PULTEGROUP INC (PHM) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:PHM - US7458671010 - Common Stock
123.16 USD
+5.87 (+5%)
126 USD
+2.84 (+2.31%)
PHM gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 60 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 valuation in line with the averages, but on the other hand it scores bad on growth.
1. Profitability
1.1 Basic Checks
PHM had positive earnings in the past year.
In the past year PHM had a positive cash flow from operations.
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
The Return On Assets of PHM (14.74%) is better than 96.67% of its industry peers.
PHM has a better Return On Equity (20.51%) than 90.00% of its industry peers.
PHM has a better Return On Invested Capital (17.01%) than 96.67% 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 9.69%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 14.74% | ||
| ROE | 20.51% | ||
| ROIC | 17.01% |
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 14.93%, PHM belongs to the best of the industry, outperforming 95.00% of the companies in the same industry.
PHM's Profit Margin has improved in the last couple of years.
With an excellent Operating Margin value of 19.43%, PHM belongs to the best of the industry, outperforming 95.00% of the companies in the same industry.
PHM's Operating Margin has improved in the last couple of years.
With a Gross Margin value of 27.15%, PHM perfoms like the industry average, outperforming 58.33% of the companies in the same industry.
In the last couple of years the Gross Margin of PHM has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 19.43% | ||
| PM (TTM) | 14.93% | ||
| GM | 27.15% |
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.
The debt/assets ratio for PHM has been reduced compared to a year ago.
2.2 Solvency
PHM has an Altman-Z score of 5.88. This indicates that PHM is financially healthy and has little risk of bankruptcy at the moment.
With an excellent Altman-Z score value of 5.88, PHM belongs to the best of the industry, outperforming 86.67% of the companies in the same industry.
The Debt to FCF ratio of PHM is 1.31, which is an excellent value as it means it would take PHM, only 1.31 years of fcf income to pay off all of its debts.
PHM has a better Debt to FCF ratio (1.31) than 73.33% of its industry peers.
PHM has a Debt/Equity ratio of 0.16. This is a healthy value indicating a solid balance between debt and equity.
Looking at the Debt to Equity ratio, with a value of 0.16, PHM is in the better half of the industry, outperforming 70.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.16 | ||
| Debt/FCF | 1.31 | ||
| Altman-Z | 5.88 |
ROIC/WACC1.98
WACC8.61%
2.3 Liquidity
PHM has a Current Ratio of 5.08. This indicates that PHM is financially healthy and has no problem in meeting its short term obligations.
PHM has a better Current ratio (5.08) than 73.33% of its industry peers.
A Quick Ratio of 0.50 indicates that PHM may have some problems paying its short term obligations.
With a Quick ratio value of 0.50, PHM is not doing good in the industry: 76.67% of the companies in the same industry are doing better.
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 | 5.08 | ||
| Quick Ratio | 0.5 |
3. Growth
3.1 Past
PHM shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -2.77%.
PHM shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 32.15% yearly.
PHM shows a small growth in Revenue. In the last year, the Revenue has grown by 1.76%.
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)-2.77%
EPS 3Y25.56%
EPS 5Y32.15%
EPS Q2Q%-11.64%
Revenue 1Y (TTM)1.76%
Revenue growth 3Y9.32%
Revenue growth 5Y11.94%
Sales Q2Q%-1.6%
3.2 Future
The Earnings Per Share is expected to decrease by -3.61% on average over the next years.
Based on estimates for the next years, PHM will show a decrease in Revenue. The Revenue will decrease by -1.28% on average per year.
EPS Next Y-20.83%
EPS Next 2Y-12.58%
EPS Next 3Y-4.34%
EPS Next 5Y-3.61%
Revenue Next Year-4.06%
Revenue Next 2Y-2.87%
Revenue Next 3Y-0.3%
Revenue Next 5Y-1.28%
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 9.48, the valuation of PHM can be described as reasonable.
PHM's Price/Earnings ratio is a bit cheaper when compared to the industry. PHM is cheaper than 71.67% of the companies in the same industry.
PHM's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.00.
Based on the Price/Forward Earnings ratio of 11.11, the valuation of PHM can be described as reasonable.
Based on the Price/Forward Earnings ratio, PHM is valued a bit cheaper than 71.67% 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 23.70.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.48 | ||
| Fwd PE | 11.11 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, PHM is valued a bit cheaper than the industry average as 73.33% of the companies are valued more expensively.
PHM's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. PHM is cheaper than 63.33% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.47 | ||
| EV/EBITDA | 6.54 |
4.3 Compensation for Growth
PHM has an outstanding profitability rating, which may justify a higher PE ratio.
A cheap valuation may be justified as PHM's earnings are expected to decrease with -4.34% in the coming years.
PEG (NY)N/A
PEG (5Y)0.29
EPS Next 2Y-12.58%
EPS Next 3Y-4.34%
5. Dividend
5.1 Amount
With a yearly dividend of 0.89%, PHM is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 1.23, PHM pays a bit more dividend than its industry peers.
With a Dividend Yield of 0.89, PHM pays less dividend than the S&P500 average, which is at 1.94.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.89% |
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 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
6.65% of the earnings are spent on dividend by PHM. This is a low number and sustainable payout ratio.
DP6.65%
EPS Next 2Y-12.58%
EPS Next 3Y-4.34%
123.16
+5.87 (+5%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryHousehold Durables
Earnings (Last)
Earnings (Next)
Inst Owners96.13%
Inst Owner Change0%
Ins Owners0.62%
Ins Owner Change-0.69%
Market Cap24.01B
Revenue(TTM)17.62B
Net Income(TTM)2.63B
Analysts75
Price Target142.45 (15.66%)
Short Float %4%
Short Ratio3.96
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.89% |
Yearly Dividend0.81
Dividend Growth(5Y)12.52%
DP6.65%
Div Incr Years7
Div Non Decr Years11
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)1.38%
Min EPS beat(2)1.33%
Max EPS beat(2)1.44%
EPS beat(4)4
Avg EPS beat(4)10.52%
Min EPS beat(4)1.33%
Max EPS beat(4)34.18%
EPS beat(8)8
Avg EPS beat(8)10.98%
EPS beat(12)12
Avg EPS beat(12)13.2%
EPS beat(16)15
Avg EPS beat(16)10.59%
Revenue beat(2)1
Avg Revenue beat(2)0.24%
Min Revenue beat(2)-0.75%
Max Revenue beat(2)1.24%
Revenue beat(4)3
Avg Revenue beat(4)1.66%
Min Revenue beat(4)-0.75%
Max Revenue beat(4)5.12%
Revenue beat(8)6
Avg Revenue beat(8)2%
Revenue beat(12)9
Avg Revenue beat(12)3.18%
Revenue beat(16)12
Avg Revenue beat(16)6.89%
PT rev (1m)1.56%
PT rev (3m)1.48%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-4.39%
EPS NY rev (1m)0.04%
EPS NY rev (3m)0.04%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.76%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.58%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.48 | ||
| Fwd PE | 11.11 | ||
| P/S | 1.36 | ||
| P/FCF | 15.47 | ||
| P/OCF | 14.39 | ||
| P/B | 1.87 | ||
| P/tB | 1.89 | ||
| EV/EBITDA | 6.54 |
EPS(TTM)12.99
EY10.55%
EPS(NY)11.09
Fwd EY9%
FCF(TTM)7.96
FCFY6.46%
OCF(TTM)8.56
OCFY6.95%
SpS90.41
BVpS65.8
TBVpS65.25
PEG (NY)N/A
PEG (5Y)0.29
Graham Number138.68
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 14.74% | ||
| ROE | 20.51% | ||
| ROCE | 22.92% | ||
| ROIC | 17.01% | ||
| ROICexc | 18.78% | ||
| ROICexgc | 22.3% | ||
| OM | 19.43% | ||
| PM (TTM) | 14.93% | ||
| GM | 27.15% | ||
| FCFM | 8.81% |
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%
ROICexgc growth 3Y3.02%
ROICexgc 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 Turnover0.99
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.16 | ||
| Debt/FCF | 1.31 | ||
| Debt/EBITDA | 0.58 | ||
| Cap/Depr | 116.19% | ||
| Cap/Sales | 0.66% | ||
| Interest Coverage | 182.01 | ||
| Cash Conversion | 47.33% | ||
| Profit Quality | 59% | ||
| Current Ratio | 5.08 | ||
| Quick Ratio | 0.5 | ||
| Altman-Z | 5.88 |
F-Score5
WACC8.61%
ROIC/WACC1.98
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)-2.77%
EPS 3Y25.56%
EPS 5Y32.15%
EPS Q2Q%-11.64%
EPS Next Y-20.83%
EPS Next 2Y-12.58%
EPS Next 3Y-4.34%
EPS Next 5Y-3.61%
Revenue 1Y (TTM)1.76%
Revenue growth 3Y9.32%
Revenue growth 5Y11.94%
Sales Q2Q%-1.6%
Revenue Next Year-4.06%
Revenue Next 2Y-2.87%
Revenue Next 3Y-0.3%
Revenue Next 5Y-1.28%
EBIT growth 1Y-7.1%
EBIT growth 3Y15.32%
EBIT growth 5Y24.01%
EBIT Next Year-12.95%
EBIT Next 3Y-4.82%
EBIT Next 5Y-4.8%
FCF growth 1Y-44.36%
FCF growth 3Y18.82%
FCF growth 5Y8.95%
OCF growth 1Y-42.11%
OCF growth 3Y18.74%
OCF growth 5Y9.33%
PULTEGROUP INC / PHM FAQ
Can you provide the ChartMill fundamental rating for PULTEGROUP INC?
ChartMill assigns a fundamental rating of 7 / 10 to PHM.
What is the valuation status for PHM stock?
ChartMill assigns a valuation rating of 6 / 10 to PULTEGROUP INC (PHM). This can be considered as Fairly Valued.
Can you provide the profitability details for PULTEGROUP INC?
PULTEGROUP INC (PHM) has a profitability rating of 9 / 10.
What is the earnings growth outlook for PULTEGROUP INC?
The Earnings per Share (EPS) of PULTEGROUP INC (PHM) is expected to decline by -20.83% in the next year.
How sustainable is the dividend of PULTEGROUP INC (PHM) stock?
The dividend rating of PULTEGROUP INC (PHM) is 5 / 10 and the dividend payout ratio is 6.65%.