Reasonable Growth, Debt Levels, and a High ROIC Make PULTEGROUP INC (NYSE:PHM) Appealing to Quality Investors.

In this article we will dive into PULTEGROUP INC (NYSE:PHM) as a possible candidate for quality investing. Investors should always do their own research, but we noticed PULTEGROUP INC showing up in our Caviar Cruise quality screen, which makes it worth to investigate a bit more.

What matters for quality investors.

• 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 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.
• 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.
• 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 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.

How does the complete fundamental picture look for 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.

Overall PHM gets a fundamental rating of 7 out of 10. We evaluated PHM against 64 industry peers in the Household Durables industry. PHM scores excellent points on both the profitability and health parts. This is a solid base for a good stock. PHM is valued quite cheap, while showing a decent growth score. This is a good combination! This makes PHM very considerable 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.