PULTEGROUP INC (PHM)
US7458671010 - Common Stock
Taking everything into account, PHM scores 7 out of 10 in our fundamental rating. PHM was compared to 67 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.
In the past year PHM had a positive cash flow from operations.
Each year in the past 5 years PHM has been profitable.
In the past 5 years PHM always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 16.52%, PHM belongs to the top of the industry, outperforming 95.45% of the companies in the same industry.
With an excellent Return On Equity value of 25.33%, PHM belongs to the best of the industry, outperforming 89.39% of the companies in the same industry.
The Return On Invested Capital of PHM (19.66%) is better than 98.48% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for PHM is significantly above the industry average of 10.03%.
The last Return On Invested Capital (19.66%) for PHM is above the 3 year average (18.34%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 16.52% | ||
| ROE | 25.33% | ||
| ROIC | 19.66% |
ROA(3y)16.05%
ROA(5y)13.79%
ROE(3y)26.64%
ROE(5y)23.91%
ROIC(3y)18.34%
ROIC(5y)15.59%
1.3 Margins
With an excellent Profit Margin value of 16.59%, PHM belongs to the best of the industry, outperforming 92.42% of the companies in the same industry.
In the last couple of years the Profit Margin of PHM has grown nicely.
The Operating Margin of PHM (21.45%) is better than 96.97% of its industry peers.
In the last couple of years the Operating Margin of PHM has grown nicely.
With a Gross Margin value of 29.55%, PHM perfoms like the industry average, outperforming 57.58% 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 | 21.45% | ||
| PM (TTM) | 16.59% | ||
| GM | 29.55% |
OM growth 3Y10.22%
OM growth 5Y9.91%
PM growth 3Y8.52%
PM growth 5Y10.22%
GM growth 3Y5.44%
GM growth 5Y4.84%
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 5.66 indicates that PHM is not in any danger for bankruptcy at the moment.
The Altman-Z score of PHM (5.66) is better than 86.36% of its industry peers.
PHM has a debt to FCF ratio of 1.53. This is a very positive value and a sign of high solvency as it would only need 1.53 years to pay back of all of its debts.
With a decent Debt to FCF ratio value of 1.53, PHM is doing good in the industry, outperforming 72.73% of the companies in the same industry.
PHM has a Debt/Equity ratio of 0.23. This is a healthy value indicating a solid balance between debt and equity.
PHM has a better Debt to Equity ratio (0.23) than 60.61% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.23 | ||
| Debt/FCF | 1.53 | ||
| Altman-Z | 5.66 |
ROIC/WACC1.94
WACC10.15%
2.3 Liquidity
A Current Ratio of 4.02 indicates that PHM has no problem at all paying its short term obligations.
PHM has a Current ratio of 4.02. This is in the better half of the industry: PHM outperforms 74.24% of its industry peers.
PHM has a Quick Ratio of 4.02. This is a bad value and indicates that PHM is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 0.50, PHM is doing worse than 90.91% of the companies in the same industry.
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 | 4.02 | ||
| Quick Ratio | 0.5 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 5.79% over the past year.
PHM shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 25.08% yearly.
Looking at the last year, PHM shows a very negative growth in Revenue. The Revenue has decreased by -17.01% in the last year.
Measured over the past years, PHM shows a quite strong growth in Revenue. The Revenue has been growing by 9.53% on average per year.
EPS 1Y (TTM)5.79%
EPS 3Y33.5%
EPS 5Y25.08%
EPS growth Q2Q22.13%
Revenue 1Y (TTM)-17.01%
Revenue growth 3Y13.32%
Revenue growth 5Y9.53%
Revenue growth Q2Q10.45%
3.2 Future
PHM is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 5.41% yearly.
The Revenue is expected to grow by 4.79% on average over the next years.
EPS Next Y3.93%
EPS Next 2Y6.12%
EPS Next 3Y5.41%
EPS Next 5YN/A
Revenue Next Year3.67%
Revenue Next 2Y4.96%
Revenue Next 3Y4.79%
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
With a Price/Earnings ratio of 9.58, the valuation of PHM can be described as very reasonable.
75.76% of the companies in the same industry are more expensive than PHM, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 28.11, PHM is valued rather cheaply.
A Price/Forward Earnings ratio of 8.89 indicates a reasonable valuation of PHM.
PHM's Price/Forward Earnings ratio is rather cheap when compared to the industry. PHM is cheaper than 83.33% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 20.39, PHM is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.58 | ||
| Fwd PE | 8.89 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, PHM is valued cheaply inside the industry as 83.33% of the companies are valued more expensively.
PHM's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.88 | ||
| EV/EBITDA | 6.88 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates PHM does not grow enough to justify the current Price/Earnings ratio.
The excellent profitability rating of PHM may justify a higher PE ratio.
PEG (NY)2.44
PEG (5Y)0.38
EPS Next 2Y6.12%
EPS Next 3Y5.41%
5. Dividend
5.1 Amount
With a yearly dividend of 0.70%, PHM is not a good candidate for dividend investing.
PHM's Dividend Yield is a higher than the industry average which is at 3.06.
Compared to an average S&P500 Dividend Yield of 2.40, PHM's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.7% |
5.2 History
On average, the dividend of PHM grows each year by 12.00%, which is quite nice.
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%
Div Incr Years6
Div Non Decr Years10
5.3 Sustainability
PHM pays out 5.46% 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.
DP5.46%
EPS Next 2Y6.12%
EPS Next 3Y5.41%
PULTEGROUP INC
NYSE:PHM (5/8/2024, 12:20:04 PM)
115.5
-1.45 (-1.24%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryHousehold Durables
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap24.29B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.7% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.58 | ||
| Fwd PE | 8.89 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)2.44
PEG (5Y)0.38
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 16.52% | ||
| ROE | 25.33% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 21.45% | ||
| PM (TTM) | 16.59% | ||
| GM | 29.55% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover1
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.23 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 4.02 | ||
| Quick Ratio | 0.5 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)5.79%
EPS 3Y33.5%
EPS 5Y
EPS growth Q2Q
EPS Next Y3.93%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-17.01%
Revenue growth 3Y13.32%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y