NYSE:PHM is an undervalued gem with solid fundamentals.

Uncover the hidden value in PULTEGROUP INC (NYSE:PHM) as our stock screening tool recommends it as an undervalued choice. NYSE:PHM maintains a robust financial position and offers an attractive pricing perspective. Let's dig deeper into the analysis.

Understanding NYSE:PHM's Valuation Score

To assess a stock's valuation, ChartMill utilizes a Valuation Rating on a scale of 0 to 10. This comprehensive assessment considers various valuation aspects, comparing price to earnings and cash flows, while factoring in profitability and growth. NYSE:PHM has achieved a 8 out of 10:

• The Price/Earnings ratio is 10.22, which indicates a very decent valuation of PHM.
• Based on the Price/Earnings ratio, PHM is valued a bit cheaper than the industry average as 78.46% of the companies are valued more expensively.
• PHM's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 29.55.
• With a Price/Forward Earnings ratio of 10.01, the valuation of PHM can be described as very reasonable.
• Based on the Price/Forward Earnings ratio, PHM is valued a bit cheaper than 75.38% of the companies in the same industry.
• PHM is valuated cheaply when we compare the Price/Forward Earnings ratio to 24.22, which is the current average of the S&P500 Index.
• PHM's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. PHM is cheaper than 83.08% of the companies in the same industry.
• Compared to the rest of the industry, the Price/Free Cash Flow ratio of PHM indicates a somewhat cheap valuation: PHM is cheaper than 64.62% of the companies listed in the same industry.
• The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
• The excellent profitability rating of PHM may justify a higher PE ratio.

Analyzing Profitability Metrics

ChartMill utilizes a Profitability Rating to assess stocks, scoring them on a scale of 0 to 10. This rating takes into account a variety of profitability ratios and margins, both in absolute terms and in comparison to industry peers. NYSE:PHM has earned a 9 out of 10:

• PHM has a Return On Assets of 16.98%. This is amongst the best in the industry. PHM outperforms 96.92% of its industry peers.
• Looking at the Return On Equity, with a value of 24.89%, PHM belongs to the top of the industry, outperforming 87.69% of the companies in the same industry.
• With an excellent Return On Invested Capital value of 19.79%, PHM belongs to the best of the industry, outperforming 95.38% of the companies in the same industry.
• PHM had an Average Return On Invested Capital over the past 3 years of 18.34%. This is significantly above the industry average of 12.05%.
• The last Return On Invested Capital (19.79%) for PHM is above the 3 year average (18.34%), which is a sign of increasing profitability.
• PHM's Profit Margin of 16.62% is amongst the best of the industry. PHM outperforms 93.85% of its industry peers.
• In the last couple of years the Profit Margin of PHM has grown nicely.
• The Operating Margin of PHM (21.28%) is better than 93.85% of its industry peers.
• PHM's Operating Margin has improved in the last couple of years.
• In the last couple of years the Gross Margin of PHM has grown nicely.

How do we evaluate the Health for NYSE:PHM?

ChartMill utilizes a Health Rating to assess stocks, scoring them on a scale of 0 to 10. This rating takes into account a variety of liquidity and solvency ratios, both in absolute terms and in comparison to industry peers. NYSE:PHM has earned a 8 out of 10:

• An Altman-Z score of 6.28 indicates that PHM is not in any danger for bankruptcy at the moment.
• PHM has a better Altman-Z score (6.28) than 87.69% of its industry peers.
• The Debt to FCF ratio of PHM is 1.67, which is an excellent value as it means it would take PHM, only 1.67 years of fcf income to pay off all of its debts.
• PHM's Debt to FCF ratio of 1.67 is fine compared to the rest of the industry. PHM outperforms 72.31% of its industry peers.
• A Debt/Equity ratio of 0.19 indicates that PHM is not too dependend on debt financing.
• With a decent Debt to Equity ratio value of 0.19, PHM is doing good in the industry, outperforming 69.23% of the companies in the same industry.
• PHM has a Current Ratio of 4.17. This indicates that PHM is financially healthy and has no problem in meeting its short term obligations.
• PHM has a better Current ratio (4.17) than 72.31% of its industry peers.
• PHM does not score too well on the current and quick ratio evaluation. However, as it has excellent solvency and profitability, these ratios do not necessarly indicate liquidity issues and need to be evaluated against the specifics of the business.

What does the Growth looks like for NYSE:PHM

To evaluate a stock's growth potential, ChartMill utilizes a Growth Rating on a scale of 0 to 10. This comprehensive assessment considers various growth aspects, including historical and estimated EPS and revenue growth. NYSE:PHM has achieved a 5 out of 10:

• The Earnings Per Share has grown by an nice 12.36% over the past year.
• Measured over the past years, PHM shows a very strong growth in Earnings Per Share. The EPS has been growing by 25.08% on average per year.
• PHM shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 9.53% yearly.
• Based on estimates for the next years, PHM will show a quite strong growth in Earnings Per Share. The EPS will grow by 9.14% on average per year.

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

Disclaimer

This article should in no way be interpreted as advice. 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.