PulteGroup (PHM) AI Stock Analysis

• Market Cap: $20.21B
• Dividend Yield: 0.83%
• Average Volume (3M): 2.13M
• Price to Earnings (P/E): 7.3
• Beta (1Y): 0.91
• Revenue Growth: 8.86%
• EPS Growth: 13.60%
• Country: US
• Employees: 6,793
• Sector: Consumer Cyclical
• Sector Strength: 58
• Industry: Residential Construction
• EPS (TTM): 2.57
• Shares Outstanding: 200,427,190
• 10 Day Avg. Volume: 1,963,813
• 30 Day Avg. Volume: 2,128,588
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 1.08
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: 4.18
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $123.27
• Price Target Upside: 21.66% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 12

PulteGroup's strong financial performance, attractive valuation, and effective management strategies contribute to a robust overall score. While technical indicators suggest short-term caution, the company's strategic positioning and operational strengths provide resilience against market challenges.

Positive Factors

Earnings

PulteGroup (PHM) reported 1Q25 EPS of $2.57, beating the forecast of $2.48 and consensus of $2.43 driven by stronger gross margin and higher ASP.

Financial Performance

PulteGroup offers a best-in-class mix of elevated returns, attractive capital allocation, and a balanced mix of buyer cohorts.

Market Positioning

PulteGroup is seen as well-positioned amidst elevated interest rates through a strong move-up strategy.

Negative Factors

Guidance

PHM lowered 2025 deliveries guide to 29k-30k, down 6% YoY at the midpoint.

Incentives

Elevated incentives in the near term could weigh on fourth quarter gross margins.

Orders

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

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 primarily through the construction and sale of residential homes. The company's revenue model is centered around developing land, designing, and building homes, and ultimately selling these properties to consumers. PulteGroup's key revenue streams include homebuilding operations, which involve the sale of single-family detached homes, townhouses, and condominiums. Additionally, the company may earn revenue from mortgage banking operations through its subsidiary, Pulte Mortgage, which provides mortgage and financial services to homebuyers. Significant factors contributing to PulteGroup's earnings include market demand for new homes, land acquisition strategies, and efficient management of construction costs. The company's earnings are also influenced by economic conditions, interest rates, and government policies affecting the housing market.

PulteGroup Financial Statement Overview

Summary

PulteGroup demonstrates strong financial health with high profitability, efficient operations, and solid shareholder returns. While facing challenges in revenue growth and free cash flow sustainability, its low leverage and strong equity position offer resilience. Continued focus on revenue expansion and cash flow improvement will be key to maintaining its financial strength.

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

PulteGroup Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 101.32
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• 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 Negative. The current price of 101.32 is above the 20-day moving average (MA) of 99.11, below the 50-day MA of 101.57, and below the 200-day MA of 119.24, indicating a neutral trend. The MACD of 0.49 indicates Negative momentum. The RSI at 50.97 is Neutral, neither overbought nor oversold. The STOCH value of 43.95 is Neutral, 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
PHM	80 Outperform	$20.21B	7.31	25.52%	0.83%	8.86%	13.60%
DHI	76 Outperform	$39.11B	9.63	17.83%	1.15%	-4.71%	-10.19%
TOL	75 Outperform	$10.37B	7.18	20.38%	0.93%	5.86%	12.20%
TMHC	74 Outperform	$5.79B	6.71	15.97%	―	12.19%	23.15%
NVR	70 Outperform	$21.15B	14.56	38.25%	―	8.81%	1.79%
LEN	67 Neutral	$28.89B	8.02	14.97%	1.88%	2.03%	-3.80%
Sector *	61 Neutral	$6.58B	11.81	3.06%	3.99%	2.54%	-21.54%

PulteGroup Corporate Events

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.

Spark’s Take on PHM Stock

According to Spark, TipRanks’ AI Analyst, PHM is a Outperform.

PulteGroup’s overall stock score reflects strong financial performance and attractive valuation, offset by mixed technical indicators and challenges highlighted in the earnings call. The company’s low leverage and strong equity position provide resilience, while strategic focus and market positioning offer potential for future growth. Investors should be mindful of potential risks related to macroeconomic factors and market volatility.

To see Spark’s full report on PHM stock, click here.

PulteGroup Board Member J. Phillip Holloman to Step Down

On March 13, 2025, J. Phillip Holloman, a member of PulteGroup’s Board of Directors, announced he would not seek re-election at the company’s annual meeting on April 30, 2025, due to other commitments. His decision was not due to any disagreements with the company, and the board will be reduced from eleven to ten members following his departure.