PulteGroup Inc (PHM) stock analysis

P/E above its 5-year median

PulteGroup's P/E of 13.8 is above its own 5-year median of 8.2.

P/E below the industry

PulteGroup's P/E of 13.8 is below the Operative Builders median of 14.1.

EV/EBITDA against its history

Needs positive EBITDA and price history.

P/B above the industry

PulteGroup's price-to-book of 1.82 is above the Operative Builders median of 1.00.

Trading above fair value

The share price of $129.50 is above our fair value estimate of $103.24.

Margin of safety under 20%

The price is 25.4% above fair value, so there is no margin of safety.

Revenue growing under 10% a year

Revenue grew 2.7% a year over the last three fiscal years, short of the 10% we look for.

EPS growing under 10% a year

Diluted EPS grew 0.3% a year over the last three fiscal years.

Earnings growth not accelerating

Net income grew -31.7% over the last twelve months, against a 5-year average of 9.5% a year.

Growing slower than the industry

Revenue grew -9.3% over the last twelve months; the Operative Builders median is -7.3%.

Company guidance

No outlook found in earnings releases from the last twelve months.

Gross margin trend

This company does not report gross profit.

Return on equity under 15%

Return on equity was 13.9% over the last twelve months and averaged 26.3% over five years; we look for 15% on both.

Return on invested capital

Needs operating income and invested capital.

Return on equity above the industry

PulteGroup's return on equity of 13.9% is above the Operative Builders median of 10.7%.

Earnings grew over 5 years

Net income grew 9.5% a year on average over the last five fiscal years.

Net margin below its 5-year average

Net margin was 11.2% over the last twelve months, against a 5-year average of 15.3%.

Net margin above the industry

PulteGroup's net margin of 11.2% is above the Operative Builders median of 4.3%.

No debt

PulteGroup has no borrowings on its latest balance sheet.

Debt not rising

With no debt today, leverage cannot have risen.

Debt covered by cash flow

There is no debt to cover.

Interest well covered

No meaningful interest expense to cover.

Short-term liquidity

The balance sheet is not split into current and non-current items.

Low bankruptcy risk

The Altman Z-score is 3.52; above 3 is the safe zone and below 1.8 the distress zone.

Pays a dividend

PulteGroup paid dividends worth 0.8% of the share price over the last twelve months.

Yield below Treasuries

The 0.8% yield is below the 4.4% on a 1-year Treasury.

Yield below the top quarter

The top quarter of US dividend payers yield 3.8% or more; PulteGroup yields 0.8%.

Dividend not cut

The dividend per share has not fallen by more than 10% in any of the last 10 fiscal years.

Covered by earnings

Dividends take 10.8% of net income.

Covered by free cash flow

Dividends take 14.9% of free cash flow.