PULTEGROUP INC (PHM) Stock Fundamental Analysis
NYSE:PHM - New York Stock Exchange, Inc. - US7458671010 - Common Stock - Currency: USD
Overall PHM gets a fundamental rating of 7 out of 10. We evaluated PHM against 63 industry peers in the Household Durables industry. PHM has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. PHM has a correct valuation and a medium growth rate.
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.
Each year in the past 5 years PHM had a positive operating cash flow.
1.2 Ratios
PHM's Return On Assets of 15.59% is amongst the best of the industry. PHM outperforms 98.41% of its industry peers.
The Return On Equity of PHM (21.81%) is better than 87.30% of its industry peers.
The Return On Invested Capital of PHM (17.87%) is better than 98.41% 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 10.39%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 15.59% | ||
| ROE | 21.81% | ||
| ROIC | 17.87% |
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 15.50%, PHM belongs to the top of the industry, outperforming 95.24% of the companies in the same industry.
PHM's Profit Margin has improved in the last couple of years.
PHM has a better Operating Margin (20.09%) than 95.24% of its industry peers.
PHM's Operating Margin has improved in the last couple of years.
PHM has a Gross Margin (27.81%) which is in line with its industry peers.
In the last couple of years the Gross Margin of PHM has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 20.09% | ||
| PM (TTM) | 15.5% | ||
| GM | 27.81% |
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.
Compared to 1 year ago, PHM has less shares outstanding
PHM has less shares outstanding than it did 5 years ago.
The debt/assets ratio for PHM has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 6.22 indicates that PHM is not in any danger for bankruptcy at the moment.
PHM has a Altman-Z score of 6.22. This is amongst the best in the industry. PHM outperforms 85.71% of its industry peers.
PHM has a debt to FCF ratio of 1.61. This is a very positive value and a sign of high solvency as it would only need 1.61 years to pay back of all of its debts.
PHM has a Debt to FCF ratio of 1.61. This is amongst the best in the industry. PHM outperforms 80.95% of its industry peers.
A Debt/Equity ratio of 0.17 indicates that PHM is not too dependend on debt financing.
PHM has a Debt to Equity ratio of 0.17. This is in the better half of the industry: PHM outperforms 68.25% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.17 | ||
| Debt/FCF | 1.61 | ||
| Altman-Z | 6.22 |
ROIC/WACC2.1
WACC8.53%
2.3 Liquidity
PHM has a Current Ratio of 4.93. 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 4.93, PHM is in the better half of the industry, outperforming 76.19% of the companies in the same industry.
PHM has a Quick Ratio of 4.93. This is a bad value and indicates that PHM is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Quick ratio value of 0.42, PHM is not doing good in the industry: 82.54% 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 | 4.93 | ||
| Quick Ratio | 0.42 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 3.56% over the past year.
PHM shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 32.15% yearly.
The Revenue has been growing slightly by 5.04% in the past year.
The Revenue has been growing by 11.94% on average over the past years. This is quite good.
EPS 1Y (TTM)3.56%
EPS 3Y25.56%
EPS 5Y32.15%
EPS Q2Q%-19.63%
Revenue 1Y (TTM)5.04%
Revenue growth 3Y9.32%
Revenue growth 5Y11.94%
Sales Q2Q%-4.26%
3.2 Future
Based on estimates for the next years, PHM will show a decrease in Earnings Per Share. The EPS will decrease by -0.84% on average per year.
The Revenue is expected to grow by 0.90% on average over the next years.
EPS Next Y-20.18%
EPS Next 2Y-8.26%
EPS Next 3Y-0.84%
EPS Next 5YN/A
Revenue Next Year-4.39%
Revenue Next 2Y-2.19%
Revenue Next 3Y0.9%
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
With a Price/Earnings ratio of 9.58, the valuation of PHM can be described as very reasonable.
Based on the Price/Earnings ratio, PHM is valued a bit cheaper than 71.43% of the companies in the same industry.
PHM is valuated cheaply when we compare the Price/Earnings ratio to 26.82, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 10.50, the valuation of PHM can be described as reasonable.
PHM's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. PHM is cheaper than 65.08% 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 35.24.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.58 | ||
| Fwd PE | 10.5 |
4.2 Price Multiples
PHM's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. PHM is cheaper than 74.60% of the companies in the same industry.
PHM's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. PHM is cheaper than 66.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 19.19 | ||
| EV/EBITDA | 7.06 |
4.3 Compensation for Growth
The excellent profitability rating of PHM may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.3
EPS Next 2Y-8.26%
EPS Next 3Y-0.84%
5. Dividend
5.1 Amount
With a yearly dividend of 0.68%, PHM is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 3.23, PHM pays a bit more dividend than its industry peers.
With a Dividend Yield of 0.68, PHM pays less dividend than the S&P500 average, which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.68% |
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 6.30% of its income as dividend. This is a sustainable payout ratio.
DP6.3%
EPS Next 2Y-8.26%
EPS Next 3Y-0.84%
128.21
-0.48 (-0.37%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryHousehold Durables
Earnings (Last)
Earnings (Next)
Inst Owners96.69%
Inst Owner Change-0.75%
Ins Owners0.61%
Ins Owner Change-0.44%
Market Cap25.30B
Analysts76.19
Price Target138.81 (8.27%)
Short Float %4.11%
Short Ratio3.88
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.68% |
Yearly Dividend0.81
Dividend Growth(5Y)12.52%
DP6.3%
Div Incr Years7
Div Non Decr Years11
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)3.22%
Min EPS beat(2)1.33%
Max EPS beat(2)5.11%
EPS beat(4)4
Avg EPS beat(4)11.83%
Min EPS beat(4)1.33%
Max EPS beat(4)34.18%
EPS beat(8)8
Avg EPS beat(8)10.97%
EPS beat(12)11
Avg EPS beat(12)12.63%
EPS beat(16)15
Avg EPS beat(16)10.54%
Revenue beat(2)1
Avg Revenue beat(2)0.14%
Min Revenue beat(2)-0.75%
Max Revenue beat(2)1.03%
Revenue beat(4)3
Avg Revenue beat(4)2.33%
Min Revenue beat(4)-0.75%
Max Revenue beat(4)5.12%
Revenue beat(8)5
Avg Revenue beat(8)1.67%
Revenue beat(12)8
Avg Revenue beat(12)2.56%
Revenue beat(16)11
Avg Revenue beat(16)6.8%
PT rev (1m)11.48%
PT rev (3m)11.67%
EPS NQ rev (1m)-1.12%
EPS NQ rev (3m)-10.95%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.13%
Revenue NQ rev (1m)-1.74%
Revenue NQ rev (3m)-8.86%
Revenue NY rev (1m)-1.1%
Revenue NY rev (3m)-1.1%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.58 | ||
| Fwd PE | 10.5 | ||
| P/S | 1.43 | ||
| P/FCF | 19.19 | ||
| P/OCF | 17.5 | ||
| P/B | 2.01 | ||
| P/tB | 2.03 | ||
| EV/EBITDA | 7.06 |
EPS(TTM)13.38
EY10.44%
EPS(NY)12.21
Fwd EY9.53%
FCF(TTM)6.68
FCFY5.21%
OCF(TTM)7.33
OCFY5.71%
SpS89.68
BVpS63.74
TBVpS63.17
PEG (NY)N/A
PEG (5Y)0.3
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 15.59% | ||
| ROE | 21.81% | ||
| ROCE | 24.25% | ||
| ROIC | 17.87% | ||
| ROICexc | 19.45% | ||
| ROICexgc | 23.05% | ||
| OM | 20.09% | ||
| PM (TTM) | 15.5% | ||
| GM | 27.81% | ||
| FCFM | 7.45% |
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-Score5
Asset Turnover1.01
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.17 | ||
| Debt/FCF | 1.61 | ||
| Debt/EBITDA | 0.58 | ||
| Cap/Depr | 133.18% | ||
| Cap/Sales | 0.72% | ||
| Interest Coverage | 168.12 | ||
| Cash Conversion | 39.6% | ||
| Profit Quality | 48.05% | ||
| Current Ratio | 4.93 | ||
| Quick Ratio | 0.42 | ||
| Altman-Z | 6.22 |
F-Score5
WACC8.53%
ROIC/WACC2.1
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)3.56%
EPS 3Y25.56%
EPS 5Y32.15%
EPS Q2Q%-19.63%
EPS Next Y-20.18%
EPS Next 2Y-8.26%
EPS Next 3Y-0.84%
EPS Next 5YN/A
Revenue 1Y (TTM)5.04%
Revenue growth 3Y9.32%
Revenue growth 5Y11.94%
Sales Q2Q%-4.26%
Revenue Next Year-4.39%
Revenue Next 2Y-2.19%
Revenue Next 3Y0.9%
Revenue Next 5YN/A
EBIT growth 1Y-1.83%
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-31.42%
FCF growth 3Y18.82%
FCF growth 5Y8.95%
OCF growth 1Y-28.32%
OCF growth 3Y18.74%
OCF growth 5Y9.33%