PULTEGROUP INC (PHM) Stock Fundamental Analysis
NYSE:PHM - New York Stock Exchange, Inc. - US7458671010 - Common Stock - Currency: USD
We assign a fundamental rating of 8 out of 10 to PHM. PHM was compared to 64 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 is valued quite cheap, while showing a decent growth score. This is a good combination! These ratings would make PHM suitable for value and quality investing!
1. Profitability
1.1 Basic Checks
In the past year PHM was profitable.
PHM had a positive operating cash flow in the past year.
PHM had positive earnings in each of the past 5 years.
In the past 5 years PHM always reported a positive cash flow from operatings.
1.2 Ratios
With an excellent Return On Assets value of 16.98%, PHM belongs to the best of the industry, outperforming 98.44% of the companies in the same industry.
PHM has a Return On Equity of 23.92%. This is amongst the best in the industry. PHM outperforms 90.63% of its industry peers.
Looking at the Return On Invested Capital, with a value of 19.43%, PHM belongs to the top of the industry, outperforming 96.88% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for PHM is significantly above the industry average of 10.34%.
The last Return On Invested Capital (19.43%) for PHM is above the 3 year average (19.16%), which is a sign of increasing profitability.
| 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.
In the last couple of years the Profit Margin of PHM has grown nicely.
With an excellent Operating Margin value of 21.12%, PHM belongs to the best of the industry, outperforming 95.31% of the companies in the same industry.
PHM's Operating Margin has improved in the last couple of years.
PHM has a Gross Margin (28.60%) which is in line with 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
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.
PHM has less shares outstanding than it did 5 years ago.
PHM has a better debt/assets ratio than last year.
2.2 Solvency
PHM has an Altman-Z score of 5.86. This indicates that PHM is financially healthy and has little risk of bankruptcy at the moment.
PHM's Altman-Z score of 5.86 is amongst the best of the industry. PHM outperforms 87.50% of its industry peers.
The Debt to FCF ratio of PHM is 1.41, which is an excellent value as it means it would take PHM, only 1.41 years of fcf income to pay off all of its debts.
PHM's Debt to FCF ratio of 1.41 is amongst the best of the industry. PHM outperforms 81.25% 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.
The Debt to Equity ratio of PHM (0.17) is better than 67.19% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.17 | ||
| Debt/FCF | 1.41 | ||
| Altman-Z | 5.86 |
ROIC/WACC2.06
WACC9.43%
2.3 Liquidity
A Current Ratio of 4.82 indicates that PHM has no problem at all paying its short term obligations.
The Current ratio of PHM (4.82) is better than 75.00% of its industry peers.
A Quick Ratio of 0.42 indicates that PHM may have some problems paying its short term obligations.
With a Quick ratio value of 0.42, PHM is not doing good in the industry: 81.25% 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 | 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.
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.
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)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
PHM is expected to show a decrease in Earnings Per Share. In the coming years, the EPS will decrease by -0.75% yearly.
The Revenue is expected to grow by 2.22% on average over the next years.
EPS Next Y-20.15%
EPS Next 2Y-8.16%
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.
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
A Price/Earnings ratio of 7.75 indicates a rather cheap valuation of PHM.
Based on the Price/Earnings ratio, PHM is valued a bit cheaper than the industry average as 75.00% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 27.45. PHM is valued rather cheaply when compared to this.
A Price/Forward Earnings ratio of 8.94 indicates a reasonable valuation of PHM.
Based on the Price/Forward Earnings ratio, PHM is valued a bit cheaper than the industry average as 68.75% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of PHM to the average of the S&P500 Index (21.90), we can say PHM is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.75 | ||
| Fwd PE | 8.94 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of PHM indicates a rather cheap valuation: PHM is cheaper than 85.94% 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 71.88% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.11 | ||
| EV/EBITDA | 5.76 |
4.3 Compensation for Growth
PHM has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.24
EPS Next 2Y-8.16%
EPS Next 3Y-0.75%
5. Dividend
5.1 Amount
With a yearly dividend of 0.84%, PHM is not a good candidate for dividend investing.
PHM's Dividend Yield is a higher than the industry average which is at 3.49.
Compared to an average S&P500 Dividend Yield of 2.42, PHM's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.84% |
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
5.79% of the earnings are spent on dividend by PHM. This is a low number and sustainable payout ratio.
DP5.79%
EPS Next 2Y-8.16%
EPS Next 3Y-0.75%
109.36
-1.98 (-1.78%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryHousehold Durables
Earnings (Last)
Earnings (Next)
Inst Owners94.82%
Inst Owner Change-0.38%
Ins Owners0.6%
Ins Owner Change0.52%
Market Cap21.92B
Analysts76.36
Price Target124.52 (13.86%)
Short Float %3.6%
Short Ratio3.76
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.84% |
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)0.18%
PT rev (3m)-10.34%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-4.23%
EPS NY rev (1m)-0.09%
EPS NY rev (3m)-6.25%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-4.83%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-5.55%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.75 | ||
| Fwd PE | 8.94 | ||
| P/S | 1.23 | ||
| P/FCF | 15.11 | ||
| P/OCF | 13.92 | ||
| P/B | 1.78 | ||
| P/tB | 1.8 | ||
| EV/EBITDA | 5.76 |
EPS(TTM)14.12
EY12.91%
EPS(NY)12.24
Fwd EY11.19%
FCF(TTM)7.24
FCFY6.62%
OCF(TTM)7.86
OCFY7.19%
SpS89.26
BVpS61.37
TBVpS60.81
PEG (NY)N/A
PEG (5Y)0.24
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 | 5.86 |
F-Score7
WACC9.43%
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)16.21%
EPS 3Y25.56%
EPS 5Y32.15%
EPS Q2Q%-13.18%
EPS Next Y-20.15%
EPS Next 2Y-8.16%
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%