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Taylor Morrison HomeTMHC 63 Net Margin % is 7.11% as of Mar. 2026, which is 0% above its 10-year median of 7.10. GuruFocus rates TMHC with a GF Score™ of 63/100 and a GF Value™ of $55.83 (Modestly Overvalued). The stock has 6 warning signs investors should review. Among 92 Homebuilding & Construction companies, Taylor Morrison Home ranks better than 72.83% on this metric.
Taylor Morrison Home (NYSE:TMHC) Net Margin % Explanation
Although Net Income and Earnings-per-Share (EPS) are the most widely used parameter in measuring a company's profitability and valuation, it is the least reliable. The reason is that reported earnings can be manipulated easily by adjusting any numbers such as Depreciation, Depletion and Amotorization and non-recurring items.
But the long term trend of the net margin is a good indicator of the competitiveness and health of the business.
Taylor Morrison Home Net Margin % Related Terms
Taylor Morrison Home Net Margin % Historical Data
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The historical data trend for Taylor Morrison Home's Net Margin % 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.
For the Residential Construction subindustry, Taylor Morrison Home's Net Margin %, along with its competitors' market caps and Net Margin % 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 Net Margin % vs Homebuilding & Construction Industry
For the Homebuilding & Construction industry and Consumer Cyclical sector, Taylor Morrison Home's Net Margin % distribution charts can be found below:
* The bar in red indicates where Taylor Morrison Home's Net Margin % falls into.
* 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 (TMHC) has a Net Margin % of 7.11% as of Mar. 2026. Net margin is the ratio of total net income to net sales. View historical data on Taylor Morrison Home and its competitors. This is near median its historical median of 7.10. Over the past decade, Taylor Morrison Home's Net Margin % has ranged from 1.48 to 12.80. According to the industry distribution chart, Taylor Morrison Home ranks #25 out of 92 companies in the Homebuilding & Construction industry, placing it in the top 27.2%.
Is Taylor Morrison Home's Net Margin % too high?
Taylor Morrison Home's current Net Margin % of 7.11% is near median its 10-year median of 7.10. Over the past 10 years, this metric has ranged from a low of 1.48 to a high of 12.80. The Homebuilding & Construction industry median Net Margin % is 4.86. Taylor Morrison Home's value of 7.11% is 46.3% above this industry median. Based on the distribution chart, Taylor Morrison Home ranks #25 out of 92 companies in the Homebuilding & Construction industry, which is above the industry midpoint. Overall, Taylor Morrison Home has a GF Score™ of 63/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Taylor Morrison Home's Net Margin % compare to IBP and MTH?
According to the Homebuilding & Construction industry distribution chart, Taylor Morrison Home ranks #25 out of 92 companies for Net Margin %. This puts Taylor Morrison Home in the upper half of its industry. The industry median Net Margin % is 4.86. Taylor Morrison Home's value of 7.11% is 46.3% above this benchmark. Historically, Taylor Morrison Home's own Net Margin % has ranged from 1.48 to 12.80 over the past decade. While the company's 10-year median is 7.10 vs. the industry median of 4.86, 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 Net Margin % for a Homebuilding & Construction company?
The median Net Margin % among Homebuilding & Construction companies is 4.86, based on 92 companies in the industry. Companies in the top quartile (top 25%) have a Net Margin % significantly above this median, while those in the bottom quartile fall well below. However, Net Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Taylor Morrison Home's current Net Margin % of 7.11% is 46.3% 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 Net Margin % mean?
A high Net Margin % can signal that a stock is expensive relative to its fundamentals. Net margin is the ratio of total net income to net sales. View historical data on Taylor Morrison Home and its competitors. For the Homebuilding & Construction industry, the median Net Margin % is 4.86 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Taylor Morrison Home's current Net Margin % is 7.11%, which is near median its own 10-year median of 7.10. 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 (TMHC) is currently considered Modestly Overvalued. The stock's GF Value™ is $55.83, compared to a current price of $72.45 — trading 29.8% above its estimated fair value. The current Net Margin % is 7.11%, which is near median its 10-year median of 7.10 and 46.3% above the Homebuilding & Construction industry median of 4.86. Taylor Morrison Home's overall GF Score™ is 63/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Net Margin % calculated?
Net Margin % is calculated from a company's financial statements. For Taylor Morrison Home (TMHC), the current Net Margin % is 7.11% 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 (TMHC) Overvalued in 2026?
Based on GuruFocus' analysis, Taylor Morrison Home stock appears to be overvalued.
The current stock price of $72.45 is trading 29.8% above its estimated GF Value™ of $55.83.
GuruFocus considers Taylor Morrison Home to be Modestly Overvalued.
Key valuation signals for TMHC:
Net Margin %: 7.11% (near median its 10-year median of 7.10)
GF Value™: $55.83 vs. price of $72.45 (29.8% above fair value)
Industry Position: 46.3% above the Homebuilding & Construction median (#25 of 92)
No single metric tells the full story. See the TMHC 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.
63GF Score
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