📊 PHM Key Takeaways
Is Pultegroup Inc./Mi/ (PHM) a Good Investment?
PulteGroup demonstrates solid operational profitability with a 12.8% net margin and strong return metrics (ROE 17.1%, ROA 12.3%), but faces concerning headwinds with revenue declining 3.5% YoY and net income falling 28% YoY. The company maintains fortress balance sheet strength with minimal debt (0.00x D/E ratio) and generates healthy free cash flow of $1.7B, providing financial flexibility despite near-term cyclical pressures.
PulteGroup shows strong underlying financial health, with a fortress balance sheet, minimal leverage, and robust free cash flow generation. However, the latest period reflects weaker earnings quality, as revenue declined modestly while net income and EPS fell much more sharply, indicating margin pressure and reduced profitability momentum. The company remains fundamentally solid, but current operating trends support a more neutral stance until earnings stability improves.
Why Buy Pultegroup Inc./Mi/ Stock? PHM Key Strengths
- Exceptional balance sheet with $13.0B equity, only $43.9M long-term debt, and $2.0B cash providing substantial financial cushion
- Strong free cash flow generation of $1.7B (10.1% FCF margin) enabling capital flexibility and shareholder returns
- Healthy profitability with 12.8% net margin and double-digit ROE (17.1%) and ROA (12.3%) returns
- Exceptional interest coverage ratio of 991.6x indicates zero financial distress risk
- Very strong balance sheet with low long-term debt and near-zero debt/equity
- Healthy cash generation with $1.75B of free cash flow and a 10.1% FCF margin
- Still-solid profitability profile with 17.1% ROE and 12.3% ROA
PHM Stock Risks: Pultegroup Inc./Mi/ Investment Risks
- Significant revenue contraction of 3.5% YoY signals deteriorating top-line growth and potential demand weakness in homebuilding sector
- Sharp net income decline of 28% YoY despite relatively stable operating margins suggests margin compression or elevated costs
- Concentrated exposure to cyclical residential construction industry vulnerable to interest rate, economic, and housing market cycles
- EPS decline of 24.3% YoY indicates earnings leverage on top-line declines
- Net income and diluted EPS declined materially faster than revenue, signaling margin compression
- Operating margin of 3.5% suggests weaker near-term operating efficiency
- Homebuilding fundamentals are cyclical, so further demand softness could pressure revenue and returns
Key Metrics to Watch
- Revenue growth trajectory and new order trends (currently negative)
- Gross margin stability and cost management amid declining volumes
- Free cash flow sustainability and conversion rates
- Debt levels if acquisition activity or operational challenges increase
- Operating margin trend
- Free cash flow consistency
Pultegroup Inc./Mi/ (PHM) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The current ratio below 1.0x warrants monitoring of short-term liquidity.
PHM Profit Margin, ROE & Profitability Analysis
PHM vs Market Sector: How Pultegroup Inc./Mi/ Compares
How Pultegroup Inc./Mi/ compares to Market sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Pultegroup Inc./Mi/ Stock Overvalued? PHM Valuation Analysis 2026
Based on fundamental analysis, Pultegroup Inc./Mi/ has mixed fundamental signals relative to the Market sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Pultegroup Inc./Mi/ Balance Sheet: PHM Debt, Cash & Liquidity
PHM Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Pultegroup Inc./Mi/'s revenue has grown significantly by 29% over the 5-year period, indicating strong business expansion. The most recent EPS of $11.72 reflects profitable operations.
PHM Revenue Growth, EPS Growth & YoY Performance
PHM Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2025 | $4.4B | $585.8M | $2.96 |
| Q2 2025 | $4.4B | $608.5M | $3.03 |
| Q1 2025 | $3.9B | $522.8M | $2.57 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Pultegroup Inc./Mi/ Dividends, Buybacks & Capital Allocation
PHM SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Pultegroup Inc./Mi/ (CIK: 0000822416)
📋 Recent SEC Filings
❓ Frequently Asked Questions about PHM
What is the AI rating for PHM?
Pultegroup Inc./Mi/ (PHM) has a Combined AI Rating of HOLD from Claude (HOLD) and ChatGPT (HOLD) with 72% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are PHM's key strengths?
Claude: Exceptional balance sheet with $13.0B equity, only $43.9M long-term debt, and $2.0B cash providing substantial financial cushion. Strong free cash flow generation of $1.7B (10.1% FCF margin) enabling capital flexibility and shareholder returns. ChatGPT: Very strong balance sheet with low long-term debt and near-zero debt/equity. Healthy cash generation with $1.75B of free cash flow and a 10.1% FCF margin.
What are the risks of investing in PHM?
Claude: Significant revenue contraction of 3.5% YoY signals deteriorating top-line growth and potential demand weakness in homebuilding sector. Sharp net income decline of 28% YoY despite relatively stable operating margins suggests margin compression or elevated costs. ChatGPT: Net income and diluted EPS declined materially faster than revenue, signaling margin compression. Operating margin of 3.5% suggests weaker near-term operating efficiency.
What is PHM's revenue and growth?
Pultegroup Inc./Mi/ reported revenue of $17.3B.
Does PHM pay dividends?
Pultegroup Inc./Mi/ pays dividends, with $176.7M distributed to shareholders in the trailing twelve months.
Where can I find PHM SEC filings?
Official SEC filings for Pultegroup Inc./Mi/ (CIK: 0000822416) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is PHM's EPS?
Pultegroup Inc./Mi/ has a diluted EPS of $11.12.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is PHM a good stock to buy right now?
Based on our AI fundamental analysis in April 2026, Pultegroup Inc./Mi/ has a HOLD rating with 72% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.
Is PHM stock overvalued or undervalued?
Valuation metrics for PHM: ROE of 17.1% (sector avg: 15%), net margin of 12.8% (sector avg: 12%). Higher ROE suggests strong returns relative to peers.
Should I buy PHM stock in 2026?
Our dual AI analysis gives Pultegroup Inc./Mi/ a combined HOLD rating for 2026. Revenue is data pending, with profitability above sector average. Always conduct your own research.
What is PHM's free cash flow?
Pultegroup Inc./Mi/'s operating cash flow is $1.9B, with capital expenditures of $122.7M. FCF margin is 10.1%.
How does PHM compare to other Market stocks?
Vs Default sector averages: Net margin 12.8% (avg: 12%), ROE 17.1% (avg: 15%), current ratio N/A (avg: 1.8).