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Is NYSE:PHM suited for quality investing?

By Mill Chart

Last update: Aug 15, 2023

Quality investors are looking for the best of the best. Companies which are growing steadily and consistently, but are also in excellent financial condition. We will have a look here to see if PULTEGROUP INC (NYSE:PHM) is suited for quality investing. Investors should of couse do their own research, but we spotted PULTEGROUP INC showing up in our Caviar Cruise quality screen, so it may be worth spending some more time on it.

What matters for quality investors.

  • PULTEGROUP INC has demonstrated significant revenue growth over the past 5 years, with a 13.61% increase. This underscores the company's ability to adapt to market dynamics and capitalize on growth opportunities.
  • The ROIC excluding cash and goodwill of PULTEGROUP INC stands at 29.99%, reflecting the company's strong financial management and profitability. This metric underscores its ability to generate favorable returns on the capital invested in its core operations.
  • PULTEGROUP INC demonstrates a well-balanced Debt/Free Cash Flow Ratio of 1.22, indicating effective debt management and strong cash flow generation. This ratio suggests the company has a sustainable financial position and the capacity to allocate capital efficiently.
  • With a favorable Profit Quality (5-year) ratio of 86.41%, PULTEGROUP INC showcases its ability to consistently deliver high-quality profits. This metric signifies the company's financial strength and its capacity to generate sustainable earnings over an extended period.
  • The 5-year EBIT growth of PULTEGROUP INC has been remarkable, with 29.38% increase. This demonstrates the company's ability to improve its operational efficiency and indicates its competitiveness within the market.
  • The EBIT 5-year growth of PULTEGROUP INC has outpaced its Revenue 5-year growth, reflecting the company's focus on optimizing its profitability and generating sustainable earnings. This trend underscores its strong financial management.

What is the full fundamental picture of NYSE:PHM telling us.

ChartMill employs a sophisticated system to assign a Fundamental Rating to every stock in its analysis. This rating, which ranges from 0 to 10, is determined by carefully assessing multiple fundamental indicators and properties.

PHM gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 67 industry peers in the Household Durables industry. Both the health and profitability get an excellent rating, making PHM a very profitable company, without any liquidiy or solvency issues. PHM scores decently on growth, while it is valued quite cheap. This could make an interesting combination. These ratings could make PHM a good candidate for value and quality investing.

Our latest full fundamental report of PHM contains the most current fundamental analsysis.

More ideas for quality investing can be found on ChartMill in our Caviar Cruise screen.

Keep in mind

This article should in no way be interpreted as advice in any way. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.



NYSE:PHM (12/8/2023, 7:10:11 PM)

Premarket: 96.53 +0.22 (+0.23%)


+1.85 (+1.96%)

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