PulteGroup (PHM) AI Stock Analysis

• Market Cap: $23.22B
• Dividend Yield: 0.77%
• Average Volume (3M): 1.73M
• Price to Earnings (P/E): 9.0
• Beta (1Y): 0.73
• Revenue Growth: 1.76%
• EPS Growth: -4.24%
• Country: US
• Employees: 6,793
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Residential Construction
• EPS (TTM): 2.96
• Shares Outstanding: 194,916,870
• 10 Day Avg. Volume: 2,150,360
• 30 Day Avg. Volume: 1,734,151
• PEG Ratio: 0.29
• Price to Book (P/B): 1.87
• Price to Sales (P/S): 1.26
• P/FCF Ratio: 14.51
• Enterprise Value/Market Cap: 1.14
• Enterprise Value/Revenue: 1.51
• Enterprise Value/Gross Profit: 5.48
• Enterprise Value/Ebitda: 7.50
• 1Y Price Target: $137.09
• Price Target Upside: 16.79% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 12
• EPS Forecast (FY): 11.38
• Revenue Forecast (FY): $16.99B

• Rating: 70 Outperform
• Price Target: $133.00 ▲(13.31% Upside)

PulteGroup's strong financial performance and attractive valuation are key strengths, supporting a solid stock score. However, technical indicators suggest potential bearish momentum, and challenges highlighted in the earnings call, such as declining net new orders, pose risks. The company's strategic initiatives and market adaptability will be crucial in navigating these challenges.

Positive Factors

Active Adult Segment Growth

Growth in the active adult segment indicates strong demand and potential for sustained revenue in a niche market, enhancing long-term stability.

Efficient Production Cycle

A shorter build cycle improves inventory management and responsiveness to market demand, supporting operational efficiency and profitability.

Dividend Increase

An increased dividend reflects confidence in cash flow stability and commitment to returning value to shareholders, strengthening investor trust.

Negative Factors

Decline in Net New Orders

A decline in net new orders suggests potential challenges in maintaining sales momentum, impacting future revenue growth.

Higher Incentives and Costs

Rising incentives and costs can compress margins, reducing profitability and potentially affecting long-term financial health.

Backlog and Spec Home Inventory

A declining backlog and high spec home inventory indicate potential sales challenges, affecting future revenue and cash flow predictability.

PulteGroup Business Overview & Revenue Model

Company Description

PulteGroup, Inc., through its subsidiaries, primarily engages in the homebuilding business in the United States. It acquires and develops land primarily for residential purposes; and constructs housing on such land. The company also offers various home designs, including single-family detached, townhomes, condominiums, and duplexes under the Centex, Pulte Homes, Del Webb, DiVosta Homes, American West, and John Wieland Homes and Neighborhoods brand names. As of December 31, 2021, it controlled 228,296 lots, of which 109,078 were owned and 119,218 were under land option agreements. In addition, the company arranges financing through the origination of mortgage loans primarily for homebuyers; sells the servicing rights for the originated loans; and provides title insurance policies, and examination and closing services to homebuyers. PulteGroup, Inc. was formerly known as Pulte Homes, Inc. and changed its name to PulteGroup, Inc. in March 2010. The company was founded in 1950 and is headquartered in Atlanta, Georgia.

How the Company Makes Money

PulteGroup generates revenue primarily through the sale of newly constructed homes, which constitute the bulk of its income. The company earns money by building and selling homes to individual buyers or through contracts with real estate developers and investors. Key revenue streams include the sale of completed homes, homebuilding-related services, and land development. Additionally, PulteGroup benefits from partnerships with various suppliers and contractors for materials and construction services, which can enhance operational efficiency and cost management. The company's financial performance is also influenced by market demand, interest rates, and trends in the housing market, which affect overall sales volumes and pricing.

PulteGroup Financial Statement Overview

Summary

PulteGroup shows strong profitability and financial stability with efficient use of equity and manageable debt levels. However, the decline in revenue and free cash flow growth poses potential risks, necessitating a focus on revenue generation and cash flow management.

Income Statement

PulteGroup's income statement shows strong profitability with a consistent gross profit margin around 27-29% over the years. However, the TTM data indicates a decline in revenue growth rate by 40.4%, which is a concern. Despite this, the company maintains healthy net and EBIT margins, reflecting operational efficiency.

Balance Sheet

The balance sheet is robust with a low debt-to-equity ratio, indicating prudent financial management. The return on equity remains strong, showcasing effective use of shareholders' funds. The equity ratio is stable, suggesting a solid financial foundation.

Cash Flow

Cash flow analysis reveals a significant decline in free cash flow growth in the TTM period, which could impact liquidity. However, the company maintains a reasonable free cash flow to net income ratio, indicating that it generates sufficient cash relative to its earnings.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	17.62B	17.95B	16.06B	16.00B	13.74B	11.04B
Gross Profit	4.84B	5.22B	4.72B	4.83B	3.78B	2.78B
EBITDA	3.54B	4.10B	3.53B	3.51B	2.58B	1.80B
Net Income	2.63B	3.08B	2.60B	2.62B	1.95B	1.41B
Balance Sheet
Total Assets	17.85B	17.36B	16.09B	14.80B	13.35B	12.21B
Cash, Cash Equivalents and Short-Term Investments	1.94B	2.24B	2.32B	1.73B	2.73B	3.15B
Total Debt	2.03B	2.25B	2.55B	2.72B	2.75B	3.27B
Total Liabilities	5.02B	5.24B	5.70B	5.88B	5.86B	5.64B
Stockholders Equity	12.83B	12.12B	10.38B	8.91B	7.49B	6.57B
Cash Flow
Free Cash Flow	1.55B	1.56B	2.10B	555.80M	931.24M	1.73B
Operating Cash Flow	1.67B	1.68B	2.20B	668.47M	1.00B	1.78B
Investing Cash Flow	-50.23M	-94.48M	-129.09M	-171.74M	-124.13M	-107.95M
Financing Cash Flow	-1.59B	-1.78B	-1.31B	-1.24B	-1.68B	-295.62M

PulteGroup Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 117.38
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PHM, the sentiment is Negative. The current price of 117.38 is below the 20-day moving average (MA) of 124.94, below the 50-day MA of 121.75, and above the 200-day MA of 114.58, indicating a neutral trend. The MACD of -0.16 indicates Positive momentum. The RSI at 40.08 is Neutral, neither overbought nor oversold. The STOCH value of 10.79 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for PHM.

PulteGroup Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TMHC	78 Outperform	$5.75B	7.08	14.31%	―	6.98%	9.74%
TOL	77 Outperform	$13.46B	10.25	16.89%	0.70%	1.11%	-10.03%
PHM	70 Outperform	$23.22B	9.04	21.57%	0.77%	1.76%	-4.24%
NVR	70 Outperform	$21.00B	16.11	34.80%	―	3.61%	-6.94%
DHI	66 Neutral	$42.46B	12.49	14.48%	1.14%	-6.93%	-19.41%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
LEN	59 Neutral	$27.01B	13.13	8.28%	1.87%	-3.78%	-44.21%

PulteGroup Corporate Events

PulteGroup Reports Steady Q3 2025 Performance

PulteGroup, Inc., headquartered in Atlanta, Georgia, is one of the largest homebuilding companies in the United States, operating in over 45 markets nationwide with a diverse brand portfolio catering to various buyer groups.