NYSE:PHM stands out as a stock that provides good value for the fundamentals it showcases.

Our stock screener has spotted PULTEGROUP INC (NYSE:PHM) as an undervalued stock with solid fundamentals. NYSE:PHM shows decent health and profitability. At the same time it remains remains attractively priced. We'll dive into each aspect below.

Assessing Valuation Metrics for NYSE:PHM

An integral part of ChartMill's stock analysis is the Valuation Rating, which spans from 0 to 10. This rating evaluates diverse valuation factors, including price to earnings and cash flows, while considering the stock's profitability and growth. NYSE:PHM has received a 8 out of 10:

• A Price/Earnings ratio of 6.25 indicates a rather cheap valuation of PHM.
• Based on the Price/Earnings ratio, PHM is valued cheaply inside the industry as 82.09% 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 25.60.
• A Price/Forward Earnings ratio of 6.08 indicates a rather cheap valuation of PHM.
• Based on the Price/Forward Earnings ratio, PHM is valued cheaper than 85.07% 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 18.74.
• 83.58% of the companies in the same industry are more expensive than PHM, based on the Enterprise Value to EBITDA ratio.
• The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
• PHM has an outstanding profitability rating, which may justify a higher PE ratio.

Profitability Insights: NYSE:PHM

ChartMill assigns a proprietary Profitability Rating to each stock. The score is computed by evaluating various profitability ratios and margins and ranges from 0 to 10. NYSE:PHM was assigned a score of 9 for profitability:

• PHM has a Return On Assets of 18.05%. This is amongst the best in the industry. PHM outperforms 94.03% of its industry peers.
• PHM has a Return On Equity of 28.32%. This is amongst the best in the industry. PHM outperforms 91.04% of its industry peers.
• Looking at the Return On Invested Capital, with a value of 22.50%, PHM belongs to the top of the industry, outperforming 97.01% of the companies in the same industry.
• Measured over the past 3 years, the Average Return On Invested Capital for PHM is significantly above the industry average of 11.54%.
• The 3 year average ROIC (16.67%) for PHM is below the current ROIC(22.50%), indicating increased profibility in the last year.
• The Profit Margin of PHM (16.29%) is better than 95.52% of its industry peers.
• In the last couple of years the Profit Margin of PHM has grown nicely.
• PHM has a better Operating Margin (21.43%) than 98.51% of its industry peers.
• PHM's Operating Margin has improved in the last couple of years.
• PHM's Gross Margin has improved in the last couple of years.

How We Gauge Health for NYSE:PHM

A critical element of ChartMill's stock evaluation is the Health Rating, which spans from 0 to 10. This rating considers multiple health factors, including liquidity and solvency, both in absolute terms and relative to industry peers. NYSE:PHM has received a 8 out of 10:

• PHM has an Altman-Z score of 4.99. This indicates that PHM is financially healthy and has little risk of bankruptcy at the moment.
• PHM's Altman-Z score of 4.99 is amongst the best of the industry. PHM outperforms 86.57% of its industry peers.
• PHM has a debt to FCF ratio of 1.22. This is a very positive value and a sign of high solvency as it would only need 1.22 years to pay back of all of its debts.
• Looking at the Debt to FCF ratio, with a value of 1.22, PHM is in the better half of the industry, outperforming 73.13% of the companies in the same industry.
• PHM has a Debt/Equity ratio of 0.24. This is a healthy value indicating a solid balance between debt and equity.
• PHM has a Debt to Equity ratio of 0.24. This is in the better half of the industry: PHM outperforms 61.19% of its industry peers.
• PHM has a Current Ratio of 4.09. This indicates that PHM is financially healthy and has no problem in meeting its short term obligations.
• PHM's Current ratio of 4.09 is fine compared to the rest of the industry. PHM outperforms 70.15% 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.

Evaluating Growth: NYSE:PHM

To evaluate a stock's growth potential, ChartMill utilizes a Growth Rating on a scale of 0 to 10. This comprehensive assessment considers various growth aspects, including historical and estimated EPS and revenue growth. NYSE:PHM has achieved a 5 out of 10:

• PHM shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 31.27%, which is quite impressive.
• Measured over the past years, PHM shows a very strong growth in Earnings Per Share. The EPS has been growing by 37.18% on average per year.
• PHM shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 13.61% yearly.

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Our latest full fundamental report of PHM contains the most current fundamental analsysis.

Disclaimer

This article should in no way be interpreted as advice in any way. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.