PULTEGROUP INC (PHM) Stock Fundamental Analysis
NYSE:PHM - New York Stock Exchange, Inc. - US7458671010 - Common Stock - Currency: USD
PHM gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 64 industry peers in the Household Durables industry. PHM scores excellent points on both the profitability and health parts. This is a solid base for a good stock. A decent growth rate in combination with a cheap valuation! Better keep an eye on PHM. With these ratings, PHM could be worth investigating further for value and quality investing!.
1. Profitability
1.1 Basic Checks
PHM had positive earnings in the past year.
PHM had a positive operating cash flow in the past year.
In the past 5 years PHM has always been profitable.
PHM had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With an excellent Return On Assets value of 16.98%, PHM belongs to the best of the industry, outperforming 95.31% of the companies in the same industry.
PHM has a Return On Equity of 23.93%. This is amongst the best in the industry. PHM outperforms 87.50% of its industry peers.
The Return On Invested Capital of PHM (19.44%) is better than 95.31% of its industry peers.
PHM had an Average Return On Invested Capital over the past 3 years of 19.16%. This is significantly above the industry average of 11.93%.
The 3 year average ROIC (19.16%) for PHM is below the current ROIC(19.44%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 16.98% | ||
| ROE | 23.93% | ||
| ROIC | 19.44% |
ROA(3y)17.15%
ROA(5y)15.47%
ROE(3y)26.53%
ROE(5y)25.31%
ROIC(3y)19.16%
ROIC(5y)17.38%
1.3 Margins
With an excellent Profit Margin value of 16.45%, PHM belongs to the best of the industry, outperforming 93.75% of the companies in the same industry.
PHM's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 21.12%, PHM belongs to the top of the industry, outperforming 93.75% of the companies in the same industry.
In the last couple of years the Operating Margin of PHM has grown nicely.
PHM's Gross Margin of 28.60% is in line compared to the rest of the industry. PHM outperforms 57.81% of its industry peers.
PHM's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 21.12% | ||
| PM (TTM) | 16.45% | ||
| GM | 28.6% |
OM growth 3Y5.48%
OM growth 5Y10.79%
PM growth 3Y6.93%
PM growth 5Y11.77%
GM growth 3Y1.93%
GM growth 5Y4.44%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so PHM is creating value.
The number of shares outstanding for PHM has been reduced compared to 1 year ago.
The number of shares outstanding for PHM has been reduced compared to 5 years ago.
The debt/assets ratio for PHM has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 5.61 indicates that PHM is not in any danger for bankruptcy at the moment.
PHM has a Altman-Z score of 5.61. This is amongst the best in the industry. PHM outperforms 85.94% of its industry peers.
PHM has a debt to FCF ratio of 1.41. This is a very positive value and a sign of high solvency as it would only need 1.41 years to pay back of all of its debts.
The Debt to FCF ratio of PHM (1.41) is better than 76.56% of its industry peers.
PHM has a Debt/Equity ratio of 0.17. This is a healthy value indicating a solid balance between debt and equity.
With a decent Debt to Equity ratio value of 0.17, PHM is doing good in the industry, outperforming 68.75% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.17 | ||
| Debt/FCF | 1.41 | ||
| Altman-Z | 5.61 |
ROIC/WACC2.22
WACC8.76%
2.3 Liquidity
PHM has a Current Ratio of 4.82. This indicates that PHM is financially healthy and has no problem in meeting its short term obligations.
Looking at the Current ratio, with a value of 4.82, PHM is in the better half of the industry, outperforming 75.00% of the companies in the same industry.
PHM has a Quick Ratio of 4.82. This is a bad value and indicates that PHM is not financially healthy enough and could expect problems in meeting its short term obligations.
PHM has a worse Quick ratio (0.42) than 82.81% 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.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 4.82 | ||
| Quick Ratio | 0.42 |
3. Growth
3.1 Past
PHM shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 16.21%, which is quite good.
Measured over the past years, PHM shows a very strong growth in Earnings Per Share. The EPS has been growing by 32.15% on average per year.
PHM shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 8.86%.
Measured over the past years, PHM shows a quite strong growth in Revenue. The Revenue has been growing by 11.94% on average per year.
EPS 1Y (TTM)16.21%
EPS 3Y25.56%
EPS 5Y32.15%
EPS Q2Q%-13.18%
Revenue 1Y (TTM)8.86%
Revenue growth 3Y9.32%
Revenue growth 5Y11.94%
Sales Q2Q%-1.43%
3.2 Future
The Earnings Per Share is expected to decrease by -0.75% on average over the next years.
Based on estimates for the next years, PHM will show a small growth in Revenue. The Revenue will grow by 2.22% on average per year.
EPS Next Y-20.08%
EPS Next 2Y-8.2%
EPS Next 3Y-0.75%
EPS Next 5YN/A
Revenue Next Year-3.33%
Revenue Next 2Y-0.47%
Revenue Next 3Y2.22%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 6.96, the valuation of PHM can be described as very cheap.
PHM's Price/Earnings ratio is a bit cheaper when compared to the industry. PHM is cheaper than 71.88% of the companies in the same industry.
PHM is valuated cheaply when we compare the Price/Earnings ratio to 26.03, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 8.04 indicates a reasonable valuation of PHM.
Based on the Price/Forward Earnings ratio, PHM is valued a bit cheaper than the industry average as 64.06% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 21.94. PHM is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.96 | ||
| Fwd PE | 8.04 |
4.2 Price Multiples
PHM's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. PHM is cheaper than 81.25% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, PHM is valued a bit cheaper than the industry average as 68.75% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.58 | ||
| EV/EBITDA | 5.23 |
4.3 Compensation for Growth
The excellent profitability rating of PHM may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.22
EPS Next 2Y-8.2%
EPS Next 3Y-0.75%
5. Dividend
5.1 Amount
With a yearly dividend of 0.86%, PHM is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 3.47, PHM pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.36, PHM's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.86% |
5.2 History
On average, the dividend of PHM grows each year by 12.52%, which is quite nice.
PHM has been paying a dividend for at least 10 years, so it has a reliable track record.
PHM has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)12.52%
Div Incr Years7
Div Non Decr Years11
5.3 Sustainability
PHM pays out 5.80% of its income as dividend. This is a sustainable payout ratio.
DP5.8%
EPS Next 2Y-8.2%
EPS Next 3Y-0.75%
NYSE:PHM (5/22/2025, 12:03:08 PM)
98.32
-0.78 (-0.79%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryHousehold Durables
Earnings (Last)
Earnings (Next)
Inst Owners94.76%
Inst Owner Change-0.38%
Ins Owners0.64%
Ins Owner Change0.52%
Market Cap19.71B
Analysts76.36
Price Target124.3 (26.42%)
Short Float %3.35%
Short Ratio2.96
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.86% |
Yearly Dividend0.81
Dividend Growth(5Y)12.52%
DP5.8%
Div Incr Years7
Div Non Decr Years11
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)19.65%
Min EPS beat(2)5.11%
Max EPS beat(2)34.18%
EPS beat(4)4
Avg EPS beat(4)15.06%
Min EPS beat(4)5.11%
Max EPS beat(4)34.18%
EPS beat(8)8
Avg EPS beat(8)13.1%
EPS beat(12)11
Avg EPS beat(12)12.76%
EPS beat(16)14
Avg EPS beat(16)10.31%
Revenue beat(2)2
Avg Revenue beat(2)2.97%
Min Revenue beat(2)0.82%
Max Revenue beat(2)5.12%
Revenue beat(4)4
Avg Revenue beat(4)2.8%
Min Revenue beat(4)0.82%
Max Revenue beat(4)5.12%
Revenue beat(8)6
Avg Revenue beat(8)2.21%
Revenue beat(12)9
Avg Revenue beat(12)8.69%
Revenue beat(16)12
Avg Revenue beat(16)11.34%
PT rev (1m)-9.64%
PT rev (3m)-12.96%
EPS NQ rev (1m)-3.27%
EPS NQ rev (3m)-4.95%
EPS NY rev (1m)-3.7%
EPS NY rev (3m)-6.51%
Revenue NQ rev (1m)-4.46%
Revenue NQ rev (3m)-4.97%
Revenue NY rev (1m)-4.8%
Revenue NY rev (3m)-5.45%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.96 | ||
| Fwd PE | 8.04 | ||
| P/S | 1.1 | ||
| P/FCF | 13.58 | ||
| P/OCF | 12.51 | ||
| P/B | 1.6 | ||
| P/tB | 1.62 | ||
| EV/EBITDA | 5.23 |
EPS(TTM)14.12
EY14.36%
EPS(NY)12.23
Fwd EY12.44%
FCF(TTM)7.24
FCFY7.36%
OCF(TTM)7.86
OCFY7.99%
SpS89.26
BVpS61.37
TBVpS60.81
PEG (NY)N/A
PEG (5Y)0.22
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 16.98% | ||
| ROE | 23.93% | ||
| ROCE | 26.26% | ||
| ROIC | 19.44% | ||
| ROICexc | 21.2% | ||
| ROICexgc | 25.04% | ||
| OM | 21.12% | ||
| PM (TTM) | 16.45% | ||
| GM | 28.6% | ||
| FCFM | 8.11% |
ROA(3y)17.15%
ROA(5y)15.47%
ROE(3y)26.53%
ROE(5y)25.31%
ROIC(3y)19.16%
ROIC(5y)17.38%
ROICexc(3y)21.36%
ROICexc(5y)20.11%
ROICexgc(3y)23%
ROICexgc(5y)21.55%
ROCE(3y)26.16%
ROCE(5y)23.82%
ROICexcg growth 3Y3.02%
ROICexcg growth 5Y12.74%
ROICexc growth 3Y1.98%
ROICexc growth 5Y11.96%
OM growth 3Y5.48%
OM growth 5Y10.79%
PM growth 3Y6.93%
PM growth 5Y11.77%
GM growth 3Y1.93%
GM growth 5Y4.44%
F-Score7
Asset Turnover1.03
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.17 | ||
| Debt/FCF | 1.41 | ||
| Debt/EBITDA | 0.53 | ||
| Cap/Depr | 133.75% | ||
| Cap/Sales | 0.69% | ||
| Interest Coverage | 170.64 | ||
| Cash Conversion | 40.69% | ||
| Profit Quality | 49.31% | ||
| Current Ratio | 4.82 | ||
| Quick Ratio | 0.42 | ||
| Altman-Z | 5.61 |
F-Score7
WACC8.76%
ROIC/WACC2.22
Cap/Depr(3y)135.3%
Cap/Depr(5y)119.66%
Cap/Sales(3y)0.65%
Cap/Sales(5y)0.6%
Profit Quality(3y)51.07%
Profit Quality(5y)65.05%
High Growth Momentum
Growth
EPS 1Y (TTM)16.21%
EPS 3Y25.56%
EPS 5Y32.15%
EPS Q2Q%-13.18%
EPS Next Y-20.08%
EPS Next 2Y-8.2%
EPS Next 3Y-0.75%
EPS Next 5YN/A
Revenue 1Y (TTM)8.86%
Revenue growth 3Y9.32%
Revenue growth 5Y11.94%
Sales Q2Q%-1.43%
Revenue Next Year-3.33%
Revenue Next 2Y-0.47%
Revenue Next 3Y2.22%
Revenue Next 5YN/A
EBIT growth 1Y7.17%
EBIT growth 3Y15.32%
EBIT growth 5Y24.01%
EBIT Next Year-6.91%
EBIT Next 3Y1.62%
EBIT Next 5YN/A
FCF growth 1Y36.07%
FCF growth 3Y18.82%
FCF growth 5Y8.95%
OCF growth 1Y34.39%
OCF growth 3Y18.74%
OCF growth 5Y9.33%