PULTEGROUP INC (PHM) Stock Fundamental Analysis
NYSE:PHM - New York Stock Exchange, Inc. - US7458671010 - Common Stock - Currency: USD
We assign a fundamental rating of 7 out of 10 to PHM. PHM was compared to 67 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 scores decently on growth, while it is valued quite cheap. This could make an interesting combination. With these ratings, PHM could be worth investigating further for value and quality investing!.
1. Profitability
1.1 Basic Checks
In the past year PHM was profitable.
PHM had a positive operating cash flow in the past year.
PHM had positive earnings in each of the past 5 years.
Each year in the past 5 years PHM had a positive operating cash flow.
1.2 Ratios
PHM's Return On Assets of 17.76% is amongst the best of the industry. PHM outperforms 96.92% of its industry peers.
With an excellent Return On Equity value of 25.44%, PHM belongs to the best of the industry, outperforming 87.69% of the companies in the same industry.
PHM has a Return On Invested Capital of 19.28%. This is amongst the best in the industry. PHM outperforms 95.38% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for PHM is significantly above the industry average of 12.03%.
The 3 year average ROIC (19.16%) for PHM is below the current ROIC(19.28%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 17.76% | ||
| ROE | 25.44% | ||
| ROIC | 19.28% |
ROA(3y)17.15%
ROA(5y)15.47%
ROE(3y)26.53%
ROE(5y)25.31%
ROIC(3y)19.16%
ROIC(5y)17.38%
1.3 Margins
Looking at the Profit Margin, with a value of 17.18%, PHM belongs to the top of the industry, outperforming 93.85% of the companies in the same industry.
PHM's Profit Margin has improved in the last couple of years.
The Operating Margin of PHM (21.85%) is better than 93.85% of its industry peers.
PHM's Operating Margin has improved in the last couple of years.
With a Gross Margin value of 29.09%, PHM perfoms like the industry average, outperforming 60.00% of the companies in the same industry.
PHM's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 21.85% | ||
| PM (TTM) | 17.18% | ||
| GM | 29.09% |
OM growth 3Y5.48%
OM growth 5Y10.79%
PM growth 3Y6.93%
PM growth 5Y11.77%
GM growth 3Y1.93%
GM growth 5Y4.44%
2. Health
2.1 Basic Checks
PHM has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
Compared to 1 year ago, PHM has less shares outstanding
The number of shares outstanding for PHM has been reduced compared to 5 years ago.
PHM has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 5.77 indicates that PHM is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 5.77, PHM belongs to the top of the industry, outperforming 84.62% of the companies in the same industry.
PHM has a debt to FCF ratio of 1.38. This is a very positive value and a sign of high solvency as it would only need 1.38 years to pay back of all of its debts.
PHM has a better Debt to FCF ratio (1.38) than 75.38% of its industry peers.
A Debt/Equity ratio of 0.18 indicates that PHM is not too dependend on debt financing.
With a decent Debt to Equity ratio value of 0.18, PHM is doing good in the industry, outperforming 69.23% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.18 | ||
| Debt/FCF | 1.38 | ||
| Altman-Z | 5.77 |
ROIC/WACC2.19
WACC8.79%
2.3 Liquidity
A Current Ratio of 6.07 indicates that PHM has no problem at all paying its short term obligations.
The Current ratio of PHM (6.07) is better than 81.54% of its industry peers.
A Quick Ratio of 0.80 indicates that PHM may have some problems paying its short term obligations.
PHM has a worse Quick ratio (0.80) than 60.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 6.07 | ||
| Quick Ratio | 0.8 |
3. Growth
3.1 Past
PHM shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 25.74%, which is quite impressive.
Measured over the past years, PHM shows a very strong growth in Earnings Per Share. The EPS has been growing by 32.15% on average per year.
Looking at the last year, PHM shows a quite strong growth in Revenue. The Revenue has grown by 11.74% in the last year.
PHM shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 11.94% yearly.
EPS 1Y (TTM)25.74%
EPS 3Y25.56%
EPS 5Y32.15%
EPS Q2Q%35.06%
Revenue 1Y (TTM)11.74%
Revenue growth 3Y9.32%
Revenue growth 5Y11.94%
Sales Q2Q%14.63%
3.2 Future
PHM is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 2.34% yearly.
PHM is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.42% yearly.
EPS Next Y-14.52%
EPS Next 2Y-2.45%
EPS Next 3Y2.34%
EPS Next 5YN/A
Revenue Next Year2.24%
Revenue Next 2Y4.12%
Revenue Next 3Y4.42%
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 7.11, which indicates a rather cheap valuation of PHM.
Based on the Price/Earnings ratio, PHM is valued cheaply inside the industry as 83.08% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 29.63, PHM is valued rather cheaply.
The Price/Forward Earnings ratio is 8.31, which indicates a very decent valuation of PHM.
Based on the Price/Forward Earnings ratio, PHM is valued a bit cheaper than 73.85% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of PHM to the average of the S&P500 Index (22.68), we can say PHM is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.11 | ||
| Fwd PE | 8.31 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, PHM is valued cheaper than 92.31% of the companies in the same industry.
76.92% of the companies in the same industry are more expensive than PHM, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.36 | ||
| EV/EBITDA | 5.34 |
4.3 Compensation for Growth
PHM has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.22
EPS Next 2Y-2.45%
EPS Next 3Y2.34%
5. Dividend
5.1 Amount
PHM has a yearly dividend return of 0.82%, which is pretty low.
The stock price of PHM dropped by -20.54% in the last 3 months. With lower prices the dividend yield is higher, but it may be a sign investors do not trust the long term dividend.
PHM's Dividend Yield is a higher than the industry average which is at 3.05.
Compared to an average S&P500 Dividend Yield of 2.29, PHM's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.82% |
5.2 History
On average, the dividend of PHM grows each year by 12.52%, which is quite nice.
PHM has paid a dividend for at least 10 years, which is a reliable track record.
PHM has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)12.52%
Div Incr Years7
Div Non Decr Years11
5.3 Sustainability
5.44% of the earnings are spent on dividend by PHM. This is a low number and sustainable payout ratio.
The dividend of PHM is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP5.44%
EPS Next 2Y-2.45%
EPS Next 3Y2.34%
103.11
-2.73 (-2.58%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryHousehold Durables
Earnings (Last)
Earnings (Next)
Inst Owners93.14%
Inst Owner Change-6.92%
Ins Owners0.62%
Ins Owner Change-2.26%
Market Cap20.88B
Analysts75.45
Price Target142.8 (38.49%)
Short Float %2.78%
Short Ratio2.59
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.82% |
Yearly Dividend0.81
Dividend Growth(5Y)12.52%
DP5.44%
Div Incr Years7
Div Non Decr Years11
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)20.44%
Min EPS beat(2)6.7%
Max EPS beat(2)34.18%
EPS beat(4)4
Avg EPS beat(4)19.78%
Min EPS beat(4)6.7%
Max EPS beat(4)34.18%
EPS beat(8)8
Avg EPS beat(8)15.99%
EPS beat(12)11
Avg EPS beat(12)12.82%
EPS beat(16)14
Avg EPS beat(16)10.34%
Revenue beat(2)2
Avg Revenue beat(2)4.51%
Min Revenue beat(2)3.91%
Max Revenue beat(2)5.12%
Revenue beat(4)4
Avg Revenue beat(4)4.89%
Min Revenue beat(4)1.36%
Max Revenue beat(4)9.18%
Revenue beat(8)6
Avg Revenue beat(8)3.13%
Revenue beat(12)9
Avg Revenue beat(12)8.86%
Revenue beat(16)11
Avg Revenue beat(16)10.89%
PT rev (1m)-5.02%
PT rev (3m)-4.69%
EPS NQ rev (1m)-10.2%
EPS NQ rev (3m)-11.99%
EPS NY rev (1m)-8.71%
EPS NY rev (3m)-9.04%
Revenue NQ rev (1m)-4.45%
Revenue NQ rev (3m)-1.72%
Revenue NY rev (1m)-1.87%
Revenue NY rev (3m)-2.08%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.11 | ||
| Fwd PE | 8.31 | ||
| P/S | 1.16 | ||
| P/FCF | 13.36 | ||
| P/OCF | 12.42 | ||
| P/B | 1.72 | ||
| P/tB | 1.74 | ||
| EV/EBITDA | 5.34 |
EPS(TTM)14.51
EY14.07%
EPS(NY)12.4
Fwd EY12.03%
FCF(TTM)7.72
FCFY7.48%
OCF(TTM)8.3
OCFY8.05%
SpS88.64
BVpS59.87
TBVpS59.3
PEG (NY)N/A
PEG (5Y)0.22
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 17.76% | ||
| ROE | 25.44% | ||
| ROCE | 26.21% | ||
| ROIC | 19.28% | ||
| ROICexc | 21.53% | ||
| ROICexgc | 23.61% | ||
| OM | 21.85% | ||
| PM (TTM) | 17.18% | ||
| GM | 29.09% | ||
| FCFM | 8.7% |
ROA(3y)17.15%
ROA(5y)15.47%
ROE(3y)26.53%
ROE(5y)25.31%
ROIC(3y)19.16%
ROIC(5y)17.38%
ROICexc(3y)21.36%
ROICexc(5y)20.11%
ROICexgc(3y)23%
ROICexgc(5y)21.55%
ROCE(3y)26.16%
ROCE(5y)23.82%
ROICexcg growth 3Y3.02%
ROICexcg growth 5Y12.74%
ROICexc growth 3Y1.98%
ROICexc growth 5Y11.96%
OM growth 3Y5.48%
OM growth 5Y10.79%
PM growth 3Y6.93%
PM growth 5Y11.77%
GM growth 3Y1.93%
GM growth 5Y4.44%
F-Score6
Asset Turnover1.03
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.18 | ||
| Debt/FCF | 1.38 | ||
| Debt/EBITDA | 0.54 | ||
| Cap/Depr | 132.96% | ||
| Cap/Sales | 0.66% | ||
| Interest Coverage | 150.51 | ||
| Cash Conversion | 41.91% | ||
| Profit Quality | 50.67% | ||
| Current Ratio | 6.07 | ||
| Quick Ratio | 0.8 | ||
| Altman-Z | 5.77 |
F-Score6
WACC8.79%
ROIC/WACC2.19
Cap/Depr(3y)135.3%
Cap/Depr(5y)119.66%
Cap/Sales(3y)0.65%
Cap/Sales(5y)0.6%
Profit Quality(3y)51.07%
Profit Quality(5y)65.05%
High Growth Momentum
Growth
EPS 1Y (TTM)25.74%
EPS 3Y25.56%
EPS 5Y32.15%
EPS Q2Q%35.06%
EPS Next Y-14.52%
EPS Next 2Y-2.45%
EPS Next 3Y2.34%
EPS Next 5YN/A
Revenue 1Y (TTM)11.74%
Revenue growth 3Y9.32%
Revenue growth 5Y11.94%
Sales Q2Q%14.63%
Revenue Next Year2.24%
Revenue Next 2Y4.12%
Revenue Next 3Y4.42%
Revenue Next 5YN/A
EBIT growth 1Y15.11%
EBIT growth 3Y15.32%
EBIT growth 5Y24.01%
EBIT Next Year-5.04%
EBIT Next 3Y1.26%
EBIT Next 5YN/A
FCF growth 1Y-25.77%
FCF growth 3Y18.82%
FCF growth 5Y8.95%
OCF growth 1Y-23.49%
OCF growth 3Y18.74%
OCF growth 5Y9.33%