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Tri Pointe Homes (TPH)
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Tri Pointe (TPH) AI Stock Analysis

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TPH

Tri Pointe

(NYSE:TPH)

Rating:81Outperform
Price Target:
$37.00
▲(17.13%Upside)
Tri Pointe Homes demonstrates strong financial health and an attractive valuation, supported by effective cash flow management and a robust equity base. The technical analysis points to a positive trend without overbought signals, while the earnings call highlighted resilience amidst challenging market conditions. Adjusted guidance and market headwinds slightly tempered the overall score.

Tri Pointe (TPH) vs. SPDR S&P 500 ETF (SPY)

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:Jul 24, 2025
(Q2-2025)
|
% Change Since: -10.23%|
Next Earnings Date:Oct 23, 2025
Earnings Call Sentiment Neutral
The earnings call presented a mix of strong financial performance and strategic shareholder returns, alongside challenges from market conditions and an impairment charge. The company showed resilience with a healthy balance sheet and continued commitment to growth, but faced headwinds in certain markets and adjusted its full-year guidance.
Q2-2025 Updates
Positive Updates
Strong Financial Performance
Delivered 1,326 homes, exceeding the high end of guidance range. Generated $880 million in home sales revenue with an average sales price of $664,000. Adjusted net income was $69 million or $0.77 per diluted share.
Healthy Balance Sheet and Liquidity
Ended the quarter with $1.4 billion in total liquidity, including $623 million in cash. Extended and upsized revolving credit facility, expanding liquidity through 2030.
Shareholder Returns
Returned an additional $100 million to shareholders through share repurchases, reducing share count by 3.5% in the second quarter.
Recognition as a Top Employer
Named to the Fortune 100 Best Companies to Work For in 2025, demonstrating a strong company culture.
Negative Updates
Challenging Market Conditions
Reported a choppy market with policy uncertainty and geopolitical tensions affecting buyer confidence. Notable softer markets include Sacramento and Arizona.
Impairment Charge
Recorded an $11 million inventory impairment charge related to a challenging Bay Area project.
Lowered Full-Year Guidance
Updated full-year guidance to a lower range of deliveries due to slower market conditions experienced in the spring.
Rising SG&A Expenses
SG&A expense as a percentage of home sales revenue was 12.6%, reflecting less leverage on fixed costs due to lower volume.
Company Guidance
In the second quarter of 2025, Tri Pointe Homes reported solid financial results despite a challenging environment, delivering 1,326 homes with an average sales price of $664,000, resulting in $880 million in home sales revenue. The adjusted homebuilding gross margin was 22.1%, with adjusted net income at $69 million or $0.77 per diluted share. The company recorded 1,131 net new home orders with a monthly absorption rate of 2.5 per community. Tri Pointe ended the quarter with $1.4 billion in total liquidity, including $623 million in cash, and a homebuilding debt-to-capital ratio of 21.7%. The company also repurchased $100 million in shares, reducing its share count by 3.5% during the quarter. For the full year, Tri Pointe expects to deliver between 4,800 and 5,200 homes, with a projected average sales price of $665,000 to $675,000, maintaining a gross margin between 20.5% and 22%.

Tri Pointe Financial Statement Overview

Summary
Tri Pointe exhibits strong financial health with healthy profit margins, a robust equity base, and effective cash flow management. The absence of debt in TTM reinforces its financial stability, making it well-positioned for future growth. However, slight fluctuations in revenue growth and decreasing operating cash flow were noted.
Income Statement
85
Very Positive
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.
Balance Sheet
80
Positive
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.
Cash Flow
78
Positive
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.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue4.42B3.72B4.35B3.98B3.26B
Gross Profit1.05B844.55M1.17B992.12M728.10M
EBITDA607.88M454.86M798.56M658.08M402.87M
Net Income458.03M343.70M576.06M469.27M282.21M
Balance Sheet
Total Assets4.89B4.91B4.72B4.34B4.02B
Cash, Cash Equivalents and Short-Term Investments970.04M868.95M889.66M681.53M621.29M
Total Debt1.10B1.46B1.46B1.41B1.40B
Total Liabilities1.56B1.90B1.88B1.89B1.79B
Stockholders Equity3.34B3.01B2.83B2.45B2.23B
Cash Flow
Free Cash Flow672.76M169.88M400.65M390.04M565.19M
Operating Cash Flow696.06M195.26M444.28M419.53M587.99M
Investing Cash Flow-63.45M-26.42M-58.12M-72.13M-88.04M
Financing Cash Flow-531.52M-189.55M-178.02M-287.17M-207.66M

Tri Pointe Technical Analysis

Technical Analysis Sentiment
Negative
Last Price31.59
Price Trends
50DMA
31.68
Negative
100DMA
31.43
Positive
200DMA
35.20
Negative
Market Momentum
MACD
0.38
Positive
RSI
44.22
Neutral
STOCH
32.32
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 31.59 is below the 20-day moving average (MA) of 33.24, below the 50-day MA of 31.68, and below the 200-day MA of 35.20, indicating a bearish trend. The MACD of 0.38 indicates Positive momentum. The RSI at 44.22 is Neutral, neither overbought nor oversold. The STOCH value of 32.32 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 (63)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
81
Outperform
$2.88B8.0511.38%-3.59%-10.82%
79
Outperform
$2.88B7.9024.29%21.22%24.90%
78
Outperform
$3.24B6.6517.56%7.39%-1.37%
75
Outperform
$2.55B8.5726.25%21.18%11.40%
73
Outperform
$3.85B7.7714.07%1.76%3.65%-0.61%
70
Outperform
$1.84B7.8210.34%1.84%3.76%-17.55%
63
Neutral
$17.10B10.62-8.48%2.94%1.62%-25.72%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
TPH
Tri Pointe
31.59
-14.44
-31.37%
KBH
KB Home
56.86
-26.92
-32.13%
MHO
M/I Homes
122.19
-44.48
-26.69%
CCS
Century Communities
59.63
-41.76
-41.19%
GRBK
Green Brick Partners
66.15
-7.19
-9.80%
DFH
Dream Finders Homes
27.48
-4.53
-14.15%

Tri Pointe Corporate Events

Stock BuybackFinancial Disclosures
Tri Pointe Issues Correction on Share Repurchase Data
Neutral
Jul 25, 2025

On July 24, 2025, Tri Pointe Homes, Inc. issued a correction regarding its second-quarter earnings release, which had misstated the total number of shares repurchased under its stock repurchase program. As of June 30, 2025, the company had bought back 5,458,694 shares for approximately $175 million, clarifying its financial activities and ensuring accurate reporting for stakeholders.

The most recent analyst rating on (TPH) stock is a Buy with a $43.00 price target. To see the full list of analyst forecasts on Tri Pointe stock, see the TPH Stock Forecast page.

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.Date of analysis: Jul 25, 2025