PulteGroup (PHM) AI Stock Analysis

• Market Cap: $25.88B
• Dividend Yield: 0.67%
• Average Volume (3M): 2.00M
• Price to Earnings (P/E): 9.8
• Beta (1Y): 0.82
• Revenue Growth: 5.04%
• EPS Growth: 2.07%
• Country: US
• Employees: 6,793
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Residential Construction
• EPS (TTM): 3.03
• Shares Outstanding: 197,297,580
• 10 Day Avg. Volume: 2,266,232
• 30 Day Avg. Volume: 2,001,671
• 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: 0.86
• Enterprise Value/Revenue: 1.25
• Enterprise Value/Gross Profit: 4.50
• Enterprise Value/Ebitda: 6.03
• 1Y Price Target: $138.33
• Price Target Upside: 3.90% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 12

• Rating: 78 Outperform
• Price Target: $152.00 ▲(14.17% Upside)

PulteGroup's overall stock score reflects strong financial performance and bullish technical indicators as the most significant factors. The attractive valuation further supports the stock's potential, although mixed results from the earnings call and regional challenges temper the outlook slightly.

Positive Factors

Strong Return on Equity

A high return on equity indicates efficient use of equity capital, enhancing shareholder value and supporting long-term financial health.

Active Adult Segment Growth

Growth in the active adult segment reflects successful targeting of a demographic with stable demand, supporting sustained revenue streams.

Controlled Land Pipeline

A robust land pipeline with a focus on option lots provides flexibility and reduces risk, supporting strategic growth and market adaptability.

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 could hinder growth and profitability, necessitating strategic adjustments to mitigate localized demand issues.

Increased Incentives

Rising incentives to boost sales may pressure margins, indicating potential affordability issues and competitive pressures in the market.

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 financial health with robust profitability and a solid balance sheet. While revenue and free cash flow have recently declined, the company maintains efficient operations and prudent financial leverage. Continued focus on revenue growth and cash flow management will be crucial for sustaining financial performance.

Income Statement

PulteGroup's income statement shows strong profitability with a consistent gross profit margin around 28-29% and a net profit margin of approximately 15-17% over the years. However, the TTM data indicates a slight revenue decline of 1.1%, contrasting with previous growth. EBIT and EBITDA margins remain robust, reflecting operational efficiency.

Balance Sheet

The balance sheet is solid with a low debt-to-equity ratio of 0.17 in the TTM period, indicating prudent financial leverage. Return on equity remains strong at around 22.6%, showcasing effective use of equity. The equity ratio is healthy, reflecting a stable financial structure.

Cash Flow

Cash flow analysis reveals a decline in free cash flow growth by 9.2% in the TTM period, indicating potential cash flow challenges. However, the operating cash flow to net income ratio is reasonable at 0.65, suggesting adequate cash generation relative to earnings. The free cash flow to net income ratio is strong at 0.92, indicating efficient cash conversion.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	17.69B	17.95B	16.06B	16.00B	13.74B	11.04B
Gross Profit	4.92B	5.22B	4.72B	4.83B	3.78B	2.78B
EBITDA	3.67B	4.10B	3.53B	3.51B	2.58B	1.80B
Net Income	2.74B	3.08B	2.60B	2.62B	1.95B	1.41B
Balance Sheet
Total Assets	17.59B	17.36B	16.09B	14.80B	13.35B	12.21B
Cash, Cash Equivalents and Short-Term Investments	1.27B	1.61B	1.81B	1.05B	1.79B	2.58B
Total Debt	2.25B	1.86B	2.17B	2.22B	2.21B	2.93B
Total Liabilities	5.01B	5.24B	5.70B	5.88B	5.86B	5.64B
Stockholders Equity	12.57B	12.12B	10.38B	8.91B	7.49B	6.57B
Cash Flow
Free Cash Flow	1.32B	1.56B	2.10B	555.80M	931.24M	1.73B
Operating Cash Flow	1.45B	1.68B	2.20B	668.47M	1.00B	1.78B
Investing Cash Flow	-67.46M	-94.48M	-129.09M	-171.74M	-124.13M	-107.95M
Financing Cash Flow	-1.56B	-1.78B	-1.31B	-1.24B	-1.68B	-295.62M

PulteGroup Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 133.14
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• 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 133.14 is below the 20-day moving average (MA) of 134.13, above the 50-day MA of 127.39, and above the 200-day MA of 110.86, indicating a neutral trend. The MACD of 0.78 indicates Positive momentum. The RSI at 54.25 is Neutral, neither overbought nor oversold. The STOCH value of 26.03 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
PHM	78 Outperform	$25.88B	9.80	23.05%	0.67%	5.04%	2.07%
DHI	78 Outperform	$49.85B	13.40	16.48%	0.96%	-7.31%	-16.37%
TOL	78 Outperform	$13.23B	10.08	16.99%	0.70%	3.26%	-6.40%
TMHC	73 Outperform	$6.57B	7.67	14.94%	―	13.77%	28.57%
LEN	69 Neutral	$32.86B	12.61	14.42%	1.55%	-4.65%	-32.82%
NVR	66 Neutral	$23.05B	16.95	39.53%	―	5.87%	-1.74%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%

PulteGroup Corporate Events

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.