TMHC · NYSE Arca · United States
taylormorrison.comFinancials as of FY2025
Builds single-family homes across Sunbelt markets and earns extra fees by handling the mortgage and closing paperwork on most of its own sales.
What this company is and how it runs — written from structure, not news.
Taylor Morrison builds single-family homes across Sunbelt markets and earns revenue only when a buyer completes mortgage financing — not when construction finishes — which can leave capital tied up in a completed home for months. To close that gap, the company runs its own mortgage and title subsidiary, which manages financing and closing on roughly 80% of its sales, converting what would be an external wait into something the company can schedule itself. That subsidiary also captures origination fees, title insurance premiums, and closing service fees on each of those transactions, turning the same home sale into two revenue streams at once. The whole structure depends on the Consumer Financial Protection Bureau continuing to allow builder-owned lenders to originate loans to that same builder's buyers — if that rule changes, the subsidiary loses its role in the transaction and both the fee income and the timing control disappear together.
How does this company make money?
The company collects the sale price of each home when the closing is completed. On roughly 80% of those closings, it also collects mortgage origination fees, title insurance premiums, and closing service fees through its financial services subsidiary — making money twice on the same transaction.
What makes this company hard to replace?
Once a buyer has gone through design selections and customization approvals for a specific home, switching to a competitor means losing their deposit and starting the entire approval process over from scratch. Buyers who have already signed a contract on a pre-sold home cannot source that same home from another builder — the delivery obligation exists only with this company.
What limits this company?
Before a single foundation is poured, the company needs a building permit. In Austin, Denver, and Phoenix, local permitting offices are backed up because those cities are growing faster than their building departments can handle. That delay pushes back every construction start, and when you add the months it then takes to close a mortgage, the company's money is tied up in each home for a long time before it comes back.
What does this company depend on?
The company cannot build without lumber from Pacific Northwest and Southern Yellow Pine mills, concrete and aggregates sourced within 50 miles of each community, and municipal water and sewer tap permits. It also relies on FHA and conventional mortgage availability through partner lenders for buyers who don't use the captive subsidiary, and on subcontractor labor pools in each metropolitan market where it builds.
Who depends on this company?
First-time homebuyers in Arizona and Texas would lose access to entry-level new construction if the company stopped building. Mortgage brokers and real estate agents in those markets would lose commission income tied to new home sales. Local municipalities would lose the impact fees and property tax revenue that come when new homes are built and occupied.
How does this company scale?
Standardized floor plans and company-wide purchasing agreements for materials can be copied from one market to the next without much extra cost. What cannot be copied is the local knowledge required to buy the right land — understanding which parcels have favorable zoning, which school districts attract buyers, and how each city's approval process works requires people on the ground in every market.
What external forces can significantly affect this company?
When the Federal Reserve raises interest rates, monthly mortgage payments go up and fewer buyers can qualify — which directly shrinks the pool of people who can buy a new home. Demand in Arizona and Texas markets is partly driven by people moving from California and Northeast states, so any slowdown in that migration would reduce sales. In Austin specifically, municipal growth management policies limit how much developable land is available, which puts a ceiling on how many homes can be built there.
Where is this company structurally vulnerable?
If the Consumer Financial Protection Bureau introduced rules that stopped a builder-owned lender from giving mortgages to that same builder's buyers, the subsidiary would be cut out of the transaction entirely. That would wipe out the origination fees, title insurance premiums, and closing service fees all at once — and it would hand control of closing timing back to outside lenders, removing the scheduling lever the company currently uses to collect revenue faster.
Price is read as structure — trend, levels, range, peak and volatility drawn on the chart. It does not predict where price goes next.
Sign in to view price data.
Sign in4 interpretations currently present — each is a set of fired observations whose alignment reads as one structural pattern. Click an observation to see the numbers behind it.
Screen for these patternsHow is this stock behaving?
Three observations describe the present configuration: a high share of the trailing three years' weekly closes were higher than the prior week, the company has reported positive net income in each of the last five annual periods, and the book-value-increase-consistency composite over the trailing 5 years is elevated.
Two structural conditions align: (1) a multi-year price band exists where the stock has, on at least two separated occasions, stopped advancing and pulled back, and (2) current price is back inside or just below that zone, near the top of its recent trading range. The retest is happening at a level the stock has reached before and turned away from.
Three observations describe the present configuration: a high share of the trailing year's weekly closes were higher than the prior week, the company has reported positive net income in each of the last three annual periods, and the industry-benchmarked TTM operating cash flow margin is in the upper peer range.
Current close sits in the upper portion of the 14-week high-low range; current close sits in the upper portion of its 20-week Bollinger Bands; RSI sits above its 20-week recent mean (Bollinger %B applied to RSI).
An interpretation is present only while every observation it reads stays fired (score ≥ 70). It describes what the aligned readings show — never a verdict, never a prediction.
The reported statements, read against the company's own industry.
2 interpretations currently present — each is a set of fired observations whose alignment reads as one structural pattern. Click an observation to see the numbers behind it.
Screen for these patternsIs this company financially stable?
Three liquidity ratios co-occur in their elevated ranges: current ratio (industry-benchmarked), quick ratio, and cash ratio. The simultaneous firing means coverage is elevated through progressively more liquid asset layers, not concentrated in inventory or receivables.
How is this stock valued?
Retained earnings are a large share of total assets; net income was positive in each of the last 5 fiscal years; shareholders' equity is in the upper part of its industry's equity-to-assets range.
An interpretation is present only while every observation it reads stays fired (score ≥ 70). It describes what the aligned readings show — never a verdict, never a prediction.
Shared structure with peers — never a ranking.
Structural observations derived from financial data, industry benchmarks, and supply chain position.
Companies that share the same coordination system — how they create, deliver, or capture value.
Companies that share active interpretations — structural patterns currently present in both stocks.
CompanyGraph