PULTEGROUP INC (PHM) Stock Fundamental Analysis
USA - NYSE:PHM - US7458671010 - Common Stock
119.76 USD
+0.83 (+0.7%)
119.76 USD
0 (0%)
We assign a fundamental rating of 7 out of 10 to PHM. PHM was compared to 61 industry peers in the Household Durables industry. Both the health and profitability get an excellent rating, making PHM a very profitable company, without any liquidiy or solvency issues. PHM has a valuation in line with the averages, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
In the past year PHM was profitable.
In the past year PHM had a positive cash flow from operations.
Each year in the past 5 years PHM has been profitable.
In the past 5 years PHM always reported a positive cash flow from operatings.
1.2 Ratios
PHM's Return On Assets of 14.74% is amongst the best of the industry. PHM outperforms 96.72% of its industry peers.
Looking at the Return On Equity, with a value of 20.51%, PHM belongs to the top of the industry, outperforming 91.80% of the companies in the same industry.
PHM has a Return On Invested Capital of 17.01%. This is amongst the best in the industry. PHM outperforms 96.72% of its industry peers.
The Average Return On Invested Capital over the past 3 years for PHM is significantly above the industry average of 10.05%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 14.74% | ||
| ROE | 20.51% | ||
| ROIC | 17.01% |
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
PHM has a Profit Margin of 14.93%. This is amongst the best in the industry. PHM outperforms 95.08% of its industry peers.
PHM's Profit Margin has improved in the last couple of years.
PHM has a Operating Margin of 19.43%. This is amongst the best in the industry. PHM outperforms 95.08% of its industry peers.
In the last couple of years the Operating Margin of PHM has grown nicely.
With a Gross Margin value of 27.15%, PHM perfoms like the industry average, outperforming 57.38% of the companies in the same industry.
PHM's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 19.43% | ||
| PM (TTM) | 14.93% | ||
| GM | 27.15% |
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
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), PHM is creating value.
The number of shares outstanding for PHM has been reduced compared to 1 year ago.
The number of shares outstanding for PHM has been reduced compared to 5 years ago.
The debt/assets ratio for PHM has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 5.97 indicates that PHM is not in any danger for bankruptcy at the moment.
PHM has a Altman-Z score of 5.97. This is amongst the best in the industry. PHM outperforms 88.52% of its industry peers.
PHM has a debt to FCF ratio of 1.31. This is a very positive value and a sign of high solvency as it would only need 1.31 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 1.31, PHM is in the better half of the industry, outperforming 77.05% of the companies in the same industry.
PHM has a Debt/Equity ratio of 0.16. This is a healthy value indicating a solid balance between debt and equity.
PHM has a Debt to Equity ratio of 0.16. This is in the better half of the industry: PHM outperforms 70.49% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.16 | ||
| Debt/FCF | 1.31 | ||
| Altman-Z | 5.97 |
ROIC/WACC1.96
WACC8.67%
2.3 Liquidity
A Current Ratio of 5.08 indicates that PHM has no problem at all paying its short term obligations.
PHM has a better Current ratio (5.08) than 75.41% of its industry peers.
A Quick Ratio of 0.50 indicates that PHM may have some problems paying its short term obligations.
PHM's Quick ratio of 0.50 is on the low side compared to the rest of the industry. PHM is outperformed by 77.05% of its industry peers.
The current and quick ratio evaluation for PHM is rather negative, while it does have 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 | 5.08 | ||
| Quick Ratio | 0.5 |
3. Growth
3.1 Past
PHM shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -2.77%.
PHM shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 32.15% yearly.
PHM shows a small growth in Revenue. In the last year, the Revenue has grown by 1.76%.
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)-2.77%
EPS 3Y25.56%
EPS 5Y32.15%
EPS Q2Q%-11.64%
Revenue 1Y (TTM)1.76%
Revenue growth 3Y9.32%
Revenue growth 5Y11.94%
Sales Q2Q%-1.6%
3.2 Future
The Earnings Per Share is expected to decrease by -3.61% on average over the next years.
PHM is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -1.28% yearly.
EPS Next Y-20.87%
EPS Next 2Y-12.31%
EPS Next 3Y-3.85%
EPS Next 5Y-3.61%
Revenue Next Year-4.07%
Revenue Next 2Y-2.88%
Revenue Next 3Y-0.3%
Revenue Next 5Y-1.28%
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
The Price/Earnings ratio is 9.22, 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 70.49% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 26.06. PHM is valued rather cheaply when compared to this.
Based on the Price/Forward Earnings ratio of 10.73, the valuation of PHM can be described as reasonable.
Compared to the rest of the industry, the Price/Forward Earnings ratio of PHM indicates a somewhat cheap valuation: PHM is cheaper than 63.93% of the companies listed in the same industry.
PHM's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 32.73.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.22 | ||
| Fwd PE | 10.73 |
4.2 Price Multiples
PHM's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. PHM is cheaper than 67.21% of the companies in the same industry.
60.66% 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 | 15.23 | ||
| EV/EBITDA | 6.75 |
4.3 Compensation for Growth
PHM has an outstanding profitability rating, which may justify a higher PE ratio.
A cheap valuation may be justified as PHM's earnings are expected to decrease with -3.85% in the coming years.
PEG (NY)N/A
PEG (5Y)0.29
EPS Next 2Y-12.31%
EPS Next 3Y-3.85%
5. Dividend
5.1 Amount
With a yearly dividend of 0.74%, PHM is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 3.32, PHM pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.37, PHM's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.74% |
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 their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)12.52%
Div Incr Years7
Div Non Decr Years11
5.3 Sustainability
PHM pays out 6.65% of its income as dividend. This is a sustainable payout ratio.
DP6.65%
EPS Next 2Y-12.31%
EPS Next 3Y-3.85%
119.76
+0.83 (+0.7%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryHousehold Durables
Earnings (Last)
Earnings (Next)
Inst Owners97.33%
Inst Owner Change0.72%
Ins Owners0.61%
Ins Owner Change-0.67%
Market Cap23.63B
Revenue(TTM)17.62B
Net Income(TTM)2.63B
Analysts74.29
Price Target138.95 (16.02%)
Short Float %2.37%
Short Ratio2.1
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.74% |
Yearly Dividend0.81
Dividend Growth(5Y)12.52%
DP6.65%
Div Incr Years7
Div Non Decr Years11
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)1.38%
Min EPS beat(2)1.33%
Max EPS beat(2)1.44%
EPS beat(4)4
Avg EPS beat(4)10.52%
Min EPS beat(4)1.33%
Max EPS beat(4)34.18%
EPS beat(8)8
Avg EPS beat(8)10.98%
EPS beat(12)12
Avg EPS beat(12)13.2%
EPS beat(16)15
Avg EPS beat(16)10.59%
Revenue beat(2)1
Avg Revenue beat(2)0.24%
Min Revenue beat(2)-0.75%
Max Revenue beat(2)1.24%
Revenue beat(4)3
Avg Revenue beat(4)1.66%
Min Revenue beat(4)-0.75%
Max Revenue beat(4)5.12%
Revenue beat(8)6
Avg Revenue beat(8)2%
Revenue beat(12)9
Avg Revenue beat(12)3.18%
Revenue beat(16)12
Avg Revenue beat(16)6.89%
PT rev (1m)-1.02%
PT rev (3m)0.1%
EPS NQ rev (1m)-4.55%
EPS NQ rev (3m)-4.55%
EPS NY rev (1m)-0.01%
EPS NY rev (3m)-0.86%
Revenue NQ rev (1m)0.81%
Revenue NQ rev (3m)0.81%
Revenue NY rev (1m)0.57%
Revenue NY rev (3m)0.34%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.22 | ||
| Fwd PE | 10.73 | ||
| P/S | 1.34 | ||
| P/FCF | 15.23 | ||
| P/OCF | 14.17 | ||
| P/B | 1.84 | ||
| P/tB | 1.86 | ||
| EV/EBITDA | 6.75 |
EPS(TTM)12.99
EY10.85%
EPS(NY)11.16
Fwd EY9.32%
FCF(TTM)7.87
FCFY6.57%
OCF(TTM)8.45
OCFY7.06%
SpS89.32
BVpS65.01
TBVpS64.46
PEG (NY)N/A
PEG (5Y)0.29
Graham Number137.84
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 14.74% | ||
| ROE | 20.51% | ||
| ROCE | 22.92% | ||
| ROIC | 17.01% | ||
| ROICexc | 18.78% | ||
| ROICexgc | 22.3% | ||
| OM | 19.43% | ||
| PM (TTM) | 14.93% | ||
| GM | 27.15% | ||
| FCFM | 8.81% |
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%
ROICexgc growth 3Y3.02%
ROICexgc 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-Score5
Asset Turnover0.99
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.16 | ||
| Debt/FCF | 1.31 | ||
| Debt/EBITDA | 0.58 | ||
| Cap/Depr | 116.19% | ||
| Cap/Sales | 0.66% | ||
| Interest Coverage | 182.01 | ||
| Cash Conversion | 47.33% | ||
| Profit Quality | 59% | ||
| Current Ratio | 5.08 | ||
| Quick Ratio | 0.5 | ||
| Altman-Z | 5.97 |
F-Score5
WACC8.67%
ROIC/WACC1.96
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)-2.77%
EPS 3Y25.56%
EPS 5Y32.15%
EPS Q2Q%-11.64%
EPS Next Y-20.87%
EPS Next 2Y-12.31%
EPS Next 3Y-3.85%
EPS Next 5Y-3.61%
Revenue 1Y (TTM)1.76%
Revenue growth 3Y9.32%
Revenue growth 5Y11.94%
Sales Q2Q%-1.6%
Revenue Next Year-4.07%
Revenue Next 2Y-2.88%
Revenue Next 3Y-0.3%
Revenue Next 5Y-1.28%
EBIT growth 1Y-7.1%
EBIT growth 3Y15.32%
EBIT growth 5Y24.01%
EBIT Next Year-13.04%
EBIT Next 3Y-2.57%
EBIT Next 5Y-4.8%
FCF growth 1Y-44.36%
FCF growth 3Y18.82%
FCF growth 5Y8.95%
OCF growth 1Y-42.11%
OCF growth 3Y18.74%
OCF growth 5Y9.33%
PULTEGROUP INC / PHM FAQ
Can you provide the ChartMill fundamental rating for PULTEGROUP INC?
ChartMill assigns a fundamental rating of 7 / 10 to PHM.
What is the valuation status of PULTEGROUP INC (PHM) stock?
ChartMill assigns a valuation rating of 6 / 10 to PULTEGROUP INC (PHM). This can be considered as Fairly Valued.
Can you provide the profitability details for PULTEGROUP INC?
PULTEGROUP INC (PHM) has a profitability rating of 9 / 10.
Can you provide the expected EPS growth for PHM stock?
The Earnings per Share (EPS) of PULTEGROUP INC (PHM) is expected to decline by -20.87% in the next year.
How sustainable is the dividend of PULTEGROUP INC (PHM) stock?
The dividend rating of PULTEGROUP INC (PHM) is 5 / 10 and the dividend payout ratio is 6.65%.