Is PULTEGROUP INC (NYSE:PHM) suited for quality investing?

Quality investors are looking for the best of the best. Companies which are growing steadily and consistently, but are also in excellent financial condition. We will have a look here to see if PULTEGROUP INC (NYSE:PHM) is suited for quality investing. Investors should of course do their own research, but we spotted PULTEGROUP INC showing up in our Caviar Cruise quality screen, so it may be worth spending some more time on it.

Some of the quality metrics of NYSE:PHM highlighted

• The 5-year revenue growth of PULTEGROUP INC has been remarkable, with 13.61% increase. This showcases the company's strong performance in driving revenue growth and indicates its competitiveness within the market.
• With a notable ROIC excluding cash and goodwill at 29.46%, PULTEGROUP INC demonstrates its commitment to generating sustainable returns for shareholders. This metric emphasizes the company's effective use of capital and its ability to deliver long-term value.
• The Debt/Free Cash Flow Ratio of PULTEGROUP INC stands at 0.86, reflecting the company's prudent capital structure and cash flow dynamics. This ratio highlights the company's ability to generate robust free cash flow relative to its debt obligations.
• With a favorable Profit Quality (5-year) ratio of 86.41%, PULTEGROUP INC showcases its ability to consistently deliver high-quality profits. This metric signifies the company's financial strength and its capacity to generate sustainable earnings over an extended period.
• With a robust 5-year EBIT growth of 29.38%, PULTEGROUP INC showcases its ability to consistently expand its operating profitability. This trend indicates the company's effective cost management and revenue generation strategies.
• PULTEGROUP INC has achieved impressive EBIT 5-year growth, surpassing its Revenue 5-year growth. This indicates the company's ability to improve its profitability and operational efficiency, highlighting its strong financial performance.

A complete fundamental analysis of NYSE:PHM

ChartMill utilizes a proprietary algorithm to assign a Fundamental Rating to every stock. This rating, ranging from 0 to 10, is computed daily by analyzing a variety of fundamental indicators and properties.

Overall PHM gets a fundamental rating of 7 out of 10. We evaluated PHM against 70 industry peers in the Household Durables industry. PHM gets an excellent profitability rating and is at the same time showing great financial health properties. PHM may be a bit undervalued, certainly considering the very reasonable score on growth This makes PHM very considerable for value and quality investing!

Check the latest full fundamental report of PHM for a complete fundamental analysis.

More quality stocks can be found in our Caviar Cruise screen.

Disclaimer

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.