Tri Pointe Homes(TPH) Seeking Alpha·2024-09-15 15:01Core Viewpoint - Tri Pointe Homes has shown impressive growth, with a significant increase in stock price and strong financial performance, leading to a continued 'buy' rating despite some concerns regarding backlog and net new orders [1][11]. Financial Performance - Revenue for the second quarter of 2024 reached 837.3 million in the same quarter last year [3]. - Net income nearly doubled from 118 million, driven by increased home deliveries despite a decrease in average home price from 666,000 [4]. - EBITDA rose from 216 million, indicating improved profitability metrics [4]. Delivery and Pricing - The number of home deliveries surged from 1,173 to 1,700 homes in the second quarter, contributing to revenue growth [3]. - Average home prices decreased from 663,000 in the first half of 2024, but the increase in delivery volume offset this decline [5]. Backlog and Orders - Backlog decreased to 2,692 homes from 2,765 homes a year ago, indicating potential challenges in future demand [6]. - Net new orders fell to 1,651 homes in the most recent quarter, down 13.7% from 1,912 homes the previous year [8]. Market Positioning - Tri Pointe Homes is attractively priced compared to peers, with a price-to-earnings ratio of 7.1, lower than most competitors [10]. - The company is expected to generate net profits of 583.5 million based on annualized results [9]. Industry Outlook - Despite current challenges, the long-term outlook for the housing market remains positive due to a significant shortage of homes, estimated between 4 million and 7 million [6].