PulteGroup (PHM) AI Stock Analysis

• Market Cap: $22.80B
• Dividend Yield: 0.76%
• Average Volume (3M): 1.98M
• Price to Earnings (P/E): 8.1
• Beta (1Y): 0.91
• Revenue Growth: 8.86%
• EPS Growth: 13.60%
• Country: US
• Employees: 6,793
• Sector: Consumer Cyclical
• Sector Strength: 64
• Industry: Residential Construction
• EPS (TTM): 2.57
• Shares Outstanding: 200,427,190
• 10 Day Avg. Volume: 2,214,447
• 30 Day Avg. Volume: 1,977,122
• PEG Ratio: -1.91
• Price to Book (P/B): 1.67
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 14.01
• Enterprise Value/Market Cap: 0.93
• Enterprise Value/Revenue: 0.30
• Enterprise Value/Gross Profit: 4.05
• Enterprise Value/Ebitda: 1.36
• 1Y Price Target: $124.27
• Price Target Upside: 8.75% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 12

• Rating: 80 Outperform
• Price Target: $117.00 ▲(2.39%Upside)

PulteGroup maintains a strong overall stock score due to its robust financial performance and attractive valuation. Although technical indicators show positive momentum, there are concerns about overbought conditions. The earnings call reflected strength but highlighted challenges in order volume and potential tariff impacts.

Positive Factors

Brand Strength

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

Earnings

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

Negative Factors

Demand

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

Market 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. is one of the largest homebuilders in the United States, operating across various segments of the residential housing market. The company is primarily involved in the development and sale of single-family detached homes, townhouses, condominiums, and duplexes, catering to a wide range of buyers including first-time, move-up, and active adult buyers. PulteGroup operates under several brand names, including Pulte Homes, Centex, and Del Webb, each targeting different customer demographics and needs.

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 shows strong financial health with impressive profitability metrics, operational efficiency, and shareholder returns. Challenges in revenue growth and free cash flow sustainability are present, but the company's 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
EBITDA	3.96B	4.10B	3.53B	3.52B	2.63B	1.83B
Net Income	2.94B	3.08B	2.60B	2.62B	1.95B	1.41B
Balance Sheet
Total Assets	17.34B	17.36B	16.09B	14.80B	13.35B	12.21B
Cash, Cash Equivalents and Short-Term Investments	1.88B	2.24B	2.32B	1.05B	1.78B	2.58B
Total Debt	2.05B	2.25B	2.55B	2.63B	2.66B	3.16B
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: 114.27
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 114.27 is above the 20-day moving average (MA) of 106.35, above the 50-day MA of 103.37, and above the 200-day MA of 113.45, indicating a bullish trend. The MACD of 3.15 indicates Negative momentum. The RSI at 66.95 is Neutral, neither overbought nor oversold. The STOCH value of 89.31 is Negative, 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	80 Outperform	$22.80B	8.13	25.52%	0.76%	8.86%	13.60%
DHI	80 Outperform	$42.52B	10.56	17.83%	1.16%	-4.71%	-10.19%
TOL	78 Outperform	$11.92B	9.10	18.09%	0.81%	1.59%	-8.04%
TMHC	78 Outperform	$6.56B	7.63	15.97%	―	12.19%	23.15%
NVR	76 Outperform	$22.52B	15.82	38.25%	―	8.81%	1.79%
LEN	76 Outperform	$29.98B	9.63	13.04%	1.72%	-1.26%	-17.78%
Sector *	67 Neutral	¥252.14B	13.51	6.48%	2.73%	5.20%	-11.34%

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.