PULTEGROUP INC (PHM) Stock Fundamental Analysis
NYSE:PHM - New York Stock Exchange, Inc. - US7458671010 - Common Stock - Currency: USD
Taking everything into account, PHM scores 7 out of 10 in our fundamental rating. PHM was compared to 64 industry peers in the Household Durables industry. While PHM has a great profitability rating, there are some minor concerns on its financial health. PHM may be a bit undervalued, certainly considering the very reasonable score on growth With these ratings, PHM could be worth investigating further for value investing!.
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
PHM has a Return On Assets of 16.98%. This is amongst the best in the industry. PHM outperforms 95.31% of its industry peers.
PHM has a Return On Equity of 23.93%. This is amongst the best in the industry. PHM outperforms 87.50% of its industry peers.
The Return On Invested Capital of PHM (19.47%) is better than 95.31% of its industry peers.
The Average Return On Invested Capital over the past 3 years for PHM is significantly above the industry average of 12.29%.
The 3 year average ROIC (19.16%) for PHM is below the current ROIC(19.47%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 16.98% | ||
| ROE | 23.93% | ||
| ROIC | 19.47% |
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 (16.45%) is better than 93.75% of its industry peers.
In the last couple of years the Profit Margin of PHM has grown nicely.
PHM has a Operating Margin of 21.15%. This is amongst the best in the industry. PHM outperforms 93.75% of its industry peers.
PHM's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 28.60%, PHM is in line with its industry, outperforming 57.81% 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 | 21.15% | ||
| 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
PHM has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it 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.
Compared to 1 year ago, PHM has an improved debt to assets ratio.
2.2 Solvency
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.
Looking at the Debt to FCF ratio, with a value of 1.41, PHM is in the better half of the industry, outperforming 76.56% of the companies in the same industry.
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 68.75% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.17 | ||
| Debt/FCF | 1.41 | ||
| Altman-Z | N/A |
ROIC/WACC2.41
WACC8.07%
2.3 Liquidity
PHM has a Current Ratio of 4.82. This indicates that PHM is financially healthy and has no problem in meeting its short term obligations.
Looking at the Current ratio, with a value of 4.82, PHM is in the better half of the industry, outperforming 75.00% of the companies in the same industry.
A Quick Ratio of 0.42 indicates that PHM may have some problems paying its short term obligations.
PHM has a worse Quick ratio (0.42) than 84.38% of its industry peers.
| 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
PHM shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 8.86%.
The Revenue has been growing by 11.94% on average over the past years. This is quite good.
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 small growth in Earnings Per Share. In the coming years, the EPS will grow by 1.10% yearly.
PHM is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.18% yearly.
EPS Next Y-17.01%
EPS Next 2Y-3.69%
EPS Next 3Y1.1%
EPS Next 5YN/A
Revenue Next Year-1.64%
Revenue Next 2Y0.86%
Revenue Next 3Y3.18%
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
PHM is valuated cheaply with a Price/Earnings ratio of 7.22.
Based on the Price/Earnings ratio, PHM is valued a bit cheaper than the industry average as 68.75% of the companies are valued more expensively.
PHM's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.85.
Based on the Price/Forward Earnings ratio of 7.57, the valuation of PHM can be described as very cheap.
Based on the Price/Forward Earnings ratio, PHM is valued a bit cheaper than the industry average as 71.88% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of PHM to the average of the S&P500 Index (20.77), we can say PHM is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.22 | ||
| Fwd PE | 7.57 |
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 82.81% of the companies listed in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of PHM indicates a somewhat cheap valuation: PHM is cheaper than 68.75% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.15 | ||
| EV/EBITDA | 5.43 |
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-3.69%
EPS Next 3Y1.1%
5. Dividend
5.1 Amount
With a yearly dividend of 0.86%, PHM is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 3.58, 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 | 0.86% |
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 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 5.80% of its income as dividend. This is a sustainable payout ratio.
The dividend of PHM is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP5.8%
EPS Next 2Y-3.69%
EPS Next 3Y1.1%
101.89
-0.69 (-0.67%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryHousehold Durables
Earnings (Last)
Earnings (Next)
Inst Owners94.76%
Inst Owner Change-0.29%
Ins Owners0.64%
Ins Owner Change0.32%
Market Cap20.54B
Analysts77.27
Price Target127.95 (25.58%)
Short Float %3.15%
Short Ratio2.67
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.86% |
Yearly Dividend0.81
Dividend Growth(5Y)12.52%
DP5.8%
Div Incr Years7
Div Non Decr Years11
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)19.46%
Min EPS beat(2)4.74%
Max EPS beat(2)34.18%
EPS beat(4)4
Avg EPS beat(4)14.97%
Min EPS beat(4)4.74%
Max EPS beat(4)34.18%
EPS beat(8)8
Avg EPS beat(8)13.05%
EPS beat(12)11
Avg EPS beat(12)12.73%
EPS beat(16)14
Avg EPS beat(16)10.29%
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)-7.81%
PT rev (3m)-14.9%
EPS NQ rev (1m)-1%
EPS NQ rev (3m)-9.63%
EPS NY rev (1m)-2.57%
EPS NY rev (3m)-11.38%
Revenue NQ rev (1m)-0.38%
Revenue NQ rev (3m)-2.98%
Revenue NY rev (1m)-3.9%
Revenue NY rev (3m)-5.53%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.22 | ||
| Fwd PE | 7.57 | ||
| P/S | 1.15 | ||
| P/FCF | 14.15 | ||
| P/OCF | 13.04 | ||
| P/B | 1.67 | ||
| P/tB | 1.69 | ||
| EV/EBITDA | 5.43 |
EPS(TTM)14.12
EY13.86%
EPS(NY)13.46
Fwd EY13.21%
FCF(TTM)7.2
FCFY7.07%
OCF(TTM)7.81
OCFY7.67%
SpS88.75
BVpS61.02
TBVpS60.46
PEG (NY)N/A
PEG (5Y)0.22
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 16.98% | ||
| ROE | 23.93% | ||
| ROCE | 26.3% | ||
| ROIC | 19.47% | ||
| ROICexc | 21.24% | ||
| ROICexgc | 25.31% | ||
| OM | 21.15% | ||
| 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 | 133.75% | ||
| Cap/Sales | 0.69% | ||
| Interest Coverage | 170.9 | ||
| Cash Conversion | 40.63% | ||
| Profit Quality | 49.31% | ||
| Current Ratio | 4.82 | ||
| Quick Ratio | 0.42 | ||
| Altman-Z | N/A |
F-Score7
WACC8.07%
ROIC/WACC2.41
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-17.01%
EPS Next 2Y-3.69%
EPS Next 3Y1.1%
EPS Next 5YN/A
Revenue 1Y (TTM)8.86%
Revenue growth 3Y9.32%
Revenue growth 5Y11.94%
Sales Q2Q%-1.43%
Revenue Next Year-1.64%
Revenue Next 2Y0.86%
Revenue Next 3Y3.18%
Revenue Next 5YN/A
EBIT growth 1Y7.33%
EBIT growth 3Y15.32%
EBIT growth 5Y24.01%
EBIT Next Year-6.91%
EBIT Next 3Y1.62%
EBIT Next 5YN/A
FCF growth 1Y36.07%
FCF growth 3Y18.82%
FCF growth 5Y8.95%
OCF growth 1Y34.39%
OCF growth 3Y18.74%
OCF growth 5Y9.33%