Tri Pointe Homes Inc. Common Stock (TPH)

FairStock Score: 45/100 — MIXED

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I look for businesses with durable competitive advantages, honest accounting, and a price that leaves room for error. Tri Pointe builds and sells single-family homes, a cyclical, capital-intensive trade with little pricing power and no real moat. In the latest reported quarter, 2026-Q1, revenue was $521.4 million and net income only $6.8 million, a 1.30% margin. That is wafer-thin. The supplied growth figures—revenue down 29.63% and profit down 89.40%—confirm a severe downturn. Returns are poor: FairStock calculates ROE of 5.54% and ROCE of 3.41%, well below what I want. The balance sheet has debt-to-equity of 0.38, which is manageable, and FairStock's Altman Z-Score of 3.50 suggests no immediate distress. But Piotroski F-Score is 2/9, a red flag on fundamental momentum. Free cash flow is $113.1 million, only a 2.8% FCF yield. At the 2026-05-13 close of $46.95, FairStock shows P/E 22.36, P/B 1.21, EV/EBITDA 16.83, and Graham Number $42.84, implying a -9.59% margin of safety. The FairStock Score is 45/100. There is no Lynch category because only 0 years of filed results are available, needing 3. Housing is cyclical; today's earnings are depressed, so the P/E may overstate expensiveness if earnings recover, but the price already reflects optimism near the 52-week high of $46.99. I prefer to wait for a wider discount and evidence of improving margins.

In plain English: Tri Pointe builds and sells single-family homes and also offers mortgage, title, and insurance services. Its latest quarter showed very thin profit and falling sales, so the business looks weak right now. At $46.95, the price is near its highest level of the past year and above a simple value estimate, so it does not look cheap based on the numbers given.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

Data as of 2026-05-13 close · note generated 2026-10-15 · model deepseek-flash

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer