Stock in Focus: TRI Pointe Group, Inc. (TPH)

Company Profile:

TRI Pointe Group, Inc. engages in the design, construction, and sale of single-family detached and attached homes in the United States. It operates a portfolio of six brands across eight states, including Maracay Homes in Arizona; Pardee Homes in California and Nevada; Quadrant Homes in Washington; Trendmaker Homes in Texas; TRI Pointe Homes in California and Colorado; and Winchester Homes in Maryland and Virginia. 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 property and casualty insurance agency services. TRI Pointe Group, Inc. was formerly a subsidiary of Weyerhaeuser NR Company. The company was founded in 2009 and is headquartered in Irvine, California.

Recent News:

On Feb. 26, 2019, the company announced results for the fourth quarter ended December 31, 2018 and full year 2018. Net income available to common stockholders was $99.4 million, or $0.70 per diluted share, compared to $74.0 million, or $0.49 per diluted share. For Full Year 2018 the company reported net income available to common stockholders was $269.9 million, or $1.81 per diluted share, compared to $187.2 million, or $1.21 per diluted share of 2017.

The Company also announced that its Board of Directors has approved a new stock repurchase program authorizing the repurchase of up to $100 million of Company common stock through March 31, 2020.

Fundamental Analysis:

Ninestocks analyzes several different financial aspects: Growth, Profitability, solvency and efficiency.

Growth – Measures the growth of both the company’s income statement and cash flow.

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Profitability – Measures the historical price movement of the stock.

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Solvency – Measures the solvency of the company based on several ratios.

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Efficiency – Measures the strength and historic growth of a company’s return on invested capital.

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Conclusion:

TPH’s strengths can be seen in its better growth, better profitability and strong efficiency compared with its peers. Its revenue has increased over recently several years. Technical indicators signal the bullish signs, as there is a bullish crossover in Stochastic oscillator, the MACD is trying to cross back up and the RSI stands at 51.20 with positive bias. We rate TRI Pointe Group, Inc. (TPH) a STRONG BUY.