PULTEGROUP INC (PHM) Stock Fundamental Analysis
NYSE:PHM - New York Stock Exchange, Inc. - US7458671010 - Common Stock - Currency: USD
We assign a fundamental rating of 8 out of 10 to PHM. PHM was compared to 64 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. PHM may be a bit undervalued, certainly considering the very reasonable score on growth This makes PHM very considerable for value and quality investing!
1. Profitability
1.1 Basic Checks
PHM had positive earnings in the past year.
PHM had a positive operating cash flow in the past year.
PHM had positive earnings in each of the past 5 years.
PHM had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 16.98%, PHM belongs to the top of the industry, outperforming 98.44% of the companies in the same industry.
PHM's Return On Equity of 23.92% is amongst the best of the industry. PHM outperforms 90.63% of its industry peers.
With an excellent Return On Invested Capital value of 19.43%, PHM belongs to the best of the industry, outperforming 96.88% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for PHM is significantly above the industry average of 10.34%.
The last Return On Invested Capital (19.43%) for PHM is above the 3 year average (19.16%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 16.98% | ||
| ROE | 23.92% | ||
| ROIC | 19.43% |
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 16.45%, PHM belongs to the top of the industry, outperforming 95.31% of the companies in the same industry.
In the last couple of years the Profit Margin of PHM has grown nicely.
PHM's Operating Margin of 21.12% is amongst the best of the industry. PHM outperforms 95.31% of its industry peers.
PHM's Operating Margin has improved in the last couple of years.
The Gross Margin of PHM (28.60%) 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 | 21.12% | ||
| PM (TTM) | 16.45% | ||
| GM | 28.6% |
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
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so PHM is creating value.
The number of shares outstanding for PHM has been reduced compared to 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
PHM has an Altman-Z score of 5.86. This indicates that PHM is financially healthy and has little risk of bankruptcy at the moment.
PHM has a Altman-Z score of 5.86. This is amongst the best in the industry. PHM outperforms 87.50% of its industry peers.
PHM has a debt to FCF ratio of 1.41. This is a very positive value and a sign of high solvency as it would only need 1.41 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 1.41, PHM belongs to the top of the industry, outperforming 81.25% of the companies in the same industry.
PHM has a Debt/Equity ratio of 0.17. This is a healthy value indicating a solid balance between debt and equity.
Looking at the Debt to Equity ratio, with a value of 0.17, PHM is in the better half of the industry, outperforming 67.19% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.17 | ||
| Debt/FCF | 1.41 | ||
| Altman-Z | 5.86 |
ROIC/WACC2.34
WACC8.31%
2.3 Liquidity
PHM has a Current Ratio of 4.82. This indicates that PHM is financially healthy and has no problem in meeting its short term obligations.
Looking at the Current ratio, with a value of 4.82, PHM is in the better half of the industry, outperforming 75.00% of the companies in the same industry.
A Quick Ratio of 0.42 indicates that PHM may have some problems paying its short term obligations.
PHM has a worse Quick ratio (0.42) than 81.25% 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 | 4.82 | ||
| Quick Ratio | 0.42 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 16.21% 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 32.15% on average per year.
Looking at the last year, PHM shows a quite strong growth in Revenue. The Revenue has grown by 8.86% in the last year.
Measured over the past years, PHM shows a quite strong growth in Revenue. The Revenue has been growing by 11.94% on average per year.
EPS 1Y (TTM)16.21%
EPS 3Y25.56%
EPS 5Y32.15%
EPS Q2Q%-13.18%
Revenue 1Y (TTM)8.86%
Revenue growth 3Y9.32%
Revenue growth 5Y11.94%
Sales Q2Q%-1.43%
3.2 Future
The Earnings Per Share is expected to decrease by -0.75% on average over the next years.
PHM is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.22% yearly.
EPS Next Y-20.15%
EPS Next 2Y-8.16%
EPS Next 3Y-0.75%
EPS Next 5YN/A
Revenue Next Year-3.33%
Revenue Next 2Y-0.47%
Revenue Next 3Y2.22%
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.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 7.75, which indicates a rather cheap valuation of PHM.
75.00% of the companies in the same industry are more expensive than PHM, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 27.45, PHM is valued rather cheaply.
PHM is valuated reasonably with a Price/Forward Earnings ratio of 8.94.
Based on the Price/Forward Earnings ratio, PHM is valued a bit cheaper than the industry average as 68.75% of the companies are valued more expensively.
PHM is valuated cheaply when we compare the Price/Forward Earnings ratio to 21.90, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.75 | ||
| Fwd PE | 8.94 |
4.2 Price Multiples
PHM's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. PHM is cheaper than 85.94% of the companies in the same industry.
PHM's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. PHM is cheaper than 71.88% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.11 | ||
| EV/EBITDA | 5.76 |
4.3 Compensation for Growth
The excellent profitability rating of PHM may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.24
EPS Next 2Y-8.16%
EPS Next 3Y-0.75%
5. Dividend
5.1 Amount
PHM has a yearly dividend return of 0.80%, which is pretty low.
Compared to an average industry Dividend Yield of 3.49, PHM pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.42, PHM's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.8% |
5.2 History
The dividend of PHM is nicely growing with an annual growth rate of 12.52%!
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
5.79% of the earnings are spent on dividend by PHM. This is a low number and sustainable payout ratio.
DP5.79%
EPS Next 2Y-8.16%
EPS Next 3Y-0.75%
109.36
-1.98 (-1.78%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryHousehold Durables
Earnings (Last)
Earnings (Next)
Inst Owners94.82%
Inst Owner Change-0.38%
Ins Owners0.6%
Ins Owner Change0.52%
Market Cap21.92B
Analysts76.36
Price Target124.52 (13.86%)
Short Float %3.6%
Short Ratio3.76
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.8% |
Yearly Dividend0.81
Dividend Growth(5Y)12.52%
DP5.79%
Div Incr Years7
Div Non Decr Years11
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)19.65%
Min EPS beat(2)5.11%
Max EPS beat(2)34.18%
EPS beat(4)4
Avg EPS beat(4)15.06%
Min EPS beat(4)5.11%
Max EPS beat(4)34.18%
EPS beat(8)8
Avg EPS beat(8)13.1%
EPS beat(12)11
Avg EPS beat(12)12.76%
EPS beat(16)14
Avg EPS beat(16)10.31%
Revenue beat(2)2
Avg Revenue beat(2)2.97%
Min Revenue beat(2)0.82%
Max Revenue beat(2)5.12%
Revenue beat(4)4
Avg Revenue beat(4)2.8%
Min Revenue beat(4)0.82%
Max Revenue beat(4)5.12%
Revenue beat(8)6
Avg Revenue beat(8)2.21%
Revenue beat(12)9
Avg Revenue beat(12)8.69%
Revenue beat(16)12
Avg Revenue beat(16)11.34%
PT rev (1m)0.18%
PT rev (3m)-10.34%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-4.23%
EPS NY rev (1m)-0.09%
EPS NY rev (3m)-6.25%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-4.83%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-5.55%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.75 | ||
| Fwd PE | 8.94 | ||
| P/S | 1.23 | ||
| P/FCF | 15.11 | ||
| P/OCF | 13.92 | ||
| P/B | 1.78 | ||
| P/tB | 1.8 | ||
| EV/EBITDA | 5.76 |
EPS(TTM)14.12
EY12.91%
EPS(NY)12.24
Fwd EY11.19%
FCF(TTM)7.24
FCFY6.62%
OCF(TTM)7.86
OCFY7.19%
SpS89.26
BVpS61.37
TBVpS60.81
PEG (NY)N/A
PEG (5Y)0.24
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 16.98% | ||
| ROE | 23.92% | ||
| ROCE | 26.26% | ||
| ROIC | 19.43% | ||
| ROICexc | 21.2% | ||
| ROICexgc | 25.03% | ||
| OM | 21.12% | ||
| PM (TTM) | 16.45% | ||
| GM | 28.6% | ||
| FCFM | 8.11% |
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-Score7
Asset Turnover1.03
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.17 | ||
| Debt/FCF | 1.41 | ||
| Debt/EBITDA | 0.53 | ||
| Cap/Depr | 133.74% | ||
| Cap/Sales | 0.69% | ||
| Interest Coverage | 170.62 | ||
| Cash Conversion | 40.69% | ||
| Profit Quality | 49.3% | ||
| Current Ratio | 4.82 | ||
| Quick Ratio | 0.42 | ||
| Altman-Z | 5.86 |
F-Score7
WACC8.31%
ROIC/WACC2.34
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)16.21%
EPS 3Y25.56%
EPS 5Y32.15%
EPS Q2Q%-13.18%
EPS Next Y-20.15%
EPS Next 2Y-8.16%
EPS Next 3Y-0.75%
EPS Next 5YN/A
Revenue 1Y (TTM)8.86%
Revenue growth 3Y9.32%
Revenue growth 5Y11.94%
Sales Q2Q%-1.43%
Revenue Next Year-3.33%
Revenue Next 2Y-0.47%
Revenue Next 3Y2.22%
Revenue Next 5YN/A
EBIT growth 1Y7.15%
EBIT growth 3Y15.32%
EBIT growth 5Y24.01%
EBIT Next Year-12.25%
EBIT Next 3Y-1.94%
EBIT Next 5YN/A
FCF growth 1Y36.05%
FCF growth 3Y18.82%
FCF growth 5Y8.95%
OCF growth 1Y34.37%
OCF growth 3Y18.74%
OCF growth 5Y9.33%