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Taylor Morrison HomeTMHC 63 Return-on-Tangible-Asset is 4.32% as of Mar. 2026, which is 37% below its 10-year median of 6.88. 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 96 Homebuilding & Construction companies, Taylor Morrison Home ranks better than 80.21% on this metric.
Return-on-Tangible-Asset is calculated as Net Income divided by its average total tangible assets. Total tangible assets equals to Total Assets minus Intangible Assets. Taylor Morrison Home's annualizedNet Income for the quarter that ended in Mar. 2026 was $395 Mil. Taylor Morrison Home's average total tangible assets for the quarter that ended in Mar. 2026 was $9,142 Mil. Therefore, Taylor Morrison Home's annualized Return-on-Tangible-Asset for the quarter that ended in Mar. 2026 was 4.32%.
The historical rank and industry rank for Taylor Morrison Home's Return-on-Tangible-Asset or its related term are showing as below:
TMHC'
s Return-on-Tangible-Asset Range Over the Past 10 Years
Min: 1.28 Med: 6.88 Max: 13.27
Current: 7.46
During the past 13 years, Taylor Morrison Home's highest Return-on-Tangible-Asset was 13.27%. The lowest was 1.28%. And the median was 6.88%.
TMHC's Return-on-Tangible-Asset is ranked better than 80.21% of 96
companies
in the Homebuilding & Construction industry
Industry Median: 3.455
vs TMHC: 7.46
Taylor Morrison Home (NYSE:TMHC) Return-on-Tangible-Asset Explanation
Return-on-Tangible-Asset measures the rate of return on the average total tangible assets (total assets minus intangible assets). Tangible means physical in nature. Intangible Assets are assets that are not physical in nature, and typically "derive their value from legal or intellectual rights." Return-on-Tangible-Asset measures a firm's efficiency at generating profits from its tangible assets. It shows how well a company uses what it has to generate earnings. Return-on-Tangible-Assets can vary drastically across industries. Therefore, Return-on-Tangible-Asset should not be used to compare companies in different industries.
Be Aware
Like ROE and ROA, Return-on-Tangible-Asset is calculated with only 12 months data. Fluctuations in the companys earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective. Return-on-Tangible-Asset can be affected by events such as stock buyback or issuance, and by a companys tax rate and its interest payment. Return-on-Tangible-Asset may not reflect the true earning power of the assets. A more accurate measurement is ROC % (ROC).
Many analysts argue the higher return the better. Buffett states that really high Return-on-Tangible-Asset may indicate vulnerability in the durability of the competitive advantage.
Taylor Morrison Home Return-on-Tangible-Asset Related Terms
Taylor Morrison Home Return-on-Tangible-Asset Historical Data
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The historical data trend for Taylor Morrison Home's Return-on-Tangible-Asset 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.
Taylor Morrison Home Return-on-Tangible-Asset Chart
TMHC vs IBP, MTH, SKY: Return-on-Tangible-Asset Comparison
For the Residential Construction subindustry, Taylor Morrison Home's Return-on-Tangible-Asset, along with its competitors' market caps and Return-on-Tangible-Asset 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 Return-on-Tangible-Asset vs Homebuilding & Construction Industry
For the Homebuilding & Construction industry and Consumer Cyclical sector, Taylor Morrison Home's Return-on-Tangible-Asset distribution charts can be found below:
* The bar in red indicates where Taylor Morrison Home's Return-on-Tangible-Asset 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.
In the calculation of annual Return-on-Tangible-Asset, the net income of the last fiscal year and the average total tangible assets over the fiscal year are used. In calculating the quarterly data,
the Net Income data used here is four times the quarterly (Mar. 2026) net income data.
What does a Return-on-Tangible-Asset of 4.32% mean?
Taylor Morrison Home (TMHC) has a Return-on-Tangible-Asset of 4.32% as of Mar. 2026. Return on tangible assets is the ratio of current-period net income to average two-period tangible assets. View historical data on Taylor Morrison Home and its competitors. This is 37% below median its historical median of 6.88. Over the past decade, Taylor Morrison Home's Return-on-Tangible-Asset has ranged from 1.28 to 13.27. According to the industry distribution chart, Taylor Morrison Home ranks #19 out of 96 companies in the Homebuilding & Construction industry, placing it in the top 19.8%.
Is Taylor Morrison Home's Return-on-Tangible-Asset too high?
Taylor Morrison Home's current Return-on-Tangible-Asset of 4.32% is 37% below median its 10-year median of 6.88. Over the past 10 years, this metric has ranged from a low of 1.28 to a high of 13.27. The Homebuilding & Construction industry median Return-on-Tangible-Asset is 3.46. Taylor Morrison Home's value of 4.32% is 25% above this industry median. Based on the distribution chart, Taylor Morrison Home ranks #19 out of 96 companies in the Homebuilding & Construction industry, which is in the top quartile — a strong position relative to peers. 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 Return-on-Tangible-Asset compare to IBP and MTH?
According to the Homebuilding & Construction industry distribution chart, Taylor Morrison Home ranks #19 out of 96 companies for Return-on-Tangible-Asset. This places Taylor Morrison Home in the top 20% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Asset is 3.46. Taylor Morrison Home's value of 4.32% is 25% above this benchmark. Historically, Taylor Morrison Home's own Return-on-Tangible-Asset has ranged from 1.28 to 13.27 over the past decade. While the company's 10-year median is 6.88 vs. the industry median of 3.46, 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 Return-on-Tangible-Asset for a Homebuilding & Construction company?
The median Return-on-Tangible-Asset among Homebuilding & Construction companies is 3.46, based on 96 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Asset significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Asset should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Taylor Morrison Home's current Return-on-Tangible-Asset of 4.32% is 25% 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 Return-on-Tangible-Asset mean?
A high Return-on-Tangible-Asset can signal that a stock is expensive relative to its fundamentals. Return on tangible assets is the ratio of current-period net income to average two-period tangible assets. View historical data on Taylor Morrison Home and its competitors. For the Homebuilding & Construction industry, the median Return-on-Tangible-Asset is 3.46 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Taylor Morrison Home's current Return-on-Tangible-Asset is 4.32%, which is 37% below median its own 10-year median of 6.88. 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 Return-on-Tangible-Asset is 4.32%, which is 37% below median its 10-year median of 6.88 and 25% above the Homebuilding & Construction industry median of 3.46. 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 Return-on-Tangible-Asset calculated?
Return-on-Tangible-Asset is calculated from a company's financial statements. For Taylor Morrison Home (TMHC), the current Return-on-Tangible-Asset is 4.32% 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:
Return-on-Tangible-Asset: 4.32% (37% below median its 10-year median of 6.88)
GF Value™: $55.83 vs. price of $72.45 (29.8% above fair value)
Industry Position: 25% above the Homebuilding & Construction median (#19 of 96)
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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Return-on-Tangible-Asset is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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