PULTEGROUP INC (PHM) Stock Fundamental Analysis
NYSE:PHM - New York Stock Exchange, Inc. - US7458671010 - Common Stock
We assign a fundamental rating of 7 out of 10 to PHM. PHM was compared to 67 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 scores decently on growth, while it is valued quite cheap. This could make an interesting combination. 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.
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
With an excellent Return On Assets value of 16.98%, PHM belongs to the best of the industry, outperforming 96.92% of the companies in the same industry.
With an excellent Return On Equity value of 24.89%, PHM belongs to the best of the industry, outperforming 87.69% of the companies in the same industry.
With an excellent Return On Invested Capital value of 19.79%, PHM belongs to the best of the industry, outperforming 95.38% 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 11.99%.
The last Return On Invested Capital (19.79%) for PHM is above the 3 year average (18.34%), which is a sign of increasing profitability.
| 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
The Profit Margin of PHM (16.62%) is better than 93.85% of its industry peers.
PHM's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 21.28%, PHM belongs to the top of the industry, outperforming 93.85% of the companies in the same industry.
In the last couple of years the Operating Margin of PHM has grown nicely.
PHM's Gross Margin of 29.54% is in line compared to the rest of the industry. PHM outperforms 60.00% of its industry peers.
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
The number of shares outstanding for PHM has been reduced compared to 5 years ago.
Compared to 1 year ago, PHM has an improved debt to assets ratio.
2.2 Solvency
PHM has an Altman-Z score of 5.81. This indicates that PHM is financially healthy and has little risk of bankruptcy at the moment.
With an excellent Altman-Z score value of 5.81, PHM belongs to the best of the industry, outperforming 84.62% of the companies in the same industry.
The Debt to FCF ratio of PHM is 1.67, which is an excellent value as it means it would take PHM, only 1.67 years of fcf income to pay off 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 73.85% of the companies in the same industry.
PHM has a Debt/Equity ratio of 0.19. This is a healthy value indicating a solid balance between debt and equity.
With a decent Debt to Equity ratio value of 0.19, PHM is doing good in the industry, outperforming 69.23% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.19 | ||
| Debt/FCF | 1.67 | ||
| Altman-Z | 5.81 |
ROIC/WACC2.33
WACC8.48%
2.3 Liquidity
A Current Ratio of 4.17 indicates that PHM has no problem at all paying its short term obligations.
PHM has a better Current ratio (4.17) than 72.31% of its industry peers.
A Quick Ratio of 0.42 indicates that PHM may have some problems paying its short term obligations.
PHM has a worse Quick ratio (0.42) than 90.77% 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.
PHM shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 25.08% yearly.
PHM shows a small growth in Revenue. In the last year, the Revenue has grown by 2.24%.
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
Based on estimates for the next years, PHM will show a quite strong growth in Earnings Per Share. The EPS will grow by 9.14% on average per year.
PHM is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.77% yearly.
EPS Next Y18.5%
EPS Next 2Y8.51%
EPS Next 3Y9.14%
EPS Next 5YN/A
Revenue Next Year8.81%
Revenue Next 2Y6.46%
Revenue Next 3Y6.77%
Revenue Next 5YN/A
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
PHM is valuated reasonably with a Price/Earnings ratio of 8.67.
Compared to the rest of the industry, the Price/Earnings ratio of PHM indicates a somewhat cheap valuation: PHM is cheaper than 76.92% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 28.29. PHM is valued rather cheaply when compared to this.
With a Price/Forward Earnings ratio of 8.52, 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 70.77% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 24.44, PHM is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.67 | ||
| Fwd PE | 8.52 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of PHM indicates a rather cheap valuation: PHM is cheaper than 83.08% of the companies listed in the same industry.
63.08% 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 | 18.51 | ||
| EV/EBITDA | 6.36 |
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)0.47
PEG (5Y)0.35
EPS Next 2Y8.51%
EPS Next 3Y9.14%
5. Dividend
5.1 Amount
PHM has a yearly dividend return of 0.75%, which is pretty low.
Compared to an average industry Dividend Yield of 2.90, PHM pays a bit more dividend than its industry peers.
With a Dividend Yield of 0.75, PHM pays less dividend than the S&P500 average, which is at 2.28.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.75% |
5.2 History
On average, the dividend of PHM grows each year by 12.00%, 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 their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)12%
Div Incr Years7
Div Non Decr Years11
5.3 Sustainability
5.60% of the earnings are spent on dividend by PHM. This is a low number and 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 2Y8.51%
EPS Next 3Y9.14%
PULTEGROUP INC
NYSE:PHM (1/21/2025, 8:20:30 PM)
After market: 115.198 -0.61 (-0.53%)115.81
-1.22 (-1.04%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryHousehold Durables
Earnings (Last)
Earnings (Next)
Inst Owners93.14%
Inst Owner Change-0.26%
Ins Owners0.62%
Ins Owner Change-3.38%
Market Cap23.75B
Analysts74.55
Price Target150.35 (29.82%)
Short Float %2.36%
Short Ratio2.65
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.75% |
Yearly Dividend0.65
Dividend Growth(5Y)12%
DP5.6%
Div Incr Years7
Div Non Decr Years11
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)10.47%
Min EPS beat(2)6.7%
Max EPS beat(2)14.24%
EPS beat(4)4
Avg EPS beat(4)11.44%
Min EPS beat(4)0.8%
Max EPS beat(4)24.01%
EPS beat(8)8
Avg EPS beat(8)14.55%
EPS beat(12)11
Avg EPS beat(12)10.62%
EPS beat(16)14
Avg EPS beat(16)9.12%
Revenue beat(2)2
Avg Revenue beat(2)2.63%
Min Revenue beat(2)1.36%
Max Revenue beat(2)3.91%
Revenue beat(4)3
Avg Revenue beat(4)2.35%
Min Revenue beat(4)-5.05%
Max Revenue beat(4)9.18%
Revenue beat(8)6
Avg Revenue beat(8)3.94%
Revenue beat(12)9
Avg Revenue beat(12)8.63%
Revenue beat(16)11
Avg Revenue beat(16)10.64%
PT rev (1m)-2.51%
PT rev (3m)2.54%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-3.23%
EPS NY rev (1m)0%
EPS NY rev (3m)1%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)3.82%
Revenue NY rev (1m)-0.08%
Revenue NY rev (3m)1.69%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.67 | ||
| Fwd PE | 8.52 | ||
| P/S | 1.37 | ||
| P/FCF | 18.51 | ||
| P/OCF | 16.95 | ||
| P/B | 2.05 | ||
| P/tB | 2.07 | ||
| EV/EBITDA | 6.36 |
EPS(TTM)13.36
EY11.54%
EPS(NY)13.59
Fwd EY11.73%
FCF(TTM)6.26
FCFY5.4%
OCF(TTM)6.83
OCFY5.9%
SpS84.45
BVpS56.39
TBVpS55.81
PEG (NY)0.47
PEG (5Y)0.35
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 16.98% | ||
| ROE | 24.89% | ||
| ROCE | 27.12% | ||
| ROIC | 19.79% | ||
| ROICexc | 21.96% | ||
| ROICexgc | 25.92% | ||
| OM | 21.28% | ||
| PM (TTM) | 16.62% | ||
| GM | 29.54% | ||
| FCFM | 7.41% |
ROA(3y)16.05%
ROA(5y)13.79%
ROE(3y)26.64%
ROE(5y)23.91%
ROIC(3y)18.34%
ROIC(5y)15.59%
ROICexc(3y)20.83%
ROICexc(5y)18.16%
ROICexgc(3y)22.2%
ROICexgc(5y)19.33%
ROCE(3y)25.36%
ROCE(5y)21.5%
ROICexcg growth 3Y8.79%
ROICexcg growth 5Y11.18%
ROICexc growth 3Y8.34%
ROICexc growth 5Y10.62%
OM growth 3Y10.22%
OM growth 5Y9.91%
PM growth 3Y8.52%
PM growth 5Y10.22%
GM growth 3Y5.44%
GM growth 5Y4.84%
F-Score6
Asset Turnover1.02
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.19 | ||
| Debt/FCF | 1.67 | ||
| Debt/EBITDA | 0.57 | ||
| Cap/Depr | 137.98% | ||
| Cap/Sales | 0.69% | ||
| Interest Coverage | 185.38 | ||
| Cash Conversion | 37.16% | ||
| Profit Quality | 44.57% | ||
| Current Ratio | 4.17 | ||
| Quick Ratio | 0.42 | ||
| Altman-Z | 5.81 |
F-Score6
WACC8.48%
ROIC/WACC2.33
Cap/Depr(3y)125.66%
Cap/Depr(5y)114.59%
Cap/Sales(3y)0.6%
Cap/Sales(5y)0.58%
Profit Quality(3y)50.26%
Profit Quality(5y)75.16%
High Growth Momentum
Growth
EPS 1Y (TTM)12.36%
EPS 3Y33.5%
EPS 5Y25.08%
EPS Q2Q%15.12%
EPS Next Y18.5%
EPS Next 2Y8.51%
EPS Next 3Y9.14%
EPS Next 5YN/A
Revenue 1Y (TTM)2.24%
Revenue growth 3Y13.32%
Revenue growth 5Y9.53%
Sales Q2Q%11.82%
Revenue Next Year8.81%
Revenue Next 2Y6.46%
Revenue Next 3Y6.77%
Revenue Next 5YN/A
EBIT growth 1Y2.05%
EBIT growth 3Y24.91%
EBIT growth 5Y20.38%
EBIT Next Year11.02%
EBIT Next 3Y4.46%
EBIT Next 5YN/A
FCF growth 1Y2908.74%
FCF growth 3Y6.84%
FCF growth 5Y8.66%
OCF growth 1Y822.89%
OCF growth 3Y7.18%
OCF growth 5Y8.69%