PULTEGROUP INC (PHM) Stock Fundamental Analysis
NYSE:PHM - New York Stock Exchange, Inc. - US7458671010 - Common Stock - Currency: USD
We assign a fundamental rating of 7 out of 10 to PHM. PHM was compared to 64 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 is valued quite cheap, while showing a decent growth score. This is a good combination! 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.
In the past 5 years PHM always reported a positive cash flow from operatings.
1.2 Ratios
PHM has a Return On Assets of 17.76%. This is amongst the best in the industry. PHM outperforms 96.88% of its industry peers.
Looking at the Return On Equity, with a value of 25.44%, PHM belongs to the top of the industry, outperforming 87.50% of the companies in the same industry.
With an excellent Return On Invested Capital value of 19.28%, PHM belongs to the best of the industry, outperforming 95.31% 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 12.30%.
The last Return On Invested Capital (19.28%) for PHM is above the 3 year average (19.16%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 17.76% | ||
| ROE | 25.44% | ||
| ROIC | 19.28% |
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's Profit Margin of 17.18% is amongst the best of the industry. PHM outperforms 93.75% of its industry peers.
PHM's Profit Margin has improved in the last couple of years.
With an excellent Operating Margin value of 21.85%, PHM belongs to the best of the industry, outperforming 93.75% of the companies in the same industry.
In the last couple of years the Operating Margin of PHM has grown nicely.
Looking at the Gross Margin, with a value of 29.09%, PHM is in line with its industry, outperforming 59.38% of the companies in the same industry.
PHM's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 21.85% | ||
| PM (TTM) | 17.18% | ||
| GM | 29.09% |
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.
PHM has less shares outstanding than it did 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
An Altman-Z score of 5.51 indicates that PHM is not in any danger for bankruptcy at the moment.
The Altman-Z score of PHM (5.51) is better than 89.06% of its industry peers.
The Debt to FCF ratio of PHM is 1.38, which is an excellent value as it means it would take PHM, only 1.38 years of fcf income to pay off all of its debts.
PHM has a better Debt to FCF ratio (1.38) than 76.56% of its industry peers.
PHM has a Debt/Equity ratio of 0.18. This is a healthy value indicating a solid balance between debt and equity.
PHM has a Debt to Equity ratio of 0.18. This is in the better half of the industry: PHM outperforms 68.75% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.18 | ||
| Debt/FCF | 1.38 | ||
| Altman-Z | 5.51 |
ROIC/WACC2.35
WACC8.22%
2.3 Liquidity
A Current Ratio of 6.07 indicates that PHM has no problem at all paying its short term obligations.
PHM's Current ratio of 6.07 is amongst the best of the industry. PHM outperforms 81.25% of its industry peers.
A Quick Ratio of 0.80 indicates that PHM may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.80, PHM is doing worse than 60.94% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 6.07 | ||
| Quick Ratio | 0.8 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 25.74% over the past year.
PHM shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 32.15% yearly.
Looking at the last year, PHM shows a quite strong growth in Revenue. The Revenue has grown by 11.74% 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)25.74%
EPS 3Y25.56%
EPS 5Y32.15%
EPS Q2Q%35.06%
Revenue 1Y (TTM)11.74%
Revenue growth 3Y9.32%
Revenue growth 5Y11.94%
Sales Q2Q%14.63%
3.2 Future
PHM is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 2.37% yearly.
PHM is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.45% yearly.
EPS Next Y-14.83%
EPS Next 2Y-2.4%
EPS Next 3Y2.37%
EPS Next 5YN/A
Revenue Next Year1.55%
Revenue Next 2Y3.55%
Revenue Next 3Y4.45%
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
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 6.54, which indicates a rather cheap valuation of PHM.
Based on the Price/Earnings ratio, PHM is valued a bit cheaper than 75.00% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 28.29. PHM is valued rather cheaply when compared to this.
Based on the Price/Forward Earnings ratio of 7.68, the valuation of PHM can be described as very cheap.
PHM's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. PHM is cheaper than 68.75% 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 21.08.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.54 | ||
| Fwd PE | 7.68 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, PHM is valued cheaply inside the industry as 87.50% of the companies are valued more expensively.
67.19% 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 | 12.25 | ||
| EV/EBITDA | 4.77 |
4.3 Compensation for Growth
The excellent profitability rating of PHM may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.2
EPS Next 2Y-2.4%
EPS Next 3Y2.37%
5. Dividend
5.1 Amount
PHM has a yearly dividend return of 0.94%, which is pretty low.
PHM's Dividend Yield is a higher than the industry average which is at 3.80.
With a Dividend Yield of 0.94, PHM pays less dividend than the S&P500 average, which is at 2.57.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.94% |
5.2 History
On average, the dividend of PHM grows each year by 12.52%, which is quite nice.
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 5.44% of its income as dividend. This is a sustainable payout ratio.
PHM's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP5.44%
EPS Next 2Y-2.4%
EPS Next 3Y2.37%
94.95
+2.09 (+2.25%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryHousehold Durables
Earnings (Last)
Earnings (Next)
Inst Owners94.76%
Inst Owner Change0.05%
Ins Owners0.64%
Ins Owner Change0.28%
Market Cap19.14B
Analysts77.27
Price Target137.56 (44.88%)
Short Float %2.35%
Short Ratio2.07
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.94% |
Yearly Dividend0.81
Dividend Growth(5Y)12.52%
DP5.44%
Div Incr Years7
Div Non Decr Years11
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)20.44%
Min EPS beat(2)6.7%
Max EPS beat(2)34.18%
EPS beat(4)4
Avg EPS beat(4)19.78%
Min EPS beat(4)6.7%
Max EPS beat(4)34.18%
EPS beat(8)8
Avg EPS beat(8)15.99%
EPS beat(12)11
Avg EPS beat(12)12.82%
EPS beat(16)14
Avg EPS beat(16)10.34%
Revenue beat(2)2
Avg Revenue beat(2)4.51%
Min Revenue beat(2)3.91%
Max Revenue beat(2)5.12%
Revenue beat(4)4
Avg Revenue beat(4)4.89%
Min Revenue beat(4)1.36%
Max Revenue beat(4)9.18%
Revenue beat(8)6
Avg Revenue beat(8)3.13%
Revenue beat(12)9
Avg Revenue beat(12)8.86%
Revenue beat(16)11
Avg Revenue beat(16)10.89%
PT rev (1m)-0.89%
PT rev (3m)-8.5%
EPS NQ rev (1m)-0.71%
EPS NQ rev (3m)-10.61%
EPS NY rev (1m)-0.42%
EPS NY rev (3m)-9.04%
Revenue NQ rev (1m)-0.33%
Revenue NQ rev (3m)-4.7%
Revenue NY rev (1m)-0.78%
Revenue NY rev (3m)-2.53%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.54 | ||
| Fwd PE | 7.68 | ||
| P/S | 1.07 | ||
| P/FCF | 12.25 | ||
| P/OCF | 11.39 | ||
| P/B | 1.58 | ||
| P/tB | 1.59 | ||
| EV/EBITDA | 4.77 |
EPS(TTM)14.51
EY15.28%
EPS(NY)12.36
Fwd EY13.02%
FCF(TTM)7.75
FCFY8.16%
OCF(TTM)8.34
OCFY8.78%
SpS89.03
BVpS60.13
TBVpS59.56
PEG (NY)N/A
PEG (5Y)0.2
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 17.76% | ||
| ROE | 25.44% | ||
| ROCE | 26.21% | ||
| ROIC | 19.28% | ||
| ROICexc | 21.53% | ||
| ROICexgc | 23.61% | ||
| OM | 21.85% | ||
| PM (TTM) | 17.18% | ||
| GM | 29.09% | ||
| FCFM | 8.7% |
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-Score6
Asset Turnover1.03
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.18 | ||
| Debt/FCF | 1.38 | ||
| Debt/EBITDA | 0.54 | ||
| Cap/Depr | 132.96% | ||
| Cap/Sales | 0.66% | ||
| Interest Coverage | 150.51 | ||
| Cash Conversion | 41.91% | ||
| Profit Quality | 50.67% | ||
| Current Ratio | 6.07 | ||
| Quick Ratio | 0.8 | ||
| Altman-Z | 5.51 |
F-Score6
WACC8.22%
ROIC/WACC2.35
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)25.74%
EPS 3Y25.56%
EPS 5Y32.15%
EPS Q2Q%35.06%
EPS Next Y-14.83%
EPS Next 2Y-2.4%
EPS Next 3Y2.37%
EPS Next 5YN/A
Revenue 1Y (TTM)11.74%
Revenue growth 3Y9.32%
Revenue growth 5Y11.94%
Sales Q2Q%14.63%
Revenue Next Year1.55%
Revenue Next 2Y3.55%
Revenue Next 3Y4.45%
Revenue Next 5YN/A
EBIT growth 1Y15.11%
EBIT growth 3Y15.32%
EBIT growth 5Y24.01%
EBIT Next Year-6.91%
EBIT Next 3Y1.62%
EBIT Next 5YN/A
FCF growth 1Y-25.77%
FCF growth 3Y18.82%
FCF growth 5Y8.95%
OCF growth 1Y-23.49%
OCF growth 3Y18.74%
OCF growth 5Y9.33%