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PHM

PulteGroup NYSE:PHM Stock Report

Last Price

US$40.86

Market Cap

US$9.5b

7D

3.6%

1Y

-13.0%

Updated

05 Oct, 2022

Data

Company Financials +
PHM fundamental analysis
Snowflake Score
Valuation4/6
Future Growth1/6
Past Performance6/6
Financial Health6/6
Dividends2/6

PHM Stock Overview

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

PulteGroup Competitors

Price History & Performance

Summary of all time highs, changes and price drops for PulteGroup
Historical stock prices
Current Share PriceUS$40.86
52 Week HighUS$58.09
52 Week LowUS$35.03
Beta1.3
1 Month Change1.01%
3 Month Change-6.24%
1 Year Change-13.05%
3 Year Change10.73%
5 Year Change51.50%
Change since IPO2,624.00%

Recent News & Updates

Sep 28

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.

Sep 20

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.

Sep 20
PulteGroup's (NYSE:PHM) Dividend Will Be $0.15

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...

Sep 14
Do PulteGroup's (NYSE:PHM) Earnings Warrant Your Attention?

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

PHMUS Consumer DurablesUS Market
7D3.6%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

Is PHM's price volatile compared to industry and market?
PHM volatility
PHM Average Weekly Movement5.4%
Consumer Durables Industry Average Movement6.4%
Market Average Movement7.0%
10% most volatile stocks in US Market15.5%
10% least volatile stocks in US Market2.9%

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

FoundedEmployeesCEOWebsite
19506,182Ryan Marshallhttps://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?
PHM fundamental statistics
Market CapUS$9.46b
Earnings (TTM)US$2.23b
Revenue (TTM)US$14.95b

4.2x

P/E Ratio

0.6x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
PHM income statement (TTM)
RevenueUS$14.95b
Cost of RevenueUS$10.49b
Gross ProfitUS$4.29b
Other ExpensesUS$2.06b
EarningsUS$2.23b

Last Reported Earnings

Jun 30, 2022

Next Earnings Date

Oct 25, 2022

Earnings per share (EPS)9.63
Gross Margin28.70%
Net Profit Margin14.91%
Debt/Equity Ratio32.0%

How did PHM perform over the long term?

See historical performance and comparison

Dividends

1.5%

Current Dividend Yield

6%

Payout Ratio
We’ve recently updated our valuation analysis.

Valuation

Is PHM undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

4/6

Valuation 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.

PHM key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue0.8x
Enterprise Value/EBITDA3.8x
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
The above table shows the PE ratio for PHM vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average8.2x
NVR NVR
9.2x-17.4%US$14.1b
BLD TopBuild
13.4x0.9%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.

PHM PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio4.2x
Fair PE Ratio9.9x

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.


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Future Growth

How is PulteGroup forecast to perform in the next 1 to 3 years based on estimates from 12 analysts?

Future Growth Score

1/6

Future 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%)


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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


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

6/6

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: 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


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Dividend

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

Dividend Score

2/6

Dividend 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
How does PulteGroup dividend yield compare to the market?
SegmentDividend 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
How has Ryan Marshall's remuneration changed compared to PulteGroup's earnings?
DateTotal Comp.SalaryCompany Earnings
Jun 30 2022n/an/a

US$2b

Mar 31 2022n/an/a

US$2b

Dec 31 2021US$16mUS$1m

US$2b

Sep 30 2021n/an/a

US$2b

Jun 30 2021n/an/a

US$2b

Mar 31 2021n/an/a

US$1b

Dec 31 2020US$13mUS$992k

US$1b

Sep 30 2020n/an/a

US$1b

Jun 30 2020n/an/a

US$1b

Mar 31 2020n/an/a

US$1b

Dec 31 2019US$9mUS$990k

US$1b

Sep 30 2019n/an/a

US$909m

Jun 30 2019n/an/a

US$925m

Mar 31 2019n/an/a

US$1b

Dec 31 2018US$10mUS$942k

US$1b

Sep 30 2018n/an/a

US$852m

Jun 30 2018n/an/a

US$742m

Mar 31 2018n/an/a

US$523m

Dec 31 2017US$6mUS$900k

US$443m

Sep 30 2017n/an/a

US$637m

Jun 30 2017n/an/a

US$589m

Mar 31 2017n/an/a

US$606m

Dec 31 2016US$4mUS$738k

US$598m

Sep 30 2016n/an/a

US$553m

Jun 30 2016n/an/a

US$533m

Mar 31 2016n/an/a

US$519m

Dec 31 2015US$2mUS$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

NYSE:PHM Recent Insider Transactions by Companies or Individuals
DateValueNameEntityRoleSharesMax Price
28 Feb 22SellUS$740,119John ChadwickIndividual15,090US$49.05

Ownership Breakdown

What is the ownership structure of PHM?
Owner TypeNumber of SharesOwnership Percentage
State or Government100,0190.04%
Individual Insiders1,576,9270.7%
General Public14,281,8736.2%
Institutions215,539,48193.1%

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


Top Shareholders

Top 25 shareholders own 61.02% of the company
OwnershipNameSharesCurrent ValueChange %Portfolio %
12.09%
The Vanguard Group, Inc.
27,981,980$1.1b0.84%0.03%
9.65%
BlackRock, Inc.
22,329,921$912.4m-4.98%0.02%
4.67%
State Street Global Advisors, Inc.
10,808,229$441.6m-7.44%0.02%
3.94%
Putnam LLC
9,120,954$372.7m-0.2%0.6%
2.85%
Dimensional Fund Advisors LP
6,594,131$269.4m1.28%0.06%
2.35%
Geode Capital Management, LLC
5,431,593$221.9m8.4%0.03%
2.28%
AllianceBernstein L.P.
5,277,664$215.6m-1.3%0.09%
2.14%
LSV Asset Management
4,960,856$202.7m-3.33%0.4%
2.12%
First Trust Advisors LP
4,897,695$200.1m0.97%0.22%
2.09%
Harris Associates L.P.
4,835,529$197.6m10.12%0.25%
1.83%
Greenhaven Associates Inc
4,242,740$173.4m0%3.7%
1.79%
Columbia Management Investment Advisers, LLC
4,153,597$169.7m-6.25%0.05%
1.57%
AQR Capital Management, LLC
3,638,164$148.7m115%0.32%
1.29%
Invesco Capital Management LLC
2,985,992$122.0m-3.73%0.09%
1.2%
Northern Trust Global Investments
2,789,361$114.0m-4.42%0.02%
1.16%
Norges Bank Investment Management
2,675,011$109.3m0%0.01%
1.14%
FMR LLC
2,647,050$108.2m-34.51%0.01%
1.11%
Eaton Vance Management
2,581,136$105.5m-1.21%0.04%
1.09%
BNY Mellon Asset Management
2,533,455$103.5m1.29%0.02%
0.97%
Charles Schwab Investment Management, Inc.
2,250,927$92.0m-1.13%0.02%
0.86%
Legal & General Investment Management Limited
1,980,553$80.9m1.03%0.02%
0.77%
Brandywine Global Investment Management, LLC
1,787,777$73.0m-1.83%0.63%
0.72%
ID-Sparinvest, Filial af Sparinvest S.A., Luxembourg
1,676,097$68.5m33.66%0.95%
0.72%
UBS Asset Management
1,676,072$68.5m-7.69%0.01%
0.61%
Bank of America Corporation, Asset Management Arm
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

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
PHMNYSE (New York Stock Exchange)YesCommon StockUSUSDFeb 1972
PU7DB (Deutsche Boerse AG)YesCommon StockDEEURFeb 1972
PHM *BMV (Bolsa Mexicana de Valores)YesCommon StockMXMXNFeb 1972
0KS6LSE (London Stock Exchange)YesCommon StockGBUSDFeb 1972
P1HM34BOVESPA (Bolsa de Valores de Sao Paulo)BDR EACH REPR 1 COMBRBRLDec 2019

Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/10/05 00:00
End of Day Share Price2022/10/05 00:00
Earnings2022/06/30
Annual Earnings2021/12/31


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.