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Also traded in: Germany

GuruFocus Financial Strength Rank measures how strong a company’s financial situation is. It is based on these factors

1. The debt burden that the company has as measured by its Interest coverage (current year).
2. Debt to revenue ratio. The lower, the better
3. Altman Z-score.

A company ranks high with financial strength is likely to withstand any business slowdowns and recessions.

Financial Strength : 8/10

vs
industry
vs
history
Cash to Debt 0.12
TPH's Cash to Debt is ranked lower than
84% of the 777 Companies
in the Global Residential Construction industry.

( Industry Median: 2.29 vs. TPH: 0.12 )
Ranked among companies with meaningful Cash to Debt only.
TPH' s Cash to Debt Range Over the Past 10 Years
Min: 0.01  Med: 0.18 Max: N/A
Current: 0.12
Equity to Asset 0.52
TPH's Equity to Asset is ranked higher than
57% of the 725 Companies
in the Global Residential Construction industry.

( Industry Median: 0.46 vs. TPH: 0.52 )
Ranked among companies with meaningful Equity to Asset only.
TPH' s Equity to Asset Range Over the Past 10 Years
Min: 0.42  Med: 0.52 Max: 0.8
Current: 0.52
0.42
0.8
Interest Coverage 3105.39
TPH's Interest Coverage is ranked higher than
85% of the 507 Companies
in the Global Residential Construction industry.

( Industry Median: 7.98 vs. TPH: 3105.39 )
Ranked among companies with meaningful Interest Coverage only.
TPH' s Interest Coverage Range Over the Past 10 Years
Min: 1739.68  Med: 9999.00 Max: 9999.99
Current: 3105.39
1739.68
9999.99
F-Score: 5
Z-Score: 3.02
M-Score: -1.78
WACC vs ROIC
7.88%
8.10%
WACC
ROIC
GuruFocus Profitability Rank ranks how profitable a company is and how likely the company’s business will stay that way. It is based on these factors:

1. Operating Margin
2. Trend of the Operating Margin (5-year average). The company with an uptrend profit margin has a higher rank.
••3. Consistency of the profitability
4. Piotroski F-Score
5. Predictability Rank•

The maximum rank is 10. A rank of 7 or higher means a higher profitability and may stay that way. A rank of 3 or lower indicates that the company has had trouble to make a profit.

Profitability Rank is not directly related to the Financial Strength Rank. But if a company is consistently profitable, its financial strength will be stronger.

Profitability & Growth : 6/10

vs
industry
vs
history
Operating margin (%) 13.71
TPH's Operating margin (%) is ranked higher than
87% of the 770 Companies
in the Global Residential Construction industry.

( Industry Median: 2.77 vs. TPH: 13.71 )
Ranked among companies with meaningful Operating margin (%) only.
TPH' s Operating margin (%) Range Over the Past 10 Years
Min: -23.66  Med: 8.64 Max: 13.12
Current: 13.71
-23.66
13.12
Net-margin (%) 8.94
TPH's Net-margin (%) is ranked higher than
83% of the 773 Companies
in the Global Residential Construction industry.

( Industry Median: 2.03 vs. TPH: 8.94 )
Ranked among companies with meaningful Net-margin (%) only.
TPH' s Net-margin (%) Range Over the Past 10 Years
Min: -23.76  Med: 4.94 Max: 8.56
Current: 8.94
-23.76
8.56
ROE (%) 13.78
TPH's ROE (%) is ranked higher than
76% of the 719 Companies
in the Global Residential Construction industry.

( Industry Median: 4.90 vs. TPH: 13.78 )
Ranked among companies with meaningful ROE (%) only.
TPH' s ROE (%) Range Over the Past 10 Years
Min: 3.86  Med: 6.78 Max: 13.18
Current: 13.78
3.86
13.18
ROA (%) 7.03
TPH's ROA (%) is ranked higher than
79% of the 782 Companies
in the Global Residential Construction industry.

( Industry Median: 1.97 vs. TPH: 7.03 )
Ranked among companies with meaningful ROA (%) only.
TPH' s ROA (%) Range Over the Past 10 Years
Min: 1.44  Med: 2.56 Max: 6.82
Current: 7.03
1.44
6.82
ROC (Joel Greenblatt) (%) 14.69
TPH's ROC (Joel Greenblatt) (%) is ranked higher than
64% of the 773 Companies
in the Global Residential Construction industry.

( Industry Median: 8.94 vs. TPH: 14.69 )
Ranked among companies with meaningful ROC (Joel Greenblatt) (%) only.
TPH' s ROC (Joel Greenblatt) (%) Range Over the Past 10 Years
Min: 1.94  Med: 6.17 Max: 14.78
Current: 14.69
1.94
14.78
» TPH's 10-Y Financials

Financials


Revenue & Net Income
Cash & Debt
Oprt. Cash Flow & Free Cash Flow

» Details

Guru Trades

Q2 2015

TPH Guru Trades in Q2 2015

HOTCHKIS & WILEY 11,019,116 sh (+82.32%)
Jim Simons 578,436 sh (+21.66%)
NWQ Managers 4,057,694 sh (+18.14%)
Chuck Royce 1,232,872 sh (+0.41%)
Murray Stahl 7,901,035 sh (+0.06%)
Ken Heebner 1,670,000 sh (unchged)
David Einhorn 4,786,061 sh (unchged)
John Keeley 3,469,625 sh (-1.25%)
Manning & Napier Advisors, Inc 240,327 sh (-29.66%)
Steven Cohen 74,200 sh (-90.07%)
» More
Q3 2015

TPH Guru Trades in Q3 2015

Paul Tudor Jones 20,700 sh (New)
Steven Cohen 643,100 sh (+766.71%)
NWQ Managers 4,165,566 sh (+2.66%)
David Einhorn 4,786,061 sh (unchged)
Ken Heebner 1,670,000 sh (unchged)
John Keeley 3,309,915 sh (-4.60%)
Chuck Royce 1,102,872 sh (-10.54%)
HOTCHKIS & WILEY 9,737,116 sh (-11.63%)
Murray Stahl 6,540,077 sh (-17.23%)
Manning & Napier Advisors, Inc 156,321 sh (-34.95%)
Jim Simons 251,076 sh (-56.59%)
» More
Q4 2015

TPH Guru Trades in Q4 2015

Joel Greenblatt 24,978 sh (New)
Ken Heebner 2,565,000 sh (+53.59%)
Paul Tudor Jones 23,100 sh (+11.59%)
NWQ Managers 4,384,280 sh (+5.25%)
Jim Simons 251,076 sh (unchged)
David Einhorn 4,786,061 sh (unchged)
Steven Cohen Sold Out
Manning & Napier Advisors, Inc 154,749 sh (-1.01%)
John Keeley 3,079,575 sh (-6.96%)
Chuck Royce 1,016,872 sh (-7.80%)
HOTCHKIS & WILEY 8,393,572 sh (-13.80%)
Murray Stahl 4,335,033 sh (-33.72%)
» More
Q1 2016

TPH Guru Trades in Q1 2016

Manning & Napier Advisors, Inc Sold Out
Murray Stahl 3,286,328 sh (-24.19%)
» More
» Details

Insider Trades

Latest Guru Trades with TPH

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Guru Investment Theses on TRI Pointe Group Inc

Murray Stahl’s Horizon Kinetics Comments on TRI Pointe Homes - Jul 25, 2014

TRI Pointe Homes (TPH) is a recent addition to some of our portfolios. It was founded in the depths of the Credit Crisis in 2009 by former homebuilding industry executives. Their objective was to acquire land lots in distressed regions, particularly in California and Colorado, which could be utilized for future home construction. TRI Pointe was certainly not alone. A number of companies led by astute investors acquired enormous amounts of land in heavily distressed areas such as California, Arizona, and Nevada.

In 2010, real estate investor Barry Sternlicht capitalized TRI Pointe with $150 million of equity through his Starwood Capital private equity fund. Mr. Sternlicht became Chairman of TRI Pointe and received roughly 39% equity ownership of the company. Given his real estate experience, it is not surprising that he chose a vehicle that will ultimately benefit from a sustained recovery in the residential housing market.

TRI Pointe drew upon the entire $150 million infusion, using the proceeds to acquire lots in California and Colorado. As a result, it expanded rapidly, increasing its revenues from $14 million in 2011 to $247 million in 2013.

While seemingly on a rapid growth trajectory, Mr. Sternlicht chose to accelerate the company’s expansion through the just-completed merger with the homebuilding operations of Weyerhaeuser (Weyerhaeuser Real Estate Company, or WRECO), which closed July 8th. WRECO’s homebuilding operations were considerably larger than those of TRI Pointe, such that in terms of revenues and market capitalization, TRI Pointe has become one of the ten largest homebuilders in the U.S.

The transaction was structured as an equity offering by TRI Pointe for the assets of WRECO, increasing the company’s shares outstanding from 31.6 million to 162.9 million; thus, the market capitalization has just expanded from less than $500 million to $2.5 billion. This could be an important catalyst for the shares, although not fundamental in nature whatsoever. TRI Pointe was rather illiquid, as Starwood owned nearly 40% of the shares outstanding, leaving a float-adjusted market capitalization of under $300 million. The enhanced trading liquidity could eventually attract the interest of the ETF index engineers.

Nevertheless, TRI Pointe is currently priced in a manner reflective only of present earnings power, not of its substantial land bank. That is, investors are unwilling to pay a premium for the vast optionality that exists in the company’s largest market, California. To illustrate, the consensus revenue estimate in 2015, which incorporates the contribution of WRECO, is $2.77 billion. Based on an historical average for the industry, TRI Pointe should manage to earn a profit margin of perhaps 7.9% in a reasonably robust housing market. This would create $219 million of net income, and a $2.6 billion market capitalization using a 12x p/e multiple. This is only slightly higher than the current pro forma market capitalization of $2.5 billion.

However, homebuilding activity in California is still 74% below the normal average in that state. A return to a normal level would entail construction activity more than three times the current rate. As over half of TRI Pointe’s land lots are in California, an eventual recovery in this market would have a great impact on its earnings. Moreover, broad construction levels in the U.S. are still well below normal levels. The addition of WRECO exposes TRI Pointe to other markets as well, such as Washington D.C. and Texas. The company therefore is positioned to participate in a much broader recovery.

Yet, given the fact that this presumed expansion in the company’s earnings cannot be precisely estimated, this optionality is being discounted by investors at a very high rate. To evidence this, based on the company’s own projections, WRECO as a standalone entity could produce over $200 million of net income by 2016. If investors were willing to pay a multiple of 12x this estimate, the resulting market capitalization of over $2.4 billion would about equal the current implied market capitalization of TRI Pointe. In other words, at this price one is not paying for the entire TRI Pointe stub business, which should report nearly $500 million of revenues this year.

Importantly, TRI Pointe has the benefit of a key intangible asset that does not appear on its financial statements and thus cannot be traditionally valued. Mr. Sternlicht is an experienced, well known, and serially successful real estate investor. He therefore has access to strategic information within the industry that the average executive does not. It appears that he is using TRI Pointe as a new investment vehicle.

From Murray Stahl (Trades, Portfolio)’s Horizon Kinetics Second Quarter 2014 Commentary.

Check out Murray Stahl latest stock trades

Ratios

vs
industry
vs
history
P/E(ttm) 8.73
TPH's P/E(ttm) is ranked higher than
73% of the 526 Companies
in the Global Residential Construction industry.

( Industry Median: 13.94 vs. TPH: 8.73 )
Ranked among companies with meaningful P/E(ttm) only.
TPH' s P/E(ttm) Range Over the Past 10 Years
Min: 7.47  Med: 23.78 Max: 144.7
Current: 8.73
7.47
144.7
Forward P/E 8.66
TPH's Forward P/E is ranked higher than
62% of the 42 Companies
in the Global Residential Construction industry.

( Industry Median: 9.48 vs. TPH: 8.66 )
Ranked among companies with meaningful Forward P/E only.
N/A
PE(NRI) 8.73
TPH's PE(NRI) is ranked higher than
72% of the 525 Companies
in the Global Residential Construction industry.

( Industry Median: 13.81 vs. TPH: 8.73 )
Ranked among companies with meaningful PE(NRI) only.
TPH' s PE(NRI) Range Over the Past 10 Years
Min: 7.49  Med: 23.62 Max: 141.08
Current: 8.73
7.49
141.08
P/B 1.13
TPH's P/B is ranked lower than
57% of the 699 Companies
in the Global Residential Construction industry.

( Industry Median: 0.95 vs. TPH: 1.13 )
Ranked among companies with meaningful P/B only.
TPH' s P/B Range Over the Past 10 Years
Min: 0.67  Med: 1.55 Max: 2.09
Current: 1.13
0.67
2.09
P/S 0.78
TPH's P/S is ranked lower than
56% of the 760 Companies
in the Global Residential Construction industry.

( Industry Median: 0.65 vs. TPH: 0.78 )
Ranked among companies with meaningful P/S only.
TPH' s P/S Range Over the Past 10 Years
Min: 0.64  Med: 1.24 Max: 2.22
Current: 0.78
0.64
2.22
EV-to-EBIT 8.91
TPH's EV-to-EBIT is ranked higher than
60% of the 563 Companies
in the Global Residential Construction industry.

( Industry Median: 11.20 vs. TPH: 8.91 )
Ranked among companies with meaningful EV-to-EBIT only.
TPH' s EV-to-EBIT Range Over the Past 10 Years
Min: -16.8  Med: 8.30 Max: 26.1
Current: 8.91
-16.8
26.1
EV-to-EBITDA 8.69
TPH's EV-to-EBITDA is ranked lower than
51% of the 611 Companies
in the Global Residential Construction industry.

( Industry Median: 8.33 vs. TPH: 8.69 )
Ranked among companies with meaningful EV-to-EBITDA only.
TPH' s EV-to-EBITDA Range Over the Past 10 Years
Min: -18.2  Med: 8.10 Max: 24.3
Current: 8.69
-18.2
24.3
Current Ratio 4.48
TPH's Current Ratio is ranked higher than
86% of the 510 Companies
in the Global Residential Construction industry.

( Industry Median: 1.73 vs. TPH: 4.48 )
Ranked among companies with meaningful Current Ratio only.
TPH' s Current Ratio Range Over the Past 10 Years
Min: 2.14  Med: 4.28 Max: 6.11
Current: 4.48
2.14
6.11
Quick Ratio 0.27
TPH's Quick Ratio is ranked lower than
93% of the 510 Companies
in the Global Residential Construction industry.

( Industry Median: 0.98 vs. TPH: 0.27 )
Ranked among companies with meaningful Quick Ratio only.
TPH' s Quick Ratio Range Over the Past 10 Years
Min: -4  Med: 0.27 Max: 1.78
Current: 0.27
-4
1.78
Days Inventory 497.74
TPH's Days Inventory is ranked lower than
95% of the 705 Companies
in the Global Residential Construction industry.

( Industry Median: 81.17 vs. TPH: 497.74 )
Ranked among companies with meaningful Days Inventory only.
TPH' s Days Inventory Range Over the Past 10 Years
Min: 474.41  Med: 641.75 Max: 1492.94
Current: 497.74
474.41
1492.94
Days Sales Outstanding 3.29
TPH's Days Sales Outstanding is ranked higher than
94% of the 634 Companies
in the Global Residential Construction industry.

( Industry Median: 47.33 vs. TPH: 3.29 )
Ranked among companies with meaningful Days Sales Outstanding only.
TPH' s Days Sales Outstanding Range Over the Past 10 Years
Min: 1.34  Med: 2.55 Max: 12.24
Current: 3.29
1.34
12.24
Days Payable 13.20
TPH's Days Payable is ranked lower than
84% of the 608 Companies
in the Global Residential Construction industry.

( Industry Median: 40.46 vs. TPH: 13.20 )
Ranked among companies with meaningful Days Payable only.
TPH' s Days Payable Range Over the Past 10 Years
Min: 12.82  Med: 31.36 Max: 107.37
Current: 13.2
12.82
107.37

Valuation & Return

vs
industry
vs
history
Price/Net Current Asset Value 1.42
TPH's Price/Net Current Asset Value is ranked higher than
77% of the 284 Companies
in the Global Residential Construction industry.

( Industry Median: 3.27 vs. TPH: 1.42 )
Ranked among companies with meaningful Price/Net Current Asset Value only.
TPH' s Price/Net Current Asset Value Range Over the Past 10 Years
Min: 1.42  Med: 1.74 Max: 2.4
Current: 1.42
1.42
2.4
Price/Tangible Book 1.25
TPH's Price/Tangible Book is ranked lower than
59% of the 695 Companies
in the Global Residential Construction industry.

( Industry Median: 0.97 vs. TPH: 1.25 )
Ranked among companies with meaningful Price/Tangible Book only.
TPH' s Price/Tangible Book Range Over the Past 10 Years
Min: 0.81  Med: 1.57 Max: 2.09
Current: 1.25
0.81
2.09
Price/Median PS Value 0.63
TPH's Price/Median PS Value is ranked higher than
86% of the 709 Companies
in the Global Residential Construction industry.

( Industry Median: 1.12 vs. TPH: 0.63 )
Ranked among companies with meaningful Price/Median PS Value only.
TPH' s Price/Median PS Value Range Over the Past 10 Years
Min: 0.63  Med: 1.01 Max: 1.82
Current: 0.63
0.63
1.82
Price/Graham Number 0.70
TPH's Price/Graham Number is ranked higher than
65% of the 375 Companies
in the Global Residential Construction industry.

( Industry Median: 0.86 vs. TPH: 0.70 )
Ranked among companies with meaningful Price/Graham Number only.
TPH' s Price/Graham Number Range Over the Past 10 Years
Min: 0.7  Med: 1.38 Max: 3.23
Current: 0.7
0.7
3.23
Earnings Yield (Greenblatt) (%) 11.20
TPH's Earnings Yield (Greenblatt) (%) is ranked higher than
70% of the 758 Companies
in the Global Residential Construction industry.

( Industry Median: 5.90 vs. TPH: 11.20 )
Ranked among companies with meaningful Earnings Yield (Greenblatt) (%) only.
TPH' s Earnings Yield (Greenblatt) (%) Range Over the Past 10 Years
Min: 3.8  Med: 7.10 Max: 24.7
Current: 11.2
3.8
24.7

More Statistics

Revenue(Mil) $2447
EPS $ 1.35
Beta1.44
Short Percentage of Float10.38%
52-Week Range $8.83 - 16.15
Shares Outstanding(Mil)162.05

Analyst Estimate

Dec16 Dec17 Dec18
Revenue(Mil) 2,519 2,783 3,163
EPS($) 1.24 1.36 1.62
EPS without NRI($) 1.24 1.36 1.62

Business Description

Industry: Homebuilding & Construction » Residential Construction
Compare:TSE:1808, TSE:4681, OSTO:JM, LSE:RDW, TSE:1911, SZSE:002314 » details
Traded in other countries:T86.Germany,
TRI Pointe Homes Inc is engaged in the design, construction and sale of single-family homes in planned communities in metropolitan areas located throughout Southern and Northern California, and Colorado.
» More Articles for TPH

Headlines

Articles On GuruFocus.com
Murray Stahl Reduces More Than 300 Stakes in 4th Quarter Feb 24 2016 
5 Stocks Multiple Gurus Are Buying Mar 05 2015 
William Lyon Homes Bags Profits In Its Q4 Earnings Feb 24 2015 
Murray Stahl’s Horizon Kinetics Comments on TRI Pointe Homes Jul 25 2014 
Weekly 3-Year Low Highlight: GGB, XOOM, TPH, JCS May 21 2013 

More From Other Websites
TRI POINTE GROUP, INC. Files SEC form 8-K, Entry into a Material Definitive Agreement, Creation of a... Apr 29 2016
Edited Transcript of TPH earnings conference call or presentation 27-Apr-16 2:00pm GMT Apr 27 2016
TRI POINTE GROUP, INC. Files SEC form 8-K, Results of Operations and Financial Condition Apr 27 2016
Q1 2016 TRI Pointe Group Inc Earnings Release - Before Market Open Apr 27 2016
TRI Pointe Group, Inc. Reports 2016 First Quarter Results Apr 27 2016
Tri Pointe posts 1Q profit Apr 27 2016
Tri Pointe posts 1Q profit Apr 27 2016
TRI Pointe Group, Inc. Reports 2016 First Quarter Results Apr 27 2016
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Cramer: Buying this stock is like trading down in the draft—Stay away! Apr 25 2016
TRI Pointe Group, Inc. Announces First Quarter 2016 Earnings Release and Conference Call Date Apr 01 2016
TRI Pointe Group, Inc. Announces First Quarter 2016 Earnings Release and Conference Call Date Apr 01 2016
Coverage initiated on TRI Pointe Homes by Susquehanna Mar 30 2016
TRI Pointe (TPH) Stock Price Target Reduced at Deutsche Bank Mar 18 2016
TRI Pointe Homes Northern California Receives Top Honors at the Homebuyers' Choice Awards Mar 04 2016
TRI POINTE GROUP, INC. Financials Mar 04 2016
TRI Pointe Group, Inc. breached its 50 day moving average in a Bullish Manner : TPH-US : March 3,... Mar 03 2016
Can this small homebuilder gain traction? Mar 02 2016
TRI POINTE GROUP, INC. Files SEC form 8-K, Change in Directors or Principal Officers, Financial... Mar 02 2016
TRI Pointe Group, Inc. Earnings Analysis: Q4, 2015 By the Numbers Mar 02 2016

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