PulteGroup (PHM) AI Stock Analysis

• Market Cap: $19.87B
• Dividend Yield: 0.89%
• Average Volume (3M): 1.71M
• Price to Earnings (P/E): 7.0
• Beta (1Y): 0.89
• Revenue Growth: 8.86%
• EPS Growth: 13.60%
• Country: US
• Employees: 6,793
• Sector: Consumer Cyclical
• Sector Strength: 56
• Industry: Residential Construction
• EPS (TTM): 2.57
• Shares Outstanding: 200,427,190
• 10 Day Avg. Volume: 1,622,016
• 30 Day Avg. Volume: 1,709,627
• PEG Ratio: 0.08
• Price to Book (P/B): 1.20
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 19.25
• Enterprise Value/Market Cap: 0.62
• Enterprise Value/Revenue: 0.18
• Enterprise Value/Gross Profit: 2.35
• Enterprise Value/Ebitda: 0.79
• 1Y Price Target: $123.27
• Price Target Upside: 21.48% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 12

• Rating: 75 Outperform
• Price Target: $111.00 ▲(9.39%Upside)

PulteGroup's stock is supported by strong financial performance and attractive valuation. While technical indicators suggest caution, the company's strategic focus and resilience in challenging conditions contribute positively to its score.

Positive Factors

Earnings

PulteGroup (PHM) reported 1Q earnings ahead of our forecast.

Financial Performance

PHM has attractive ROE and capital return relative to other builders and we expect resilient order/margin performance in a tough backdrop.

Market Position

Del Webb is a unique brand with a favorable market position, offering higher gross margins compared to other segments.

Negative Factors

Incentives Impact

PHM expects incentives to remain elevated, which could impact margins.

Order Performance

PHM orders of 7.8K were down (7%) YoY and below normal seasonality.

Regional Performance

West Coast region underperformed in tech-centric markets like Seattle, potentially over concerns about visas.

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 makes money through the construction and sale of residential homes across the United States. The company's primary revenue stream comes from the sale of homes, which involves purchasing land, developing communities, and constructing homes to sell to consumers. Revenue is also generated through financial services, where PulteGroup offers mortgage financing solutions to its buyers, helping facilitate the home purchase process. Key factors contributing to its earnings include strategic land acquisitions, effective cost management, and maintaining a diverse range of product offerings to appeal to various market segments. The company may also benefit from partnerships with suppliers and contractors to optimize its supply chain and reduce construction costs.

PulteGroup Financial Statement Overview

Summary

PulteGroup exhibits robust financial health with high profitability and efficient operations. Despite challenges in revenue growth and cash flow sustainability, its low leverage and strong equity position provide resilience.

Income Statement

PulteGroup's income statement reveals a robust financial position with high profitability metrics. The TTM Gross Profit Margin stands at 28.9%, and the Net Profit Margin is an impressive 17.3%, showcasing efficient cost management and strong bottom-line performance. The revenue growth rate from 2024 to TTM shows a decline of 22%, indicating a potential challenge in sustaining revenue growth. EBIT and EBITDA margins are strong at 22% and 22.7%, respectively, underscoring operational efficiency.

Balance Sheet

The balance sheet displays a solid financial foundation with a healthy debt-to-equity ratio of 0.14, highlighting low financial leverage and reduced financial risk. The Return on Equity (ROE) is excellent at 20.9%, reflecting strong returns for shareholders. The equity ratio is robust at 80.7%, indicating high financial stability. However, the decrease in total assets from 2024 suggests a potential risk in asset growth.

Cash Flow

PulteGroup's cash flow statement shows effective cash management, with a Free Cash Flow to Net Income ratio of 55.6%, indicating strong cash generation relative to reported profits. The Free Cash Flow Growth Rate is negative at -13.8% from 2024 to TTM, suggesting challenges in maintaining free cash flow levels. The Operating Cash Flow to Net Income ratio of 59.5% highlights a robust cash conversion capability, though there is room for improvement.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
17.89B	17.95B	16.06B	16.23B	13.93B	11.04B
	Gross Profit
5.22B	5.22B	4.72B	4.83B	3.78B	2.78B
	EBIT
3.86B	3.90B	3.43B	3.45B	2.64B	1.79B
	EBITDA
3.96B	4.10B	3.53B	3.52B	2.63B	1.83B
	Net Income Common Stockholders
2.94B	3.08B	2.60B	2.62B	1.95B	1.41B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
1.88B	2.24B	2.32B	1.05B	1.78B	2.58B
	Total Assets
17.34B	17.36B	16.09B	14.80B	13.35B	12.21B
	Total Debt
2.05B	2.25B	2.55B	2.63B	2.66B	3.16B
	Net Debt
816.86M	641.19M	746.82M	1.58B	876.08M	581.92M
	Total Liabilities
5.04B	5.24B	5.70B	5.88B	5.86B	5.64B
	Stockholders Equity
12.30B	12.12B	10.38B	8.91B	7.49B	6.57B
Cash Flow		Free Cash Flow
1.45B	1.56B	2.10B	555.80M	931.24M	1.73B
	Operating Cash Flow
1.58B	1.68B	2.20B	668.47M	1.00B	1.78B
	Investing Cash Flow
-107.40M	-94.48M	-129.09M	-171.74M	-124.13M	-107.95M
	Financing Cash Flow
-1.96B	-1.78B	-1.31B	-1.24B	-1.68B	-295.62M

PulteGroup Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 101.47
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• 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 Positive. The current price of 101.47 is above the 20-day moving average (MA) of 100.27, above the 50-day MA of 100.25, and below the 200-day MA of 115.26, indicating a neutral trend. The MACD of 0.06 indicates Positive momentum. The RSI at 51.25 is Neutral, neither overbought nor oversold. The STOCH value of 15.48 is Positive, 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
PHM	75 Outperform	$19.87B	6.99	25.52%	0.89%	8.86%	13.60%
TMHC	75 Outperform	$5.76B	6.67	15.97%	―	12.19%	23.15%
NVR	74 Outperform	$20.41B	14.36	38.25%	―	8.81%	1.79%
TOL	71 Outperform	$10.35B	7.82	18.09%	0.95%	1.59%	-8.04%
DHI	68 Neutral	$37.25B	9.18	17.83%	1.32%	-4.71%	-10.19%
LEN	64 Neutral	$27.15B	8.55	13.06%	1.93%	-1.20%	-17.61%
Sector *	62 Neutral	$6.80B	11.08	2.79%	5.80%	2.68%	-24.86%

PulteGroup Corporate Events

PulteGroup Streamlines Capital Structure with Share Elimination

On June 2, 2025, PulteGroup, Inc. filed a Certificate of Elimination with the Michigan Department of Licensing and Regulatory Affairs to remove the Series A Junior Participating Preferred Shares from its Restated Articles of Incorporation. As of that date, no Series A Preferred Shares were outstanding, nor were there any options or rights that could require their issuance, indicating a strategic move to streamline the company’s capital structure.

The most recent analyst rating on (PHM) stock is a Hold with a $117.00 price target. To see the full list of analyst forecasts on PulteGroup stock, see the PHM Stock Forecast page.

PulteGroup Adopts New Amended By-Laws

On May 1, 2025, PulteGroup‘s Board of Directors adopted new Amended and Restated By-Laws, which include removing restrictions on securities transfers to prevent ownership changes and updating shareholder procedural requirements. The company also held its 2025 Annual Meeting of Shareholders on April 30, 2025, where all ten director nominees were elected, Ernst & Young LLP’s appointment as the independent auditor was ratified, executive compensation was approved, but shareholder proposals on clawback policy and emission reduction goals were not passed.