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PulteGroup
(NYSE:PHM)
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Rating:74Outperform
Price Target:
$142.00
▲(10.29% Upside)
Action:Reiterated
Date:07/23/26
PHM scores well on financial strength (low leverage and still-strong margins) and a generally steady, reaffirmed outlook from management supported by order/backlog and improving mix. The score is held back by normalization in earnings and cash flow versus prior highs, mixed near-term technical momentum, and only moderate valuation support given a mid-teens P/E and low dividend yield.
Positive Factors
Balance sheet liquidity & low leverage
Strong liquidity and very low leverage provide durable financial flexibility. With $1.4B cash and ~12% debt-to-capital, PulteGroup can fund ~$5.4B planned land investment, repurchase shares, and absorb near-term demand volatility without forcing distressed asset sales or cutting strategic capex.
Negative Factors
Declining volumes and home sale revenue
Sustained declines in closings and home sale revenue reduce operating leverage and long‑term earnings power. Lower volumes compress fixed‑cost absorption, pressure gross margins and financial services income, and make future land spending and buybacks more economically risky if demand does not stabilize.
Read all positive and negative factors
Positive Factors
Negative Factors
Balance sheet liquidity & low leverage
Strong liquidity and very low leverage provide durable financial flexibility. With $1.4B cash and ~12% debt-to-capital, PulteGroup can fund ~$5.4B planned land investment, repurchase shares, and absorb near-term demand volatility without forcing distressed asset sales or cutting strategic capex.
Read all positive factors
PulteGroup Key Performance Indicators (KPIs)
Any
Revenue by Segment
Breaks down revenue by business segments, revealing which areas are driving growth and where the company may focus its strategic efforts.
Breaks down revenue by business segments, revealing which areas are driving growth and where the company may focus its strategic efforts.
Data provided by:
The Fly
The FlyPulteGroup (PHM) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$24.13B
Dividend Yield0.79%
Average Volume (3M)1.91M
Price to Earnings (P/E)12.9
Beta (1Y)0.67
Revenue Growth-7.28%
EPS Growth-26.86%
CountryUS
Employees6,506
SectorConsumer Cyclical
Sector Strength84
IndustryResidential Construction
Share Statistics
EPS (TTM)9.83
Shares Outstanding187,452,550
10 Day Avg. Volume2,127,832
30 Day Avg. Volume1,913,616
Financial Highlights & Ratios
PEG Ratio-0.43
Price to Book (P/B)1.79
Price to Sales (P/S)1.34
P/FCF Ratio13.28
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$143.80Price Target Upside11.69% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering11
EPS Forecast (FY)10.14
Revenue Forecast (FY)$16.41B
PulteGroup Business Overview & Revenue Model
Company Description
PulteGroup, Inc. (PHM) is a U.S. residential homebuilder that designs, builds, and sells single-family homes, townhomes, and condominium units under multiple brands, serving a range of buyers including first-time, move-up, and active-adult custome...
How the Company Makes Money
PulteGroup makes money primarily by selling newly constructed homes and related housing products to homebuyers. The core revenue stream is home sale revenue, which is generally recognized at the point a home is closed and title transfers to the bu...
PulteGroup Earnings Call Summary
Earnings Call Date:Jul 22, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Oct 27, 2026
Earnings Call Sentiment Neutral
The call presented a mix of operational progress and continuing near-term challenges. Highlights include order growth, margin improvement, meaningful reductions in spec inventory, expansion of build-to-order mix, strong land investment activity, and a healthy backlog. Offsets include year-over-year declines in home sale revenues, closings, net income and EPS; SG&A deleveraging; continued elevated incentives; and potential cost headwinds as commodity prices normalize. Management reaffirmed full-year guidance for closings, gross margin and SG&A and emphasized disciplined capital allocation and inventory management.Positive Updates
Net New Orders Growth
Q2 net new orders increased 6% year-over-year to 7,536 homes; year-to-date net new orders up 5% and totaled 15,570 homes. Sold 720 more homes year-to-date versus prior year.
Negative Updates
Decline in Home Sale Revenues and Closings
Q2 home sale revenues fell to $3.8 billion from $4.3 billion a year ago (down ~11.6%), driven by an 8% decrease in closings to 6,997 homes and a 3% decrease in average sales price to $544,000.
Read all updates
Q2-2026 Updates
Positive
Negative
Net New Orders Growth
Q2 net new orders increased 6% year-over-year to 7,536 homes; year-to-date net new orders up 5% and totaled 15,570 homes. Sold 720 more homes year-to-date versus prior year.
Read all positive updates
Company Guidance
PulteGroup reaffirmed Q3 closings of 7,000–7,400 homes and full‑year 2026 closings of 28,500–29,000, with expected Q3/Q4 average sales prices of $550,000–$560,000; homebuilding gross margin guidance remains 24.5%–25.0% (Q2 actual 25.0%, H1 24.7%) and full‑year SG&A is guided to 9.5%–9.7% of home sale revenues (Q2 SG&A 10.1%, $383M), while the full‑year tax rate remains ~24.5% (Q2 24.2%). They plan ~ $5.4B of land investment in 2026 (YTD $2.7B; Q2 $1.4B), ended Q2 with $1.4B cash and a 12.3% debt‑to‑capital ratio, expect ~ $1.0B operating cash flow for 2026, and highlighted operational metrics backing the guide: backlog of 10,966 homes ($6.8B), 14,980 homes in production (6,638 or 44% spec), ~1,400 finished spec homes (~1.3 per community), Q2 net new orders 7,536 (Q2 order value $4.1B), build‑to‑order at 45% of Q2 orders (long‑term target ~60%), and many markets with sub‑100‑day build cycles.PulteGroup Financial Statement Overview
Summary
Income Statement
74
Positive
Balance Sheet
83
Very Positive
Cash Flow
72
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 16.41B | 17.31B | 17.95B | 16.06B | 16.00B | 13.74B |
| Gross Profit | 4.01B | 4.57B | 5.22B | 4.72B | 4.83B | 3.78B |
| EBITDA | 2.40B | 3.02B | 4.10B | 3.53B | 3.51B | 2.58B |
| Net Income | 1.91B | 2.22B | 3.08B | 2.60B | 2.62B | 1.95B |
Balance Sheet | ||||||
| Total Assets | 18.26B | 18.05B | 17.36B | 16.09B | 14.80B | 13.35B |
| Cash, Cash Equivalents and Short-Term Investments | 1.89B | 2.01B | 1.65B | 1.85B | 1.09B | 1.83B |
| Total Debt | 2.30B | 2.40B | 2.34B | 2.62B | 2.81B | 2.82B |
| Total Liabilities | 5.25B | 5.06B | 5.24B | 5.70B | 5.88B | 5.86B |
| Stockholders Equity | 13.01B | 12.99B | 12.12B | 10.38B | 8.91B | 7.49B |
Cash Flow | ||||||
| Free Cash Flow | 1.51B | 1.75B | 1.56B | 2.10B | 555.80M | 931.24M |
| Operating Cash Flow | 1.63B | 1.87B | 1.68B | 2.20B | 668.47M | 1.00B |
| Investing Cash Flow | -129.00M | -80.42M | -94.48M | -129.09M | -171.74M | -124.13M |
| Financing Cash Flow | -1.39B | -1.44B | -1.78B | -1.31B | -1.24B | -1.68B |
PulteGroup Risk Analysis
PulteGroup disclosed 24 risk factors in its most recent earnings report. PulteGroup reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
PulteGroup Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
79 Outperform | $6.67B | 10.64 | 10.85% | ― | -8.99% | -22.26% | |
74 Outperform | $24.13B | 12.87 | 14.73% | 0.78% | -7.28% | -26.86% | |
74 Outperform | $14.02B | 10.95 | 15.49% | 0.68% | 3.62% | -2.11% | |
69 Neutral | $20.11B | 12.89 | 7.36% | 2.36% | -7.47% | -47.15% | |
67 Neutral | $40.70B | 13.59 | 12.77% | 1.19% | -3.54% | -15.86% | |
67 Neutral | $16.97B | 15.13 | 31.02% | ― | -9.30% | -19.36% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% |
* Consumer Cyclical Sector Average
PHM
PulteGroup
126.47
10.64
9.19%
DHI
DR Horton
143.06
-5.51
-3.71%
LEN
Lennar
82.35
-31.34
-27.57%
NVR
NVR
6,147.05
-1,613.63
-20.79%
TOL
Toll Brothers
145.89
24.88
20.56%
TMHC
Taylor Morrison
72.45
10.74
17.40%
PulteGroup Corporate Events
Executive/Board ChangesShareholder Meetings
PulteGroup Shareholders Back Board, Auditor and Executive Pay
Positive
May 1, 2026
PulteGroup shareholders convened for the 2026 Annual Meeting on April 29, 2026, with 174,052,310 common shares present or represented by proxy. All eleven board nominees were elected to serve until the 2027 annual meeting, reinforcing continuity i...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.