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Is PULTEGROUP INC (NYSE:PHM) suited for quality investing?

By Mill Chart

Last update: Nov 7, 2023

In this article we will dive into PULTEGROUP INC (NYSE:PHM) as a possible candidate for quality investing. Investors should always do their own research, but we noticed PULTEGROUP INC showing up in our Caviar Cruise quality screen, which makes it worth to investigate a bit more.

Some of the quality metrics of NYSE:PHM highlighted

  • PULTEGROUP INC has shown strong performance in revenue growth over the past 5 years, with a 13.61% increase. This indicates the company's ability to generate consistent revenue growth and reflects its potential for long-term success.
  • With a robust ROIC excluding cash and goodwill at 29.46%, PULTEGROUP INC showcases its effective allocation of capital and operational excellence. This metric signifies the company's ability to generate attractive returns and supports its long-term financial performance.
  • With a favorable Debt/Free Cash Flow Ratio of 0.86, PULTEGROUP INC showcases its sound financial discipline and cash flow management. This ratio indicates the company's ability to service its debt obligations while maintaining sufficient free cash flow for future investments or operational needs.
  • PULTEGROUP INC exhibits impressive Profit Quality (5-year) with a 86.41% ratio, reflecting its consistent ability to generate high-quality profits. This metric underscores the company's strong financial performance and commitment to delivering sustainable earnings.
  • PULTEGROUP INC has consistently achieved strong EBIT growth over the past 5 years, with a 29.38% increase. This underscores the company's effective management of its operating income and suggests a positive outlook for future profitability.
  • PULTEGROUP INC has achieved superior EBIT 5-year growth compared to its Revenue 5-year growth. This demonstrates the company's ability to maximize its profitability through effective cost management and operational strategies.

Fundamental analysis of NYSE:PHM

ChartMill utilizes a proprietary algorithm to assign a Fundamental Rating to every stock. This rating, ranging from 0 to 10, is computed daily by analyzing a variety of fundamental indicators and properties.

We assign a fundamental rating of 7 out of 10 to PHM. PHM was compared to 67 industry peers in the Household Durables industry. PHM gets an excellent profitability rating and is at the same time showing great financial health properties. A decent growth rate in combination with a cheap valuation! Better keep an eye on PHM. This makes PHM very considerable for value and quality investing!

Check the latest full fundamental report of PHM for a complete fundamental analysis.

Our Caviar Cruise screen will find you more ideas suited for quality investing.

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.

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PULTEGROUP INC

NYSE:PHM (2/22/2024, 11:29:10 AM)

105.125

+1.5 (+1.45%)

PHM News

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