PULTEGROUP INC (PHM) Stock Fundamental Analysis
USA - NYSE:PHM - US7458671010 - Common Stock
131.9 USD
-2.2 (-1.64%)
132 USD
+0.1 (+0.08%)
Overall PHM gets a fundamental rating of 7 out of 10. We evaluated PHM against 63 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 has a decent growth rate and is not valued too expensively.
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.
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
With an excellent Return On Assets value of 15.59%, PHM belongs to the best of the industry, outperforming 98.41% of the companies in the same industry.
PHM has a better Return On Equity (21.81%) than 88.89% of its industry peers.
Looking at the Return On Invested Capital, with a value of 17.87%, PHM belongs to the top of the industry, outperforming 98.41% of the companies in the same industry.
PHM had an Average Return On Invested Capital over the past 3 years of 19.16%. This is significantly above the industry average of 10.52%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 15.59% | ||
| ROE | 21.81% | ||
| ROIC | 17.87% |
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 15.50%. This is amongst the best in the industry. PHM outperforms 95.24% of its industry peers.
In the last couple of years the Profit Margin of PHM has grown nicely.
The Operating Margin of PHM (20.09%) is better than 95.24% of its industry peers.
PHM's Operating Margin has improved in the last couple of years.
PHM has a Gross Margin of 27.81%. This is comparable to the rest of the industry: PHM outperforms 58.73% of its industry peers.
In the last couple of years the Gross Margin of PHM has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 20.09% | ||
| PM (TTM) | 15.5% | ||
| GM | 27.81% |
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.
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 6.35. This indicates that PHM is financially healthy and has little risk of bankruptcy at the moment.
PHM has a Altman-Z score of 6.35. This is amongst the best in the industry. PHM outperforms 85.71% of its industry peers.
The Debt to FCF ratio of PHM is 1.61, which is an excellent value as it means it would take PHM, only 1.61 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 1.61, PHM is in the better half of the industry, outperforming 79.37% of the companies in the same industry.
A Debt/Equity ratio of 0.17 indicates that PHM is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.17, PHM is in the better half of the industry, outperforming 69.84% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.17 | ||
| Debt/FCF | 1.61 | ||
| Altman-Z | 6.35 |
ROIC/WACC2.06
WACC8.66%
2.3 Liquidity
PHM has a Current Ratio of 4.93. This indicates that PHM is financially healthy and has no problem in meeting its short term obligations.
PHM has a Current ratio of 4.93. This is in the better half of the industry: PHM outperforms 77.78% of its industry peers.
PHM has a Quick Ratio of 4.93. This is a bad value and indicates that PHM is not financially healthy enough and could expect problems in meeting its short term obligations.
PHM has a Quick ratio of 0.42. This is amonst the worse of the industry: PHM underperforms 84.13% 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 | 4.93 | ||
| Quick Ratio | 0.42 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 3.56% 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.
The Revenue has been growing slightly by 5.04% in the past 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)3.56%
EPS 3Y25.56%
EPS 5Y32.15%
EPS Q2Q%-19.63%
Revenue 1Y (TTM)5.04%
Revenue growth 3Y9.32%
Revenue growth 5Y11.94%
Sales Q2Q%-4.26%
3.2 Future
PHM is expected to show a decrease in Earnings Per Share. In the coming years, the EPS will decrease by -2.75% yearly.
PHM is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 0.90% yearly.
EPS Next Y-20.86%
EPS Next 2Y-10.31%
EPS Next 3Y-2.75%
EPS Next 5YN/A
Revenue Next Year-4.56%
Revenue Next 2Y-2.27%
Revenue Next 3Y0.9%
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
PHM is valuated reasonably with a Price/Earnings ratio of 9.86.
69.84% of the companies in the same industry are more expensive than PHM, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 27.38. PHM is valued rather cheaply when compared to this.
With a Price/Forward Earnings ratio of 11.30, the valuation of PHM can be described as very reasonable.
Compared to the rest of the industry, the Price/Forward Earnings ratio of PHM indicates a somewhat cheap valuation: PHM is cheaper than 66.67% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of PHM to the average of the S&P500 Index (22.86), we can say PHM is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.86 | ||
| Fwd PE | 11.3 |
4.2 Price Multiples
PHM's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. PHM is cheaper than 69.84% 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 63.49% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 19.75 | ||
| EV/EBITDA | 7.36 |
4.3 Compensation for Growth
PHM has an outstanding profitability rating, which may justify a higher PE ratio.
PHM's earnings are expected to decrease with -2.75% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)0.31
EPS Next 2Y-10.31%
EPS Next 3Y-2.75%
5. Dividend
5.1 Amount
PHM has a yearly dividend return of 0.63%, which is pretty low.
Compared to an average industry Dividend Yield of 3.03, PHM pays a bit more dividend than its industry peers.
With a Dividend Yield of 0.63, PHM pays less dividend than the S&P500 average, which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.63% |
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 6.30% of its income as dividend. This is a sustainable payout ratio.
DP6.3%
EPS Next 2Y-10.31%
EPS Next 3Y-2.75%
131.9
-2.2 (-1.64%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryHousehold Durables
Earnings (Last)
Earnings (Next)
Inst Owners96.69%
Inst Owner Change-0.74%
Ins Owners0.61%
Ins Owner Change-0.44%
Market Cap26.02B
Analysts76.19
Price Target139.99 (6.13%)
Short Float %3.11%
Short Ratio2.85
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.63% |
Yearly Dividend0.81
Dividend Growth(5Y)12.52%
DP6.3%
Div Incr Years7
Div Non Decr Years11
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)3.22%
Min EPS beat(2)1.33%
Max EPS beat(2)5.11%
EPS beat(4)4
Avg EPS beat(4)11.83%
Min EPS beat(4)1.33%
Max EPS beat(4)34.18%
EPS beat(8)8
Avg EPS beat(8)10.97%
EPS beat(12)11
Avg EPS beat(12)12.63%
EPS beat(16)15
Avg EPS beat(16)10.54%
Revenue beat(2)1
Avg Revenue beat(2)0.14%
Min Revenue beat(2)-0.75%
Max Revenue beat(2)1.03%
Revenue beat(4)3
Avg Revenue beat(4)2.33%
Min Revenue beat(4)-0.75%
Max Revenue beat(4)5.12%
Revenue beat(8)5
Avg Revenue beat(8)1.67%
Revenue beat(12)8
Avg Revenue beat(12)2.56%
Revenue beat(16)11
Avg Revenue beat(16)6.8%
PT rev (1m)0.85%
PT rev (3m)12.42%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-1.17%
EPS NY rev (1m)-0.85%
EPS NY rev (3m)-0.98%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.74%
Revenue NY rev (1m)-0.18%
Revenue NY rev (3m)-1.28%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.86 | ||
| Fwd PE | 11.3 | ||
| P/S | 1.47 | ||
| P/FCF | 19.75 | ||
| P/OCF | 18 | ||
| P/B | 2.07 | ||
| P/tB | 2.09 | ||
| EV/EBITDA | 7.36 |
EPS(TTM)13.38
EY10.14%
EPS(NY)11.67
Fwd EY8.85%
FCF(TTM)6.68
FCFY5.06%
OCF(TTM)7.33
OCFY5.55%
SpS89.68
BVpS63.74
TBVpS63.17
PEG (NY)N/A
PEG (5Y)0.31
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 15.59% | ||
| ROE | 21.81% | ||
| ROCE | 24.25% | ||
| ROIC | 17.87% | ||
| ROICexc | 19.45% | ||
| ROICexgc | 23.05% | ||
| OM | 20.09% | ||
| PM (TTM) | 15.5% | ||
| GM | 27.81% | ||
| FCFM | 7.45% |
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-Score5
Asset Turnover1.01
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.17 | ||
| Debt/FCF | 1.61 | ||
| Debt/EBITDA | 0.58 | ||
| Cap/Depr | 133.18% | ||
| Cap/Sales | 0.72% | ||
| Interest Coverage | 168.12 | ||
| Cash Conversion | 39.6% | ||
| Profit Quality | 48.05% | ||
| Current Ratio | 4.93 | ||
| Quick Ratio | 0.42 | ||
| Altman-Z | 6.35 |
F-Score5
WACC8.66%
ROIC/WACC2.06
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)3.56%
EPS 3Y25.56%
EPS 5Y32.15%
EPS Q2Q%-19.63%
EPS Next Y-20.86%
EPS Next 2Y-10.31%
EPS Next 3Y-2.75%
EPS Next 5YN/A
Revenue 1Y (TTM)5.04%
Revenue growth 3Y9.32%
Revenue growth 5Y11.94%
Sales Q2Q%-4.26%
Revenue Next Year-4.56%
Revenue Next 2Y-2.27%
Revenue Next 3Y0.9%
Revenue Next 5YN/A
EBIT growth 1Y-1.83%
EBIT growth 3Y15.32%
EBIT growth 5Y24.01%
EBIT Next Year-13.04%
EBIT Next 3Y-2.57%
EBIT Next 5YN/A
FCF growth 1Y-31.42%
FCF growth 3Y18.82%
FCF growth 5Y8.95%
OCF growth 1Y-28.32%
OCF growth 3Y18.74%
OCF growth 5Y9.33%