Our Company Tri Pointe was founded in April 2009, near the end of an unprecedented downturn in the national homebuilding industry. Since then, we have grown from a Southern California fee homebuilder into a regionally-focused national homebuilder engaged in the design, construction and sale of innovative single-family attached and detached homes in 17 markets across twelve states and the Distri…
Operating margin is thin at 8.70%. Limited cushion if revenue slows or costs rise, not the profile of a wide-moat business.
Revenue declined 22.8% YoY. Margins deteriorated 4.1pp alongside, both lines moving the wrong way.
Free cash flow declined 81% versus the prior year, cash generation momentum has weakened. ROIC dropped from 10.01% to 4.77%, capital efficiency is deteriorating.
Profitability & Returns
Revenue (TTM)
$3.47B
▼ -22.8% YoY
Net Income (TTM)
$241M
▼ -47.4% YoY
Op. Margin
8.70%
▼ -4.1pp YoY
ROIC
4.77%
▼ -5.2pp YoY
Cash Flow & Balance Sheet
FCF (TTM)
$129M
▼ -80.9% YoY
Op. Cash Flow (TTM)
$161M
▼ -76.8% YoY
Net Debt
$300M
Cash & Equiv.
$983M
5Y CAGR: +1.3%
5Y CAGR: -25.6%
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