PULTEGROUP INC (PHM) Stock Fundamental Analysis
NYSE:PHM - New York Stock Exchange, Inc. - US7458671010 - Common Stock - Currency: USD
Overall PHM gets a fundamental rating of 7 out of 10. We evaluated PHM against 64 industry peers in the Household Durables industry. PHM has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. 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.
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.
PHM had positive earnings in each of the past 5 years.
PHM had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
PHM has a better Return On Assets (16.98%) than 98.44% of its industry peers.
PHM has a better Return On Equity (23.92%) than 90.63% of its industry peers.
PHM has a Return On Invested Capital of 19.43%. This is amongst the best in the industry. PHM outperforms 96.88% of its industry peers.
The Average Return On Invested Capital over the past 3 years for PHM is significantly above the industry average of 10.33%.
The 3 year average ROIC (19.16%) for PHM is below the current ROIC(19.43%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 16.98% | ||
| ROE | 23.92% | ||
| ROIC | 19.43% |
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
Looking at the Profit Margin, with a value of 16.45%, PHM belongs to the top of the industry, outperforming 95.31% of the companies in the same industry.
PHM's Profit Margin has improved in the last couple of years.
PHM's Operating Margin of 21.12% is amongst the best of the industry. PHM outperforms 95.31% of its industry peers.
PHM's Operating Margin has improved in the last couple of years.
PHM has a Gross Margin of 28.60%. This is comparable to the rest of the industry: PHM outperforms 59.38% of its industry peers.
In the last couple of years the Gross Margin of PHM has grown nicely.
| 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.
PHM has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, PHM has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 5.73 indicates that PHM is not in any danger for bankruptcy at the moment.
PHM's Altman-Z score of 5.73 is amongst the best of the industry. PHM outperforms 87.50% 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 79.69% 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.
PHM has a better Debt to Equity ratio (0.17) than 67.19% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.17 | ||
| Debt/FCF | 1.41 | ||
| Altman-Z | 5.73 |
ROIC/WACC2.32
WACC8.37%
2.3 Liquidity
A Current Ratio of 4.82 indicates that PHM has no problem at all paying its short term obligations.
PHM has a better Current ratio (4.82) than 75.00% of its industry peers.
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 Quick ratio of 0.42. This is amonst the worse of the industry: PHM underperforms 81.25% 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
The Earnings Per Share has grown by an nice 16.21% over the past year.
The Earnings Per Share has been growing by 32.15% on average over the past years. This is a very strong growth
Looking at the last year, PHM shows a quite strong growth in Revenue. The Revenue has grown by 8.86% in the last year.
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
Based on estimates for the next years, PHM will show a decrease in Earnings Per Share. The EPS will decrease by -0.75% on average per year.
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
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
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
PHM is valuated cheaply with a Price/Earnings ratio of 7.20.
71.88% of the companies in the same industry are more expensive than PHM, based on the Price/Earnings ratio.
PHM is valuated cheaply when we compare the Price/Earnings ratio to 26.60, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 8.31 indicates a reasonable valuation of PHM.
PHM's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. PHM is cheaper than 62.50% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.39. PHM is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.2 | ||
| Fwd PE | 8.31 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, PHM is valued cheaper than 85.94% 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 71.88% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.04 | ||
| EV/EBITDA | 5.49 |
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 0.87%, PHM is not a good candidate for dividend investing.
PHM's Dividend Yield is a higher than the industry average which is at 3.52.
Compared to an average S&P500 Dividend Yield of 2.39, PHM's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.87% |
5.2 History
The dividend of PHM is nicely growing with an annual growth rate of 12.52%!
PHM has paid a dividend for at least 10 years, which is a reliable track record.
PHM has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)12.52%
Div Incr Years7
Div Non Decr Years11
5.3 Sustainability
PHM pays out 5.79% of its income as dividend. This is a sustainable payout ratio.
DP5.79%
EPS Next 2Y-8.2%
EPS Next 3Y-0.75%
101.61
-2.54 (-2.44%)
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 Cap20.37B
Analysts76.36
Price Target124.52 (22.55%)
Short Float %3.47%
Short Ratio3.22
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.87% |
Yearly Dividend0.81
Dividend Growth(5Y)12.52%
DP5.79%
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)-2.68%
PT rev (3m)-10.28%
EPS NQ rev (1m)0.31%
EPS NQ rev (3m)-4.82%
EPS NY rev (1m)-3.7%
EPS NY rev (3m)-6.56%
Revenue NQ rev (1m)0.09%
Revenue NQ rev (3m)-4.83%
Revenue NY rev (1m)0.05%
Revenue NY rev (3m)-5.55%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.2 | ||
| Fwd PE | 8.31 | ||
| P/S | 1.14 | ||
| P/FCF | 14.04 | ||
| P/OCF | 12.93 | ||
| P/B | 1.66 | ||
| P/tB | 1.67 | ||
| EV/EBITDA | 5.49 |
EPS(TTM)14.12
EY13.9%
EPS(NY)12.23
Fwd EY12.03%
FCF(TTM)7.24
FCFY7.12%
OCF(TTM)7.86
OCFY7.73%
SpS89.26
BVpS61.37
TBVpS60.81
PEG (NY)N/A
PEG (5Y)0.22
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 16.98% | ||
| ROE | 23.92% | ||
| ROCE | 26.26% | ||
| ROIC | 19.43% | ||
| ROICexc | 21.2% | ||
| ROICexgc | 25.03% | ||
| 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 | 133.74% | ||
| Cap/Sales | 0.69% | ||
| Interest Coverage | 170.62 | ||
| Cash Conversion | 40.69% | ||
| Profit Quality | 49.3% | ||
| Current Ratio | 4.82 | ||
| Quick Ratio | 0.42 | ||
| Altman-Z | 5.73 |
F-Score7
WACC8.37%
ROIC/WACC2.32
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 1Y7.15%
EBIT growth 3Y15.32%
EBIT growth 5Y24.01%
EBIT Next Year-12.25%
EBIT Next 3Y-1.94%
EBIT Next 5YN/A
FCF growth 1Y36.05%
FCF growth 3Y18.82%
FCF growth 5Y8.95%
OCF growth 1Y34.37%
OCF growth 3Y18.74%
OCF growth 5Y9.33%