PULTEGROUP INC (PHM) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:PHM - US7458671010 - Common Stock
125.16 USD
-2.61 (-2.04%)
125.16 USD
0 (0%)
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. PHM gets an excellent profitability rating and is at the same time showing great financial health properties. 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 96.67% 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.
- With an excellent Return On Invested Capital value of 17.01%, PHM belongs to the best of the industry, outperforming 96.67% of the companies in the same industry.
- The Average Return On Invested Capital over the past 3 years for PHM is significantly above the industry average of 9.71%.
| 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's Profit Margin of 14.93% is amongst the best of the industry. PHM outperforms 95.00% of its industry peers.
- PHM's Profit Margin has improved in the last couple of years.
- 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.
- PHM has a Gross Margin (27.15%) which is comparable to the rest of the industry.
- PHM's Gross Margin has improved in the last couple of years.
| 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.
- Compared to 1 year ago, PHM has less shares outstanding
- Compared to 5 years ago, PHM has less shares outstanding
- The debt/assets ratio for PHM has been reduced compared to a year ago.
2.2 Solvency
- An Altman-Z score of 6.13 indicates that PHM is not in any danger for bankruptcy at the moment.
- PHM has a Altman-Z score of 6.13. This is amongst the best in the industry. PHM outperforms 86.67% 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.
- Looking at the Debt to FCF ratio, with a value of 1.31, PHM is in the better half of the industry, outperforming 73.33% of the companies in the same industry.
- PHM has a Debt/Equity ratio of 0.16. This is a healthy value indicating a solid balance between debt and equity.
- PHM's Debt to Equity ratio of 0.16 is fine compared to the rest of the industry. PHM outperforms 70.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.16 | ||
| Debt/FCF | 1.31 | ||
| Altman-Z | 6.13 |
ROIC/WACC1.86
WACC9.13%
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.
- With a decent Current ratio value of 5.08, PHM is doing good in 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's Quick ratio of 0.50 is on the low side compared to the rest of the industry. PHM is outperformed by 76.67% of its industry peers.
- 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
- PHM shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -2.77%.
- PHM shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 32.15% yearly.
- PHM shows a small growth in Revenue. In the last year, the Revenue has grown by 1.76%.
- 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)-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.
- 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-20.83%
EPS Next 2Y-12.58%
EPS Next 3Y-4.34%
EPS Next 5Y-3.61%
Revenue Next Year-4.04%
Revenue Next 2Y-3.24%
Revenue Next 3Y-0.93%
Revenue Next 5Y-1.28%
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 9.64, which indicates a very decent valuation of PHM.
- Based on the Price/Earnings ratio, PHM is valued a bit cheaper than the industry average as 75.00% of the companies are valued more expensively.
- PHM is valuated cheaply when we compare the Price/Earnings ratio to 27.21, which is the current average of the S&P500 Index.
- The Price/Forward Earnings ratio is 11.29, which indicates a very decent valuation of PHM.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of PHM indicates a somewhat cheap valuation: PHM is cheaper than 73.33% of the companies listed in the same industry.
- PHM is valuated cheaply when we compare the Price/Forward Earnings ratio to 24.26, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.64 | ||
| Fwd PE | 11.29 |
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.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of PHM indicates a somewhat cheap valuation: PHM is cheaper than 63.33% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.72 | ||
| EV/EBITDA | 7.12 |
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)0.3
EPS Next 2Y-12.58%
EPS Next 3Y-4.34%
5. Dividend
5.1 Amount
- With a yearly dividend of 0.78%, PHM is not a good candidate for dividend investing.
- PHM's Dividend Yield is a higher than the industry average which is at 1.16.
- With a Dividend Yield of 0.78, PHM pays less dividend than the S&P500 average, which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.78% |
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 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 6.65% of its income as dividend. This is a sustainable payout ratio.
DP6.65%
EPS Next 2Y-12.58%
EPS Next 3Y-4.34%
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%.