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Taylor Morrison HomeSTU:THM +0.79%84 Pretax Margin % is 9.42% as of Mar. 2026, which is 9% below its 10-year median of 10.33. 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 92 Homebuilding & Construction companies, Taylor Morrison Home ranks better than 73.91% on this metric.
The historical rank and industry rank for Taylor Morrison Home's Pretax Margin % or its related term are showing as below:
STU:THM'
s Pretax Margin % Range Over the Past 10 Years
Min: 5.29 Med: 10.33 Max: 16.93
Current: 11.75
STU:THM's Pretax Margin % is ranked better than 73.91% of 92
companies
in the Homebuilding & Construction industry
Industry Median: 7.115
vs STU:THM: 11.75
Taylor Morrison Home (STU:THM) Pretax Margin % Explanation
The pretax margin, as know as pretax profit margin, is widely used to measure the operating efficiency of a company before deducting taxes.
The pretax margin is sometimes preferred over the net margin as tax expenditures can make profitability comparisons between companies misleading.
It is a useful tool to compare companies operating in the same sector and less effective when comparing companies from other sectors as each industry generally has different operating expenses and sales patterns.
The long term trend of the pretax margin is a good indicator of the competitiveness and health of the business.
Taylor Morrison Home Pretax Margin % Related Terms
Taylor Morrison Home Pretax Margin % Historical Data
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The historical data trend for Taylor Morrison Home's Pretax 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.
STU:THM vs IBP, MTH, SKY: Pretax Margin % Comparison
For the Residential Construction subindustry, Taylor Morrison Home's Pretax Margin %, along with its competitors' market caps and Pretax 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 Pretax Margin % vs Homebuilding & Construction Industry
For the Homebuilding & Construction industry and Consumer Cyclical sector, Taylor Morrison Home's Pretax Margin % distribution charts can be found below:
* The bar in red indicates where Taylor Morrison Home's Pretax 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 (STU:THM) has a Pretax Margin % of 9.42% as of Mar. 2026. Pre-Tax margin is the ratio of total pre-tax income to net sales. View historical data on Taylor Morrison Home and its competitors. This is near median its historical median of 10.33. Over the past decade, Taylor Morrison Home's Pretax Margin % has ranged from 5.29 to 16.93. According to the industry distribution chart, Taylor Morrison Home ranks #24 out of 92 companies in the Homebuilding & Construction industry, placing it in the top 26.1%.
Is Taylor Morrison Home's Pretax Margin % too high?
Taylor Morrison Home's current Pretax Margin % of 9.42% is near median its 10-year median of 10.33. Over the past 10 years, this metric has ranged from a low of 5.29 to a high of 16.93. The Homebuilding & Construction industry median Pretax Margin % is 7.12. Taylor Morrison Home's value of 9.42% is 32.4% above this industry median. Based on the distribution chart, Taylor Morrison Home ranks #24 out of 92 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 Pretax Margin % compare to IBP and MTH?
According to the Homebuilding & Construction industry distribution chart, Taylor Morrison Home ranks #24 out of 92 companies for Pretax Margin %. This puts Taylor Morrison Home in the upper half of its industry. The industry median Pretax Margin % is 7.12. Taylor Morrison Home's value of 9.42% is 32.4% above this benchmark. Historically, Taylor Morrison Home's own Pretax Margin % has ranged from 5.29 to 16.93 over the past decade. While the company's 10-year median is 10.33 vs. the industry median of 7.12, 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 Pretax Margin % for a Homebuilding & Construction company?
The median Pretax Margin % among Homebuilding & Construction companies is 7.12, based on 92 companies in the industry. Companies in the top quartile (top 25%) have a Pretax Margin % significantly above this median, while those in the bottom quartile fall well below. However, Pretax Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Taylor Morrison Home's current Pretax Margin % of 9.42% is 32.4% 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 Pretax Margin % mean?
A high Pretax Margin % can signal that a stock is expensive relative to its fundamentals. Pre-Tax margin is the ratio of total pre-tax income to net sales. View historical data on Taylor Morrison Home and its competitors. For the Homebuilding & Construction industry, the median Pretax Margin % is 7.12 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Taylor Morrison Home's current Pretax Margin % is 9.42%, which is near median its own 10-year median of 10.33. 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 Pretax Margin % is 9.42%, which is near median its 10-year median of 10.33 and 32.4% above the Homebuilding & Construction industry median of 7.12. 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 Pretax Margin % calculated?
Pretax Margin % is calculated from a company's financial statements. For Taylor Morrison Home (STU:THM), the current Pretax Margin % is 9.42% 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:
Pretax Margin %: 9.42% (near median its 10-year median of 10.33)
GF Value™: €48.93 vs. price of €63.50 (29.8% above fair value)
Industry Position: 32.4% above the Homebuilding & Construction median (#24 of 92)
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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