- TMHC's capital allocation strategy is underperforming the sector with RoE, RoC, and ROIC substantially lower than its peers and the market.
- The company needs to move towards a lighter asset strategy, controlling land lots with options contracts instead of actual ownership, which will provide them greater financial flexibility.
- Despite that, TMHC trades at attractive valuation multiples with good growth prospects due to the housing market's tailwinds, there are better alternatives in the homebuilding sector.
For further details see:
Taylor Morrison Is A Bargain But With Poor Capital Allocation Strategy