41,675 owned or controlled lots. The company sells its homes through own sales representatives and independent real estate brokers. It also provides financial services, such as mortgage financing, title and escrow, and property and casualty insurance agency services. The company was formerly known as TRI Pointe Group, Inc. and changed its name to Tri Pointe Homes, Inc. in January 2021. Tri Pointe Homes, Inc. was founded in 2009 and is headquartered in Irvine, California.

How the Company Makes Money

Tri Pointe generates revenue primarily through the sale of newly constructed homes. The company makes money by acquiring land, developing residential communities, and constructing homes that are then sold to consumers. Key revenue streams include home sales, as well as revenue from ancillary services such as financing and home warranties. In addition, Tri Pointe often engages in joint ventures and partnerships with land developers and financial institutions, which can further enhance its revenue potential. The company's earnings are influenced by market demand for housing, interest rates, and economic conditions, as well as its ability to manage construction costs and deliver homes efficiently.

Tri Pointe Financial Statement Overview

Summary

Tri Pointe's financial statements present a mixed picture. The company faces challenges with declining revenue growth and free cash flow generation. However, it maintains stable profit margins and a strong balance sheet with manageable debt levels. The company's ability to convert net income into cash remains robust, which is a positive aspect.

Income Statement

Tri Pointe's income statement shows a mixed performance. The company has experienced a decline in revenue growth, with a negative growth rate of -7.17% in the TTM period. However, the company maintains a decent gross profit margin of 22.58% and a net profit margin of 8.27%. The EBIT and EBITDA margins are also stable at 11.28% and 12.08%, respectively. Despite the recent revenue decline, the company has managed to maintain profitability, which is a positive sign.

Balance Sheet

The balance sheet of Tri Pointe reflects a stable financial position. The debt-to-equity ratio is 0.38, indicating a moderate level of leverage. The return on equity (ROE) is 9.36%, showing the company's ability to generate returns on shareholders' equity. The equity ratio stands at 66.21%, suggesting a strong equity base relative to total assets. Overall, the balance sheet indicates financial stability with manageable debt levels.

Cash Flow

Tri Pointe's cash flow statement highlights some challenges. The free cash flow growth rate is negative at -31.09%, indicating a decline in free cash flow generation. However, the operating cash flow to net income ratio is strong at 4.16, suggesting efficient cash conversion from net income. The free cash flow to net income ratio is 0.90, indicating that a significant portion of net income is converted into free cash flow. While cash flow generation has declined, the company maintains a healthy cash conversion rate.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	3.75B	4.49B	3.72B	4.35B	3.98B	3.26B
Gross Profit	847.16M	1.05B	844.55M	1.17B	1.01B	724.20M
EBITDA	453.23M	647.89M	494.21M	801.22M	658.08M	402.87M
Net Income	310.14M	458.03M	343.70M	576.06M	469.27M	282.21M
Balance Sheet
Total Assets	4.99B	4.94B	4.91B	4.72B	4.34B	4.02B
Cash, Cash Equivalents and Short-Term Investments	791.96M	970.04M	868.95M	889.66M	681.53M	621.29M
Total Debt	1.27B	1.10B	1.46B	1.46B	1.67B	1.66B
Total Liabilities	1.69B	1.61B	1.90B	1.88B	1.89B	1.79B
Stockholders Equity	3.30B	3.34B	3.01B	2.83B	2.45B	2.23B
Cash Flow
Free Cash Flow	271.31M	672.76M	169.88M	400.65M	390.04M	565.19M
Operating Cash Flow	300.74M	696.06M	195.26M	444.28M	419.53M	587.99M
Investing Cash Flow	-82.24M	-63.45M	-26.42M	-58.12M	-72.13M	-88.04M
Financing Cash Flow	-102.49M	-531.52M	-189.55M	-178.02M	-287.17M	-207.66M

Tri Pointe Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 32.83
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TPH, the sentiment is Negative. The current price of 32.83 is below the 20-day moving average (MA) of 33.23, above the 50-day MA of 32.45, and above the 200-day MA of 32.41, indicating a neutral trend. The MACD of 0.24 indicates Positive momentum. The RSI at 48.01 is Neutral, neither overbought nor oversold. The STOCH value of 35.55 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TPH.

Tri Pointe Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
KBH	76 Outperform	$4.14B	8.97	13.04%	1.59%	-0.95%	-9.22%
MHO	75 Outperform	$3.48B	7.84	15.76%	―	4.77%	-9.30%
TPH	73 Outperform	$2.83B	9.70	9.47%	―	-16.60%	-29.85%
CCS	69 Neutral	$1.83B	9.10	8.37%	1.86%	-6.28%	-31.55%
GRBK	69 Neutral	$2.88B	8.61	20.37%	―	6.62%	-1.90%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
DFH	60 Neutral	$1.78B	6.79	20.66%	―	15.95%	-6.86%

Tri Pointe Corporate Events

Tri Pointe Expands Credit Agreement to $450 Million

On September 18, 2025, Tri Pointe Homes, Inc. announced a significant modification to its Credit Agreement, increasing the term loan facility from $250 million to $450 million. This adjustment includes splitting the facility into two tranches with different maturity dates, potentially impacting the company’s financial flexibility and market positioning.