NYSE:PHM: good value for what you're paying.

Consider PULTEGROUP INC (NYSE:PHM) as a top value stock, identified by our stock screening tool. NYSE:PHM shines in terms of profitability, solvency, and liquidity, all while remaining very reasonably priced. Let's dive deeper into the analysis.

What does the Valuation looks like for NYSE:PHM

ChartMill provides a Valuation Rating to every stock, ranging from 0 to 10. This rating assesses various valuation aspects, comparing price to earnings and cash flows, while considering factors like profitability and growth. NYSE:PHM boasts a 6 out of 10:

• The Price/Earnings ratio is 9.88, which indicates a very decent valuation of PHM.
• Based on the Price/Earnings ratio, PHM is valued a bit cheaper than the industry average as 77.61% of the companies are valued more expensively.
• Compared to an average S&P500 Price/Earnings ratio of 26.01, PHM is valued rather cheaply.
• PHM is valuated reasonably with a Price/Forward Earnings ratio of 9.51.
• PHM's Price/Forward Earnings ratio is rather cheap when compared to the industry. PHM is cheaper than 80.60% of the companies in the same industry.
• PHM is valuated cheaply when we compare the Price/Forward Earnings ratio to 22.43, which is the current average of the S&P500 Index.
• Based on the Enterprise Value to EBITDA ratio, PHM is valued cheaply inside the industry as 83.58% of the companies are valued more expensively.
• The excellent profitability rating of PHM may justify a higher PE ratio.

Looking at the Profitability

ChartMill assigns a Profitability Rating to every stock. This score ranges from 0 to 10 and evaluates the different profitability ratios and margins, both absolutely, but also relative to the industry peers. NYSE:PHM scores a 9 out of 10:

• PHM has a Return On Assets of 16.12%. This is amongst the best in the industry. PHM outperforms 97.01% of its industry peers.
• PHM's Return On Equity of 24.97% is amongst the best of the industry. PHM outperforms 89.55% of its industry peers.
• Looking at the Return On Invested Capital, with a value of 19.54%, PHM belongs to the top of the industry, outperforming 98.51% of the companies in the same industry.
• PHM had an Average Return On Invested Capital over the past 3 years of 18.34%. This is significantly above the industry average of 10.04%.
• The 3 year average ROIC (18.34%) for PHM is below the current ROIC(19.54%), indicating increased profibility in the last year.
• With an excellent Profit Margin value of 16.14%, PHM belongs to the best of the industry, outperforming 92.54% of the companies in the same industry.
• In the last couple of years the Profit Margin of PHM has grown nicely.
• PHM's Operating Margin of 21.21% is amongst the best of the industry. PHM outperforms 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.

Health Assessment of NYSE:PHM

Every stock is evaluated by ChartMill, receiving a Health Rating on a scale of 0 to 10. This assessment considers different health aspects, including liquidity and solvency, both in absolute terms and relative to industry peers. NYSE:PHM has achieved a 8 out of 10:

• An Altman-Z score of 5.61 indicates that PHM is not in any danger for bankruptcy at the moment.
• The Altman-Z score of PHM (5.61) is better than 88.06% of its industry peers.
• PHM has a debt to FCF ratio of 1.17. This is a very positive value and a sign of high solvency as it would only need 1.17 years to pay back of all of its debts.
• PHM has a Debt to FCF ratio of 1.17. This is in the better half of the industry: PHM outperforms 74.63% of its industry peers.
• A Debt/Equity ratio of 0.24 indicates that PHM is not too dependend on debt financing.
• A Current Ratio of 4.03 indicates that PHM has no problem at all paying its short term obligations.
• With a decent Current ratio value of 4.03, PHM is doing good in the industry, outperforming 73.13% of the companies in the same industry.
• PHM does not score too well on the current and quick ratio evaluation. However, as it has excellent solvency and profitability, these ratios do not necessarly indicate liquidity issues and need to be evaluated against the specifics of the business.

Understanding NYSE:PHM's Growth

ChartMill assigns a proprietary Growth Rating to each stock. The score is computed by evaluating various growth aspects, like EPS and revenue growth. We take into account the history as well as the estimated future numbers. NYSE:PHM was assigned a score of 4 for growth:

• PHM shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 25.08% yearly.
• PHM shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 9.53% yearly.

Our Decent Value screener lists more Decent Value stocks and is updated daily.

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

Keep in mind

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.