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 63 industry peers in the Household Durables industry. Both the health and profitability get an excellent rating, making PHM a very profitable company, without any liquidiy or solvency issues. PHM has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
In the past year PHM was profitable.
PHM had a positive operating cash flow in the past year.
In the past 5 years PHM has always been profitable.
Each year in the past 5 years PHM had a positive operating cash flow.
1.2 Ratios
The Return On Assets of PHM (15.59%) is better than 96.83% of its industry peers.
PHM's Return On Equity of 21.81% is amongst the best of the industry. PHM outperforms 85.71% of its industry peers.
With an excellent Return On Invested Capital value of 17.87%, PHM belongs to the best of the industry, outperforming 95.24% of the companies in the same industry.
PHM had an Average Return On Invested Capital over the past 3 years of 19.16%. This is significantly above the industry average of 10.29%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 15.59% | ||
| ROE | 21.81% | ||
| ROIC | 17.87% |
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 15.50%, PHM belongs to the top of the industry, outperforming 95.24% of the companies in the same industry.
PHM's Profit Margin has improved in the last couple of years.
The Operating Margin of PHM (20.09%) is better than 95.24% of its industry peers.
In the last couple of years the Operating Margin of PHM has grown nicely.
The Gross Margin of PHM (27.81%) is comparable to the rest of the industry.
In the last couple of years the Gross Margin of PHM has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 20.09% | ||
| PM (TTM) | 15.5% | ||
| GM | 27.81% |
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.
Compared to 1 year ago, PHM has less shares outstanding
Compared to 5 years ago, PHM has less shares outstanding
The debt/assets ratio for PHM has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 5.98 indicates that PHM is not in any danger for bankruptcy at the moment.
PHM has a Altman-Z score of 5.98. This is amongst the best in the industry. PHM outperforms 87.30% of its industry peers.
PHM has a debt to FCF ratio of 1.61. This is a very positive value and a sign of high solvency as it would only need 1.61 years to pay back of all of its debts.
The Debt to FCF ratio of PHM (1.61) is better than 80.95% 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 69.84% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.17 | ||
| Debt/FCF | 1.61 | ||
| Altman-Z | 5.98 |
ROIC/WACC2.06
WACC8.68%
2.3 Liquidity
A Current Ratio of 4.93 indicates that PHM has no problem at all paying its short term obligations.
PHM has a better Current ratio (4.93) than 74.60% of its industry peers.
A Quick Ratio of 0.42 indicates that PHM may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.42, PHM is doing worse than 82.54% of the companies in the same industry.
PHM does not score too well on the current and quick ratio evaluation. However, as it has 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 | 4.93 | ||
| Quick Ratio | 0.42 |
3. Growth
3.1 Past
PHM shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 3.56%.
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.
Looking at the last year, PHM shows a small growth in Revenue. The Revenue has grown by 5.04% in the last year.
PHM shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 11.94% yearly.
EPS 1Y (TTM)3.56%
EPS 3Y25.56%
EPS 5Y32.15%
EPS Q2Q%-19.63%
Revenue 1Y (TTM)5.04%
Revenue growth 3Y9.32%
Revenue growth 5Y11.94%
Sales Q2Q%-4.26%
3.2 Future
PHM is expected to show a decrease in Earnings Per Share. In the coming years, the EPS will decrease by -0.84% yearly.
The Revenue is expected to grow by 2.22% on average over the next years.
EPS Next Y-20.18%
EPS Next 2Y-8.26%
EPS Next 3Y-0.84%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 8.70, which indicates a very decent valuation of PHM.
69.84% of the companies in the same industry are more expensive than PHM, based on the Price/Earnings ratio.
PHM's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 28.04.
A Price/Forward Earnings ratio of 9.53 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 68.25% of the companies in the same industry.
PHM's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 37.64.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.7 | ||
| Fwd PE | 9.53 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of PHM indicates a somewhat cheap valuation: PHM is cheaper than 71.43% of the companies listed in the same industry.
PHM's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. PHM is cheaper than 66.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.7 | ||
| EV/EBITDA | 6.5 |
4.3 Compensation for Growth
PHM has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.27
EPS Next 2Y-8.26%
EPS Next 3Y-0.84%
5. Dividend
5.1 Amount
PHM has a yearly dividend return of 0.76%, which is pretty low.
PHM's Dividend Yield is a higher than the industry average which is at 3.20.
With a Dividend Yield of 0.76, PHM pays less dividend than the S&P500 average, which is at 2.31.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.76% |
5.2 History
On average, the dividend of PHM grows each year by 12.52%, which is quite nice.
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 6.30% of its income as dividend. This is a sustainable payout ratio.
DP6.3%
EPS Next 2Y-8.26%
EPS Next 3Y-0.84%
116.35
+0.32 (+0.28%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryHousehold Durables
Earnings (Last)
Earnings (Next)
Inst Owners94.82%
Inst Owner Change0.21%
Ins Owners0.6%
Ins Owner Change0.52%
Market Cap23.32B
Analysts76.36
Price Target126.85 (9.02%)
Short Float %3.93%
Short Ratio3.99
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.76% |
Yearly Dividend0.81
Dividend Growth(5Y)12.52%
DP6.3%
Div Incr Years7
Div Non Decr Years11
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)3.22%
Min EPS beat(2)1.33%
Max EPS beat(2)5.11%
EPS beat(4)4
Avg EPS beat(4)11.83%
Min EPS beat(4)1.33%
Max EPS beat(4)34.18%
EPS beat(8)8
Avg EPS beat(8)10.97%
EPS beat(12)11
Avg EPS beat(12)12.63%
EPS beat(16)15
Avg EPS beat(16)10.54%
Revenue beat(2)1
Avg Revenue beat(2)0.14%
Min Revenue beat(2)-0.75%
Max Revenue beat(2)1.03%
Revenue beat(4)3
Avg Revenue beat(4)2.33%
Min Revenue beat(4)-0.75%
Max Revenue beat(4)5.12%
Revenue beat(8)5
Avg Revenue beat(8)1.67%
Revenue beat(12)8
Avg Revenue beat(12)2.56%
Revenue beat(16)11
Avg Revenue beat(16)6.8%
PT rev (1m)1.87%
PT rev (3m)-0.86%
EPS NQ rev (1m)-2.09%
EPS NQ rev (3m)-11.79%
EPS NY rev (1m)-0.04%
EPS NY rev (3m)-3.82%
Revenue NQ rev (1m)-1.54%
Revenue NQ rev (3m)-8.67%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-1.72%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.7 | ||
| Fwd PE | 9.53 | ||
| P/S | 1.32 | ||
| P/FCF | 17.7 | ||
| P/OCF | 16.13 | ||
| P/B | 1.85 | ||
| P/tB | 1.87 | ||
| EV/EBITDA | 6.5 |
EPS(TTM)13.38
EY11.5%
EPS(NY)12.21
Fwd EY10.5%
FCF(TTM)6.58
FCFY5.65%
OCF(TTM)7.21
OCFY6.2%
SpS88.28
BVpS62.74
TBVpS62.19
PEG (NY)N/A
PEG (5Y)0.27
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 15.59% | ||
| ROE | 21.81% | ||
| ROCE | 24.25% | ||
| ROIC | 17.87% | ||
| ROICexc | 19.45% | ||
| ROICexgc | 23.05% | ||
| OM | 20.09% | ||
| PM (TTM) | 15.5% | ||
| GM | 27.81% | ||
| FCFM | 7.45% |
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-Score5
Asset Turnover1.01
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.17 | ||
| Debt/FCF | 1.61 | ||
| Debt/EBITDA | 0.58 | ||
| Cap/Depr | 133.18% | ||
| Cap/Sales | 0.72% | ||
| Interest Coverage | 168.12 | ||
| Cash Conversion | 39.6% | ||
| Profit Quality | 48.05% | ||
| Current Ratio | 4.93 | ||
| Quick Ratio | 0.42 | ||
| Altman-Z | 5.98 |
F-Score5
WACC8.68%
ROIC/WACC2.06
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)3.56%
EPS 3Y25.56%
EPS 5Y32.15%
EPS Q2Q%-19.63%
EPS Next Y-20.18%
EPS Next 2Y-8.26%
EPS Next 3Y-0.84%
EPS Next 5YN/A
Revenue 1Y (TTM)5.04%
Revenue growth 3Y9.32%
Revenue growth 5Y11.94%
Sales Q2Q%-4.26%
Revenue Next Year-3.33%
Revenue Next 2Y-0.47%
Revenue Next 3Y2.22%
Revenue Next 5YN/A
EBIT growth 1Y-1.83%
EBIT growth 3Y15.32%
EBIT growth 5Y24.01%
EBIT Next Year-12.25%
EBIT Next 3Y-1.94%
EBIT Next 5YN/A
FCF growth 1Y-31.42%
FCF growth 3Y18.82%
FCF growth 5Y8.95%
OCF growth 1Y-28.32%
OCF growth 3Y18.74%
OCF growth 5Y9.33%