PULTEGROUP INC (PHM) Stock Fundamental Analysis
NYSE:PHM - US7458671010 - Common Stock
135.41 USD
-1.31 (-0.96%)
135.75 USD
+0.34 (+0.25%)
We assign a fundamental rating of 7 out of 10 to PHM. PHM was compared to 63 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. PHM is not valued too expensively and it also shows a decent 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.
Each year in the past 5 years PHM has been profitable.
Each year in the past 5 years PHM had a positive operating cash flow.
1.2 Ratios
With an excellent Return On Assets value of 15.59%, PHM belongs to the best of the industry, outperforming 98.41% of the companies in the same industry.
PHM's Return On Equity of 21.81% is amongst the best of the industry. PHM outperforms 88.89% of its industry peers.
With an excellent Return On Invested Capital value of 17.87%, PHM belongs to the best of the industry, outperforming 98.41% 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 10.51%.
| 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
The Profit Margin of PHM (15.50%) is better than 95.24% of its industry peers.
In the last couple of years the Profit Margin of PHM has grown nicely.
With an excellent Operating Margin value of 20.09%, PHM belongs to the best of the industry, outperforming 95.24% of the companies in the same industry.
PHM's Operating Margin has improved in the last couple of years.
PHM has a Gross Margin (27.81%) which is comparable to the rest of the industry.
PHM's Gross Margin has improved in the last couple of years.
| 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
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), PHM is creating value.
PHM has less shares outstanding than it did 1 year ago.
The number of shares outstanding for PHM has been reduced compared to 5 years ago.
Compared to 1 year ago, PHM has an improved debt to assets ratio.
2.2 Solvency
PHM has an Altman-Z score of 6.41. This indicates that PHM is financially healthy and has little risk of bankruptcy at the moment.
PHM's Altman-Z score of 6.41 is amongst the best of 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.
PHM's Debt to FCF ratio of 1.61 is fine compared to the rest of the industry. PHM outperforms 79.37% of its industry peers.
A Debt/Equity ratio of 0.17 indicates that PHM is not too dependend on debt financing.
With a decent Debt to Equity ratio value of 0.17, PHM is doing good in the industry, outperforming 69.84% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.17 | ||
| Debt/FCF | 1.61 | ||
| Altman-Z | 6.41 |
ROIC/WACC2.1
WACC8.51%
2.3 Liquidity
A Current Ratio of 4.93 indicates that PHM has no problem at all paying its short term obligations.
The Current ratio of PHM (4.93) is better than 77.78% of its industry peers.
A Quick Ratio of 0.42 indicates that PHM may have some problems paying its short term obligations.
The Quick ratio of PHM (0.42) is worse than 84.13% 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 | 4.93 | ||
| 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.
The Revenue has been growing by 11.94% on average over the past years. This is quite good.
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 -2.75% yearly.
The Revenue is expected to grow by 0.90% on average over the next years.
EPS Next Y-20.86%
EPS Next 2Y-10.31%
EPS Next 3Y-2.75%
EPS Next 5YN/A
Revenue Next Year-4.56%
Revenue Next 2Y-2.27%
Revenue Next 3Y0.9%
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
Based on the Price/Earnings ratio of 10.12, the valuation of PHM can be described as reasonable.
68.25% 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 27.03.
A Price/Forward Earnings ratio of 11.60 indicates a reasonable valuation of PHM.
Based on the Price/Forward Earnings ratio, PHM is valued a bit cheaper than 66.67% of the companies in the same industry.
PHM is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 22.54, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.12 | ||
| Fwd PE | 11.6 |
4.2 Price Multiples
69.84% of the companies in the same industry are more expensive than PHM, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, PHM is valued a bit cheaper than 65.08% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 20.27 | ||
| EV/EBITDA | 7.5 |
4.3 Compensation for Growth
The excellent profitability rating of PHM may justify a higher PE ratio.
A cheap valuation may be justified as PHM's earnings are expected to decrease with -2.75% in the coming years.
PEG (NY)N/A
PEG (5Y)0.31
EPS Next 2Y-10.31%
EPS Next 3Y-2.75%
5. Dividend
5.1 Amount
With a yearly dividend of 0.64%, PHM is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 2.72, PHM pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.45, PHM's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.64% |
5.2 History
The dividend of PHM is nicely growing with an annual growth rate of 12.52%!
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 6.30% of its income as dividend. This is a sustainable payout ratio.
DP6.3%
EPS Next 2Y-10.31%
EPS Next 3Y-2.75%
135.41
-1.31 (-0.96%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryHousehold Durables
Earnings (Last)
Earnings (Next)
Inst Owners96.69%
Inst Owner Change-0.74%
Ins Owners0.61%
Ins Owner Change-0.44%
Market Cap26.72B
Analysts76.19
Price Target138.81 (2.51%)
Short Float %3.27%
Short Ratio2.92
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.64% |
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)9.43%
PT rev (3m)11.48%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-10.95%
EPS NY rev (1m)-0.85%
EPS NY rev (3m)-0.98%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-8.86%
Revenue NY rev (1m)-0.18%
Revenue NY rev (3m)-1.28%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.12 | ||
| Fwd PE | 11.6 | ||
| P/S | 1.51 | ||
| P/FCF | 20.27 | ||
| P/OCF | 18.48 | ||
| P/B | 2.12 | ||
| P/tB | 2.14 | ||
| EV/EBITDA | 7.5 |
EPS(TTM)13.38
EY9.88%
EPS(NY)11.67
Fwd EY8.62%
FCF(TTM)6.68
FCFY4.93%
OCF(TTM)7.33
OCFY5.41%
SpS89.68
BVpS63.74
TBVpS63.17
PEG (NY)N/A
PEG (5Y)0.31
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 | 6.41 |
F-Score5
WACC8.51%
ROIC/WACC2.1
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-20.86%
EPS Next 2Y-10.31%
EPS Next 3Y-2.75%
EPS Next 5YN/A
Revenue 1Y (TTM)5.04%
Revenue growth 3Y9.32%
Revenue growth 5Y11.94%
Sales Q2Q%-4.26%
Revenue Next Year-4.56%
Revenue Next 2Y-2.27%
Revenue Next 3Y0.9%
Revenue Next 5YN/A
EBIT growth 1Y-1.83%
EBIT growth 3Y15.32%
EBIT growth 5Y24.01%
EBIT Next Year-13.04%
EBIT Next 3Y-2.57%
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%