PULTEGROUP INC (PHM) Stock Fundamental Analysis
USA - NYSE:PHM - US7458671010 - Common Stock
120.53 USD
-0.33 (-0.27%)
120.45 USD
-0.08 (-0.07%)
Overall PHM gets a fundamental rating of 7 out of 10. We evaluated PHM against 61 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 correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
PHM had positive earnings in the past year.
PHM had a positive operating cash flow in the past year.
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 95.08% of its industry peers.
PHM's Return On Equity of 20.51% is amongst the best of the industry. PHM outperforms 91.80% of its industry peers.
Looking at the Return On Invested Capital, with a value of 17.01%, PHM belongs to the top of the industry, outperforming 93.44% of the companies in the same industry.
PHM had an Average Return On Invested Capital over the past 3 years of 19.16%. This is significantly above the industry average of 10.36%.
| 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 95.08% of the companies in the same industry.
PHM's Profit Margin has improved in the last couple of years.
PHM's Operating Margin of 19.43% is amongst the best of the industry. PHM outperforms 95.08% of its industry peers.
PHM's Operating Margin has improved in the last couple of years.
PHM's Gross Margin of 27.15% is in line compared to the rest of the industry. PHM outperforms 57.38% of its industry peers.
PHM's Gross Margin has improved in the last couple of years.
| 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
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
An Altman-Z score of 6.00 indicates that PHM is not in any danger for bankruptcy at the moment.
PHM has a Altman-Z score of 6.00. This is amongst the best in the industry. PHM outperforms 85.25% of its industry peers.
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.
With a decent Debt to FCF ratio value of 1.31, PHM is doing good in the industry, outperforming 78.69% of the companies in the same industry.
PHM has a Debt/Equity ratio of 0.16. This is a healthy value indicating a solid balance between debt and equity.
PHM has a Debt to Equity ratio of 0.16. This is in the better half of the industry: PHM outperforms 70.49% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.16 | ||
| Debt/FCF | 1.31 | ||
| Altman-Z | 6 |
ROIC/WACC1.95
WACC8.71%
2.3 Liquidity
A Current Ratio of 5.08 indicates that PHM has no problem at all paying its short term obligations.
The Current ratio of PHM (5.08) is better than 77.05% of its industry peers.
A Quick Ratio of 0.50 indicates that PHM may have some problems paying its short term obligations.
PHM's Quick ratio of 0.50 is on the low side compared to the rest of the industry. PHM is outperformed by 73.77% 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 | 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.
Looking at the last year, PHM shows a small growth in Revenue. The Revenue has grown by 1.76% 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)-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 -2.83% on average over the next years.
PHM is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 0.83% yearly.
EPS Next Y-20.93%
EPS Next 2Y-10.38%
EPS Next 3Y-2.83%
EPS Next 5YN/A
Revenue Next Year-4.88%
Revenue Next 2Y-2.42%
Revenue Next 3Y0.83%
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 9.28, the valuation of PHM can be described as reasonable.
Based on the Price/Earnings ratio, PHM is valued a bit cheaper than the industry average as 68.85% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 26.91. PHM is valued rather cheaply when compared to this.
The Price/Forward Earnings ratio is 10.34, which indicates a very decent valuation of PHM.
Based on the Price/Forward Earnings ratio, PHM is valued a bit cheaper than 67.21% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of PHM to the average of the S&P500 Index (22.92), we can say PHM is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.28 | ||
| Fwd PE | 10.34 |
4.2 Price Multiples
70.49% 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 68.85% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.32 | ||
| EV/EBITDA | 6.82 |
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 -2.83% in the coming years.
PEG (NY)N/A
PEG (5Y)0.29
EPS Next 2Y-10.38%
EPS Next 3Y-2.83%
5. Dividend
5.1 Amount
PHM has a yearly dividend return of 0.73%, which is pretty low.
PHM's Dividend Yield is a higher than the industry average which is at 3.04.
Compared to an average S&P500 Dividend Yield of 2.32, PHM's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.73% |
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
PHM pays out 6.65% of its income as dividend. This is a sustainable payout ratio.
DP6.65%
EPS Next 2Y-10.38%
EPS Next 3Y-2.83%
120.53
-0.33 (-0.27%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryHousehold Durables
Earnings (Last)
Earnings (Next)
Inst Owners97.33%
Inst Owner Change-0.3%
Ins Owners0.61%
Ins Owner Change-0.44%
Market Cap23.78B
Revenue(TTM)17.62B
Net Income(TTM)2.63B
Analysts76.19
Price Target140.38 (16.47%)
Short Float %2.55%
Short Ratio2.26
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.73% |
Yearly Dividend0.81
Dividend Growth(5Y)12.52%
DP6.65%
Div Incr Years7
Div Non Decr Years11
Ex-Date
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)0.28%
PT rev (3m)10.66%
EPS NQ rev (1m)-0.08%
EPS NQ rev (3m)-1.2%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.85%
Revenue NQ rev (1m)-0.09%
Revenue NQ rev (3m)-1.83%
Revenue NY rev (1m)-0.05%
Revenue NY rev (3m)-1.33%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.28 | ||
| Fwd PE | 10.34 | ||
| P/S | 1.35 | ||
| P/FCF | 15.32 | ||
| P/OCF | 14.26 | ||
| P/B | 1.85 | ||
| P/tB | 1.87 | ||
| EV/EBITDA | 6.82 |
EPS(TTM)12.99
EY10.78%
EPS(NY)11.65
Fwd EY9.67%
FCF(TTM)7.87
FCFY6.53%
OCF(TTM)8.45
OCFY7.01%
SpS89.32
BVpS65.01
TBVpS64.46
PEG (NY)N/A
PEG (5Y)0.29
Graham Number137.84
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 | 6 |
F-Score5
WACC8.71%
ROIC/WACC1.95
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-20.93%
EPS Next 2Y-10.38%
EPS Next 3Y-2.83%
EPS Next 5YN/A
Revenue 1Y (TTM)1.76%
Revenue growth 3Y9.32%
Revenue growth 5Y11.94%
Sales Q2Q%-1.6%
Revenue Next Year-4.88%
Revenue Next 2Y-2.42%
Revenue Next 3Y0.83%
Revenue Next 5YN/A
EBIT growth 1Y-7.1%
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-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 of PULTEGROUP INC (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.
Can you provide the expected EPS growth for PHM stock?
The Earnings per Share (EPS) of PULTEGROUP INC (PHM) is expected to decline by -20.93% 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%.