Tri Pointe (TPH) AI Stock Analysis

• Market Cap: $2.74B
• Dividend Yield: N/A
• Average Volume (3M): 932.56K
• Price to Earnings (P/E): 9.4
• Beta (1Y): 0.92
• Revenue Growth: -16.60%
• EPS Growth: -29.85%
• Country: US
• Employees: 1,750
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Residential Construction
• EPS (TTM): 0.64
• Shares Outstanding: 85,953,500
• 10 Day Avg. Volume: 1,223,348
• 30 Day Avg. Volume: 932,559
• PEG Ratio: 0.19
• Price to Book (P/B): 1.02
• Price to Sales (P/S): 0.76
• P/FCF Ratio: 5.07
• Enterprise Value/Market Cap: 1.26
• Enterprise Value/Revenue: 0.85
• Enterprise Value/Gross Profit: 3.71
• Enterprise Value/Ebitda: 6.52
• 1Y Price Target: $38.00
• Price Target Upside: 19.31% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3

• Rating: 75 Outperform
• Price Target: $36.00 ▲(13.03% Upside)

Tri Pointe Homes shows a solid financial foundation with strong profitability and strategic growth initiatives. The stock appears undervalued based on its P/E ratio, and the company has demonstrated resilience in challenging market conditions. However, technical indicators suggest caution, and market softness remains a concern.

Positive Factors

Financial Health

Tri Pointe's strong financial position, characterized by healthy margins and effective cash flow management, provides a solid foundation for sustainable growth and resilience against market fluctuations.

Community Expansion

Expanding community count by up to 15% by 2026 indicates strategic growth, enhancing market presence and potential revenue streams in key regions, supporting long-term business expansion.

Liquidity Position

A strong liquidity position with $1.6 billion available ensures operational flexibility and the ability to invest in growth opportunities, reinforcing long-term financial stability.

Negative Factors

Revenue Decline

The recent decline in revenue growth indicates potential challenges in maintaining previous growth momentum, which could impact future profitability and market competitiveness.

Soft Market Conditions

Persistent soft market conditions and muted buyer interest may hinder sales growth and necessitate increased incentives, affecting margins and long-term revenue potential.

Increased Sales Incentives

Rising sales incentives reflect challenges in demand, potentially compressing margins and signaling competitive pressures that could impact long-term profitability.

Tri Pointe Business Overview & Revenue Model

Company Description

Tri Pointe Homes, Inc. engages in the design, construction, and sale of single-family attached and detached homes in the United States. The company operates through a portfolio of six brands comprising Maracay in Arizona; Pardee Homes in California and Nevada; Quadrant Homes in Washington; Trendmaker Homes in Texas; TRI Pointe Homes in California, Colorado, and the Carolinas; and Winchester Homes in Maryland, Virginia, and the District of Columbia. As of December 31, 2021, its operations consisted of 112 active selling communities and 41,675 owned or controlled lots. The company sells its homes through own sales representatives and independent real estate brokers. It also provides financial services, such as mortgage financing, title and escrow, and property and casualty insurance agency services. The company was formerly known as TRI Pointe Group, Inc. and changed its name to Tri Pointe Homes, Inc. in January 2021. Tri Pointe Homes, Inc. was founded in 2009 and is headquartered in Irvine, California.

How the Company Makes Money

Tri Pointe Homes generates revenue primarily through the sale of residential homes. The company earns money by acquiring land, developing it, and constructing homes that are then sold to consumers. Key revenue streams include the sale of newly built homes, as well as additional income from the sale of lots to third-party builders. Tri Pointe also benefits from strategic partnerships with land developers, financial institutions, and trade partners, which help streamline its operations and reduce costs. Additionally, the company may realize earnings through the provision of warranty services and other ancillary services related to homeownership.

Tri Pointe Financial Statement Overview

Summary

Tri Pointe demonstrates a solid financial position with strong profitability and a conservative balance sheet. While revenue growth has faced headwinds, the company maintains healthy margins and a strong equity base. Cash flow generation remains robust, although recent declines in free cash flow growth warrant attention.

Income Statement

Tri Pointe's income statement shows a mixed performance. The TTM data indicates a decline in revenue growth rate by 5.9%, reflecting challenges in maintaining sales momentum. However, the company maintains healthy margins with a gross profit margin of 23.07% and a net profit margin of 9.09%. The EBIT and EBITDA margins are also solid at 11.77% and 12.54%, respectively, indicating efficient cost management despite the revenue decline.

Balance Sheet

The balance sheet is strong, with a debt-to-equity ratio of 0.33, showcasing a conservative leverage approach. The return on equity (ROE) is 11.09%, indicating decent profitability relative to shareholder equity. The equity ratio stands at 68.56%, suggesting a robust capital structure with a significant portion of assets financed by equity.

Cash Flow

Cash flow analysis reveals some concerns with a 20.49% decline in free cash flow growth. However, the operating cash flow to net income ratio is high at 5.19, indicating strong cash generation relative to net income. The free cash flow to net income ratio is 0.93, showing that most of the net income is converted into free cash flow, despite the recent decline.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	4.04B	4.49B	3.72B	4.35B	3.98B	3.26B
Gross Profit	929.97M	1.05B	844.55M	1.17B	1.01B	724.20M
EBITDA	528.96M	647.89M	494.21M	801.22M	658.08M	402.87M
Net Income	365.76M	458.03M	343.70M	576.06M	469.27M	282.21M
Balance Sheet
Total Assets	4.80B	4.89B	4.91B	4.72B	4.34B	4.02B
Cash, Cash Equivalents and Short-Term Investments	622.64M	970.04M	868.95M	889.66M	681.53M	621.29M
Total Debt	1.10B	1.10B	1.46B	1.46B	1.41B	1.40B
Total Liabilities	1.51B	1.56B	1.90B	1.88B	1.89B	1.79B
Stockholders Equity	3.29B	3.34B	3.01B	2.83B	2.45B	2.23B
Cash Flow
Free Cash Flow	393.70M	672.76M	169.88M	400.65M	390.04M	565.19M
Operating Cash Flow	422.75M	696.06M	195.26M	444.28M	419.53M	587.99M
Investing Cash Flow	-87.59M	-63.45M	-26.42M	-58.12M	-72.13M	-88.04M
Financing Cash Flow	-205.46M	-531.52M	-189.55M	-178.02M	-287.17M	-207.66M

Tri Pointe Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 31.85
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TPH, the sentiment is Negative. The current price of 31.85 is below the 20-day moving average (MA) of 32.28, below the 50-day MA of 33.88, and below the 200-day MA of 32.78, indicating a bearish trend. The MACD of -0.40 indicates Negative momentum. The RSI at 41.40 is Neutral, neither overbought nor oversold. The STOCH value of 28.97 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TPH.

Tri Pointe Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TPH	―	$2.74B	9.41	9.47%	―	-16.60%	-29.85%
KBH	―	$4.04B	8.76	13.04%	1.60%	-0.95%	-9.22%
GRBK	―	$2.82B	8.51	20.37%	―	6.62%	-1.90%
CCS	―	$1.75B	8.67	8.37%	1.90%	-6.28%	-31.55%
MHO	―	$3.27B	7.35	15.76%	―	4.77%	-9.30%
Sector *	―	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
DFH	―	$1.84B	7.20	20.66%	―	15.95%	-6.86%

Tri Pointe Corporate Events

Tri Pointe Homes Navigates Market Volatility and Economic Risks: A Focus on Risk Management

Tri Pointe Homes faces significant business risks, particularly in the realm of market volatility and economic downturns, which can adversely affect its financial performance. The company’s reliance on the housing market exposes it to fluctuations in demand and pricing, potentially impacting revenue streams. Additionally, regulatory changes and shifts in consumer preferences may pose challenges to its operational strategies. These factors necessitate careful risk management to mitigate potential negative impacts on the company’s growth and stability.

Tri Pointe Homes Reports Q3 2025 Earnings Amid Market Challenges

Tri Pointe Homes, Inc. is one of the largest homebuilders in the United States, known for its innovative design and environmentally responsible business practices, operating across 12 states and the District of Columbia. In its third-quarter earnings report for 2025, Tri Pointe Homes reported new home deliveries of 1,217 and home sales revenue of $817.3 million, amidst a challenging housing market. The company also repurchased $51 million of common stock and amended its credit facility to increase its term loan by $200 million. Key financial metrics showed a decline compared to the previous year, with net income available to common stockholders at $56.1 million, down from $111.8 million, and a decrease in home sales revenue from $1.1 billion. Despite these challenges, the company maintained a homebuilding gross margin of 20.6%, with an adjusted margin of 21.6% after excluding inventory-related charges. Looking ahead, Tri Pointe Homes remains confident in its strategic positioning and financial strength, with a focus on sustainable growth and value creation for shareholders, supported by strong liquidity and a robust land pipeline.

Tri Pointe Homes’ Earnings Call: Strategic Growth Amid Challenges

Tri Pointe Homes’ recent earnings call revealed a company navigating a challenging market environment with a balanced approach. The sentiment was generally positive, highlighting strong financial results and strategic growth plans, despite facing softer market conditions and the need for increased incentives to drive sales. The company’s focus on community growth and financial strength underscores its resilience in the face of current market challenges.

Tri Pointe Expands Credit Agreement to $450 Million

On September 18, 2025, Tri Pointe Homes, Inc. announced a significant modification to its Credit Agreement, increasing the term loan facility from $250 million to $450 million. This adjustment includes splitting the facility into two tranches with different maturity dates, potentially impacting the company’s financial flexibility and market positioning.

The most recent analyst rating on (TPH) stock is a Buy with a $40.00 price target. To see the full list of analyst forecasts on Tri Pointe stock, see the TPH Stock Forecast page.