NYSE:PHM

Stock Analysis Report

Executive Summary

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

Snowflake

Fundamentals

Proven track record with adequate balance sheet.


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


Market Performance


7 Day Return

0.4%

PHM

0.5%

US Consumer Durables

1.0%

US Market


1 Year Return

60.8%

PHM

34.0%

US Consumer Durables

6.7%

US Market

Return vs Industry: PHM exceeded the US Consumer Durables industry which returned 34% over the past year.

Return vs Market: PHM exceeded the US Market which returned 6.7% over the past year.


Share holder returns

PHMIndustryMarket
7 Day0.4%0.5%1.0%
30 Day4.7%0.2%-1.8%
90 Day9.9%4.5%-1.8%
1 Year63.2%60.8%35.8%34.0%9.1%6.7%
3 Year98.5%90.2%49.7%45.1%46.1%36.6%
5 Year112.0%96.1%39.4%30.7%66.9%48.6%

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 based on future cash flows and its price relative to the stock market?

11.16x

Price to Earnings (PE) ratio


Intrinsic Value Based on Future Cash Flows

Undervalued: PHM ($36.89) is trading above our estimate of fair value ($30.1)

Significantly Undervalued: PHM is trading above our estimate of fair value.


Price Based on Earnings

PE vs Industry: PHM is good value based on its PE Ratio (11.2x) compared to the Consumer Durables industry average (13x).

PE vs Market: PHM is good value based on its PE Ratio (11.2x) compared to the US market (17.5x).


Price Based on Expected Growth

Low PEG Ratio: PHM is poor value based on its PEG Ratio (2.3x)


Price Based on Value of Assets

PB vs Industry: PHM is overvalued based on its PB Ratio (2x) compared to the US Consumer Durables industry average (1.6x).


Next Steps

Future Growth

How is PulteGroup expected to perform in the next 1 to 3 years based on estimates from 15 analysts?

4.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Earnings vs Savings Rate: PHM's forecast earnings growth (4.9% per year) is above the savings rate (2.7%).

Earnings vs Market: PHM's earnings (4.9% per year) are forecast to grow slower than the US market (14.5% per year).

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

Revenue vs Market: PHM's revenue (5.4% per year) is forecast to grow slower than the US market (7.3% per year).

High Growth Revenue: PHM's revenue (5.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Estimates


Future Return on Equity

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


Next Steps

Past Performance

How has PulteGroup performed over the past 5 years?

-2.1%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: PHM's earnings have declined by -2.1% per year over the past 5 years.

Accelerating Growth: PHM's earnings growth over the past year (24%) exceeds its 5-year average (-2.1% per year).

Earnings vs Industry: PHM earnings growth over the past year (24%) exceeded the Consumer Durables industry 13.5%.


Return on Equity

High ROE: PHM's Return on Equity (18.4%) is considered low.


Return on Assets

ROA vs Industry: PHM has a higher Return on Assets than the Consumer Durables industry average last year.


Return on Capital Employed

ROCE Improving: PHM has significantly improved its Return on Capital Employed over the past 3 years.


Next Steps

Financial Health

How is PulteGroup's financial position?


Financial Position Analysis

Short Term Liabilities: PHM's short term assets ($9.2B) exceeds its short term liabilities ($1.9B)

Long Term Liabilities: PHM's short term assets (9.2B) exceeds its long term liabilities (3.2B)


Debt to Equity History and Analysis

Debt Level: PHM's debt to equity ratio (58.7%) is considered high

Reducing Debt: PHM's debt to equity ratio has increased from 41.2% to 58.7% over the past 5 years.

Debt Coverage: PHM's debt is well covered by operating cash flow (40.6%).

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


Balance Sheet

Inventory Level: PHM has a high level of physical assets or inventory.

Debt Coverage by Assets: PHM's debt is covered by short term assets (assets are 3.108450x debt).


Next Steps

Dividend

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

1.23%

Expected Dividend Yield


Dividend Yield vs Market

company1.2%marketbottom25%1.5%markettop25%3.8%industryaverage2.8%forecastin3Years1.2%

Current dividend yield vs market & industry


Dividend Yield and Payments Analysis

Notable Dividend: PHM's dividend (1.19%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.46%).

High Dividend: PHM's dividend (1.19%) is low compared to the top 25% of dividend payers in the US market (3.77%).

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 6 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (12.1%), PHM's dividend payments are thoroughly covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

What is the CEO of PulteGroup's salary, the management and board of directors tenure and is there insider trading?

2.6yrs

Average management tenure


CEO

Ryan Marshall (44yo)

3.1yrs

Tenure

US$9,793,261

Compensation

Mr. Ryan R. Marshall has been the Chief Executive Officer of PulteGroup, Inc. since September 8, 2016 and its President since February 15, 2016. Mr. Marshall is responsible for PulteGroup's homebuilding op ...


CEO Compensation Analysis

Compensation vs. Market: Ryan's total compensation ($USD9.79M) is about average for companies of similar size in the US market ($USD11.20M).

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


Management Age and Tenure

2.6yrs

Average Tenure

50yo

Average Age

Experienced Management: PHM's management team is considered experienced (2.6 years average tenure).


Board Age and Tenure

3.5yrs

Average Tenure

58.5yo

Average Age

Experienced Board: PHM's board of directors are considered experienced (3.5 years average tenure).


Insider Trading

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


Recent Insider Transactions

SellUS$78,289,49326 Aug 19
Estate Of William J. Pulte
EntityCompany
Shares2,358,459
Max PriceUS$34.02
SellUS$699,86013 Jul 19
Brian Anderson
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares21,191
Max PriceUS$33.25
SellUS$3,008,52601 May 19
Robert O’Shaughnessy
EntityIndividual
Role
Chief Financial Officer
Executive VP & CFO
Shares95,738
Max PriceUS$31.52
SellUS$311,90030 Apr 19
James Ossowski
EntityIndividual
Shares10,000
Max PriceUS$31.19
BuyUS$2,569,00023 Jan 19
Karen Pulte
EntityIndividual
Shares100,000
Max PriceUS$25.69
SellUS$3,453,99023 Jan 19
Karen Pulte
EntityIndividual
Shares134,606
Max PriceUS$25.66
SellUS$36,871,82123 Jan 19
Estate Of William J. Pulte
EntityCompany
Shares1,330,400
Max PriceUS$29.06

Ownership Breakdown


Management Team

  • Jim Zeumer

    Vice President of Investor Relations & Corporate Communications

    • Tenure: 0yrs
  • Joseph Drouin

    VP & Chief Information Officer

    • Tenure: 0yrs
  • Peter Keane (53yo)

    President of Florida Area

    • Tenure: 0yrs
    • Compensation: US$2.75m
  • Bob O’Shaughnessy (53yo)

    Executive VP & CFO

    • Tenure: 8.4yrs
    • Compensation: US$4.53m
  • Todd Sheldon (51yo)

    Executive VP

    • Tenure: 2.6yrs
    • Compensation: US$2.24m
  • Steve Schlageter (48yo)

    Senior Vice President of Operations & Strategy

    • Tenure: 2.1yrs
    • Compensation: US$2.12m
  • John Chadwick (57yo)

    Executive VP & COO

    • Tenure: 0.5yrs
    • Compensation: US$1.83m
  • Ryan Marshall (44yo)

    President

    • Tenure: 3.1yrs
    • Compensation: US$9.79m
  • Manish Shrivastava (49yo)

    VP & Chief Marketing Officer

    • Tenure: 5.1yrs
  • Michelle Hairston (42yo)

    Senior Vice President of Human Resources

    • Tenure: 1.5yrs

Board Members

  • Rick Dreiling (66yo)

    Independent Director

    • Tenure: 3.8yrs
    • Compensation: US$237.62k
  • Brian Anderson (68yo)

    Independent Director

    • Tenure: 14.1yrs
    • Compensation: US$260.01k
  • Bryce Blair (60yo)

    Non-Executive Chairman

    • Tenure: 2.4yrs
    • Compensation: US$310.01k
  • Tom Folliard (56yo)

    Independent Director

    • Tenure: 7.8yrs
    • Compensation: US$235.01k
  • Scott Powers (59yo)

    Independent Director

    • Tenure: 3.3yrs
    • Compensation: US$251.08k
  • John Peshkin (58yo)

    Independent Director

    • Tenure: 3.3yrs
    • Compensation: US$261.78k
  • André Hawaux (58yo)

    Independent Director

    • Tenure: 6.4yrs
    • Compensation: US$235.01k
  • Cheryl Grisé (66yo)

    Independent Director

    • Tenure: 11.4yrs
    • Compensation: US$260.01k
  • Bill Pulte (31yo)

    Independent Director

    • Tenure: 3.1yrs
    • Compensation: US$235.00k
  • Ryan Marshall (44yo)

    President

    • Tenure: 3.1yrs
    • Compensation: US$9.79m

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$10.116b
  • Shares outstanding: 274.22m
  • Website: https://www.pultegroupinc.com

Number of Employees


Location

  • PulteGroup, Inc.
  • 3350 Peachtree Road NE
  • Suite 150
  • 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

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 Analysis2019/10/14 01:19
End of Day Share Price2019/10/11 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.

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