TMHC (Taylor Morrison Home) ROCE %: 6.25% (As of Mar. 2026)

What is Taylor Morrison Home ROCE %?

Taylor Morrison Home TMHC +0.07% 84 ROCE % is 6.25% as of Mar. 2026. GuruFocus rates TMHC with a GF Score™ of 84/100 and a GF Value™ of $56.54 (Modestly Overvalued). The stock has 6 warning signs investors should review.

ROCE % measures how well a company generates profits from its capital. It is calculated as EBIT divided by Capital Employed, where Capital Employed is calculated as Total Assets minus Total Current Liabilities. Taylor Morrison Home's annualized ROCE % for the quarter that ended in Mar. 2026 was 6.25%.

Taylor Morrison Home (NYSE:TMHC) ROCE % Explanation

ROCE % can be especially useful when comparing the performance of capital-intensive companies. Unlike ROE %, which indicates the profitability of Shareholders Equity, ROCE % also considers long-term debt in Capital Employed. This can be helpful when analyzing companies with significant debt, as the result is neutralized by taking debt into consideration.

Generally speaking, a higher ROCE % indicates a stonger profitability for a company. Moreover, it is important to look at the ratio from a long term perspective. Investors tend to favor companies with stable and rising ROCE % trend over those with volatile ones.

Taylor Morrison Home ROCE % Related Terms

Taylor Morrison Home ROCE % Historical Data

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The historical data trend for Taylor Morrison Home's ROCE % 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 ROCE % Chart

Taylor Morrison Home Annual Data

Trend

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Dec24

Dec25

ROCE %

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11.93

18.93

14.05

14.79

12.85

Taylor Morrison Home Quarterly Data
	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24	Jun24	Sep24	Dec24	Mar25	Jun25	Sep25	Dec25	Mar26
ROCE %	Get a 7-Day Free Trial															13.44	13.24	13.50	11.91	6.25

84GF Score

Taylor Morrison Home Corp TMHC

ROCE % is just one metric. See GF Score™, valuation, warning signs, and more.

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Taylor Morrison Home ROCE % Calculation

Taylor Morrison Home's annualized ROCE % for the fiscal year that ended in Dec. 2025 is calculated as:

ROCE %	=	EBIT	/	( (Capital Employed	+	Capital Employed)	/ count )
		(A: Dec. 2025 )		(A: Dec. 2024 )		(A: Dec. 2025 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(A: Dec. 2025 )		(A: Dec. 2024 )		(A: Dec. 2025 )
	=	1135.217	/	( ( (9297.131 - 755.296)	+	(9837.797 - 713.797) )	/ 2 )
	=	1135.217	/	( (8541.835	+	9124)	/ 2 )
	=	1135.217	/	8832.9175
	=	12.85 %

Taylor Morrison Home's ROCE % of for the quarter that ended in Mar. 2026 is calculated as:

ROCE %	=	EBIT ⁽¹⁾	/	( (Capital Employed	+	Capital Employed)	/ count )
		(Q: Mar. 2026 )		(Q: Dec. 2025 )		(Q: Mar. 2026 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(Q: Mar. 2026 )		(Q: Dec. 2025 )		(Q: Mar. 2026 )
	=	567.348	/	( ( (9837.797 - 713.797)	+	(9771.999 - 732.105) )	/ 2 )
	=	567.348	/	( ( 9124	+	9039.894 )	/ 2 )
	=	567.348	/	9081.947
	=	6.25 %

(1) Note: The EBIT data used here is four times the quarterly (Mar. 2026) EBIT data.

Frequently Asked Questions Learn more about ROCE % →

What does a ROCE % of 6.25% mean?

Taylor Morrison Home (TMHC) has a ROCE % of 6.25% as of Mar. 2026.

Is Taylor Morrison Home's ROCE % too high?

Taylor Morrison Home's current ROCE % is 6.25%. The Homebuilding & Construction industry median ROCE % is 7.92. Taylor Morrison Home's value of 6.25% is 21.1% below this industry median. 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 ROCE % compare to IBP and MTH?

Taylor Morrison Home's ROCE % of 6.25% can be compared against companies in the Homebuilding & Construction industry. The industry median ROCE % is 7.92. Taylor Morrison Home's value of 6.25% is 21.1% below this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.

What is a good ROCE % for a Homebuilding & Construction company?

The median ROCE % among Homebuilding & Construction companies is 7.92, based on 94 companies in the industry. Companies in the top quartile (top 25%) have a ROCE % significantly above this median, while those in the bottom quartile fall well below. However, ROCE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Taylor Morrison Home's current ROCE % of 6.25% is 21.1% below 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 ROCE % mean?

A high ROCE % can signal that a stock is expensive relative to its fundamentals. For the Homebuilding & Construction industry, the median ROCE % is 7.92 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Taylor Morrison Home's current ROCE % is 6.25%. 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 $56.54, compared to a current price of $71.85 — trading 27.1% above its estimated fair value. The current ROCE % is 6.25% and 21.1% below the Homebuilding & Construction industry median of 7.92. 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 ROCE % calculated?

ROCE % is calculated from a company's financial statements. For Taylor Morrison Home (TMHC), the current ROCE % is 6.25% 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 $71.85 is trading 27.1% above its estimated GF Value™ of $56.54. GuruFocus considers Taylor Morrison Home to be Modestly Overvalued.

Key valuation signals for TMHC:

ROCE %: 6.25%
GF Value™: $56.54 vs. price of $71.85 (27.1% above fair value)
GF Score™: 84/100 with 6 warning signs
Industry Position: 21.1% below the Homebuilding & Construction median

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 Business Description

Industry Consumer Cyclical Homebuilding & Construction

Comparable Companies IBP MTH SKY CVCO MHO KBH GRBK DFH LGIH HOV DHI PHM LEN NVR TOL TSE:1928 LSE:BTRW TSE:1911 LSE:PSN TSE:1808

Other Exchanges THM:Germany

Address 4900 N. Scottsdale Road, Suite 2000, Scottsdale, AZ, USA, 85251

Website https://www.taylormorrison.com

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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ROCE % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

$71.85

Price

$56.54

GF Value

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