PULTEGROUP INC (PHM) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:PHM - US7458671010 - Common Stock
120.32 USD
+5.97 (+5.22%)
120.32 USD
0 (0%)
PHM gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 61 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 has a valuation in line with the averages, but on the other hand it scores bad on growth.
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.
Each year in the past 5 years PHM had a positive operating cash flow.
1.2 Ratios
PHM has a better Return On Assets (14.74%) than 96.72% of its industry peers.
The Return On Equity of PHM (20.51%) is better than 90.16% of its industry peers.
With an excellent Return On Invested Capital value of 17.01%, PHM belongs to the best of the industry, outperforming 96.72% 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 9.78%.
| 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 better Operating Margin (19.43%) than 95.08% of its industry peers.
PHM's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 27.15%, PHM is in line with its industry, outperforming 57.38% 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.
Compared to 1 year ago, PHM has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 5.99 indicates that PHM is not in any danger for bankruptcy at the moment.
PHM has a Altman-Z score of 5.99. This is amongst the best in the industry. PHM outperforms 88.52% of its industry peers.
The Debt to FCF ratio of PHM is 1.31, which is an excellent value as it means it would take PHM, only 1.31 years of fcf income to pay off all of its debts.
PHM has a better Debt to FCF ratio (1.31) than 77.05% 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.
The Debt to Equity ratio of PHM (0.16) is better than 72.13% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.16 | ||
| Debt/FCF | 1.31 | ||
| Altman-Z | 5.99 |
ROIC/WACC2.1
WACC8.11%
2.3 Liquidity
PHM has a Current Ratio of 5.08. This indicates that PHM is financially healthy and has no problem in meeting its short term obligations.
PHM has a Current ratio of 5.08. This is in the better half of the industry: PHM outperforms 72.13% of its industry peers.
PHM has a Quick Ratio of 5.08. This is a bad value and indicates that PHM is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 0.50, PHM is doing worse than 77.05% of the companies in the same industry.
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 | 5.08 | ||
| Quick Ratio | 0.5 |
3. Growth
3.1 Past
The earnings per share for PHM have decreased by -2.77% in the last year.
The Earnings Per Share has been growing by 32.15% on average over the past years. This is a very strong growth
PHM shows a small growth in Revenue. In the last year, the Revenue has grown by 1.76%.
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
PHM is expected to show a decrease in Earnings Per Share. In the coming years, the EPS will decrease by -3.61% yearly.
Based on estimates for the next years, PHM will show a decrease in Revenue. The Revenue will decrease by -1.28% on average per year.
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.
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
PHM is valuated reasonably with a Price/Earnings ratio of 9.26.
70.49% 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 25.45, PHM is valued rather cheaply.
The Price/Forward Earnings ratio is 10.78, which indicates a very decent valuation of PHM.
Based on the Price/Forward Earnings ratio, PHM is valued a bit cheaper than 63.93% of the companies 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 34.46.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.26 | ||
| Fwd PE | 10.78 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, PHM is valued a bit cheaper than the industry average as 68.85% of the companies are valued more expensively.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of PHM indicates a somewhat cheap valuation: PHM is cheaper than 65.57% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.3 | ||
| EV/EBITDA | 6.79 |
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 0.91%, PHM is not a good candidate for dividend investing.
PHM's Dividend Yield is a higher than the industry average which is at 3.27.
With a Dividend Yield of 0.91, PHM pays less dividend than the S&P500 average, which is at 2.42.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.91% |
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 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
6.65% of the earnings are spent on dividend by PHM. This is a low number and sustainable payout ratio.
DP6.65%
EPS Next 2Y-12.31%
EPS Next 3Y-3.85%
120.32
+5.97 (+5.22%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryHousehold Durables
Earnings (Last)
Earnings (Next)
Inst Owners97.33%
Inst Owner Change-0.26%
Ins Owners0.61%
Ins Owner Change-0.69%
Market Cap23.74B
Revenue(TTM)17.62B
Net Income(TTM)2.63B
Analysts74.29
Price Target140.26 (16.57%)
Short Float %3.17%
Short Ratio2.82
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.91% |
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)-0.08%
PT rev (3m)1.05%
EPS NQ rev (1m)-1.84%
EPS NQ rev (3m)-4.56%
EPS NY rev (1m)0.07%
EPS NY rev (3m)-0.01%
Revenue NQ rev (1m)1.02%
Revenue NQ rev (3m)0.76%
Revenue NY rev (1m)0.85%
Revenue NY rev (3m)0.52%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.26 | ||
| Fwd PE | 10.78 | ||
| P/S | 1.35 | ||
| P/FCF | 15.3 | ||
| P/OCF | 14.23 | ||
| P/B | 1.85 | ||
| P/tB | 1.87 | ||
| EV/EBITDA | 6.79 |
EPS(TTM)12.99
EY10.8%
EPS(NY)11.16
Fwd EY9.27%
FCF(TTM)7.87
FCFY6.54%
OCF(TTM)8.45
OCFY7.03%
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 | 5.99 |
F-Score5
WACC8.11%
ROIC/WACC2.1
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%.