News Image

For those who appreciate value investing, NYSE:PHM is a compelling option with its solid fundamentals.

By Mill Chart

Last update: Nov 29, 2023

Discover PULTEGROUP INC (NYSE:PHM), an undervalued stock highlighted by our stock screener. NYSE:PHM showcases solid financial health and profitability while maintaining an appealing valuation. We'll explore the details.

Deciphering NYSE:PHM's Valuation Rating

ChartMill provides a Valuation Rating to every stock, ranging from 0 to 10. This rating assesses various valuation aspects, comparing price to earnings and cash flows, while considering factors like profitability and growth. NYSE:PHM boasts a 8 out of 10:

  • A Price/Earnings ratio of 7.37 indicates a rather cheap valuation of PHM.
  • PHM's Price/Earnings ratio is rather cheap when compared to the industry. PHM is cheaper than 82.09% of the companies in the same industry.
  • When comparing the Price/Earnings ratio of PHM to the average of the S&P500 Index (24.46), we can say PHM is valued rather cheaply.
  • A Price/Forward Earnings ratio of 7.39 indicates a rather cheap valuation of PHM.
  • Compared to the rest of the industry, the Price/Forward Earnings ratio of PHM indicates a somewhat cheap valuation: PHM is cheaper than 76.12% of the companies listed in the same industry.
  • PHM is valuated cheaply when we compare the Price/Forward Earnings ratio to 19.59, which is the current average of the S&P500 Index.
  • 86.57% of the companies in the same industry are more expensive than PHM, based on the Enterprise Value to EBITDA ratio.
  • Compared to the rest of the industry, the Price/Free Cash Flow ratio of PHM indicates a somewhat cheap valuation: PHM is cheaper than 68.66% of the companies listed in the same industry.
  • PHM's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
  • PHM has an outstanding profitability rating, which may justify a higher PE ratio.

Profitability Analysis for NYSE:PHM

ChartMill assigns a Profitability Rating to every stock. This score ranges from 0 to 10 and evaluates the different profitability ratios and margins, both absolutely, but also relative to the industry peers. NYSE:PHM scores a 9 out of 10:

  • PHM has a better Return On Assets (17.57%) than 97.01% of its industry peers.
  • The Return On Equity of PHM (27.58%) is better than 92.54% of its industry peers.
  • Looking at the Return On Invested Capital, with a value of 21.76%, PHM belongs to the top of the industry, outperforming 98.51% of the companies in the same industry.
  • Measured over the past 3 years, the Average Return On Invested Capital for PHM is significantly above the industry average of 10.48%.
  • The last Return On Invested Capital (21.76%) for PHM is above the 3 year average (16.67%), which is a sign of increasing profitability.
  • PHM's Profit Margin of 16.30% is amongst the best of the industry. PHM outperforms 94.03% of its industry peers.
  • PHM's Profit Margin has improved in the last couple of years.
  • The Operating Margin of PHM (21.32%) is better than 98.51% of its industry peers.
  • In the last couple of years the Operating Margin of PHM has grown nicely.
  • With a decent Gross Margin value of 29.33%, PHM is doing good in the industry, outperforming 61.19% of the companies in the same industry.
  • PHM's Gross Margin has improved in the last couple of years.

Understanding NYSE:PHM's Health

ChartMill utilizes a Health Rating to assess stocks, scoring them on a scale of 0 to 10. This rating takes into account a variety of liquidity and solvency ratios, both in absolute terms and in comparison to industry peers. NYSE:PHM has earned a 8 out of 10:

  • PHM has an Altman-Z score of 5.18. This indicates that PHM is financially healthy and has little risk of bankruptcy at the moment.
  • With an excellent Altman-Z score value of 5.18, PHM belongs to the best of the industry, outperforming 86.57% of the companies in the same industry.
  • PHM has a debt to FCF ratio of 0.86. This is a very positive value and a sign of high solvency as it would only need 0.86 years to pay back of all of its debts.
  • PHM has a Debt to FCF ratio of 0.86. This is in the better half of the industry: PHM outperforms 74.63% of its industry peers.
  • PHM has a Debt/Equity ratio of 0.24. This is a healthy value indicating a solid balance between debt and equity.
  • A Current Ratio of 3.96 indicates that PHM has no problem at all paying its short term obligations.
  • PHM has a Current ratio of 3.96. This is in the better half of the industry: PHM outperforms 68.66% of its industry peers.
  • The current and quick ratio evaluation for PHM is rather negative, while it does have excellent solvency and profitability. These ratios do not necessarly indicate liquidity issues and need to be evaluated against the specifics of the business.

Assessing Growth Metrics for NYSE:PHM

Every stock receives a Growth Rating from ChartMill, ranging from 0 to 10. This rating assesses various growth aspects, including historical and projected EPS and revenue growth. NYSE:PHM boasts a 5 out of 10:

  • The Earnings Per Share has grown by an impressive 21.82% over the past year.
  • The Earnings Per Share has been growing by 37.18% on average over the past years. This is a very strong growth
  • PHM shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 13.61% yearly.

Every day, new Decent Value stocks can be found on ChartMill in our Decent Value screener.

For an up to date full fundamental analysis you can check the fundamental report of PHM

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.

Back

PULTEGROUP INC

NYSE:PHM (2/23/2024, 9:16:09 AM)

106.45

+1.77 (+1.69%)

PHM News

News Imagea day ago - ChartmillWhy Quality-Oriented Investors Should Consider NYSE:PHM.

Why PULTEGROUP INC (NYSE:PHM) Deserves Consideration as a Quality Investment.

News Image8 days ago - PulteGroup, Inc.Pulte Homes Unveils Latest Addition of Boston-Area Residences
News Image15 days ago - PulteGroup, Inc.Del Webb Greenville Introduces 55+ Amenity-Rich Lifestyle to Upstate
News Image18 days ago - ChartmillWhen you look at NYSE:PHM, it's hard to ignore the strong fundamentals, especially considering its likely undervaluation.

For those who appreciate value investing, PULTEGROUP INC (NYSE:PHM) is a compelling option with its solid fundamentals.

News Image19 days ago - InvestorPlaceThe 3 Best Home Builder Stocks to Buy in 2024

With lower interest rates on the horizon, investors cannot ignore these three best home builder stocks to buy for 2024 and beyond.

News Image22 days ago - Seeking AlphaPulteGroup declares $0.20 dividend (NYSE:PHM)

PulteGroup (PHM) declares $0.20/share quarterly dividend, in line with previous. Forward yield 0.77% Payable April 2; for shareholders of record March 15; ex-di

News Image22 days ago - PulteGroup, Inc.PulteGroup Announces Quarterly Cash Dividend of $0.20 Per Share
News Image23 days ago - Yahoo FinanceDon't expect a 'tidal wave' of homes to hit the market as rates decline, PulteGroup CEO says

Mortgage rate are coming down, but that is unlikely to prompt a surge of existing homes to come onto the market, PulteGroup's CEO said.

PHM Links
Follow us for more