PulteGroup, Inc. (PHM) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

M.D.C. Holdings, Inc.

Skyline Champion Corp.

NVR, Inc.

Toll Brothers, Inc.

PulteGroup, Inc.

D.R. Horton, Inc.

Taylor Morrison Home Corp.

Lennar Corp.

Meritage Homes Corp.

KB Home

Tri Pointe Homes, Inc.

Why is PulteGroup, Inc. ?

High Management Efficiency with a high ROE of 25.90%

Strong ability to service debt as the company has a low Debt to EBITDA ratio of 0.30 times

Healthy long term growth as Net Sales has grown by an annual rate of 10.76% and Operating profit at 17.78%

ROCE(HY) Lowest at 23.05%
RAW MATERIAL COST(Y) Grown by 10.56% (YoY)
DEBT-EQUITY RATIO (HY) Highest at 7.84 %

With ROE of 23.93%, it has a attractive valuation with a 1.63 Price to Book Value

The stock is trading at a fair value compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of 4.64%, its profits have risen by 8% ; the PEG ratio of the company is 0.5

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to PulteGroup, Inc. should be less than 10%
Overall Portfolio exposure to Furniture, Home Furnishing should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Furniture, Home Furnishing)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is PulteGroup, Inc. for you?

Medium Risk, Medium Return

Absolute

Risk Adjusted

Volatility

PulteGroup, Inc.

10.69%

0.35

35.30%

S&P 500

14.9%

0.70

20.15%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

9.42%

EBIT Growth (5y)

11.04%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

0.30

Net Debt to Equity (avg)

0.06

Sales to Capital Employed (avg)

1.24

Tax Ratio

22.92%

Dividend Payout Ratio

8.27%

Pledged Shares

Institutional Holding

98.22%

ROCE (avg)

30.20%

ROE (avg)

25.90%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

1.81

EV to EBIT

7.94

EV to EBITDA

7.65

EV to Capital Employed

1.80

EV to Sales

1.37

PEG Ratio

Dividend Yield

1.00%

ROCE (Latest)

22.62%

ROE (Latest)

17.55%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

RSI

Bearish

No Signal

Bollinger Bands

Bearish

Moving Averages

Mildly Bullish (Daily)

KST

Bullish

Mildly Bearish

Dow Theory

Mildly Bearish

Mildly Bullish

OBV

Mildly Bearish

Mildly Bullish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

4What is working for the Company

DIVIDEND PER SHARE(HY)

Highest at USD 66.68

DIVIDEND PAYOUT RATIO(Y)

Highest at 10.15%

DEBT-EQUITY RATIO (HY)

Lowest at 2.22 %

-17What is not working for the Company

INTEREST(HY)

At USD 0.34 MM has Grown at 36.44%

ROCE(HY)

Lowest at 17.67%

PRE-TAX PROFIT(Q)

At USD 733.42 MM has Fallen at -37.99%

NET PROFIT(Q)

At USD 561.47 MM has Fallen at -38.52%

RAW MATERIAL COST(Y)

Grown by 11.26% (YoY

OPERATING PROFIT MARGIN(Q)

Lowest at 16.85 %

EPS(Q)

Lowest at USD 2.56

Here's what is working for PulteGroup, Inc.

Dividend per share

Highest at USD 66.68 and Grown

In each year in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (USD)

Debt-Equity Ratio

Lowest at 2.22 %

in the last five Semi-Annual periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Dividend Payout Ratio

Highest at 10.15%

in the last five years

MOJO Watch

Company is distributing higher proportion of profits generated as dividend

DPR (%)

Depreciation

Highest at USD 36.96 MM

in the last five periods

MOJO Watch

The expenditure on assets done by the company may have gone into operation

Depreciation (USD MM)

Depreciation

At USD 36.96 MM has Grown at 43.05%

period on period (QoQ)

MOJO Watch

The expenditure on assets done by the company has gone into productive use which should positively reflect in the future sales

Depreciation (USD MM)

Here's what is not working for PulteGroup, Inc.

Pre-Tax Profit

At USD 733.42 MM has Fallen at -37.99%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (USD MM)

Net Profit

At USD 561.47 MM has Fallen at -38.52%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (USD MM)

Interest

At USD 0.34 MM has Grown at 36.44%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (USD MM)

Operating Profit Margin

Lowest at 16.85 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

EPS

Lowest at USD 2.56

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (USD)

Raw Material Cost

Grown by 11.26% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has deteriorated; this may lead to a fall in profit margin

Raw Material Cost as a percentage of Sales