Organic Growth Boosts TRI Pointe's 2Q15 Performance
ETF performance comparison
In this article, we’ll take a look at TRI Pointe Group’s (TPH) performance compared to its competitors and ETFs. All the ETFs mentioned here track the homebuilding industry.
The following year-to-date NAV (net asset value) of these ETFs will give us a fair idea of their performance.
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iShares US Home Construction ETF (ITB): 8.08%
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SPDR S&P Homebuilders ETF (XHB): 10.23%
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iShares Russell Micro-Cap ETF (IWC): -0.12%
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iShares Morningstar Small-Cap Growth ETF (JKK): 7.17%
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iShares Russell 2000 Value ETF (IWN): -2.81%
Now let’s look at the price movement of TRI Pointe Group (TPH) compared to its ETFs.
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TRI Pointe Group (TPH): 0.99%
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iShares US Home Construction ETF (ITB): -2.42%
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SPDR S&P Homebuilders ETF (XHB): 0.22%
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iShares Russell Microcap ETF (IWC): 2.76%
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iShares Morningstar Small Growth ETF (JKK): 1.53%
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iShares Russell 2000 Value ETF (IWN): 1.38%
TRI Pointe has outperformed ITB and XHB. It has underperformed IWC, JKK, and IWN.
As you can see in the above graph, PE (price-to-earnings) ratios for the ETFs are aligned with TRI Pointe (TPH). JKK and IWN are small-cap company ETFs, but their PE ratio is high with positive returns compared to ITB and XHB.
TRI Pointe Group (TPH) has a PE of 25.85x, which is high compared to ITB and XHB. The EPS (earnings per share) for ITB and XHB are high compared to TRI Pointe Group (TPH) and quite low for JKK and IWN.
TRI Pointe and its peers
TRI Pointe Group’s main competitors are William Lyon Homes (WLH), D.R. Horton (DHI), Toll Brothers (TOL), KB Home (KBH), PulteGroup (PHM), and The New Home Company (NWHM). KB Home (KBH) has the highest EPS of $8.86. TRI Pointe Group has the highest PE ratio of 25.85x.
According to William Lyon Homes’ (WLH) 2Q15 earnings release, revenue increased by 29.17%. In the same period, TRI Pointe’s revenue increased 44.6%. Stock performance for all the companies remained the same.
TRI Pointe Group has performed quite well in 2Q15 compared to its competitors.
Future outlook
TRI Pointe Group (TPH) has received a large number of home construction orders, and land sales are going up. This will help the company get its financial statements healthy in the near future and should offer more opportunities for expansion.
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