Now trading at a price of $72.71, Pulte has moved 1.1% so far today.
Pulte returned gains of 95.0% last year, with its stock price reaching a high of $86.16 and a low of $35.99. Over the same period, the stock outperformed the S&P 500 index by 72.0%. More recently, the company's 50-day average price was $78.11. PulteGroup, Inc., through its subsidiaries, primarily engages in the homebuilding business in the United States. Based in Atlanta, GA, the large-cap Consumer Discretionary company has 6,524 full time employees. Pulte has offered a 0.9% dividend yield over the last 12 months.
An Exceptionally Strong Balance Sheet:
| 2018-02-07 | 2019-01-31 | 2020-01-30 | 2021-02-02 | 2022-02-07 | 2023-02-06 | |
|---|---|---|---|---|---|---|
| Revenue (MM) | $8,573 | $10,188 | $10,213 | $11,036 | $13,927 | $16,229 |
| Gross Margins | 23.0% | 25.0% | 25.0% | 27.0% | 28.0% | 31.0% |
| Operating Margins | 11% | 13% | 13% | 16% | 18% | 21% |
| Net Margins | 5.0% | 10.0% | 10.0% | 13.0% | 14.0% | 16.0% |
| Net Income (MM) | $447 | $1,022 | $1,017 | $1,407 | $1,946 | $2,617 |
| Earnings Per Share | $1.46 | $3.59 | $3.69 | $5.22 | $7.52 | $10.07 |
| EPS Growth | n/a | 145.89% | 2.79% | 41.46% | 44.06% | 33.91% |
| Diluted Shares (MM) | 307 | 285 | 275 | 269 | 259 | 260 |
| Free Cash Flow (MM) | $695 | $1,507 | $1,134 | $1,843 | $1,077 | $781 |
| Capital Expenditures (MM) | -$32 | -$59 | -$58 | -$58 | -$73 | -$113 |
| Net Current Assets (MM) | n/a | n/a | n/a | n/a | $5,994 | $7,258 |
| Long Term Debt (MM) | n/a | n/a | n/a | n/a | $2,655 | $2,632 |
Pulte has exceptional EPS growth and an excellent current ratio. Additionally, the company's financial statements display healthy debt levels and average operating margins with a positive growth rate. However, the firm has slimmer gross margins than its peers. Finally, we note that Pulte has weak revenue growth and a flat capital expenditure trend and irregular cash flows.
Pulte Is Potentially Undervalued and Trades Below Its Graham Number:
Pulte has a trailing twelve month P/E ratio of 6.5, compared to an average of 22.33 for the Consumer Discretionary sector. Based on its EPS guidance of $11.84, the company has a forward P/E ratio of 6.6. The company doesn't provide forward earnings guidance, and the compound average growth rate of its last 6 years of reported EPS is 42.1%. On this basis, Pulte's PEG ratio is 0.15. Using instead the 11.1% weighted average of Pulte's earnings CAGR and the broader market's anticipated 5-year EPS growth rate, the company's PEG ratio is 0.58, which implies that its shares may be underpriced. Additionally, the market is possibly undervaluing Pulte in terms of its equity because its P/B ratio is 1.65 whereas the sector average is 3.12. The company's shares are currently trading -17.5% below their Graham number.
Pulte Has an Average Rating of Buy:
The 15 analysts following Pulte have set target prices ranging from $85.0 to $120.0 per share, for an average of $97.2 with a buy rating. As of April 2023, the company is trading -19.6% away from its average target price, indicating that there is an analyst consensus of strong upside potential.
Pulte has an average amount of shares sold short because 5.3% of the company's shares are sold short. Institutions own 95.3% of the company's shares, and the insider ownership rate stands at 0.72%, suggesting a small amount of insider investors. The largest shareholder is Vanguard Group Inc, whose 12% stake in the company is worth $1,875,082,538.
