NYSE:PHM

Stock Analysis Report

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Executive Summary

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


Snowflake Analysis

Outstanding 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

Stable Share Price: PHM has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-7.9%

PHM

-4.2%

US Consumer Durables

-0.4%

US Market


1 Year Return

8.9%

PHM

16.5%

US Consumer Durables

18.3%

US Market

Return vs Industry: PHM underperformed the US Consumer Durables industry which returned 16.5% over the past year.

Return vs Market: PHM underperformed the US Market which returned 18.3% over the past year.


Shareholder returns

PHMIndustryMarket
7 Day-7.9%-4.2%-0.4%
30 Day-0.04%6.2%8.0%
90 Day-0.6%15.2%9.4%
1 Year10.2%8.9%18.0%16.5%21.0%18.3%
3 Year52.1%46.3%18.0%13.2%42.1%32.7%
5 Year158.6%140.0%50.2%40.7%85.6%64.7%

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?

9.17x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: PHM ($43.99) is trading above our estimate of fair value ($24.71)

Significantly Below Fair Value: PHM is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: PHM is good value based on its PE Ratio (10.3x) compared to the US Consumer Durables industry average (14.1x).

PE vs Market: PHM is good value based on its PE Ratio (10.3x) compared to the US market (19.2x).


Price to Earnings Growth Ratio

PEG Ratio: PHM is good value based on its PEG Ratio (0.7x)


Price to Book Ratio

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 forecast to perform in the next 1 to 3 years based on estimates from 11 analysts?

14.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: PHM's forecast earnings growth (15.4% per year) is above the savings rate (2.2%).

Earnings vs Market: PHM's earnings (15.4% per year) are forecast to grow slower than the US market (22.1% per year).

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

Revenue vs Market: PHM's revenue (11.9% per year) is forecast to grow faster than the US market (9.9% per year).

High Growth Revenue: PHM's revenue (11.9% per year) is forecast to grow slower than 20% 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 (25.7%)


Next Steps

Past Performance

How has PulteGroup performed over the past 5 years?

19.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: PHM has high quality earnings.

Growing Profit Margin: PHM's current net profit margins (10.6%) are higher than last year (9.1%).


Past Earnings Growth Analysis

Earnings Trend: PHM's earnings have grown by 19.7% per year over the past 5 years.

Accelerating Growth: PHM's earnings growth over the past year (24.3%) exceeds its 5-year average (19.7% per year).

Earnings vs Industry: PHM earnings growth over the past year (24.3%) exceeded the Consumer Durables industry 20.9%.


Return on Equity

High ROE: PHM's Return on Equity (20.9%) is considered high.


Next Steps

Financial Health

How is PulteGroup's financial position?


Financial Position Analysis

Short Term Liabilities: PHM's short term assets ($10.1B) exceed its short term liabilities ($2.7B).

Long Term Liabilities: PHM's short term assets ($10.1B) exceed its long term liabilities ($2.4B).


Debt to Equity History and Analysis

Debt Level: PHM's debt to equity ratio (48.6%) is considered high.

Reducing Debt: PHM's debt to equity ratio has increased from 38.8% to 48.6% over the past 5 years.

Debt Coverage: PHM's debt is well covered by operating cash flow (58.2%).

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


Balance Sheet


Next Steps

Dividend

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

1.09%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: PHM's dividend (1.09%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.63%).

High Dividend: PHM's dividend (1.09%) is low compared to the top 25% of dividend payers in the US market (4.56%).


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 7 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (11.1%), 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 (6.8% payout ratio).


Next Steps

Management

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

3.6yrs

Average management tenure


CEO

Ryan Marshall (45 yo)

4.08yrs

Tenure

US$9,216,065

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 ($USD9.22M) is about average for companies of similar size in the US market ($USD11.16M).

Compensation vs Earnings: Ryan's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Ryan Marshall
President4.08yrsUS$9.22m0.095%
$ 11.2m
Robert O'Shaughnessy
Executive VP & CFO9.42yrsUS$3.97m0.078%
$ 9.2m
John Chadwick
Executive VP & COO1.5yrsUS$2.98m0.027%
$ 3.2m
Todd Sheldon
Executive VP3.58yrsUS$2.03m0.022%
$ 2.6m
Brien O'Meara
Principal Accounting Office0.67yrno data0.0049%
$ 573.2k
Joseph Drouin
VP & Chief Information Officerno datano datano data
James Zeumer
Vice President of Investor Relations & Corporate Communicationsno datano datano data
Manish Shrivastava
VP & Chief Marketing Officer6.08yrsno datano data
Michelle Hairston
Senior Vice President of Human Resources2.5yrsno data0.021%
$ 2.5m
Peter Keane
Area President of Florida Areano dataUS$2.75mno data
James Ossowski
Senior Vice President of Finance3.67yrsno data0.022%
$ 2.6m
Anthony Barbee
Area President of North Areano datano datano data

3.6yrs

Average Tenure

52yo

Average Age

Experienced Management: PHM's management team is considered experienced (3.6 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Ryan Marshall
President4.08yrsUS$9.22m0.095%
$ 11.2m
Richard Dreiling
Independent Director4.83yrsUS$249.19k0.000010%
$ 1.2k
Brian Anderson
Independent Director15.08yrsUS$249.58k0.025%
$ 2.9m
Bryce Blair
Independent Non-Executive Chairman3.42yrsUS$320.00k0.048%
$ 5.7m
Thomas Folliard
Independent Director8.75yrsUS$245.00k0.023%
$ 2.7m
Scott Powers
Independent Director4.25yrsUS$270.33k0.0061%
$ 719.4k
John Peshkin
Independent Director4.25yrsUS$272.98k0.0021%
$ 246.5k
Andre Hawaux
Independent Director7.42yrsUS$265.42k0.023%
$ 2.7m
Cheryl Grisé
Independent Director12.42yrsUS$270.00k0.0031%
$ 360.9k
Lila Snyder
Independent Director2.17yrsUS$245.00k0.0013%
$ 152.1k

4.5yrs

Average Tenure

59.5yo

Average Age

Experienced Board: PHM's board of directors are considered experienced (4.5 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$11.793b
  • Shares outstanding: 268.09m
  • Website: https://www.pultegroup.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
P1HM34BOVESPA (Bolsa de Valores de Sao Paulo)BDR EACH REPR 1 COMBRBRLDec 2019

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 Analysis2020/10/25 00:36
End of Day Share Price2020/10/23 00:00
Earnings2020/09/30
Annual Earnings2019/12/31


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.