NYSE:PHM

Stock Analysis Report

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Market Cap

US$14.3b

Last Updated

2021/06/15 02:16 UTC

Data Sources

Company Financials +

Executive Summary

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


Snowflake Analysis

Flawless balance sheet and undervalued.


Similar Companies

Share Price & News

How has PulteGroup's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: PHM is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: PHM's weekly volatility (5%) has been stable over the past year.


Market Performance


7 Day Return

-5.6%

PHM

-4.7%

US Consumer Durables

0.8%

US Market


1 Year Return

49.9%

PHM

62.1%

US Consumer Durables

43.1%

US Market

Return vs Industry: PHM underperformed the US Consumer Durables industry which returned 62.1% over the past year.

Return vs Market: PHM exceeded the US Market which returned 43.1% over the past year.


Shareholder returns

PHMIndustryMarket
7 Day-5.6%-4.7%0.8%
30 Day-8.4%-5.7%3.0%
90 Day9.0%1.6%4.8%
1 Year51.6%49.9%63.7%62.1%45.5%43.1%
3 Year88.0%80.7%65.0%58.8%60.2%50.3%
5 Year200.3%180.4%86.5%73.2%126.4%101.0%

Long-Term Price Volatility Vs. Market

How volatile is PulteGroup's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

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

32.0%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: PHM ($53.53) is trading below our estimate of fair value ($78.78)

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


Price To Earnings Ratio

PE vs Industry: PHM is good value based on its PE Ratio (9.6x) compared to the US Consumer Durables industry average (15x).

PE vs Market: PHM is good value based on its PE Ratio (9.6x) compared to the US market (19.7x).


Price to Earnings Growth Ratio

PEG Ratio: PHM is good value based on its PEG Ratio (0.6x)


Price to Book Ratio

PB vs Industry: PHM's PB Ratio (2.1x) is in line with the US Consumer Durables industry average.


Future Growth

How is PulteGroup forecast to perform in the next 1 to 3 years based on estimates from 10 analysts?

15.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: PHM's forecast earnings growth (15.8% per year) is above the savings rate (2%).

Earnings vs Market: PHM's earnings (15.8% per year) are forecast to grow faster than the US market (15.5% per year).

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

Revenue vs Market: PHM's revenue (14.3% per year) is forecast to grow faster than the US market (9.3% per year).

High Growth Revenue: PHM's revenue (14.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if PHM's Return on Equity is forecast to be high in 3 years time


Past Performance

How has PulteGroup performed over the past 5 years?

21.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: PHM has high quality earnings.

Growing Profit Margin: PHM's current net profit margins (13%) are higher than last year (9.9%).


Past Earnings Growth Analysis

Earnings Trend: PHM's earnings have grown significantly by 21.9% per year over the past 5 years.

Accelerating Growth: PHM's earnings growth over the past year (43.2%) exceeds its 5-year average (21.9% per year).

Earnings vs Industry: PHM earnings growth over the past year (43.2%) underperformed the Consumer Durables industry 65.3%.


Return on Equity

High ROE: PHM's Return on Equity (22.5%) is considered high.


Financial Health

How is PulteGroup's financial position?


Financial Position Analysis

Short Term Liabilities: PHM's short term assets ($10.6B) exceed its short term liabilities ($2.0B).

Long Term Liabilities: PHM's short term assets ($10.6B) exceed its long term liabilities ($2.8B).


Debt to Equity History and Analysis

Debt Level: PHM's debt to equity ratio (34.4%) is considered satisfactory.

Reducing Debt: PHM's debt to equity ratio has reduced from 67.4% to 34.4% over the past 5 years.

Debt Coverage: PHM's debt is well covered by operating cash flow (76.3%).

Interest Coverage: PHM 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?

1.05%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: PHM's dividend (1.05%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.27%).

High Dividend: PHM's dividend (1.05%) is low compared to the top 25% of dividend payers in the US market (3.36%).


Stability and Growth of Payments

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

Growing Dividend: PHM's dividend payments have increased, but the company has only paid a dividend for 8 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (8.9%), PHM's dividend payments are thoroughly covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: PHM's dividends in 3 years are forecast to be thoroughly covered by earnings (6.5% payout ratio).


Next Steps

Management

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

4.3yrs

Average management tenure


CEO

Ryan Marshall (45 yo)

4.75yrs

Tenure

US$13,157,584

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 ($USD13.16M) is about average for companies of similar size in the US market ($USD11.15M).

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


Leadership Team

Experienced Management: PHM's management team is considered experienced (4.3 years average tenure).


Board Members

Experienced Board: PHM's board of directors are considered experienced (4.9 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: PHM insiders have only sold shares in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

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


Top Shareholders

Company Information

PulteGroup, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: PulteGroup, Inc.
  • Ticker: PHM
  • Exchange: NYSE
  • Founded: 1950
  • Industry: Homebuilding
  • Sector: Consumer Durables
  • Market Cap: US$14.290b
  • Shares outstanding: 262.97m
  • Website: https://www.pultegroup.com

Number of Employees


Location

  • PulteGroup, Inc.
  • 3350 Peachtree Road NE
  • Suite 150
  • Atlanta
  • Georgia
  • 30326
  • United States

Listings


Biography

PulteGroup, Inc., through its subsidiaries, primarily engages in the homebuilding business in the United States. The company acquires and develops land primarily for residential purposes; and constructs ho...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/06/15 02:16
End of Day Share Price2021/06/14 00:00
Earnings2021/03/31
Annual Earnings2020/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.