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Should you consider NYSE:PHM for quality investing?

By Mill Chart

Last update: Sep 2, 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.


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A Deep Dive into PULTEGROUP INC's Quality Metrics.

  • PULTEGROUP INC has shown strong performance in revenue growth over the past 5 years, with a 9.53% increase. This indicates the company's ability to generate consistent revenue growth and reflects its potential for long-term success.
  • PULTEGROUP INC demonstrates impressive performance in terms of ROIC excluding cash and goodwill, with a 26.08% ratio. This highlights the company's efficient utilization of capital and its focus on maximizing returns for investors.
  • The Debt/Free Cash Flow Ratio of PULTEGROUP INC stands at 1.67, 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.
  • PULTEGROUP INC demonstrates consistent Profit Quality over the past 5 years, with a strong 75.16%. This indicates the company's ability to generate sustainable and reliable profits, showcasing its long-term profitability and financial stability.
  • PULTEGROUP INC has experienced impressive EBIT growth over the past 5 years, with 20.38% increase. This reflects the company's effective operational performance and highlights its potential for long-term financial success.
  • 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.

Fundamental analysis of NYSE:PHM

Every day ChartMill assigns a Fundamental Rating to every stock. The score ranges from 0 to 10 and is determined by evaluating multiple fundamental indicators and properties.

We assign a fundamental rating of 7 out of 10 to PHM. PHM was compared to 67 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 These ratings would make PHM suitable for value and quality investing!

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

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

Keep in mind

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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