PULTEGROUP INC (PHM)
US7458671010 - Common Stock
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 has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. 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!
1. Profitability
1.1 Basic Checks
PHM had positive earnings in the past year.
In the past year PHM had a positive cash flow from operations.
In the past 5 years PHM has always been profitable.
PHM had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
PHM has a Return On Assets of 16.98%. This is amongst the best in the industry. PHM outperforms 96.88% of its industry peers.
The Return On Equity of PHM (24.89%) is better than 87.50% of its industry peers.
PHM's Return On Invested Capital of 19.79% is amongst the best of the industry. PHM outperforms 95.31% of its industry peers.
The Average Return On Invested Capital over the past 3 years for PHM 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.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 16.98% | ||
| ROE | 24.89% | ||
| ROIC | 19.79% |
ROA(3y)16.05%
ROA(5y)13.79%
ROE(3y)26.64%
ROE(5y)23.91%
ROIC(3y)18.34%
ROIC(5y)15.59%
1.3 Margins
PHM has a better Profit Margin (16.62%) than 93.75% of its industry peers.
In the last couple of years the Profit Margin of PHM has grown nicely.
PHM's Operating Margin of 21.28% is amongst the best of the industry. PHM outperforms 93.75% of its industry peers.
PHM's Operating Margin has improved in the last couple of years.
The Gross Margin of PHM (29.54%) is comparable to the rest of the industry.
In the last couple of years the Gross Margin of PHM has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 21.28% | ||
| PM (TTM) | 16.62% | ||
| GM | 29.54% |
OM growth 3Y10.22%
OM growth 5Y9.91%
PM growth 3Y8.52%
PM growth 5Y10.22%
GM growth 3Y5.44%
GM growth 5Y4.84%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so PHM is creating value.
PHM has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, PHM has less shares outstanding
Compared to 1 year ago, PHM has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 5.65 indicates that PHM is not in any danger for bankruptcy at the moment.
PHM has a Altman-Z score of 5.65. This is amongst the best in the industry. PHM outperforms 84.38% of its industry peers.
PHM has a debt to FCF ratio of 1.67. This is a very positive value and a sign of high solvency as it would only need 1.67 years to pay back of all of its debts.
PHM has a Debt to FCF ratio of 1.67. This is in the better half of the industry: PHM outperforms 75.00% of its industry peers.
A Debt/Equity ratio of 0.19 indicates that PHM is not too dependend on debt financing.
PHM's Debt to Equity ratio of 0.19 is fine compared to the rest of the industry. PHM outperforms 70.31% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.19 | ||
| Debt/FCF | 1.67 | ||
| Altman-Z | 5.65 |
ROIC/WACC2.34
WACC8.45%
2.3 Liquidity
A Current Ratio of 4.17 indicates that PHM has no problem at all paying its short term obligations.
PHM's Current ratio of 4.17 is fine compared to the rest of the industry. PHM outperforms 71.88% of its industry peers.
A Quick Ratio of 0.42 indicates that PHM may have some problems paying its short term obligations.
PHM's Quick ratio of 0.42 is on the low side compared to the rest of the industry. PHM is outperformed by 89.06% 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.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 4.17 | ||
| Quick Ratio | 0.42 |
3. Growth
3.1 Past
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.
PHM shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 25.08% yearly.
Looking at the last year, PHM shows a small growth in Revenue. The Revenue has grown by 2.24% in the last year.
PHM shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 9.53% yearly.
EPS 1Y (TTM)12.36%
EPS 3Y33.5%
EPS 5Y25.08%
EPS Q2Q%15.12%
Revenue 1Y (TTM)2.24%
Revenue growth 3Y13.32%
Revenue growth 5Y9.53%
Sales Q2Q%11.82%
3.2 Future
The Earnings Per Share is expected to grow by 9.14% on average over the next years. This is quite good.
Based on estimates for the next years, PHM will show a small growth in Revenue. The Revenue will grow by 6.68% on average per year.
EPS Next Y18.51%
EPS Next 2Y8.7%
EPS Next 3Y9.14%
EPS Next 5YN/A
Revenue Next Year8.89%
Revenue Next 2Y6.57%
Revenue Next 3Y6.68%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
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
With a Price/Earnings ratio of 8.27, the valuation of PHM can be described as very reasonable.
PHM's Price/Earnings ratio is a bit cheaper when compared to the industry. PHM is cheaper than 78.13% of the companies in the same industry.
When comparing the Price/Earnings ratio of PHM to the average of the S&P500 Index (27.73), we can say PHM is valued rather cheaply.
The Price/Forward Earnings ratio is 8.10, which indicates a very decent valuation of PHM.
79.69% of the companies in the same industry are more expensive than PHM, based on the Price/Forward Earnings ratio.
PHM is valuated cheaply when we compare the Price/Forward Earnings ratio to 22.83, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.27 | ||
| Fwd PE | 8.1 |
4.2 Price Multiples
90.63% of the companies in the same industry are more expensive than PHM, based on the Enterprise Value to EBITDA ratio.
65.63% 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 | 17.67 | ||
| EV/EBITDA | 5.98 |
4.3 Compensation for Growth
PHM's 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.
PEG (NY)0.45
PEG (5Y)0.33
EPS Next 2Y8.7%
EPS Next 3Y9.14%
5. Dividend
5.1 Amount
With a yearly dividend of 0.73%, PHM is not a good candidate for dividend investing.
In the last 3 months the price of PHM has falen by -22.09%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
PHM's Dividend Yield is a higher than the industry average which is at 2.76.
With a Dividend Yield of 0.73, PHM pays less dividend than the S&P500 average, which is at 2.24.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.73% |
5.2 History
The dividend of PHM is nicely growing with an annual growth rate of 12.00%!
PHM has been paying a dividend for at least 10 years, so it has 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%
Div Incr Years7
Div Non Decr Years11
5.3 Sustainability
PHM pays out 5.60% of its income as dividend. This is a sustainable payout ratio.
The dividend of PHM is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP5.6%
EPS Next 2Y8.7%
EPS Next 3Y9.14%
PULTEGROUP INC
NYSE:PHM (12/20/2024, 8:04:00 PM)
After market: 110.52 0 (0%)110.52
+1.63 (+1.5%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryHousehold Durables
Earnings (Last)
Earnings (Next)
Inst Owners97.98%
Inst Owner Change1.42%
Ins Owners1.82%
Ins Owner Change-3.3%
Market Cap22.67B
Analysts74.55
Price Target154.22 (39.54%)
Short Float %2.56%
Short Ratio2.99
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.73% |
Dividend Growth(5Y)12%
DP5.6%
Div Incr Years7
Div Non Decr Years11
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)10.47%
Min EPS beat(2)6.7%
Max EPS beat(2)14.24%
EPS beat(4)4
Avg EPS beat(4)11.44%
Min EPS beat(4)0.8%
Max EPS beat(4)24.01%
EPS beat(8)8
Avg EPS beat(8)14.55%
EPS beat(12)11
Avg EPS beat(12)10.62%
EPS beat(16)14
Avg EPS beat(16)9.12%
Revenue beat(2)2
Avg Revenue beat(2)2.63%
Min Revenue beat(2)1.36%
Max Revenue beat(2)3.91%
Revenue beat(4)3
Avg Revenue beat(4)2.35%
Min Revenue beat(4)-5.05%
Max Revenue beat(4)9.18%
Revenue beat(8)6
Avg Revenue beat(8)3.94%
Revenue beat(12)9
Avg Revenue beat(12)8.63%
Revenue beat(16)11
Avg Revenue beat(16)10.64%
PT rev (1m)2.93%
PT rev (3m)6.51%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-3.23%
EPS NY rev (1m)0%
EPS NY rev (3m)1.01%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)3.82%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.76%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.27 | ||
| Fwd PE | 8.1 | ||
| P/S | 1.31 | ||
| P/FCF | 17.67 | ||
| P/OCF | 16.17 | ||
| P/B | 1.96 | ||
| P/tB | 1.98 | ||
| EV/EBITDA | 5.98 |
EPS(TTM)13.36
EY12.09%
EPS(NY)13.64
Fwd EY12.34%
FCF(TTM)6.26
FCFY5.66%
OCF(TTM)6.83
OCFY6.18%
SpS84.45
BVpS56.39
TBVpS55.81
PEG (NY)0.45
PEG (5Y)0.33
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 16.98% | ||
| ROE | 24.89% | ||
| ROCE | 27.12% | ||
| ROIC | 19.79% | ||
| ROICexc | 21.96% | ||
| ROICexgc | 25.92% | ||
| OM | 21.28% | ||
| PM (TTM) | 16.62% | ||
| GM | 29.54% | ||
| FCFM | 7.41% |
ROA(3y)16.05%
ROA(5y)13.79%
ROE(3y)26.64%
ROE(5y)23.91%
ROIC(3y)18.34%
ROIC(5y)15.59%
ROICexc(3y)20.83%
ROICexc(5y)18.16%
ROICexgc(3y)22.2%
ROICexgc(5y)19.33%
ROCE(3y)25.36%
ROCE(5y)21.5%
ROICexcg growth 3Y8.79%
ROICexcg growth 5Y11.18%
ROICexc growth 3Y8.34%
ROICexc growth 5Y10.62%
OM growth 3Y10.22%
OM growth 5Y9.91%
PM growth 3Y8.52%
PM growth 5Y10.22%
GM growth 3Y5.44%
GM growth 5Y4.84%
F-Score6
Asset Turnover1.02
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.19 | ||
| Debt/FCF | 1.67 | ||
| Debt/EBITDA | 0.57 | ||
| Cap/Depr | 137.98% | ||
| Cap/Sales | 0.69% | ||
| Interest Coverage | 185.38 | ||
| Cash Conversion | 37.16% | ||
| Profit Quality | 44.57% | ||
| Current Ratio | 4.17 | ||
| Quick Ratio | 0.42 | ||
| Altman-Z | 5.65 |
F-Score6
WACC8.45%
ROIC/WACC2.34
Cap/Depr(3y)125.66%
Cap/Depr(5y)114.59%
Cap/Sales(3y)0.6%
Cap/Sales(5y)0.58%
Profit Quality(3y)50.26%
Profit Quality(5y)75.16%
High Growth Momentum
Growth
EPS 1Y (TTM)12.36%
EPS 3Y33.5%
EPS 5Y25.08%
EPS Q2Q%15.12%
EPS Next Y18.51%
EPS Next 2Y8.7%
EPS Next 3Y9.14%
EPS Next 5YN/A
Revenue 1Y (TTM)2.24%
Revenue growth 3Y13.32%
Revenue growth 5Y9.53%
Sales Q2Q%11.82%
Revenue Next Year8.89%
Revenue Next 2Y6.57%
Revenue Next 3Y6.68%
Revenue Next 5YN/A
EBIT growth 1Y2.05%
EBIT growth 3Y24.91%
EBIT growth 5Y20.38%
EBIT Next Year11.59%
EBIT Next 3Y4.6%
EBIT Next 5YN/A
FCF growth 1Y2908.74%
FCF growth 3Y6.84%
FCF growth 5Y8.66%
OCF growth 1Y822.89%
OCF growth 3Y7.18%
OCF growth 5Y8.69%