In this article we will dive into PULTEGROUP INC (NYSE:PHM) as a possible candidate for quality investing. Investors should always do their own research, but we noticed PULTEGROUP INC showing up in our Caviar Cruise quality screen, which makes it worth to investigate a bit more.
Exploring Why NYSE:PHM Holds Appeal for Quality Investors.
PULTEGROUP INC has achieved substantial revenue growth over the past 5 years, with a 13.61% increase. This signifies the company's ability to successfully capture market opportunities and generate sustained revenue growth.
PULTEGROUP INC exhibits a strong ROIC excluding cash and goodwill, indicating efficient capital utilization and profitable operations. The 29.46% reflects the company's ability to generate returns on invested capital and underscores its commitment to delivering value to shareholders.
With a favorable Debt/Free Cash Flow Ratio of 0.86, PULTEGROUP INC showcases its sound financial discipline and cash flow management. This ratio indicates the company's ability to service its debt obligations while maintaining sufficient free cash flow for future investments or operational needs.
The Profit Quality (5-year) of PULTEGROUP INC stands at 86.41%, highlighting its ability to consistently generate reliable profits. This metric underscores the company's strong business fundamentals and reinforces its position as a financially stable entity.
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.
What else is there to say on the fundamentals of NYSE:PHM?
ChartMill assigns a proprietary Fundamental Rating to each stock. The score is computed daily by evaluating various fundamental indicators and properties. The score ranges from 0 to 10.
Overall PHM gets a fundamental rating of 7 out of 10. We evaluated PHM against 68 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 may be a bit undervalued, certainly considering the very reasonable score on growth With these ratings, PHM could be worth investigating further for value and quality investing!.
This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.