Is NYSE:PHM a Suitable Choice for Quality Investing?

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.

A Deep Dive into PULTEGROUP INC's Quality Metrics.

• 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 notable ROIC excluding cash and goodwill at 29.46%, PULTEGROUP INC demonstrates its commitment to generating sustainable returns for shareholders. This metric emphasizes the company's effective use of capital and its ability to deliver long-term value.
• With a Debt/Free Cash Flow Ratio of 0.86, PULTEGROUP INC exhibits solid financial health and responsible debt management practices. This ratio indicates the company's ability to generate ample free cash flow to meet its debt obligations and pursue growth opportunities.
• With a robust Profit Quality (5-year) ratio of 86.41%, PULTEGROUP INC highlights its ability to consistently generate high-quality profits. This metric reflects the company's effective management and operational excellence in delivering reliable earnings over the long term.
• PULTEGROUP INC has experienced impressive EBIT growth over the past 5 years, with 29.38% increase. This reflects the company's effective operational performance and highlights its potential for long-term financial success.
• PULTEGROUP INC has achieved impressive EBIT 5-year growth, surpassing its Revenue 5-year growth. This indicates the company's ability to improve its profitability and operational efficiency, highlighting its strong financial performance.

Fundamental Analysis Observations

ChartMill assigns a Fundamental Rating to every stock. This score, ranging from 0 to 10, is updated daily and is determined by evaluating multiple 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. PHM may be a bit undervalued, certainly considering the very reasonable score on growth This makes PHM very considerable for value and quality investing!

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

More quality stocks can be found in our Caviar Cruise screen.

Keep in mind

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.