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.
A Deep Dive into PULTEGROUP INC's Quality Metrics.
The 5-year revenue growth of PULTEGROUP INC has been remarkable, with 9.53% increase. This showcases the company's strong performance in driving revenue growth and indicates its competitiveness within the market.
PULTEGROUP INC exhibits a strong ROIC excluding cash and goodwill, indicating efficient capital utilization and profitable operations. The 26.31% reflects the company's ability to generate returns on invested capital and underscores its commitment to delivering value to shareholders.
PULTEGROUP INC maintains a healthy Debt/Free Cash Flow Ratio of 1.17, indicating a strong financial position and prudent debt management. This ratio suggests the company has sufficient free cash flow to cover its debt obligations and highlights its ability to generate cash from operations.
With a robust Profit Quality (5-year) ratio of 75.16%, PULTEGROUP INC highlights its ability to consistently generate high-quality profits. This metric reflects the company's effective management and operational excellence in delivering reliable earnings over the long term.
PULTEGROUP INC has consistently achieved strong EBIT growth over the past 5 years, with a 20.38% increase. This underscores the company's effective management of its operating income and suggests a positive outlook for future profitability.
PULTEGROUP INC has achieved superior EBIT 5-year growth compared to its Revenue 5-year growth. This demonstrates the company's ability to maximize its profitability through effective cost management and operational strategies.
What is the full fundamental picture of NYSE:PHM telling us.
ChartMill employs a sophisticated system to assign a Fundamental Rating to every stock in its analysis. This rating, which ranges from 0 to 10, is determined by carefully assessing multiple fundamental indicators and properties.
We assign a fundamental rating of 7 out of 10 to PHM. PHM was compared to 68 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 decent growth rate and is not valued too expensively.
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.