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Tri Pointe Homes (TPH)
NYSE:TPH
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Tri Pointe
(NYSE:TPH)
Select Model
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Rating:73Outperform
Price Target:
$38.00
▲(8.29% 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 (TPH) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$3.02B
Dividend YieldN/A
Average Volume (3M)880.15K
Price to Earnings (P/E)10.4
Beta (1Y)0.76
Revenue Growth-16.60%
EPS Growth-29.85%
CountryUS
Employees1,750
SectorConsumer Cyclical
Sector Strength84
IndustryResidential Construction
Share Statistics
EPS (TTM)0.64
Shares Outstanding85,953,500
10 Day Avg. Volume861,013
30 Day Avg. Volume880,153
Financial Highlights & Ratios
PEG Ratio0.19
Price to Book (P/B)1.02
Price to Sales (P/S)0.76
P/FCF Ratio5.07
Enterprise Value/Market Cap1.16
Enterprise Value/Revenue0.93
Enterprise Value/Gross Profit4.13
Enterprise Value/Ebitda7.73
Forecast
1Y Price Target
$37.00Price Target Upside5.44% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering3
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Tri Pointe Business Overview & Revenue Model
Company DescriptionTri 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 MoneyTri 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 Earnings Call Summary
Earnings Call Date:Oct 23, 2025
(Q3-2025)
| % Change Since: |
Next Earnings Date:Feb 24, 2026
Earnings Call Sentiment Neutral
Tri Pointe Homes demonstrated strong financial results and strategic growth plans, but faced challenges with soft market conditions and increased incentives to drive sales. The company's focus on community growth and financial strength suggests a balanced approach to navigating current market challenges.Q3-2025 Updates
Positive Updates
Exceeded Home Delivery Guidance
Tri Pointe Homes closed 1,217 homes, surpassing the high end of their delivery guidance, with an average sales price of $672,000, generating $817 million in home sales revenue.
Share Repurchase Program
The company repurchased 1.5 million shares, spending $51 million in the quarter, and has reduced the share count by 47% since 2016.
Strong Financial Position
Tri Pointe ended the quarter with $1.6 billion in total liquidity, including $792 million in cash, and a net debt to net capital ratio of 8.7%.
Community Expansion
The company plans to grow its community count by 10% to 15% by the end of 2026, driven by expansion in the Central and East regions.
Recognition as a Top Workplace
Tri Pointe Homes was recognized as one of Fortune 100 best companies to work for in 2025.
Negative Updates
Soft Market Conditions
Market conditions remained soft throughout the third quarter with muted home buyer interest due to slow job growth and broader economic uncertainty.
Increased Incentives
Incentives on deliveries were 8.2% for the quarter, with about 1/3 being financing related, indicating increased efforts to stimulate sales.
Order Decline
Net home orders in the third quarter were 995 with an absorption pace of 2.2 homes per community per month, reflecting a slower sales environment.
Company Guidance
In the third quarter of 2025, Tri Pointe Homes exceeded the high end of their delivery guidance by closing 1,217 homes, each at an average sales price of $672,000, which generated a home sales revenue of $817 million. Their adjusted homebuilding gross margin, after excluding $8 million in inventory-related charges, was 21.6%. The company reported an adjusted net income of $62 million, translating to $0.71 per diluted share. Tri Pointe engaged in share repurchase activities, spending $51 million to buy back 1.5 million shares, thereby reducing the share count by 7% year-to-date and by 47% since 2016. They concluded the quarter with total liquidity of $1.6 billion, including $792 million in cash, alongside a debt-to-capital ratio of 25.1% and a net debt to net capital ratio of 8.7%. Looking forward, the company anticipates delivering between 1,200 and 1,400 homes in the fourth quarter at an average sales price of $690,000 to $700,000, with expectations of a homebuilding gross margin between 19.5% and 20.5%. For the full year 2025, Tri Pointe projects delivering 4,800 to 5,000 homes with an average sales price of approximately $680,000, maintaining a focus on inventory management and strategic market expansion.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.65
Positive
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.70
Positive
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.60
Neutral
| 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 | 386.47M | 565.19M |
| Operating Cash Flow | 300.74M | 696.06M | 195.26M | 444.28M | 415.96M | 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 | -283.60M | -207.66M |
Tri Pointe Technical Analysis
Positive
35.09
Price Trends
32.57
Positive
33.25
Positive
32.45
Positive
Market Momentum
0.44
Negative
69.46
Neutral
94.23
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TPH, the sentiment is Positive. The current price of 35.09 is above the 20-day moving average (MA) of 32.63, above the 50-day MA of 32.57, and above the 200-day MA of 32.45, indicating a bullish trend. The MACD of 0.44 indicates Negative momentum. The RSI at 69.46 is Neutral, neither overbought nor oversold. The STOCH value of 94.23 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TPH.
Tri Pointe Risk Analysis
Tri Pointe disclosed 56 risk factors in its most recent earnings report. Tri Pointe reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Tri Pointe Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | $3.58B | 8.03 | 15.76% | ― | 4.77% | -9.30% | |
73 Outperform | $3.17B | 9.57 | 20.37% | ― | 6.62% | -1.90% | |
73 Outperform | $3.02B | 10.36 | 9.47% | ― | -16.60% | -29.85% | |
71 Outperform | $3.99B | 10.02 | 10.72% | 1.76% | -10.01% | -27.81% | |
69 Neutral | $2.02B | 10.02 | 8.37% | 1.99% | -6.28% | -31.55% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
60 Neutral | $1.82B | 7.14 | 20.66% | ― | 15.95% | -6.86% |
* Consumer Cyclical Sector Average
TPH
Tri Pointe
35.09
-2.34
-6.25%
KBH
KB Home
61.63
-5.75
-8.53%
MHO
M/I Homes
136.88
-0.47
-0.34%
CCS
Century Communities
68.61
-6.02
-8.07%
GRBK
Green Brick Partners
72.75
13.06
21.88%
DFH
Dream Finders Homes
19.66
-4.44
-18.42%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.