PULTEGROUP INC (PHM) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:PHM - US7458671010 - Common Stock
132.2 USD
+9.04 (+7.34%)
133 USD
+0.8 (+0.61%)
Taking everything into account, PHM scores 7 out of 10 in our fundamental rating. PHM was compared to 60 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 is valued correctly, but it does not seem to be growing.
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.
Each year in the past 5 years PHM has been profitable.
PHM had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
PHM's Return On Assets of 14.74% is amongst the best of the industry. PHM outperforms 96.67% of its industry peers.
With an excellent Return On Equity value of 20.51%, PHM belongs to the best of the industry, outperforming 88.33% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 17.01%, PHM belongs to the top of the industry, outperforming 96.67% 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 9.73%.
| 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
With an excellent Profit Margin value of 14.93%, PHM belongs to the best of the industry, outperforming 95.00% of the companies in the same industry.
In the last couple of years the Profit Margin of PHM has grown nicely.
With an excellent Operating Margin value of 19.43%, PHM belongs to the best of the industry, outperforming 95.00% of the companies in the same industry.
PHM's Operating Margin has improved in the last couple of years.
With a Gross Margin value of 27.15%, PHM perfoms like the industry average, outperforming 58.33% of the companies in the same industry.
In the last couple of years the Gross Margin of PHM has grown nicely.
| 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
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.
PHM has less shares outstanding than it did 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 6.23 indicates that PHM is not in any danger for bankruptcy at the moment.
PHM's Altman-Z score of 6.23 is amongst the best of the industry. PHM outperforms 86.67% 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.
PHM has a Debt to FCF ratio of 1.31. This is in the better half of the industry: PHM outperforms 73.33% of its industry peers.
PHM has a Debt/Equity ratio of 0.16. This is a healthy value indicating a solid balance between debt and equity.
With a decent Debt to Equity ratio value of 0.16, PHM is doing good in the industry, outperforming 70.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.16 | ||
| Debt/FCF | 1.31 | ||
| Altman-Z | 6.23 |
ROIC/WACC1.94
WACC8.78%
2.3 Liquidity
A Current Ratio of 5.08 indicates that PHM has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 5.08, PHM is in the better half of the industry, outperforming 73.33% of the companies in the same industry.
A Quick Ratio of 0.50 indicates that PHM may have some problems paying its short term obligations.
PHM has a Quick ratio of 0.50. This is in the lower half of the industry: PHM underperforms 76.67% 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%.
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 small growth in Revenue. The Revenue has grown by 1.76% in the last year.
The Revenue has been growing by 11.94% on average over the past years. This is quite good.
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
Based on estimates for the next years, PHM will show a decrease in Earnings Per Share. The EPS will decrease by -3.61% on average per year.
The Revenue is expected to decrease by -1.28% on average over the next years.
EPS Next Y-20.83%
EPS Next 2Y-12.58%
EPS Next 3Y-4.34%
EPS Next 5Y-3.61%
Revenue Next Year-4.06%
Revenue Next 2Y-2.87%
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
A Price/Earnings ratio of 10.18 indicates a reasonable valuation of PHM.
Based on the Price/Earnings ratio, PHM is valued a bit cheaper than the industry average as 73.33% of the companies are valued more expensively.
PHM's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.19.
PHM is valuated reasonably with a Price/Forward Earnings ratio of 11.92.
PHM's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. PHM is cheaper than 66.67% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of PHM to the average of the S&P500 Index (23.92), we can say PHM is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.18 | ||
| Fwd PE | 11.92 |
4.2 Price Multiples
PHM's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. PHM is cheaper than 70.00% 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 61.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.6 | ||
| EV/EBITDA | 7.36 |
4.3 Compensation for Growth
The excellent profitability rating of PHM may justify a higher PE ratio.
PHM's earnings are expected to decrease with -4.34% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)0.32
EPS Next 2Y-12.58%
EPS Next 3Y-4.34%
5. Dividend
5.1 Amount
PHM has a yearly dividend return of 0.84%, which is pretty low.
Compared to an average industry Dividend Yield of 1.19, PHM pays a bit more dividend than its industry peers.
With a Dividend Yield of 0.84, PHM pays less dividend than the S&P500 average, which is at 1.92.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.84% |
5.2 History
The dividend of PHM is nicely growing with an annual growth rate of 12.52%!
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)12.52%
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-12.58%
EPS Next 3Y-4.34%
132.2
+9.04 (+7.34%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryHousehold Durables
Earnings (Last)
Earnings (Next)
Inst Owners96.13%
Inst Owner Change0.05%
Ins Owners0.62%
Ins Owner Change-0.72%
Market Cap25.77B
Revenue(TTM)17.62B
Net Income(TTM)2.63B
Analysts74.29
Price Target142.45 (7.75%)
Short Float %4%
Short Ratio3.96
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.84% |
Yearly Dividend0.81
Dividend Growth(5Y)12.52%
DP6.65%
Div Incr Years7
Div Non Decr Years11
Ex-DateN/A
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)0.88%
PT rev (3m)1.48%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-4.39%
EPS NY rev (1m)0.04%
EPS NY rev (3m)0.04%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.76%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.58%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.18 | ||
| Fwd PE | 11.92 | ||
| P/S | 1.46 | ||
| P/FCF | 16.6 | ||
| P/OCF | 15.45 | ||
| P/B | 2.01 | ||
| P/tB | 2.03 | ||
| EV/EBITDA | 7.36 |
EPS(TTM)12.99
EY9.83%
EPS(NY)11.09
Fwd EY8.39%
FCF(TTM)7.96
FCFY6.02%
OCF(TTM)8.56
OCFY6.47%
SpS90.41
BVpS65.8
TBVpS65.25
PEG (NY)N/A
PEG (5Y)0.32
Graham Number138.68
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 | 6.23 |
F-Score5
WACC8.78%
ROIC/WACC1.94
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-20.83%
EPS Next 2Y-12.58%
EPS Next 3Y-4.34%
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-4.06%
Revenue Next 2Y-2.87%
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-12.95%
EBIT Next 3Y-4.82%
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 for 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.
What is the earnings growth outlook for PULTEGROUP INC?
The Earnings per Share (EPS) of PULTEGROUP INC (PHM) is expected to decline by -20.83% 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%.