Pultegroup (PHM)
NYSE:PHM
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PulteGroup
(NYSE:PHM)
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Rating:76Outperform
Price Target:
$133.00
▲(10.99% Upside)
Action:ReiteratedDate:02/22/26
The score is primarily driven by strong underlying financial performance (profitability and a conservative balance sheet) and supportive technical uptrend. It is tempered by cash-flow volatility and softer near-term outlook signals from the earnings call (elevated incentives, higher lot costs, and reduced 2026 cash flow guidance), while valuation remains reasonable but with a low dividend yield.
Positive Factors
Conservative Balance Sheet
Low and improving leverage provides durable financial flexibility across housing cycles. A conservative capital structure supports continued land investment, opportunistic share repurchases, and the ability to absorb working‑capital swings without forcing distressed asset sales, strengthening resilience over months.
Negative Factors
Cash‑flow Volatility
Sharp swings in free cash flow indicate sensitivity to working capital, timing of closings, and reinvestment cadence. Persistent volatility can constrain capital deployment, make buybacks or land spend harder to sustain, and raise refinancing or liquidity pressure during weaker housing demand periods.
Read all positive and negative factors
Positive Factors
Negative Factors
Conservative Balance Sheet
Low and improving leverage provides durable financial flexibility across housing cycles. A conservative capital structure supports continued land investment, opportunistic share repurchases, and the ability to absorb working‑capital swings without forcing distressed asset sales, strengthening resilience over months.
Read all positive factors
PulteGroup (PHM) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$23.02B
Dividend Yield0.78%
Average Volume (3M)1.79M
Price to Earnings (P/E)10.5
Beta (1Y)0.75
Revenue Growth1.76%
EPS Growth-4.24%
CountryUS
Employees6,793
SectorConsumer Cyclical
Sector Strength84
IndustryResidential Construction
Share Statistics
EPS (TTM)2.56
Shares Outstanding192,141,570
10 Day Avg. Volume2,009,016
30 Day Avg. Volume1,791,943
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 Cap0.98
Enterprise Value/Revenue1.30
Enterprise Value/Gross Profit4.86
Enterprise Value/Ebitda7.44
Forecast
1Y Price Target
$136.18Price Target Upside13.64% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering14
EPS Forecast (FY)10.2
Revenue Forecast (FY)$16.46B
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...
How the Company Makes Money
PulteGroup primarily makes money by selling newly constructed homes and related upgrades to homebuyers. Its largest revenue stream is Homebuilding revenue, which is recognized when a home sale closes (typically upon delivery/closing), and is influ...
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 Earnings Call Summary
Earnings Call Date:Jan 29, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Apr 23, 2026
Earnings Call Sentiment Positive
The call presents a largely positive picture driven by strong full-year results (29.5k+ closings, $16.7B revenue, $2.2B net income), robust cash and balance sheet metrics, a large land pipeline, disciplined land investment, share repurchases, and strategic focus on core homebuilding (divestiture of ICG). Offsetting negatives include Q4 softness—revenue and EPS declines, margin compression driven by impairments and elevated incentives, lower financial services income, rising lot cost expectations (7%–8%), regional demand weakness (Texas/West), and a reduced 2026 cash flow outlook (~$1B). Management provided conservative 2026 margin and volume guidance and emphasized operational discipline and a return toward more built-to-order mix. On balance, the company's strong full-year operating performance, financial flexibility, and strategic actions outweigh the near-term headwinds and one-time charges, while management acknowledges and is addressing market softness and cost pressure.Positive Updates
Strong Full-Year Financial Performance
Closed over 29,500 homes and generated home sale revenues of $16.7 billion in 2025; reported full-year net income of $2.2 billion ($11.12 per share), the fifth most profitable year in company history.
Negative Updates
Q4 Revenue and Closing Decline
Q4 home sale revenues declined 5% YoY to $4.5 billion; closings decreased 3% YoY to 7,821 homes and average sales price fell 1% YoY to $573,000.
Read all updates
Q4-2025 Updates
Positive
Negative
Strong Full-Year Financial Performance
Closed over 29,500 homes and generated home sale revenues of $16.7 billion in 2025; reported full-year net income of $2.2 billion ($11.12 per share), the fifth most profitable year in company history.
Read all positive updates
Company Guidance
PulteGroup guided to 5,700–6,100 home closings in Q1 2026 and 28,500–29,000 for the full year, with an average sales price of $550,000–$560,000 for both Q1 and FY2026; gross margin is expected to be 24.5%–25% for Q1 and the year, house costs flat to slightly down, and lot costs up 7%–8% year-over-year. The company expects full‑year SG&A of 9.5%–9.7% of home sale revenue (Q1 ≈11.5%), plans $5.4 billion of land acquisition and development spend, and projects 2026 cash flow of about $1.0 billion assuming 3%–5% average community count growth each quarter versus 2025. PulteGroup enters 2026 with $2.0 billion of cash, 235,000 lots controlled, net debt-to-capital of −3%, and an expected effective tax rate of ~24.5%.PulteGroup Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
84
Very Positive
Cash Flow
66
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 17.31B | 17.95B | 16.06B | 16.00B | 13.74B |
| Gross Profit | 4.57B | 5.22B | 4.72B | 4.83B | 3.78B |
| EBITDA | 3.02B | 4.10B | 3.53B | 3.51B | 2.58B |
| Net Income | 2.22B | 3.08B | 2.60B | 2.62B | 1.95B |
Balance Sheet | |||||
| Total Assets | 18.05B | 17.36B | 16.09B | 14.80B | 13.35B |
| Cash, Cash Equivalents and Short-Term Investments | 2.01B | 1.65B | 1.85B | 1.09B | 1.83B |
| Total Debt | 2.40B | 2.34B | 2.62B | 2.81B | 2.82B |
| Total Liabilities | 5.06B | 5.24B | 5.70B | 5.88B | 5.86B |
| Stockholders Equity | 12.99B | 12.12B | 10.38B | 8.91B | 7.49B |
Cash Flow | |||||
| Free Cash Flow | 1.75B | 1.56B | 2.10B | 555.80M | 931.24M |
| Operating Cash Flow | 1.87B | 1.68B | 2.20B | 668.47M | 1.00B |
| Investing Cash Flow | -80.42M | -94.48M | -129.09M | -171.74M | -124.13M |
| Financing Cash Flow | -1.44B | -1.78B | -1.31B | -1.24B | -1.68B |
PulteGroup Technical Analysis
Negative
119.83
Price Trends
127.57
Negative
125.25
Negative
123.51
Negative
Market Momentum
-3.17
Negative
46.32
Neutral
71.34
Neutral
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 119.83 is above the 20-day moving average (MA) of 118.92, below the 50-day MA of 127.57, and below the 200-day MA of 123.51, indicating a neutral trend. The MACD of -3.17 indicates Negative momentum. The RSI at 46.32 is Neutral, neither overbought nor oversold. The STOCH value of 71.34 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for PHM.
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 |
|---|---|---|---|---|---|---|---|
77 Outperform | $5.65B | 8.21 | 12.83% | ― | 6.98% | 9.74% | |
76 Outperform | $23.02B | 10.46 | 17.51% | 0.78% | 1.76% | -4.24% | |
75 Outperform | $18.66B | 15.79 | 34.29% | ― | 3.61% | -6.94% | |
72 Outperform | $41.06B | 17.70 | 13.81% | 1.14% | -6.93% | -19.41% | |
69 Neutral | $13.05B | 16.39 | 16.86% | 0.70% | 1.11% | -10.03% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
57 Neutral | $21.87B | 30.47 | 8.04% | 1.91% | -3.78% | -44.21% |
* Consumer Cyclical Sector Average
PHM
PulteGroup
119.83
28.54
31.26%
DHI
DR Horton
141.72
27.96
24.58%
LEN
Lennar
88.57
-12.58
-12.44%
NVR
NVR
6,715.45
15.45
0.23%
TOL
Toll Brothers
137.81
48.08
53.58%
TMHC
Taylor Morrison
58.60
4.67
8.66%
PulteGroup Corporate Events
Private Placements and Financing
PulteGroup Prices $800 Million Senior Unsecured Notes Offering
Positive
Feb 20, 2026
On February 20, 2026, PulteGroup completed an $800 million underwritten public offering of senior unsecured notes, split evenly between 4.250% notes due 2031 and 4.900% notes due 2036. The notes, issued under an existing indenture and guaranteed o...
Business Operations and StrategyPrivate Placements and Financing
PulteGroup Announces New Senior Notes and Debt Redemption
Positive
Feb 11, 2026
On February 10, 2026, PulteGroup, Inc. and its U.S. guarantor subsidiaries entered into an underwriting agreement for an $800 million senior unsecured notes offering, split evenly between 4.250% notes due 2031 and 4.900% notes due 2036, with closi...
Executive/Board Changes
PulteGroup Adds Independent Director to Board, Committees
Positive
Feb 9, 2026
On February 4, 2026, PulteGroup’s board expanded to 11 members and appointed Kristin Gannon, a Managing Director at real estate investment bank Eastdil Secured, as an independent director effective February 10, 2026. She will serve on the Au...
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.