PulteGroup (BOVESPA:P1HM34) - Share price, News & Analysis

P1HM34 fundamental analysis
Snowflake Score
Valuation	4/6
Future Growth	1/6
Past Performance	6/6
Financial Health	6/6
Dividends	3/6

P1HM34 Stock Overview

PulteGroup, Inc., through its subsidiaries, primarily engages in the homebuilding business in the United States.

Rewards

Trading at 37.7% below our estimate of its fair value

Earnings grew by 39.2% over the past year

Risk Analysis

Shares are highly illiquid

Unstable dividend track record

PulteGroup Competitors

D.R. Horton

NYSE:DHI

US$24.5b

Lennar

NYSE:LEN

US$22.2b

NVR

NYSE:NVR

US$14.5b

Toll Brothers

NYSE:TOL

US$5.4b

Price History & Performance

Summary of all time highs, changes and price drops for PulteGroup
Historical stock prices
Current Share Price	US$214.50
52 Week High	US$331.18
52 Week Low	US$200.95
Beta	1.42
1 Month Change	0.23%
3 Month Change	-21.72%
1 Year Change	-33.55%
3 Year Change	n/a
5 Year Change	n/a
Change since IPO	37.70%

Shareholder Returns

	P1HM34	BR Consumer Durables	BR Market
7D	6.7%	-3.4%	-2.9%
1Y	-33.5%	-42.0%	-16.7%

Return vs Industry: P1HM34 exceeded the BR Consumer Durables industry which returned -42% over the past year.

Return vs Market: P1HM34 underperformed the BR Market which returned -16.7% over the past year.

Price Volatility

Is P1HM34's price volatile compared to industry and market?
P1HM34 volatility
P1HM34 Average Weekly Movement	n/a
Consumer Durables Industry Average Movement	6.7%
Market Average Movement	6.1%
10% most volatile stocks in BR Market	9.3%
10% least volatile stocks in BR Market	2.9%

Stable Share Price: Insufficient data to determine P1HM34's volatility over the past 3 months.

Volatility Over Time: Insufficient data to determine P1HM34's volatility change over the past year.

About the Company

Founded	Employees	CEO	Website
1950	6,182	Ryan Marshall	https://www.pultegroup.com

PulteGroup, Inc., through its subsidiaries, primarily engages in the homebuilding business in the United States. It acquires and develops land primarily for residential purposes; and constructs housing on such land. The company also offers various home designs, including single-family detached, townhomes, condominiums, and duplexes under the Centex, Pulte Homes, Del Webb, DiVosta Homes, American West, and John Wieland Homes and Neighborhoods brand names.

PulteGroup Fundamentals Summary

How do PulteGroup's earnings and revenue compare to its market cap?
P1HM34 fundamental statistics
Market Cap	US$9.92b
Earnings (TTM)	US$2.08b
Revenue (TTM)	US$14.38b

4.8x

P/E Ratio

0.7x

P/S Ratio

Is P1HM34 overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
P1HM34 income statement (TTM)
Revenue	US$14.38b
Cost of Revenue	US$10.23b
Gross Profit	US$3.98b
Other Expenses	US$1.90b
Earnings	US$2.08b

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	8.75
Gross Margin	27.70%
Net Profit Margin	14.46%
Debt/Equity Ratio	32.8%

How did P1HM34 perform over the long term?

See historical performance and comparison

Dividends

1.4%

Current Dividend Yield

7%

Payout Ratio

Valuation

Is PulteGroup undervalued compared to its fair value and its price relative to the market?

Valuation Score

4/6

Valuation Score 4/6

Below Fair Value
Significantly Below Fair Value
PE vs Industry
PE vs Market
PEG Ratio
PB vs Industry

37.7%

Undervalued compared to fair value

Share Price vs. Fair Value

Below Fair Value: P1HM34 (R$214.5) is trading below our estimate of fair value (R$344.21)

Significantly Below Fair Value: P1HM34 is trading below fair value by more than 20%.

Price To Earnings Ratio

PE vs Industry: P1HM34 is good value based on its PE Ratio (4.8x) compared to the BR Consumer Durables industry average (6.8x).

PE vs Market: P1HM34 is good value based on its PE Ratio (4.8x) compared to the BR market (9.6x).

Price to Earnings Growth Ratio

PEG Ratio: P1HM34 is poor value based on its PEG Ratio (18x)

Price to Book Ratio

PB vs Industry: P1HM34 is overvalued based on its PB Ratio (1.3x) compared to the BR Consumer Durables industry average (0.8x).

Future Growth

How is PulteGroup forecast to perform in the next 1 to 3 years based on estimates from 13 analysts?

Future Growth Score

1/6

Future Growth Score 1/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

0.3%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: P1HM34's forecast earnings growth (0.3% per year) is below the savings rate (9.1%).

Earnings vs Market: P1HM34's earnings (0.3% per year) are forecast to grow slower than the BR market (6% per year).

High Growth Earnings: P1HM34's earnings are forecast to grow, but not significantly.

Revenue vs Market: P1HM34's revenue (6% per year) is forecast to grow slower than the BR market (7.7% per year).

High Growth Revenue: P1HM34's revenue (6% per year) is forecast to grow slower than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: P1HM34's Return on Equity is forecast to be high in 3 years time (25.3%)

Past Performance

How has PulteGroup performed over the past 5 years?

Past Performance Score

6/6

Past Performance Score 6/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

26.2%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: P1HM34 has high quality earnings.

Growing Profit Margin: P1HM34's current net profit margins (14.5%) are higher than last year (13%).

Past Earnings Growth Analysis

Earnings Trend: P1HM34's earnings have grown significantly by 26.2% per year over the past 5 years.

Accelerating Growth: P1HM34's earnings growth over the past year (39.2%) exceeds its 5-year average (26.2% per year).

Earnings vs Industry: P1HM34 earnings growth over the past year (39.2%) exceeded the Consumer Durables industry 37.6%.

Return on Equity

High ROE: P1HM34's Return on Equity (28.3%) is considered high.

Financial Health

How is PulteGroup's financial position?

Financial Health Score

6/6

Financial Health Score 6/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: P1HM34's short term assets ($12.1B) exceed its short term liabilities ($2.5B).

Long Term Liabilities: P1HM34's short term assets ($12.1B) exceed its long term liabilities ($3.3B).

Debt to Equity History and Analysis

Debt Level: P1HM34's net debt to equity ratio (17.1%) is considered satisfactory.

Reducing Debt: P1HM34's debt to equity ratio has reduced from 70.2% to 32.8% over the past 5 years.

Debt Coverage: P1HM34's debt is well covered by operating cash flow (42.6%).

Interest Coverage: P1HM34 earns more interest than it pays, so coverage of interest payments is not a concern.

Balance Sheet

Dividend

What is PulteGroup current dividend yield, its reliability and sustainability?

Dividend Score

3/6

Dividend Score 3/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

1.44%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: P1HM34's dividend (1.44%) is higher than the bottom 25% of dividend payers in the BR market (1.4%).

High Dividend: P1HM34's dividend (1.44%) is low compared to the top 25% of dividend payers in the BR market (6.58%).

Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, P1HM34 has been paying a dividend for less than 10 years.

Growing Dividend: P1HM34's dividend payments have increased, but the company has only paid a dividend for 9 years.

Earnings Payout to Shareholders

Earnings Coverage: With its low payout ratio (7%), P1HM34's dividend payments are thoroughly covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: With its low cash payout ratio (15.1%), P1HM34's dividend payments are well covered by cash flows.

Next Steps

Explore strong dividend paying companies in the Consumer Durables industry.

Management

How experienced are the management team and are they aligned to shareholders interests?

5.2yrs

Average management tenure

CEO

Ryan Marshall (46 yo)

6.17yrs

Tenure

US$16,149,555

Compensation

Mr. Ryan R. Marshall serves as Director at Floor & Decor Holdings, Inc. since January 1, 2021. He has been the Chief Executive Officer of PulteGroup, Inc. since September 8, 2016 and its President since Fe...

CEO Compensation Analysis

Compensation vs Market: Ryan's total compensation ($USD16.15M) is above average for companies of similar size in the BR market ($USD6.47M).

Compensation vs Earnings: Ryan's compensation has increased by more than 20% in the past year.

Leadership Team

Experienced Management: P1HM34's management team is seasoned and experienced (5.2 years average tenure).

Board Members

Experienced Board: P1HM34's board of directors are considered experienced (6.3 years average tenure).

Ownership

Who are the major shareholders and have insiders been buying or selling?

Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.

Data	Last Updated (UTC time)
Company Analysis	2022/05/01 00:00
End of Day Share Price	2022/04/29 00:00
Earnings	2022/03/31
Annual Earnings	2021/12/31