TRI Pointe Group

2017 Performance Final Grade: 80.01/100
2016 Final Grade:71.9/100
A/B

32.38/40

Change YoY
Net debt-to-capital 34.9% -140bps
Pretax home building income
(in millions)
$332.3 12.1%
Total SG&A/Total revenue 9.8% --
Total SG&A
(in millions)
$275.2 9.1%
Return on invested capital 5.6% -80bps
Return on equity 10% -120bps
Total shareholder return 54.1% --
EPS $1.21 0%

11.43/20

Change YoY
Community count 130 +6
Share of lots optioned to total controlled 12.3% 15.5%

18.10/20

Change YoY
Home building gross margins 22% -80bps
Sales per month to break even
(per community)
1.37 --
Revenue per employee
(in millions)
$2.2 6.2%
Change YoY
Closings 4,697 11.5%
Sales velocity
(per community per month)
3.3 14%
Unit backlog 1,571 31.7%


Total revenue (in millions):$2,810
HB revenue (in millions): $2,732
Debt per share: $9.55
Equity per basic share: $12.52
HB pretax margin: 11.8%
Backlog value (in millions): $1,032.8
Inventory (in millions):$3,105.6
Lot supply (in years): 5.8

TRI Pointe (NYSE: TPH) managed gains in new-home orders of 19%, home sales revenue of 17%, and pretax income of 13%, and ended the year with a backlog dollar value 56% higher than the prior year. The company’s emphasis on design and innovation played a key role in financial performance in 2017. TPH is in the process of rolling out several communities with new-home concepts that likely will appeal to two of the largest home buying segments: active adults and millennials.