📊 PHM Key Takeaways
Is Pultegroup Inc./Mi/ (PHM) a Good Investment?
PulteGroup exhibits a deteriorating operational trajectory with net income declining 28% YoY and EPS down 24.3% despite modest revenue decline of 3.5%, signaling margin compression and operational challenges in the homebuilding sector. While the fortress balance sheet (virtually zero debt, $1.8B cash) provides downside protection, persistently weak returns on capital (ROE 2.7%, ROA 1.9%) and contracting free cash flow generation (3.9% FCF margin) indicate structural profitability issues beyond cyclicality.
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 strength with debt/equity ratio of 0.00x and $1.8B cash reserves
- Strong interest coverage ratio of 991.6x provides substantial financial flexibility
- Positive free cash flow of $134.4M despite operational headwinds demonstrates cash generation capability
- 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
- Severe profitability contraction with net income down 28% YoY and EPS down 24.3%, far outpacing 3.5% revenue decline indicating margin deterioration
- Chronically poor capital returns with ROE of only 2.7% and ROA of 1.9% suggest structural inefficiency in asset deployment
- Cyclical homebuilding sector exposure with revenue declining and limited FCF margin (3.9%) constrains financial flexibility during downturns
- 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 trend and orders/backlog for housing demand signals
- Operating and net margin progression to confirm whether profitability decline stabilizes
- Return on equity and return on assets trajectories indicating management's capital allocation effectiveness
- Operating margin trend
- Free cash flow consistency
Pultegroup Inc./Mi/ (PHM) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The relatively thin 3.9% FCF margin may limit capital allocation flexibility. 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 |
|---|---|---|---|
| Q1 2026 | $3.4B | $347.0M | $1.79 |
| 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
| Date | Form | Document | Action |
|---|---|---|---|
| May 1, 2026 | 4 | xslF345X06/wk-form4_1777666760.xml | View → |
| May 1, 2026 | 4 | xslF345X06/wk-form4_1777666523.xml | View → |
| May 1, 2026 | 4 | xslF345X06/wk-form4_1777666484.xml | View → |
| May 1, 2026 | 4 | xslF345X06/wk-form4_1777666406.xml | View → |
| May 1, 2026 | 4 | xslF345X06/wk-form4_1777666338.xml | View → |
❓ Frequently Asked Questions about PHM
What is the AI rating for PHM?
Pultegroup Inc./Mi/ (PHM) has a Combined AI Rating of SELL from Claude (SELL) and ChatGPT (HOLD) with 74% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are PHM's key strengths?
Claude: Exceptional balance sheet strength with debt/equity ratio of 0.00x and $1.8B cash reserves. Strong interest coverage ratio of 991.6x provides substantial financial flexibility. 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: Severe profitability contraction with net income down 28% YoY and EPS down 24.3%, far outpacing 3.5% revenue decline indicating margin deterioration. Chronically poor capital returns with ROE of only 2.7% and ROA of 1.9% suggest structural inefficiency in asset deployment. 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 $3.4B.
Does PHM pay dividends?
Pultegroup Inc./Mi/ pays dividends, with $52.0M 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 $1.79.
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 May 2026, Pultegroup Inc./Mi/ has a SELL rating with 74% 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 2.7% (sector avg: 15%), net margin of 10.2% (sector avg: 12%). Compare these metrics with sector averages to assess valuation.
Should I buy PHM stock in 2026?
Our dual AI analysis gives Pultegroup Inc./Mi/ a combined SELL rating for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is PHM's free cash flow?
Pultegroup Inc./Mi/'s operating cash flow is $159.8M, with capital expenditures of $25.4M. FCF margin is 3.9%.
How does PHM compare to other Market stocks?
Vs Default sector averages: Net margin 10.2% (avg: 12%), ROE 2.7% (avg: 15%), current ratio N/A (avg: 1.8).