Investors should take notice of NYSE:PHM—it offers a great deal for the fundamentals it presents.

Take a closer look at PULTEGROUP INC (NYSE:PHM), a remarkable value stock uncovered by our stock screener. NYSE:PHM excels in fundamentals and maintains a very reasonable valuation. Let's break it down further.

Unpacking NYSE:PHM's Valuation Rating

ChartMill assigns a Valuation Rating to every stock. This score ranges from 0 to 10 and evaluates the different valuation aspects and compares the price to earnings and cash flows, while taking into account profitability and growth. NYSE:PHM scores a 8 out of 10:

• The Price/Earnings ratio is 8.15, which indicates a very decent valuation of PHM.
• Compared to the rest of the industry, the Price/Earnings ratio of PHM indicates a somewhat cheap valuation: PHM is cheaper than 78.13% of the companies listed in the same industry.
• The average S&P500 Price/Earnings ratio is at 27.42. PHM is valued rather cheaply when compared to this.
• With a Price/Forward Earnings ratio of 7.99, the valuation of PHM can be described as very cheap.
• 79.69% of the companies in the same industry are more expensive than PHM, based on the Price/Forward Earnings ratio.
• Compared to an average S&P500 Price/Forward Earnings ratio of 22.56, PHM is valued rather cheaply.
• Based on the Enterprise Value to EBITDA ratio, PHM is valued cheaper than 90.63% of the companies in the same industry.
• 65.63% of the companies in the same industry are more expensive than PHM, based on the Price/Free Cash Flow ratio.
• The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
• PHM has an outstanding profitability rating, which may justify a higher PE ratio.

Evaluating Profitability: NYSE:PHM

Discover ChartMill's exclusive Profitability Rating, a proprietary metric that assesses stocks on a scale of 0 to 10. It takes into consideration various profitability ratios and margins, both in absolute terms and relative to industry peers. Notably, NYSE:PHM has achieved a 9:

• PHM has a better Return On Assets (16.98%) than 96.88% 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 87.50% of the companies in the same industry.
• PHM has a Return On Invested Capital of 19.79%. This is amongst the best in the industry. PHM outperforms 95.31% of its industry peers.
• PHM had an Average Return On Invested Capital over the past 3 years of 18.34%. This is significantly above the industry average of 11.80%.
• The 3 year average ROIC (18.34%) for PHM is below the current ROIC(19.79%), indicating increased profibility in the last year.
• With an excellent Profit Margin value of 16.62%, PHM belongs to the best of the industry, outperforming 93.75% of the companies in the same industry.
• In the last couple of years the Profit Margin of PHM has grown nicely.
• Looking at the Operating Margin, with a value of 21.28%, PHM belongs to the top of the industry, outperforming 93.75% of the companies in the same industry.
• PHM's Operating Margin has improved in the last couple of years.
• PHM's Gross Margin has improved in the last couple of years.

Health Insights: NYSE:PHM

ChartMill assigns a Health Rating to every stock. This score ranges from 0 to 10 and evaluates the different health aspects like liquidity and solvency, both absolutely, but also relative to the industry peers. NYSE:PHM scores a 8 out of 10:

• PHM has an Altman-Z score of 5.65. This indicates that PHM is financially healthy and has little risk of bankruptcy at the moment.
• With an excellent Altman-Z score value of 5.65, PHM belongs to the best of the industry, outperforming 84.38% of the companies in the same industry.
• 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 has a better Debt to FCF ratio (1.67) than 75.00% of its industry peers.
• PHM has a Debt/Equity ratio of 0.19. This is a healthy value indicating a solid balance between debt and equity.
• PHM has a Debt to Equity ratio of 0.19. This is in the better half of the industry: PHM outperforms 70.31% of its industry peers.
• A Current Ratio of 4.17 indicates that PHM has no problem at all paying its short term obligations.
• The Current ratio of PHM (4.17) is better than 71.88% 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.

Analyzing Growth Metrics

ChartMill assigns a Growth Rating to each stock, ranging from 0 to 10. This rating is determined by analyzing different growth elements, including EPS and revenue growth, spanning both historical and future figures. In the case of NYSE:PHM, the assigned 5 reflects its growth potential:

• PHM shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 12.36%, which is quite good.
• The Earnings Per Share has been growing by 25.08% on average over the past years. This is a very strong growth
• PHM shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 9.53% yearly.
• PHM is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 9.14% yearly.

Every day, new Decent Value stocks can be found on ChartMill in our Decent Value screener.

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

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.