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Taylor Morrison HomeSTU:THM +0.79%84 Interest Coverage is 12.71 as of Mar. 2026, which is 85% below its 10-year median of 86.57. GuruFocus rates STU:THM with a GF Score™ of 84/100 and a GF Value™ of €48.93 (Modestly Overvalued). The stock has 6 warning signs investors should review. Among 76 Homebuilding & Construction companies, Taylor Morrison Home ranks better than 73.68% on this metric.
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's
Operating Income
by its Interest Expense. Taylor Morrison Home's
Operating Income
for the
three
months ended in Mar. 2026 was €123 Mil. Taylor Morrison Home's Interest Expense for the
three
months ended in Mar. 2026 was €-10 Mil.
Taylor Morrison Home's interest coverage for the quarter that ended in Mar. 2026 was 12.71.
The higher the ratio, the stronger the company's financial strength is.
The historical rank and industry rank for Taylor Morrison Home's Interest Coverage or its related term are showing as below:
STU:THM'
s Interest Coverage Range Over the Past 10 Years
Min: 19.94 Med: 86.57 Max: 231.95
Current: 19.94
STU:THM's Interest Coverage is ranked better than 73.68% of 76
companies
in the Homebuilding & Construction industry
Industry Median: 8.63
vs STU:THM: 19.94
Taylor Morrison Home (STU:THM) Interest Coverage Explanation
Ben Graham requires that a company has a minimum interest coverage of 5 with the companies he invested. If the interest coverage is less than 2, the company is burdened by debt. Any business slow or recession may drag the company into a situation where it cannot pay the interest on its debt.
Interest Coverage is an important factor when GuruFocus ranks a company's overage Financial Strength .
Taylor Morrison Home Interest Coverage Related Terms
Taylor Morrison Home Interest Coverage Historical Data
* Premium members only.
The historical data trend for Taylor Morrison Home's Interest Coverage can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Note: For Interest Coverage, "No debt" indicates no long-term debt. An indication of "No Debt" does not necessarily mean that the company has no long-term debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.
STU:THM vs IBP, MTH, SKY: Interest Coverage Comparison
For the Residential Construction subindustry, Taylor Morrison Home's Interest Coverage, along with its competitors' market caps and Interest Coverage data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Taylor Morrison Home Interest Coverage vs Homebuilding & Construction Industry
For the Homebuilding & Construction industry and Consumer Cyclical sector, Taylor Morrison Home's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Taylor Morrison Home's Interest Coverage falls into.
Taylor Morrison Home Interest Coverage Calculation
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Taylor Morrison Home (STU:THM) has a Interest Coverage of 12.71 as of Mar. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Taylor Morrison Home and its competitors. This is 85% below median its historical median of 86.57. Over the past decade, Taylor Morrison Home's Interest Coverage has ranged from 19.94 to 231.95. According to the industry distribution chart, Taylor Morrison Home ranks #20 out of 76 companies in the Homebuilding & Construction industry, placing it in the top 26.3%.
Is Taylor Morrison Home's Interest Coverage too high?
Taylor Morrison Home's current Interest Coverage of 12.71 is 85% below median its 10-year median of 86.57. Over the past 10 years, this metric has ranged from a low of 19.94 to a high of 231.95. The Homebuilding & Construction industry median Interest Coverage is 8.63. Taylor Morrison Home's value of 12.71 is 47.3% above this industry median. Based on the distribution chart, Taylor Morrison Home ranks #20 out of 76 companies in the Homebuilding & Construction industry, which is above the industry midpoint. Overall, Taylor Morrison Home has a GF Score™ of 84/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Taylor Morrison Home's Interest Coverage compare to IBP and MTH?
According to the Homebuilding & Construction industry distribution chart, Taylor Morrison Home ranks #20 out of 76 companies for Interest Coverage. This puts Taylor Morrison Home in the upper half of its industry. The industry median Interest Coverage is 8.63. Taylor Morrison Home's value of 12.71 is 47.3% above this benchmark. Historically, Taylor Morrison Home's own Interest Coverage has ranged from 19.94 to 231.95 over the past decade. While the company's 10-year median is 86.57 vs. the industry median of 8.63, Taylor Morrison Home has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Interest Coverage for a Homebuilding & Construction company?
The median Interest Coverage among Homebuilding & Construction companies is 8.63, based on 76 companies in the industry. Companies in the top quartile (top 25%) have a Interest Coverage significantly above this median, while those in the bottom quartile fall well below. However, Interest Coverage should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Taylor Morrison Home's current Interest Coverage of 12.71 is 47.3% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Interest Coverage mean?
A high Interest Coverage can signal that a stock is expensive relative to its fundamentals. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Taylor Morrison Home and its competitors. For the Homebuilding & Construction industry, the median Interest Coverage is 8.63 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Taylor Morrison Home's current Interest Coverage is 12.71, which is 85% below median its own 10-year median of 86.57. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Taylor Morrison Home stock overvalued right now?
Based on GuruFocus' analysis, Taylor Morrison Home (STU:THM) is currently considered Modestly Overvalued. The stock's GF Value™ is €48.93, compared to a current price of €63.50 — trading 29.8% above its estimated fair value. The current Interest Coverage is 12.71, which is 85% below median its 10-year median of 86.57 and 47.3% above the Homebuilding & Construction industry median of 8.63. Taylor Morrison Home's overall GF Score™ is 84/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Interest Coverage calculated?
Interest Coverage is calculated from a company's financial statements. For Taylor Morrison Home (STU:THM), the current Interest Coverage is 12.71 as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Taylor Morrison Home (STU:THM) Overvalued in 2026?
Based on GuruFocus' analysis, Taylor Morrison Home stock appears to be overvalued.
The current stock price of €63.50 is trading 29.8% above its estimated GF Value™ of €48.93.
GuruFocus considers Taylor Morrison Home to be Modestly Overvalued.
Key valuation signals for STU:THM:
Interest Coverage: 12.71 (85% below median its 10-year median of 86.57)
GF Value™: €48.93 vs. price of €63.50 (29.8% above fair value)
Industry Position: 47.3% above the Homebuilding & Construction median (#20 of 76)
No single metric tells the full story. See the STU:THM stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Taylor Morrison Home Corp is an American residential construction company engaged in residential homebuilding and the development of lifestyle communities. It designs, builds, and sells single and multi-family detached and attached homes in traditionally high growth markets for entry level, move-up, and resort lifestyle buyers. The company has four reportable segments: East, Central, West, and Financial Services. The majority of the company's revenue is derived from its West Segment.
84GF Score
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Interest Coverage is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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