PULTEGROUP INC (PHM)
US7458671010 - Common Stock
We assign a fundamental rating of 7 out of 10 to PHM. PHM was compared to 64 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. A decent growth rate in combination with a cheap valuation! Better keep an eye on PHM. These ratings would make PHM suitable for value and quality investing!
1. Profitability
1.1 Basic Checks
In the past year PHM was profitable.
PHM had a positive operating cash flow in the past year.
In the past 5 years PHM has always been profitable.
Each year in the past 5 years PHM had a positive operating cash flow.
1.2 Ratios
PHM's Return On Assets of 16.98% is amongst the best of the industry. PHM outperforms 96.77% of its industry peers.
PHM's Return On Equity of 24.89% is amongst the best of the industry. PHM outperforms 87.10% of its industry peers.
Looking at the Return On Invested Capital, with a value of 19.79%, PHM belongs to the top of the industry, outperforming 96.77% 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 10.82%.
The 3 year average ROIC (18.34%) for PHM is below the current ROIC(19.79%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 16.98% | ||
| ROE | 24.89% | ||
| ROIC | 19.79% |
ROA(3y)16.05%
ROA(5y)13.79%
ROE(3y)26.64%
ROE(5y)23.91%
ROIC(3y)18.34%
ROIC(5y)15.59%
1.3 Margins
Looking at the Profit Margin, with a value of 16.62%, PHM belongs to the top of the industry, outperforming 93.55% of the companies in the same industry.
In the last couple of years the Profit Margin of PHM has grown nicely.
PHM has a Operating Margin of 21.28%. This is amongst the best in the industry. PHM outperforms 95.16% of its industry peers.
PHM's Operating Margin has improved in the last couple of years.
With a Gross Margin value of 29.54%, PHM perfoms like the industry average, outperforming 59.68% of the companies in the same industry.
PHM's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 21.28% | ||
| PM (TTM) | 16.62% | ||
| GM | 29.54% |
OM growth 3Y10.22%
OM growth 5Y9.91%
PM growth 3Y8.52%
PM growth 5Y10.22%
GM growth 3Y5.44%
GM growth 5Y4.84%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), PHM is creating value.
Compared to 1 year ago, PHM has less shares outstanding
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 6.09 indicates that PHM is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 6.09, PHM belongs to the top of the industry, outperforming 87.10% of the companies in the same industry.
PHM has a debt to FCF ratio of 1.67. This is a very positive value and a sign of high solvency as it would only need 1.67 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 1.67, PHM is in the better half of the industry, outperforming 72.58% of the companies in the same industry.
A Debt/Equity ratio of 0.19 indicates that PHM is not too dependend on debt financing.
With a decent Debt to Equity ratio value of 0.19, PHM is doing good in the industry, outperforming 67.74% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.19 | ||
| Debt/FCF | 1.67 | ||
| Altman-Z | 6.09 |
ROIC/WACC2.24
WACC8.84%
2.3 Liquidity
PHM has a Current Ratio of 4.17. This indicates that PHM is financially healthy and has no problem in meeting its short term obligations.
PHM has a Current ratio of 4.17. This is in the better half of the industry: PHM outperforms 70.97% of its industry peers.
PHM has a Quick Ratio of 4.17. 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's Quick ratio of 0.42 is on the low side compared to the rest of the industry. PHM is outperformed by 88.71% 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 | 4.17 | ||
| Quick Ratio | 0.42 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 12.36% 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 25.08% on average per year.
The Revenue has been growing slightly by 2.24% in the past year.
Measured over the past years, PHM shows a quite strong growth in Revenue. The Revenue has been growing by 9.53% on average per year.
EPS 1Y (TTM)12.36%
EPS 3Y33.5%
EPS 5Y25.08%
EPS Q2Q%15.12%
Revenue 1Y (TTM)2.24%
Revenue growth 3Y13.32%
Revenue growth 5Y9.53%
Sales Q2Q%11.82%
3.2 Future
The Earnings Per Share is expected to grow by 9.14% on average over the next years. This is quite good.
The Revenue is expected to grow by 6.68% on average over the next years.
EPS Next Y18.51%
EPS Next 2Y8.7%
EPS Next 3Y9.14%
EPS Next 5YN/A
Revenue Next Year8.89%
Revenue Next 2Y6.57%
Revenue Next 3Y6.68%
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 9.59, which indicates a very decent valuation of PHM.
Compared to the rest of the industry, the Price/Earnings ratio of PHM indicates a somewhat cheap valuation: PHM is cheaper than 75.81% of the companies listed in the same industry.
PHM is valuated cheaply when we compare the Price/Earnings ratio to 28.96, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 9.40, the valuation of PHM can be described as very reasonable.
PHM's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. PHM is cheaper than 75.81% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.82, PHM is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.59 | ||
| Fwd PE | 9.4 |
4.2 Price Multiples
82.26% of the companies in the same industry are more expensive than PHM, based on the Enterprise Value to EBITDA ratio.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of PHM indicates a somewhat cheap valuation: PHM is cheaper than 62.90% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 20.48 | ||
| EV/EBITDA | 7.02 |
4.3 Compensation for Growth
PHM's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
PHM has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)0.52
PEG (5Y)0.38
EPS Next 2Y8.7%
EPS Next 3Y9.14%
5. Dividend
5.1 Amount
With a yearly dividend of 0.68%, PHM is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 2.47, PHM pays a bit more dividend than its industry peers.
With a Dividend Yield of 0.68, PHM pays less dividend than the S&P500 average, which is at 2.23.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.68% |
5.2 History
The dividend of PHM is nicely growing with an annual growth rate of 12.00%!
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%
Div Incr Years6
Div Non Decr Years10
5.3 Sustainability
PHM pays out 5.60% of its income as dividend. This is a sustainable payout ratio.
The dividend of PHM is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP5.6%
EPS Next 2Y8.7%
EPS Next 3Y9.14%
PULTEGROUP INC
NYSE:PHM (11/21/2024, 6:30:00 PM)
After market: 128 -0.12 (-0.09%)128.12
+0.06 (+0.05%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryHousehold Durables
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap26.27B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.68% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.59 | ||
| Fwd PE | 9.4 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)0.52
PEG (5Y)0.38
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 16.98% | ||
| ROE | 24.89% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 21.28% | ||
| PM (TTM) | 16.62% | ||
| GM | 29.54% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover1.02
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.19 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 4.17 | ||
| Quick Ratio | 0.42 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)12.36%
EPS 3Y33.5%
EPS 5Y
EPS Q2Q%
EPS Next Y18.51%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)2.24%
Revenue growth 3Y13.32%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y