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Why Quality-Oriented Investors Should Consider NYSE:PHM.

By Mill Chart

Last update: May 20, 2024

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.

What matters for quality investors.

  • PULTEGROUP INC has demonstrated significant revenue growth over the past 5 years, with a 9.53% increase. This underscores the company's ability to adapt to market dynamics and capitalize on growth opportunities.
  • The ROIC excluding cash and goodwill of PULTEGROUP INC stands at 26.23%, reflecting the company's strong financial management and profitability. This metric underscores its ability to generate favorable returns on the capital invested in its core operations.
  • With a Debt/Free Cash Flow Ratio of 1.53, PULTEGROUP INC exhibits solid financial health and responsible debt management practices. This ratio indicates the company's ability to generate ample free cash flow to meet its debt obligations and pursue growth opportunities.
  • 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.
  • The 5-year EBIT growth of PULTEGROUP INC has been remarkable, with 20.38% increase. This demonstrates the company's ability to improve its operational efficiency and indicates its competitiveness within the market.
  • With EBIT 5-year growth outpacing its Revenue 5-year growth, PULTEGROUP INC showcases its effective cost management and enhanced operational performance. This suggests the company's ability to generate higher earnings from its revenue streams.

Zooming in on the fundamentals.

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.

PHM gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 67 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 has a correct valuation and a medium growth rate.

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

Our Caviar Cruise screen will find you more ideas suited for quality investing.

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.

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