Pulte logged a 2.7% change during today's evening session, and is now trading at a price of $58.31 per share. The S&P 500 index moved 1.0% and the Nasdaq posted a 2.0% change.
Pulte shares moved 34.0% over the last 52 weeks, with a high of $60.89 and a low of $35.03. During this time, the stock outperformed the S&P 500 index by 45.0%. As of January 2022, the company's 50-day average price is $55.0. PulteGroup, Inc., through its subsidiaries, primarily engages in the homebuilding business in the United States. The large-cap Consumer Cyclical company has 6,524 full time employees and is based in Atlanta, GA. Pulte has returned a 1.1% dividend yield over the last 12 months.
Snapshot of the Company's Strong Financials:
2019-12-31 | 2020-12-31 | 2021-12-31 | 2022-12-31 | |
---|---|---|---|---|
Revenue (k) | $10,212,957 | $11,036,082 | $13,926,882 | $16,228,995 |
Gross Margins | 23.5% | 25.2% | 27.2% | 29.8% |
Operating Margins | 13.1% | 15.8% | 18.4% | 21.2% |
Net Income (k) | $1,016,700 | $1,406,839 | $1,946,320 | $2,617,317 |
Net Margins | 9.96% | 12.75% | 13.98% | 16.13% |
Earnings Per Share | $3.66 | $5.18 | $7.43 | $11.01 |
Diluted Shares (k) | 275,297 | 269,414 | 259,928 | 224,311 |
Free Cash Flow (k) | $1,019,426 | $1,725,988 | $931,240 | $555,805 |
Capital Expenditures (k) | -$58,119 | -$58,354 | -$72,781 | -$112,661 |
Net Current Assets (k) | $4,880,718 | $6,001,845 | $6,858,752 | $8,220,967 |
Current Ratio | 5.68 | 5.93 | 4.95 | 5.46 |
Long Term Debt (k) | $3,091,613 | $3,164,123 | $2,655,166 | $2,632,238 |
Net Debt / EBITDA | 1.33 | 0.32 | 0.33 | 0.44 |
Pulte Is Undervalued at Today's Prices:
Compared to the Consumer Cyclical sector's average of 22.33, Pulte has a trailing twelve month P/E ratio of 5.3 and, according to its EPS guidance of 7.07, an expected P/E ratio of 8.2. Pulte's PEG ratio is 0.22 based on its 24.25% annual average growth rate of historical and projected earnings per share. However, we believe that it is more prudent to calculate the PEG ratio using the broader market's 5-year expected EPS growth rate of 13.05%, because the growth rate implied by Pulte's past and expected EPS is probably not sustainable. This more prudent approach shows a PEG ratio of 0.41, which still suggests that company's shares are possibly undervalued.
Furthermore, Pulte is likely undervalued in terms of its equity because its P/B ratio is 1.5 compared to its sector average of 3.12. The company's shares are currently trading -25.1% below their Graham number, implying there is a margin of safety for the stock. The Graham number is calculated according to the formula:
√(22.5 * 4-year average EPS * book value per share) = √(22.5 * 6.82 * 39.471) = $77.83
Pulte Is the Subject of Mixed Market Indicators:
12 analysts are following Pulte and have set target prices ranging from $54.0 to $83.0 per share. On average, they have given the company a rating of buy. At the current price of $58.31, PHM is trading -11.54% away from its average analyst target price of $65.92 per share, implying an analyst consensus of some upside potential for the stock.
The company has an average amount of shares sold short since 4.2% of the company's shares are tied to short positions. Institutions own 93.9% of Pulte's shares, while the insider ownership rate stands at 0.76%. The biggest shareholder is the Vanguard Group, Inc. with a 12% stake in the company worth approximately $1,543,534,658.