PulteGroup (PHM)
Consumer Discretionary · $25.0B market cap · SEC CIK 0000822416
$130.60
▼−3.89% on the day
close of Nov 10, 2026
46
Mixed
ahead of 46% of the S&P 500 · #24 of 48 in Consumer Discretionary
ahead of 46% of the S&P 500 · #24 of 48 in Consumer Discretionary
Next reports on Jan 27, 2027, before the open, with analysts expecting $2.54 in earnings per share.
52-week range $107.16 to $144.50. 10% below its 52-week high and 22% above its low.
The case for PHM
- Holds more cash ($2.0B) than long-term debt ($43.9M).
- Barely leveraged. Debt is 0.17× equity.
- Current assets cover the near-term bills 5.0 times over.
- P/E of 13.9× is lower than 85% of Consumer Discretionary companies.
The case against
- Revenue fell 9.3% year over year.
- Earnings per share down 27.9%.
What the score is made of
Each factor is half a curve over reported figures and half a rank among the other Consumer Discretionary companies (momentum is judged against fixed thresholds only), and the five are blended by weight. The score is where that blend places it in the S&P 500. It describes the last filing and the current price. It is not a forecast.
| Valuewhat you pay for the earnings and cash, against the growth you get | 62 |
|---|---|
| Growthhow fast revenue and earnings are moving, this year and over five | 37 |
| Profitabilityhow much of the revenue becomes profit, and how much of that is cash | 46 |
| Momentumhow the price has behaved lately | 62 |
| Stabilityhow violently it moves, what it owes and what it pays you | 78 |
- Each factor except momentum is half fixed thresholds, half rank among the 48 Consumer Discretionary companies.
The financials
Revenue growth
Is the business growing? No, shrinking
| Last 12 months | −9.3% |
|---|---|
| Over 5 years | +9.4% a year |
| FY2025 revenue | $17.3B (−4%) |
Free cash flow
Is it generating real cash? Yes
| FY2025 free cash flow | $1.7B |
|---|---|
| Of revenue | 10% |
| Of profit | 79% |
Profit margins
Is profitability improving? No, slipping
| Gross margin | 25% |
|---|---|
| Operating margin | 15% |
| Net margin, FY24 → FY25 → now | 17.2% → 12.8% → 11.2% |
Debt vs. cash
Is the balance sheet healthy? Yes, more cash than debt
| Cash | $2.0B |
|---|---|
| Long-term debt | $43.9M |
| Net cash | $1.9B |
| Years to repay | 0.0 yrs |
Valuation
Is the stock price reasonable? Yes, about fair
| P/E | 13.9× |
|---|---|
| Fair P/E for its growth | 18× |
| P/FCF | 14.3× |
| Forward P/E | 13.0× |
| EV / EBITDA | 10.9× |
At 13.9× earnings it trades below the 18× that 5% a year of growth plus a 0.9% dividend would justify. At 14.3× free cash flow it trades below that same mark.
The financials, five years deep
Pulled from PulteGroup's XBRL filings on SEC EDGAR. Italic rows are worked out from the others.
| FY2025 | FY2024 | FY2023 | FY2022 | FY2021 | |
|---|---|---|---|---|---|
| Revenue growth | |||||
| Revenue | $17.3B | $17.9B | $16.1B | $16.0B | $13.7B |
| Change on the year | −4% | +12% | 0% | +16% | — |
| Free cash flow | |||||
| Free cash flow | $1.7B | $1.6B | $2.1B | $556M | $931M |
| Of revenue | 10% | 9% | 13% | 3% | 7% |
| Profit margins | |||||
| Net margin | 12.8% | 17.2% | 16.2% | 16.4% | 14.2% |
| Debt vs. cash | |||||
| Cash | $2.0B | $1.6B | $1.8B | $1.1B | $1.8B |
| Long-term debt | $43.9M | $31.1M | $73.5M | $77.3M | $63.9M |
| Net cash (debt) | $1.9B | $1.6B | $1.7B | $976M | $1.7B |
Risk factors PHM lists in its 10-K
- Inflation has resulted in increased costs that we may not be able to recoup and has impacted home affordability and consumer sentiment
- Supply shortages and other risks related to the demand for skilled labor and building materials could increase costs and delay deliveries
- Our success depends on our ability to acquire land suitable for residential homebuilding in accordance with our land investment criteria
- If the market value of our land drops significantly, our profits could decrease and result in write-downs of the carrying values of land we own
- Competition for homebuyers could reduce our deliveries or decrease our profitability
- An inability to accurately predict customer preferences or demand, or to respond effectively to technological developments, including artificial intelligence, could materially impact the business
- Government regulations could increase the cost and limit the availability of our development and homebuilding projects or affect our related Financial Services operations and adversely affect our business or financial results
- Homebuilding is subject to warranty and other claims in the ordinary course of business that can be significant
- We can be injured by improper acts of persons over whom we do not have control or by the attempt to impose liabilities or obligations of third parties on us
- Natural disasters, severe weather conditions and changing climate patterns could delay deliveries, increase costs, and decrease demand for new homes in affected areas
- The impact of climate change or other governmental regulation may adversely impact our business
- Adverse capital and credit market conditions may significantly affect our access to capital and cost of capital
- Our income tax provision and tax reserves may be insufficient if a taxing authority is successful in asserting positions that are contrary to our interpretations and related reserves, if any
- We may not realize our deferred tax assets
- Our inability to sell mortgages into the secondary market could significantly reduce our ability to sell homes unless we are willing to become a long-term investor in loans we originate
- We are subject to claims related to mortgage loans we sold in the secondary mortgage market that may be significant
- We are implementing a new enterprise resource planning system, and challenges with the implementation of the system may impact our business and operations
- Information technology failures or data security breaches could harm our business and result in substantial costs
- The loss of the services of members of our senior management or a significant number of our operating employees could negatively affect our business
- We have significant intangible assets. If these assets become impaired, then our profits and shareholders’ equity may be reduced
- Our business could be materially and adversely affected by epidemics, pandemics, or other public health emergencies