PulteGroup Inc (PHM, Financial) is a prominent player in the Homebuilding & Construction industry. As of July 25, 2023, the company's stock price stands at $83.83, marking a 6.75% gain for the day and a 9.55% increase over the past four weeks. With a market capitalization of $18.71 billion, PulteGroup's financial performance and future prospects can be evaluated using the GF Score, a comprehensive ranking system developed by GuruFocus. The GF Score, ranging from 0 to 100, assesses a company's potential for future performance based on five key aspects: Financial Strength, Profitability Rank, Growth Rank, GF Value Rank, and Momentum Rank. A higher GF Score generally indicates a higher potential for returns.
PulteGroup's GF Score Analysis
PulteGroup boasts a GF Score of 92/100, placing it in the highest category for outperformance potential. This impressive score suggests that the company is well-positioned for future growth and profitability. 
Financial Strength of PulteGroup
The Financial Strength component of the GF Score evaluates a company's financial stability. PulteGroup's Financial Strength Rank is 8/10, indicating a robust financial situation. The company's high interest coverage of 11600.23 and low debt to revenue ratio of 0.14 further reinforce its financial strength. Additionally, an Altman Z score of 5.19 suggests a low probability of bankruptcy.
Profitability Rank of PulteGroup
The Profitability Rank assesses a company's profitability and its likelihood to remain profitable. PulteGroup's Profitability Rank is a perfect 10/10, indicating exceptional profitability. The company's high operating margin of 21.29%, strong Piotroski F-Score of 8, and consistent profitability over the past decade contribute to this high rank.
Growth Rank of PulteGroup
The Growth Rank measures a company's revenue and profitability growth. PulteGroup's Growth Rank is also 10/10, reflecting strong growth in both revenue and profitability. The company's 5-year revenue growth rate of 18.10% and 3-year revenue growth rate of 22.80% further underscore its robust growth.
GF Value Rank of PulteGroup
The GF Value Rank evaluates a company's valuation based on historical multiples and future performance estimates. PulteGroup's GF Value Rank is 3/10, suggesting that the company's stock may be overvalued at its current price.
Momentum Rank of PulteGroup
The Momentum Rank assesses a company's stock price performance. PulteGroup's Momentum Rank is 6/10, indicating moderate momentum in its stock price.
Comparison with Competitors
When compared to its main competitors, PulteGroup's GF Score of 92/100 is slightly lower than NVR Inc's score of 96 but higher than Toll Brothers Inc's score of 88 and Taylor Morrison Home Corp's score of 84. This suggests that PulteGroup has strong performance potential within the Homebuilding & Construction industry.
In conclusion, PulteGroup's high GF Score, robust financial strength, exceptional profitability, and strong growth make it a compelling investment option. However, investors should also consider the company's GF Value Rank and Momentum Rank when making investment decisions.
