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Tri Pointe Homes (TPH)
NYSE:TPH
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Tri Pointe
(NYSE:TPH)
Rating:80Outperform
Price Target:
$36.00
▲(9.16%Upside)
Tri Pointe (TPH) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$2.99B
Dividend YieldN/A
Average Volume (3M)917.11K
Price to Earnings (P/E)7.3
Beta (1Y)1.02
Revenue Growth10.82%
EPS Growth19.34%
CountryUS
Employees1,750
SectorConsumer Cyclical
Sector Strength60
IndustryResidential Construction
Share Statistics
EPS (TTM)0.70
Shares Outstanding90,670,080
10 Day Avg. Volume1,167,941
30 Day Avg. Volume917,114
Financial Highlights & Ratios
PEG Ratio0.10
Price to Book (P/B)0.68
Price to Sales (P/S)0.00
P/FCF Ratio4.77
Enterprise Value/Market Cap0.80
Enterprise Value/Revenue0.14
Enterprise Value/Gross Profit2.41
Enterprise Value/Ebitda1.02
Forecast
1Y Price Target
$39.60Price Target Upside20.07% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering6
Tri Pointe Business Overview & Revenue Model
Company DescriptionTri Pointe Homes, Inc. (TPH) is a prominent residential homebuilding company based in the United States. The company specializes in designing, constructing, and selling single-family homes and condominiums across various states, with a strong presence in key housing markets. Tri Pointe Homes is recognized for its commitment to innovative architectural design and sustainable construction practices, catering to a wide range of homebuyers from entry-level to luxury segments.
How the Company Makes MoneyTri Pointe Homes primarily generates revenue through the sale of residential properties, including single-family homes and condominiums. The company operates in several major housing markets, which helps to diversify its revenue streams geographically. Tri Pointe Homes focuses on acquiring and developing well-located land parcels to build communities that appeal to different categories of homebuyers. Revenue is realized upon the closing of home sales. In addition to home sales, the company may also derive income from mortgage and title services offered to its buyers, often through partnerships or subsidiaries, which facilitate the home buying process. These services can provide additional financial benefits by enhancing the customer experience and streamlining transactions.
Tri Pointe Earnings Call Summary
Earnings Call Date:Apr 24, 2025
(Q1-2025)
| % Change Since: 6.80%|
Next Earnings Date:Jul 24, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted strong financial performance, robust balance sheet management, and strategic market expansions, demonstrating resilience despite a slower start to the spring selling season and economic uncertainties impacting buyer confidence. The company remains optimistic about long-term fundamentals but has adjusted its full-year guidance to reflect current market challenges.Q1-2025 Updates
Positive Updates
Strong Financial Performance in Q1 2025
The company delivered 1,040 homes, with an average sales price of $693,000, resulting in home sales revenue of $721 million. Gross margins were 23.9%, a 90 basis point increase from the previous year. Net income was $64 million with diluted earnings per share of $0.70.
Robust Balance Sheet
TRI Pointe ended the quarter with total liquidity of $1.5 billion, including over $800 million in cash, and a homebuilding debt to capital ratio of 21.6%. The company repurchased $75 million of its stock, reducing shares outstanding by 1.9%.
Market Expansion Initiatives
New market expansions in Utah, Orlando, and the Coastal Carolinas are underway, with strong land pipelines and management teams in place, representing long-term growth opportunities.
Negative Updates
Slower Spring Selling Season
Net new home orders were 1,238 with an absorption rate of 2.8 per community per month, indicating a slower start to the spring selling season compared to expectations.
Economic Uncertainty Impacting Buyer Confidence
Elevated economic uncertainty, international trade tensions, and new tariffs have dampened buyer confidence, affecting market conditions.
Lowered Full-Year Guidance
Due to slower market conditions, the full-year guidance for home deliveries has been lowered to 5,000 to 5,500 homes with an average sales price between $665,000 and $675,000, and a gross margin range of 20.5% to 22%.
Company Guidance
During TRI Pointe Homes' first-quarter 2025 earnings call, the company reported strong performance, delivering 1,040 new homes at an average sales price of $693,000, generating home sales revenue of $721 million. The homebuilding gross margin was robust at 23.9%, reflecting a 90 basis point increase from the same period last year. Net income amounted to $64 million, resulting in diluted earnings per share of $0.70. The company highlighted a slower start to the spring selling season, reporting net new home orders of 1,238 and a monthly absorption rate of 2.8 per community. Despite economic uncertainties and international trade tensions, the company remains confident in its long-term strategy, supported by a balance sheet with $1.5 billion in liquidity and a homebuilding debt to capital ratio of 21.6%. For the second quarter, TRI Pointe anticipates delivering 1,100 to 1,200 homes with an average sales price between $670,000 and $690,000, while the full-year guidance was adjusted to deliver 5,000 to 5,500 homes. The company continues to focus on expanding into new markets, such as Utah, Orlando, and the Coastal Carolinas, while maintaining disciplined capital deployment and a strong emphasis on customer satisfaction.Tri Pointe Financial Statement Overview
Summary
Tri Pointe exhibits strong financial health characterized by healthy margins, a robust equity base, and effective cash flow management. With a debt-free status and solid profitability, the company is well-positioned for future growth, despite minor fluctuations in revenue growth.Income Statement
Tri Pointe has demonstrated a healthy financial performance with strong gross profit and net profit margins. The gross profit margin for TTM (Trailing-Twelve-Months) is approximately 36.4%, and the net profit margin stands at approximately 10.8%. Revenue growth was observed from 2020 to 2023, but there was a slight dip in 2024. Despite this, the company has maintained solid profitability, as evidenced by the EBIT and EBITDA margins of 12.2% and 13.1% respectively in TTM, showcasing robust operational efficiency.85
Very Positive
Balance Sheet
The balance sheet reflects a strong financial position with a debt-free status in TTM, indicating effective debt management. The equity ratio is approximately 68.8%, showcasing a strong equity base in relation to total assets. Return on Equity (ROE) is healthy at 13.9% in TTM, although it has fluctuated slightly over the years. The company’s high stockholders' equity in proportion to its total assets indicates substantial financial stability.80
Positive
Cash Flow
Tri Pointe's cash flow statements reveal a solid free cash flow generation capability with a free cash flow of $495 million in TTM. Although there was a decrease in operating cash flow from the previous year, the free cash flow to net income ratio remains strong, reflecting the company's ability to generate cash relative to its earnings. The operating cash flow to net income ratio is approximately 1.1, indicating efficient cash generation from core operations.78
Positive
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 4.28B | 4.42B | 3.72B | 4.35B | 3.98B | 3.26B |
| Gross Profit | 995.87M | 982.29M | 844.55M | 1.16B | 992.12M | 728.10M |
| EBITDA | 570.50M | 607.88M | 454.86M | 807.35M | 678.49M | 421.36M |
| Net Income | 423.01M | 458.03M | 343.70M | 576.06M | 469.27M | 282.21M |
Balance Sheet | ||||||
| Total Assets | 4.83B | 4.89B | 4.91B | 4.72B | 4.34B | 4.02B |
| Cash, Cash Equivalents and Short-Term Investments | 812.94M | 970.04M | 868.95M | 889.66M | 681.53M | 621.29M |
| Total Debt | 1.06B | 1.10B | 1.46B | 1.38B | 1.34B | 1.34B |
| Total Liabilities | 1.50B | 1.56B | 1.90B | 1.88B | 1.89B | 1.79B |
| Stockholders Equity | 3.32B | 3.34B | 3.01B | 2.83B | 2.45B | 2.23B |
Cash Flow | ||||||
| Free Cash Flow | 495.18M | 672.76M | 169.88M | 400.65M | 390.04M | 565.19M |
| Operating Cash Flow | 520.16M | 696.06M | 195.26M | 444.28M | 419.53M | 587.99M |
| Investing Cash Flow | -66.47M | -63.45M | -26.42M | -58.12M | -72.13M | -88.04M |
| Financing Cash Flow | -584.76M | -531.52M | -189.55M | -178.02M | -287.17M | -207.66M |
Tri Pointe Technical Analysis
Positive
32.98
Price Trends
30.99
Positive
31.36
Positive
36.05
Negative
Market Momentum
0.61
Negative
61.12
Neutral
77.66
Neutral
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 32.98 is above the 20-day moving average (MA) of 31.33, above the 50-day MA of 30.99, and below the 200-day MA of 36.05, indicating a neutral trend. The MACD of 0.61 indicates Negative momentum. The RSI at 61.12 is Neutral, neither overbought nor oversold. The STOCH value of 77.66 is Neutral, 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 55 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
Overall Rating
UnderperformOutperform
Sector (56)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
80 Outperform | $2.99B | 7.34 | 13.28% | ― | 10.82% | 19.34% | |
79 Outperform | $2.44B | 8.15 | 26.25% | ― | 21.18% | 11.40% | |
77 Outperform | $3.09B | 6.10 | 19.02% | ― | 8.68% | 8.39% | |
77 Outperform | $2.85B | 7.83 | 24.29% | ― | 21.22% | 24.90% | |
68 Neutral | $3.88B | 7.17 | 14.09% | 1.85% | 3.65% | -0.48% | |
68 Neutral | $1.82B | 6.17 | 12.36% | 1.94% | 10.75% | 8.31% | |
56 Neutral | $3.37B | 4.05 | -1.30% | 6.64% | 0.16% | -63.79% |
* Consumer Cyclical Sector Average
Performance Comparison
TPH
Tri Pointe
32.98
-3.67
-10.01%
KBH
KB Home
54.15
-11.43
-17.43%
MHO
M/I Homes
115.44
-3.73
-3.13%
CCS
Century Communities
59.67
-18.81
-23.97%
GRBK
Green Brick Partners
64.85
10.02
18.27%
DFH
Dream Finders Homes
26.12
0.77
3.04%
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.