PulteGroup (PHM) AI Stock Analysis

• Market Cap: $23.34B
• Dividend Yield: 0.73%
• Average Volume (3M): 2.33M
• Price to Earnings (P/E): 9.2
• Beta (1Y): 0.76
• 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: 2,099,294
• 30 Day Avg. Volume: 2,327,411
• 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: 1.15
• Enterprise Value/Revenue: 1.52
• Enterprise Value/Gross Profit: 5.54
• Enterprise Value/Ebitda: 7.59
• 1Y Price Target: $134.82
• Price Target Upside: 12.19% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 11
• EPS Forecast (FY): 11.36
• Revenue Forecast (FY): $16.98B

• Rating: 70 Outperform
• Price Target: $133.00 ▲(10.68% Upside)

PulteGroup's overall stock score reflects strong financial performance and attractive valuation, offset by bearish technical indicators and mixed earnings call results. The company's strategic initiatives in managing its land pipeline and focus on key growth segments provide a solid foundation, but challenges in certain markets and declining new orders present risks.

Positive Factors

Strong Return on Equity

A strong return on equity indicates effective use of shareholders' funds, enhancing investor confidence and supporting long-term growth.

Controlled Land Pipeline

A well-managed land pipeline ensures future growth potential and flexibility in responding to market demand, supporting sustainable development.

Active Adult Segment Growth

Growth in the active adult segment reflects successful targeting of a key demographic, enhancing revenue diversification and market presence.

Negative Factors

Decline in Net New Orders

A decline in net new orders suggests weakening demand, which could impact future revenue and growth prospects if not addressed.

Challenges in Western and Texas Markets

Regional market challenges can hinder overall growth and profitability, requiring strategic adjustments to mitigate localized demand issues.

Increased Incentives

Rising incentives to boost sales may pressure margins and indicate competitive or affordability challenges, affecting long-term profitability.

PulteGroup Business Overview & Revenue Model

Company Description

PulteGroup, Inc. (PHM) is one of the largest homebuilding companies in the United States, primarily engaged in the construction and sale of residential homes. The company operates through various segments, including its traditional homebuilding operations, which focus on building single-family homes, as well as multi-family homes and active adult communities. PulteGroup's core products encompass a range of home types, from entry-level to luxury homes, catering to diverse customer segments across various markets nationwide.

How the Company Makes Money

PulteGroup generates revenue primarily through the sale of residential homes, which include both single-family and multi-family properties. The company typically recognizes revenue when homes are delivered to buyers, following the completion of the construction process. Key revenue streams include sales from its various brands, such as Pulte Homes, Centex, Del Webb, and John Wieland Homes and Neighborhoods. Additionally, PulteGroup benefits from the sale of lots and land development, as well as ancillary services like mortgage financing through its subsidiaries. The company also capitalizes on strategic partnerships with suppliers and subcontractors to optimize construction costs and enhance profitability. Factors contributing to its earnings include market demand for housing, interest rates, and the overall economic environment, which influence consumer purchasing behavior.

PulteGroup Financial Statement Overview

Summary

PulteGroup demonstrates strong profitability and financial stability, with efficient use of equity and manageable debt levels. However, the recent decline in revenue and free cash flow growth poses potential risks. Continued focus on revenue generation and cash flow management will be crucial for sustaining financial health.

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	1.45B	1.65B	1.81B	1.05B	1.79B	2.58B
Total Debt	2.03B	2.25B	2.17B	2.22B	2.21B	2.93B
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	544.14M	1.56B	2.10B	555.80M	931.24M	1.73B
Operating Cash Flow	568.71M	1.68B	2.20B	668.47M	1.00B	1.78B
Investing Cash Flow	13.81M	-94.48M	-129.09M	-171.74M	-124.13M	-107.95M
Financing Cash Flow	-384.15M	-1.78B	-1.31B	-1.24B	-1.68B	-295.62M

PulteGroup Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 120.17
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PHM, the sentiment is Positive. The current price of 120.17 is below the 20-day moving average (MA) of 120.86, below the 50-day MA of 127.73, and above the 200-day MA of 112.58, indicating a neutral trend. The MACD of -1.93 indicates Negative momentum. The RSI at 46.10 is Neutral, neither overbought nor oversold. The STOCH value of 77.36 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for PHM.

PulteGroup Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TOL	78 Outperform	$12.89B	9.83	17.73%	0.72%	3.26%	-6.40%
PHM	70 Outperform	$23.34B	9.22	21.57%	0.73%	1.76%	-4.24%
TMHC	70 Neutral	$5.80B	7.16	14.31%	―	6.98%	9.74%
DHI	66 Neutral	$43.16B	12.51	14.48%	1.04%	-6.93%	-19.41%
LEN	64 Neutral	$30.78B	12.01	10.63%	1.59%	-4.69%	-32.95%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
NVR	61 Neutral	$20.59B	16.10	34.80%	―	3.61%	-6.94%

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.

PulteGroup Extends Mortgage Agreement with JPMorgan Chase

On August 13, 2025, Pulte Mortgage LLC, a subsidiary of PulteGroup, entered into a Third Amendment to its Master Repurchase Agreement with JPMorgan Chase. This amendment extends the agreement’s term to August 12, 2026, and sets a maximum aggregate commitment of $625 million, with a potential increase to $675 million, impacting the company’s mortgage loan origination financing.

The most recent analyst rating on (PHM) stock is a Hold with a $119.00 price target. To see the full list of analyst forecasts on PulteGroup stock, see the PHM Stock Forecast page.