| Snowflake Score | |
|---|---|
| Valuation | 4/6 |
| Future Growth | 1/6 |
| Past Performance | 6/6 |
| Financial Health | 6/6 |
| Dividends | 2/6 |
PHM Stock Overview
PulteGroup, Inc., through its subsidiaries, primarily engages in the homebuilding business in the United States.
Rewards
Price-To-Earnings ratio (4.2x) is below the US market (14.3x)
Trading at good value vs. peer average Price-To-Earnings ratio
Trading at good value vs. industry average Price-To-Earnings ratio
Analysts in good agreement that stock price will rise by 24.5%
Risk Analysis
Earnings are forecast to decline by an average of 10.3% per year for the next 3 years
PulteGroup Competitors
Price History & Performance
| Historical stock prices | |
|---|---|
| Current Share Price | US$40.86 |
| 52 Week High | US$58.09 |
| 52 Week Low | US$35.03 |
| Beta | 1.3 |
| 1 Month Change | 1.01% |
| 3 Month Change | -6.24% |
| 1 Year Change | -13.05% |
| 3 Year Change | 10.73% |
| 5 Year Change | 51.50% |
| Change since IPO | 2,624.00% |
Recent News & Updates
PulteGroup: Comparing Corporate Governance With Peers
Summary PulteGroup, Inc. has been accused of overpaying executives; however, my analysis shows that Pulte’s CEO pay is in line with peers. On corporate governance overall, PulteGroup can improve by increasing transparency and insider ownership, whilst slimming the board. The corporate governance scores that I calculated have a weak relationship with return on capital. The percentage of options used to control land has a much stronger relationship. Homebuilders Corporate Governance Comparison The comments received in response to my recent article on PulteGroup, Inc. (PHM) ("Pulte") highlighted that Pulte's management team might be overpaid. I decided to look deeper into this assertion and did an analysis of the corporate governance of Pulte and the ten largest homebuilders by reviewing their proxy statements. The metrics within the proxy statements that I looked at were: 1. Inclusion of letter to shareholders, 2. Number of board of directors, 3. CEO total pay as percentage of market capitalization, 4. Inside ownership by directors and executives, and 5. Existence of dual share classes. The companies were given a score based on a criteria that took account for best practices. The scores I gave were completely subjective. I gave a score of 3 points for best performance, 2 points for average, and 1 point for below average. Proxy Overview (Company Filings) 1. Inclusion of letter to shareholders Studies have shown that increase in transparency can lead to higher share prices. Four companies included shareholder letters, scoring 3 points, those that did not include a letter received 1 point. 2. Number of board of directors Studies have also shown that a smaller number of persons on the board of directors can lead to higher shareholder returns. The stand-out in this category was D.R. Horton (DHI). The company has the smallest board along with LGI Homes (LGI), despite having the largest market capitalization. 3. CEO total pay as percentage of market capitalization The third metric I looked at was the total CEO or Executive Chairman pay as a percentage of market capitalization. Research has shown that there is no correlation between total pay and company performance. The stand-out in the group was NVR, Inc (NVR) with total compensation as a percentage of market capitalization of 0.3%. The worst was M.D.C. Holdings (MDC), where the company paid out a full 1% of the company's market cap in executive compensation in 2021. Overall, most of the companies had base salaries of around $1 million. 4. Inside ownership by directors and executives The most powerful link between shareholder wealth and executive wealth is direct stock ownership by the CEO, according to studies. The fourth metrics that I looked at was the insider ownership of stock that the board and the executives had. The companies with the highest insider ownership were Lennar (LEN), MDC, LGI, NVR and DHI. 5. Existence of dual share class. It has been shown that dual-class stocks tend to underperform the stock market. Only Lennar has dual class stock ownership, and it scores negatively because of it. Corporate Governance Scores (Author Calcs) Summary In total, the best corporate governance performance was scored by DHI with 14 points, followed by NVR, MDC and LGI. Pulte's score was the lowest, with LEN, THMC and MTH. Pulte's score can be improved through higher shareholder transparency via a shareholder letter, a smaller board, and higher insider ownership.
PulteGroup declares goes ex-dividend tomorrrow
PulteGroup (NYSE:PHM) hasd declared $0.15/share quarterly dividend, in line with previous. Payable Oct. 4; for shareholders of record Sept. 22; ex-div Sept. 21. See PHM Dividend Scorecard, Yield Chart, & Dividend Growth.
PulteGroup's (NYSE:PHM) Dividend Will Be $0.15
The board of PulteGroup, Inc. ( NYSE:PHM ) has announced that it will pay a dividend of $0.15 per share on the 4th of...
Do PulteGroup's (NYSE:PHM) Earnings Warrant Your Attention?
For beginners, it can seem like a good idea (and an exciting prospect) to buy a company that tells a good story to...
Shareholder Returns
| PHM | US Consumer Durables | US Market | |
|---|---|---|---|
| 7D | 3.6% | 2.7% | 1.9% |
| 1Y | -13.0% | -28.4% | -18.8% |
Return vs Industry: PHM exceeded the US Consumer Durables industry which returned -27.6% over the past year.
Return vs Market: PHM exceeded the US Market which returned -18.2% over the past year.
Price Volatility
| PHM volatility | |
|---|---|
| PHM Average Weekly Movement | 5.4% |
| Consumer Durables Industry Average Movement | 6.4% |
| Market Average Movement | 7.0% |
| 10% most volatile stocks in US Market | 15.5% |
| 10% least volatile stocks in US Market | 2.9% |
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.
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
| PHM fundamental statistics | |
|---|---|
| Market Cap | US$9.46b |
| Earnings (TTM) | US$2.23b |
| Revenue (TTM) | US$14.95b |
4.2x
P/E Ratio0.6x
P/S RatioIs PHM overvalued?
See Fair Value and valuation analysisEarnings & Revenue
| PHM income statement (TTM) | |
|---|---|
| Revenue | US$14.95b |
| Cost of Revenue | US$10.49b |
| Gross Profit | US$4.29b |
| Other Expenses | US$2.06b |
| Earnings | US$2.23b |
Last Reported Earnings
Jun 30, 2022
Next Earnings Date
Oct 25, 2022
| Earnings per share (EPS) | 9.63 |
| Gross Margin | 28.70% |
| Net Profit Margin | 14.91% |
| Debt/Equity Ratio | 32.0% |
How did PHM perform over the long term?
See historical performance and comparisonDividends
1.5%
Current Dividend Yield6%
Payout RatioValuation
Is PHM undervalued compared to its fair value, analyst forecasts and its price relative to the market?
Valuation Score
4/6Valuation Score 4/6
Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
Analyst Forecast
Key Valuation Metric
Which metric is best to use when looking at relative valuation for PHM?
Other financial metrics that can be useful for relative valuation.
| What is PHM's n/a Ratio? | |
|---|---|
| n/a Ratio | 0x |
| n/a | n/a |
| Market Cap | US$9.46b |
| Key Statistics | |
|---|---|
| Enterprise Value/Revenue | 0.8x |
| Enterprise Value/EBITDA | 3.8x |
| PEG Ratio | -0.4x |
Price to Earnings Ratio vs Peers
How does PHM's PE Ratio compare to its peers?
| PHM PE Ratio vs Peers |
|---|
| Company | PE | Estimated Growth | Market Cap |
|---|---|---|---|
| Peer Average | 8.2x | ||
NVR NVR | 9.2x | -17.4% | US$14.1b |
BLD TopBuild | 13.4x | 0.9% | US$5.8b |
TOL Toll Brothers | 5x | -4.1% | US$5.1b |
LEN Lennar | 5.2x | -16.8% | US$22.7b |
PHM PulteGroup | 4.2x | -10.3% | US$9.5b |
Price-To-Earnings vs Peers: PHM is good value based on its Price-To-Earnings Ratio (4.2x) compared to the peer average (8.2x).
Price to Earnings Ratio vs Industry
How does PHM's PE Ratio compare vs other companies in the US Consumer Durables Industry?
Price-To-Earnings vs Industry: PHM is good value based on its Price-To-Earnings Ratio (4.2x) compared to the US Consumer Durables industry average (6.1x)
Price to Earnings Ratio vs Fair Ratio
What is PHM's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.
| Fair Ratio | |
|---|---|
| Current PE Ratio | 4.2x |
| Fair PE Ratio | 9.9x |
Price-To-Earnings vs Fair Ratio: PHM is good value based on its Price-To-Earnings Ratio (4.2x) compared to the estimated Fair Price-To-Earnings Ratio (9.9x).
Share Price vs Fair Value
What is the Fair Price of PHM when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.
Below Fair Value: PHM ($40.86) is trading above our estimate of fair value ($40.51)
Significantly Below Fair Value: PHM is trading above our estimate of fair value.
Analyst Price Targets
What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?
Analyst Forecast: Target price is more than 20% higher than the current share price and analysts are within a statistically confident range of agreement.
Discover undervalued companies
Future Growth
How is PulteGroup forecast to perform in the next 1 to 3 years based on estimates from 12 analysts?
Future Growth Score
1/6Future Growth Score 1/6
Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE
-10.3%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: PHM's earnings are forecast to decline over the next 3 years (-10.3% per year).
Earnings vs Market: PHM's earnings are forecast to decline over the next 3 years (-10.3% per year).
High Growth Earnings: PHM's earnings are forecast to decline over the next 3 years.
Revenue vs Market: PHM's revenue is expected to decline over the next 3 years (-1.2% per year).
High Growth Revenue: PHM's revenue is forecast to decline over the next 3 years (-1.2% per year).
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: PHM's Return on Equity is forecast to be high in 3 years time (20.6%)
Discover growth companies
Past Performance
How has PulteGroup performed over the past 5 years?
Past Performance Score
6/6Past Performance Score 6/6
Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE
27.1%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: PHM has high quality earnings.
Growing Profit Margin: PHM's current net profit margins (14.9%) are higher than last year (13.5%).
Past Earnings Growth Analysis
Earnings Trend: PHM's earnings have grown significantly by 27.1% per year over the past 5 years.
Accelerating Growth: PHM's earnings growth over the past year (35.3%) exceeds its 5-year average (27.1% per year).
Earnings vs Industry: PHM earnings growth over the past year (35.3%) exceeded the Consumer Durables industry 30.8%.
Return on Equity
High ROE: PHM's Return on Equity (29%) is considered high.
Discover strong past performing companies
Financial Health
How is PulteGroup's financial position?
Financial Health Score
6/6Financial Health Score 6/6
Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage
Financial Position Analysis
Short Term Liabilities: PHM's short term assets ($12.2B) exceed its short term liabilities ($2.7B).
Long Term Liabilities: PHM's short term assets ($12.2B) exceed its long term liabilities ($3.3B).
Debt to Equity History and Analysis
Debt Level: PHM's net debt to equity ratio (23.1%) is considered satisfactory.
Reducing Debt: PHM's debt to equity ratio has reduced from 74.2% to 32% over the past 5 years.
Debt Coverage: PHM's debt is well covered by operating cash flow (27.2%).
Interest Coverage: PHM earns more interest than it pays, so coverage of interest payments is not a concern.
Balance Sheet
Discover healthy companies
Dividend
What is PulteGroup current dividend yield, its reliability and sustainability?
Dividend Score
2/6Dividend Score 2/6
Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Cash Flow Coverage
1.47%
Current Dividend Yield
Dividend Yield vs Market
| PulteGroup Dividend Yield vs Market |
|---|
| Segment | Dividend Yield |
|---|---|
| Company (PulteGroup) | 1.5% |
| Market Bottom 25% (US) | 1.6% |
| Market Top 25% (US) | 4.5% |
| Industry Average (Consumer Durables) | 2.7% |
| Analyst forecast in 3 Years (PulteGroup) | 1.6% |
Notable Dividend: PHM's dividend (1.47%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.6%).
High Dividend: PHM's dividend (1.47%) is low compared to the top 25% of dividend payers in the US market (4.53%).
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 9 years.
Earnings Payout to Shareholders
Earnings Coverage: With its low payout ratio (6.5%), PHM's dividend payments are thoroughly covered by earnings.
Cash Payout to Shareholders
Cash Flow Coverage: With its low cash payout ratio (24.3%), PHM's dividend payments are well covered by cash flows.
Discover strong dividend paying companies
Management
How experienced are the management team and are they aligned to shareholders interests?
5.7yrs
Average management tenure
CEO
Ryan Marshall (47 yo)
6.08yrs
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
| Ryan Marshall's Compensation vs PulteGroup Earnings |
|---|
| Date | Total Comp. | Salary | Company Earnings |
|---|---|---|---|
| Jun 30 2022 | n/a | n/a | US$2b |
| Mar 31 2022 | n/a | n/a | US$2b |
| Dec 31 2021 | US$16m | US$1m | US$2b |
| Sep 30 2021 | n/a | n/a | US$2b |
| Jun 30 2021 | n/a | n/a | US$2b |
| Mar 31 2021 | n/a | n/a | US$1b |
| Dec 31 2020 | US$13m | US$992k | US$1b |
| Sep 30 2020 | n/a | n/a | US$1b |
| Jun 30 2020 | n/a | n/a | US$1b |
| Mar 31 2020 | n/a | n/a | US$1b |
| Dec 31 2019 | US$9m | US$990k | US$1b |
| Sep 30 2019 | n/a | n/a | US$909m |
| Jun 30 2019 | n/a | n/a | US$925m |
| Mar 31 2019 | n/a | n/a | US$1b |
| Dec 31 2018 | US$10m | US$942k | US$1b |
| Sep 30 2018 | n/a | n/a | US$852m |
| Jun 30 2018 | n/a | n/a | US$742m |
| Mar 31 2018 | n/a | n/a | US$523m |
| Dec 31 2017 | US$6m | US$900k | US$443m |
| Sep 30 2017 | n/a | n/a | US$637m |
| Jun 30 2017 | n/a | n/a | US$589m |
| Mar 31 2017 | n/a | n/a | US$606m |
| Dec 31 2016 | US$4m | US$738k | US$598m |
| Sep 30 2016 | n/a | n/a | US$553m |
| Jun 30 2016 | n/a | n/a | US$533m |
| Mar 31 2016 | n/a | n/a | US$519m |
| Dec 31 2015 | US$2m | US$538k | US$491m |
Compensation vs Market: Ryan's total compensation ($USD16.15M) is above average for companies of similar size in the US market ($USD8.48M).
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 seasoned and experienced (5.7 years average tenure).
Board Members
Experienced Board: PHM's board of directors are considered experienced (7.8 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.
Recent Insider Transactions
| Date | Value | Name | Entity | Role | Shares | Max Price |
|---|---|---|---|---|---|---|
| 28 Feb 22 | SellUS$740,119 | John Chadwick | Individual | 15,090 | US$49.05 |
Ownership Breakdown
| Owner Type | Number of Shares | Ownership Percentage |
|---|---|---|
| State or Government | 100,019 | 0.04% |
| Individual Insiders | 1,576,927 | 0.7% |
| General Public | 14,281,873 | 6.2% |
| Institutions | 215,539,481 | 93.1% |
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Top Shareholders
| Ownership | Name | Shares | Current Value | Change % | Portfolio % | |
|---|---|---|---|---|---|---|
| 27,981,980 | $1.1b | 0.84% | 0.03% | |||
| 22,329,921 | $912.4m | -4.98% | 0.02% | |||
| 10,808,229 | $441.6m | -7.44% | 0.02% | |||
| 9,120,954 | $372.7m | -0.2% | 0.6% | |||
| 6,594,131 | $269.4m | 1.28% | 0.06% | |||
| 5,431,593 | $221.9m | 8.4% | 0.03% | |||
| 5,277,664 | $215.6m | -1.3% | 0.09% | |||
| 4,960,856 | $202.7m | -3.33% | 0.4% | |||
| 4,897,695 | $200.1m | 0.97% | 0.22% | |||
| 4,835,529 | $197.6m | 10.12% | 0.25% | |||
| 4,242,740 | $173.4m | 0% | 3.7% | |||
| 4,153,597 | $169.7m | -6.25% | 0.05% | |||
| 3,638,164 | $148.7m | 115% | 0.32% | |||
| 2,985,992 | $122.0m | -3.73% | 0.09% | |||
| 2,789,361 | $114.0m | -4.42% | 0.02% | |||
| 2,675,011 | $109.3m | 0% | 0.01% | |||
| 2,647,050 | $108.2m | -34.51% | 0.01% | |||
| 2,581,136 | $105.5m | -1.21% | 0.04% | |||
| 2,533,455 | $103.5m | 1.29% | 0.02% | |||
| 2,250,927 | $92.0m | -1.13% | 0.02% | |||
| 1,980,553 | $80.9m | 1.03% | 0.02% | |||
| 1,787,777 | $73.0m | -1.83% | 0.63% | |||
| 1,676,097 | $68.5m | 33.66% | 0.95% | |||
| 1,676,072 | $68.5m | -7.69% | 0.01% | |||
| 1,401,917 | $57.3m | -8.89% | 0.02% |
Company Information
PulteGroup, Inc.'s employee growth, exchange listings and data sources
Key Information
- Name: PulteGroup, Inc.
- Ticker: PHM
- Exchange: NYSE
- Founded: 1950
- Industry: Homebuilding
- Sector: Consumer Durables
- Implied Market Cap: US$9.459b
- Shares outstanding: 231.50m
- Website: https://www.pultegroup.com
Number of Employees
Location
- PulteGroup, Inc.
- 3350 Peachtree Road NE
- Suite 1500
- Atlanta
- Georgia
- 30326
- United States
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| PHM | NYSE (New York Stock Exchange) | Yes | Common Stock | US | USD | Feb 1972 |
| PU7 | DB (Deutsche Boerse AG) | Yes | Common Stock | DE | EUR | Feb 1972 |
| PHM * | BMV (Bolsa Mexicana de Valores) | Yes | Common Stock | MX | MXN | Feb 1972 |
| 0KS6 | LSE (London Stock Exchange) | Yes | Common Stock | GB | USD | Feb 1972 |
| P1HM34 | BOVESPA (Bolsa de Valores de Sao Paulo) | BDR EACH REPR 1 COM | BR | BRL | Dec 2019 |
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2022/10/05 00:00 |
| End of Day Share Price | 2022/10/05 00:00 |
| Earnings | 2022/06/30 |
| Annual Earnings | 2021/12/31 |
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.