Why the quality investor may take a look at NYSE:PHM.

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.

Looking into the quality metrics of PULTEGROUP INC

• Over the past 5 years, PULTEGROUP INC has experienced impressive revenue growth, with 9.53% increase. This demonstrates the company's ability to effectively expand its top line and suggests a positive outlook for future revenue generation.
• PULTEGROUP INC exhibits a strong ROIC excluding cash and goodwill, indicating efficient capital utilization and profitable operations. The 26.08% reflects the company's ability to generate returns on invested capital and underscores its commitment to delivering value to shareholders.
• With a Debt/Free Cash Flow Ratio of 1.67, 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 favorable Profit Quality (5-year) ratio of 75.16%, PULTEGROUP INC showcases its ability to consistently deliver high-quality profits. This metric signifies the company's financial strength and its capacity to generate sustainable earnings over an extended period.
• 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 assigns a Fundamental Rating to every stock. This score ranges from 0 to 10 and is updated daily. The score is determined by evaluating multiple fundamental indicators and properties.

PHM gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 66 industry peers in the Household Durables industry. PHM gets an excellent profitability rating and is at the same time showing great financial health properties. A decent growth rate in combination with a cheap valuation! Better keep an eye on PHM. These ratings would make PHM suitable for value and quality investing!

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

More quality stocks can be found in our Caviar Cruise screen.

Keep in mind

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.