PulteGroup Inc (PHM, Financial) has recently captured the attention of investors and analysts alike, thanks to its strong financial performance and promising market position. With a current share price of $113.5 and a notable daily gain of 5.93%, alongside a three-month change of 1.84%, PulteGroup Inc stands out in the competitive homebuilding sector. A detailed analysis using the GF Score indicates that PulteGroup Inc is poised for significant growth, making it a compelling choice for investors.
What Is the GF Score?
The GF Score is a proprietary ranking system developed by GuruFocus, assessing stocks based on five key valuation aspects. This system, which has been rigorously backtested from 2006 to 2021, suggests that stocks with higher GF Scores typically yield superior long-term returns. For PulteGroup Inc, the GF Score breakdown is as follows:
- Financial strength rank: 9/10
- Profitability rank: 10/10
- Growth rank: 10/10
- GF Value rank: 3/10
- Momentum rank: 9/10
With an overall GF Score of 94 out of 100, PulteGroup Inc demonstrates a high potential for outperformance.
Understanding PulteGroup Inc's Business
PulteGroup Inc, a prominent homebuilder in the United States, primarily constructs single-family detached homes catering to entry-level, move-up, and active-adult buyers. With a market cap of $23.87 billion and annual sales of $16.44 billion, the company also provides mortgage financing, title, and insurance agency services through its financial services segment. PulteGroup Inc's operating margin stands at 21.37%, reflecting its efficient operational structure.
Financial Strength Breakdown
PulteGroup Inc's financial robustness is evident through its impressive Interest Coverage ratio of 7,364.16, significantly surpassing the benchmark set by investment guru Benjamin Graham. Additionally, its Altman Z-Score of 5.54 indicates a strong buffer against financial distress, and a Debt-to-Revenue ratio of 0.15 showcases prudent debt management.
Profitability and Growth Metrics
The company's profitability, as highlighted by its Operating Margin, has consistently improved over the past five years, reaching 21.15% in 2023. This trend is supported by a steady increase in Gross Margin, which stood at 29.38% in 2023. PulteGroup Inc's growth is equally impressive, with a 3-Year Revenue Growth Rate of 21%, significantly outperforming 86.32% of its industry peers.
Conclusion
Considering PulteGroup Inc's robust financial strength, impressive profitability, and consistent growth metrics, the GF Score underscores the company's strong potential for market outperformance. Investors looking for solid investment opportunities may find PulteGroup Inc an attractive option.
For more insights into companies with strong GF Scores, visit our GF Score Screen.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
