PulteGroupPHM +7.24%93 Gross Margin % is 24.12% as of Mar. 2026, which is 7% below its 10-year median of 25.89. GuruFocus rates PHM with a GF Score™ of 93/100 and a GF Value™ of $118.14 (Modestly Overvalued). The stock has 6 warning signs investors should review. Among 90 Homebuilding & Construction companies, PulteGroup ranks better than 71.11% on this metric.
Gross Margin % is calculated as gross profit divided by its revenue. PulteGroup's Gross Profit for the
three
months ended in Mar. 2026 was $822 Mil. PulteGroup's Revenue for the
three
months ended in Mar. 2026 was $3,409 Mil. Therefore, PulteGroup's Gross Margin % for the quarter that ended in Mar. 2026 was 24.12%.
The historical rank and industry rank for PulteGroup's Gross Margin % or its related term are showing as below:
PHM'
s Gross Margin % Range Over the Past 10 Years
Min: 21.72 Med: 25.89 Max: 30.21
Current: 25.71
During the past 13 years, the highestGross Margin % of PulteGroup was 30.21%. The lowest was 21.72%. And the median was 25.89%.
PHM's Gross Margin % is ranked better than 71.11% of 90
companies
in the Homebuilding & Construction industry
Industry Median: 21.34
vs PHM: 25.71
PulteGroup had a gross margin of 24.12% for the quarter that ended in Mar. 2026 => Competition eroding margins
The 5-Year average Growth Rate of Gross Margin for PulteGroup was 1.10% per year.
PulteGroup (NYSE:PHM) Gross Margin % Explanation
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
PulteGroup had a gross margin of 24.12% for the quarter that ended in Mar. 2026 => Competition eroding margins
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
PulteGroup Gross Margin % Related Terms
PulteGroup Gross Margin % Historical Data
* Premium members only.
The historical data trend for PulteGroup's Gross Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
For the Residential Construction subindustry, PulteGroup's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
PulteGroup Gross Margin % vs Homebuilding & Construction Industry
For the Homebuilding & Construction industry and Consumer Cyclical sector, PulteGroup's Gross Margin % distribution charts can be found below:
* The bar in red indicates where PulteGroup's Gross Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
PulteGroup (PHM) has a Gross Margin % of 24.12% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on PulteGroup and its competitors. This is near median its historical median of 25.89. Over the past decade, PulteGroup's Gross Margin % has ranged from 21.72 to 30.21. According to the industry distribution chart, PulteGroup ranks #26 out of 90 companies in the Homebuilding & Construction industry, placing it in the top 28.9%.
Is PulteGroup's Gross Margin % too high?
PulteGroup's current Gross Margin % of 24.12% is near median its 10-year median of 25.89. Over the past 10 years, this metric has ranged from a low of 21.72 to a high of 30.21. The Homebuilding & Construction industry median Gross Margin % is 21.34. PulteGroup's value of 24.12% is 13% above this industry median. Based on the distribution chart, PulteGroup ranks #26 out of 90 companies in the Homebuilding & Construction industry, which is above the industry midpoint. Overall, PulteGroup has a GF Score™ of 93/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does PulteGroup's Gross Margin % compare to LEN and NVR?
According to the Homebuilding & Construction industry distribution chart, PulteGroup ranks #26 out of 90 companies for Gross Margin %. This puts PulteGroup in the upper half of its industry. The industry median Gross Margin % is 21.34. PulteGroup's value of 24.12% is 13% above this benchmark. Historically, PulteGroup's own Gross Margin % has ranged from 21.72 to 30.21 over the past decade. While the company's 10-year median is 25.89 vs. the industry median of 21.34, PulteGroup has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Gross Margin % for a Homebuilding & Construction company?
The median Gross Margin % among Homebuilding & Construction companies is 21.34, based on 90 companies in the industry. Companies in the top quartile (top 25%) have a Gross Margin % significantly above this median, while those in the bottom quartile fall well below. However, Gross Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. PulteGroup's current Gross Margin % of 24.12% is 13% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Gross Margin % mean?
A high Gross Margin % can signal that a stock is expensive relative to its fundamentals. Gross margin is the ratio of total gross profit to net sales. View historical data on PulteGroup and its competitors. For the Homebuilding & Construction industry, the median Gross Margin % is 21.34 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. PulteGroup's current Gross Margin % is 24.12%, which is near median its own 10-year median of 25.89. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is PulteGroup stock overvalued right now?
Based on GuruFocus' analysis, PulteGroup (PHM) is currently considered Modestly Overvalued. The stock's GF Value™ is $118.14, compared to a current price of $135.71 — trading 14.9% above its estimated fair value. The current Gross Margin % is 24.12%, which is near median its 10-year median of 25.89 and 13% above the Homebuilding & Construction industry median of 21.34. PulteGroup's overall GF Score™ is 93/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Gross Margin % calculated?
Gross Margin % is calculated from a company's financial statements. For PulteGroup (PHM), the current Gross Margin % is 24.12% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is PulteGroup (PHM) Overvalued in 2026?
Based on GuruFocus' analysis, PulteGroup stock appears to be overvalued.
The current stock price of $135.71 is trading 14.9% above its estimated GF Value™ of $118.14.
GuruFocus considers PulteGroup to be Modestly Overvalued.
Key valuation signals for PHM:
Gross Margin %: 24.12% (near median its 10-year median of 25.89)
GF Value™: $118.14 vs. price of $135.71 (14.9% above fair value)
Industry Position: 13% above the Homebuilding & Construction median (#26 of 90)
No single metric tells the full story. See the PHM stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
PulteGroup Inc is a homebuilder in the United States. The company mainly builds single-family detached homes and offers products to entry-level, move-up, and active-adult buyers. It also offers homebuyers mortgage financing, title, and insurance agency services through its financial services segment.
93GF Score
Get the complete analysis for PHM
Gross Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
PHM has been successfully added to your 
