Taylor Morrison Net Income vs. Z Score
| THM Stock | 66.00 1.50 2.22% |
For Taylor Morrison profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Taylor Morrison to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Taylor Morrison Home utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Taylor Morrison's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Taylor Morrison Home over time as well as its relative position and ranking within its peers.
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Taylor Morrison Home Z Score vs. Net Income Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Taylor Morrison's current stock value. Our valuation model uses many indicators to compare Taylor Morrison value to that of its competitors to determine the firm's financial worth. Taylor Morrison Home is rated below average in net income category among its peers. It also is rated below average in z score category among its peers . The ratio of Net Income to Z Score for Taylor Morrison Home is about 1,754,666,667 . The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Taylor Morrison's earnings, one of the primary drivers of an investment's value.Taylor Z Score vs. Net Income
Net income is the profit of a company for the reporting period, which is derived after taking revenues and gains and subtracting all expenses and losses. Net income is one of the most-watched numbers by money managers as well as individual investors.
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| = | 1.05 B |
Because income is reported on the Income Statement of a company and is measured in dollars some investors prefer to use Profit Margin, which measures income as a percentage of sales.
Z-Score is a simple linear, multi-factor model that measures the financial health and economic stability of a company. The score is used to predict the probability of a firm going into bankruptcy within next 24 months or two fiscal years from the day stated on the accounting statements used to calculate it. The model uses five fundamental business ratios that are weighted according to algorithm of Professor Edward Altman who developed it in the late 1960s at New York University..
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| = | 0.6 |
To calculate a Z-Score, one would need to know a company's current working capital, its total assets and liabilities, and the amount of its latest earnings as well as earnings before interest and tax. Z-Scores can be used to compare the odds of bankruptcy of companies in a similar line of business or firms operating in the same industry. Companies with Z-Scores above 3.1 are generally considered to be stable and healthy with a low probability of bankruptcy. Scores that fall between 1.8 and 3.1 lie in a so-called 'grey area,' with scores of less than 1 indicating the highest probability of distress. Z Score is a used widely measure by financial auditors, accountants, money managers, loan processors, wealth advisers, and day traders. In the last 25 years, many financial models that utilize z-scores proved it to be successful as a predictor of corporate bankruptcy.
Taylor Z Score Comparison
Taylor Morrison is currently under evaluation in z score category among its peers.
Taylor Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Taylor Morrison. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Taylor Morrison position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Taylor Morrison's important profitability drivers and their relationship over time.
Use Taylor Morrison in pair-trading
One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Taylor Morrison position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Taylor Morrison will appreciate offsetting losses from the drop in the long position's value.Taylor Morrison Pair Trading
Taylor Morrison Home Pair Trading Analysis
The ability to find closely correlated positions to Taylor Morrison could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Taylor Morrison when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Taylor Morrison - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Taylor Morrison Home to buy it.
The correlation of Taylor Morrison is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Taylor Morrison moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Taylor Morrison Home moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Taylor Morrison can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.Use Investing Themes to Complement your Taylor Morrison position
In addition to having Taylor Morrison in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.Did You Try This Idea?
Run Long Short Funds Thematic Idea Now
Long Short Funds
Funds or Etfs that are designed to hedge away market risk by investing in combination of bonds, stocks, derivative instruments as well as short positions to maximize returns irrespective of market conditions. The Long Short Funds theme has 40 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Long Short Funds Theme or any other thematic opportunities.
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Additional Tools for Taylor Stock Analysis
When running Taylor Morrison's price analysis, check to measure Taylor Morrison's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Taylor Morrison is operating at the current time. Most of Taylor Morrison's value examination focuses on studying past and present price action to predict the probability of Taylor Morrison's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Taylor Morrison's price. Additionally, you may evaluate how the addition of Taylor Morrison to your portfolios can decrease your overall portfolio volatility.