PulteGroup, Inc.
PulteGroup, Inc. Fundamental Analysis
PulteGroup, Inc. (PHM) shows moderate financial fundamentals with a PE ratio of 12.08, profit margin of 12.14%, and ROE of 15.92%. The company generates $16.9B in annual revenue with weak year-over-year growth of -3.54%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 62.6/100 based on profitability, valuation, growth, and balance sheet metrics. The C+ grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze PHM's fundamental strength across five key dimensions:
Efficiency Score
ExcellentPHM demonstrates superior asset utilization.
Valuation Score
ExcellentPHM trades at attractive valuation levels.
Growth Score
WeakPHM faces weak or negative growth trends.
Financial Health Score
ExcellentPHM maintains a strong and stable balance sheet.
Profitability Score
ModeratePHM maintains healthy but balanced margins.
Key Financial Metrics
Is PHM Expensive or Cheap?
P/E Ratio
PHM trades at 12.08 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, PHM's PEG of -0.49 indicates potential undervaluation.
Price to Book
The market values PulteGroup, Inc. at 1.91 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 8.79 times EBITDA. This is generally considered low.
How Well Does PHM Make Money?
Net Profit Margin
For every $100 in sales, PulteGroup, Inc. keeps $12.14 as profit after all expenses.
Operating Margin
Core operations generate 16.41 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $15.92 in profit for every $100 of shareholder equity.
ROA
PulteGroup, Inc. generates $11.23 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
PulteGroup, Inc. produces operating cash flow of $1.74B, showing steady but balanced cash generation.
Free Cash Flow
PulteGroup, Inc. produces free cash flow of $1.65B, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $8.58 in free cash annually.
FCF Yield
PHM converts 6.66% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
12.08
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-0.49
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.91
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.47
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.18
vs 25 benchmark
Current Ratio
Current assets to current liabilities
5.28
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.16
vs 25 benchmark
ROA
Return on assets percentage
0.11
vs 25 benchmark
ROCE
Return on capital employed
0.18
vs 25 benchmark
How PHM Stacks Against Its Sector Peers
| Metric | PHM Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 12.08 | 24.18 | Better (Cheaper) |
| ROE | 15.92% | 1174.00% | Weak |
| Net Margin | 12.14% | 783.00% | Weak |
| Debt/Equity | 0.18 | 0.79 | Strong (Low Leverage) |
| Current Ratio | 5.28 | 2.59 | Strong Liquidity |
| ROA | 11.23% | -8308.00% (disorted) | Strong |
PHM outperforms its industry in 4 out of 6 key metrics, particularly excelling in ROA, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews PulteGroup, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
112.80%
Industry Style: Cyclical, Growth, Discretionary
High GrowthEPS CAGR
113.94%
Industry Style: Cyclical, Growth, Discretionary
High GrowthFCF CAGR
42.26%
Industry Style: Cyclical, Growth, Discretionary
High Growth