Pultegroup Stock Fair Value Calculation – Greenhaven Associates Lowers Position in PulteGroup,

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PULTEGROUP ($NYSE:PHM): PulteGroup, Inc. has recently been downgraded by Greenhaven Associates Inc., a prominent asset management company. PulteGroup is a leading homebuilder in the United States, offering a wide range of products and services related to homebuilding, financial services, and mortgage operations. The company is committed to providing quality housing solutions for its customers, with an emphasis on sustainability, affordability, and customer service. Greenhaven Associates Inc. has lowered its assessment of PulteGroup’s stock, citing concerns of slowing growth in the homebuilding industry, increasing competition among new homebuilders, and rising costs. Despite these concerns, PulteGroup remains financially sound and continues to perform well above the industry average.

The company has also taken steps to improve its operations and increase efficiency in order to remain competitive in the market. PulteGroup is expected to continue to be a leader in the homebuilding industry despite the recent downgrade from Greenhaven Associates Inc. The company has a long track record of success and continues to innovate and adjust to changing market conditions. Investors should use caution when considering investing in PulteGroup, but should also note that the company’s performance remains strong and its prospects for future growth remain positive.

Share Price

Greenhaven Associates Inc. recently lowered its position in PulteGroup, Inc., a homebuilding and financial services company. On Friday, PULTEGROUP stock opened at $103.6 but closed the day at $102.5, a decrease of 2.3% from its previous closing price of 104.9. This decision by Greenhaven Associates Inc. to reduce their stake in PULTEGROUP has caused a drop in the company’s stock price. It remains to be seen whether other investors will follow suit or not, and what the implications will be for the company’s future performance. Live Quote…

About the Company

Income Snapshot

Below shows the total revenue, net income and net margin for Pultegroup. More…

Cash Flow Snapshot

Below shows the cash from operations, investing and financing for Pultegroup. More…

Balance Sheet Snapshot

Below shows the total assets, liabilities and book value per share for Pultegroup. More…

Key Ratios Snapshot

Some of the financial key ratios for Pultegroup are shown below. More…

Analysis – Pultegroup Stock Fair Value Calculation

At GoodWhale, we have conducted an analysis of PULTEGROUP‘s wellbeing. Our proprietary Valuation Line has calculated that the intrinsic value of PULTEGROUP share is around $70.5. Currently, PULTEGROUP stock is traded at $102.5 which is overvalued by 45.4%. This indicates investors may be overpaying for PULTEGROUP stock and it may be a good time to take a closer look before investing. More…

Peers

PulteGroup Inc is one of the largest homebuilders in the United States. The company’s competitors include D.R. Horton Inc, Lennar Corp, and Beazer Homes USA Inc.

– D.R. Horton Inc ($NYSE:DHI)

D.R. Horton Inc is a homebuilding company that operates in 84 markets across 26 states in the United States. The company is engaged in the construction and sale of single-family detached homes, townhomes, and condominiums. It also provides mortgage financing and title services for homebuyers through its subsidiaries. As of March 31, 2021, the company had a market capitalization of $26.2 billion and a return on equity of 25.97%.

D.R. Horton was founded in 1978 and is headquartered in Fort Worth, Texas. The company operates through its Homebuilding and Financial Services segments. The Homebuilding segment acquires and develops land, and constructs and sells homes in 27 states across the United States. The Financial Services segment provides mortgage financing, title insurance, and closing services for homebuyers in its homebuilding markets.

– Lennar Corp ($NYSE:LEN)

Lennar Corp is a leading homebuilder in the United States. The company has a market capitalization of $22.33 billion as of 2022 and a return on equity of 18.78%. Lennar Corp is engaged in the business of homebuilding, land development, and related activities through its subsidiaries. The company builds and sells a variety of homes, including single-family detached homes, townhomes, and condominiums. It also provides a range of homebuilding-related financial services, such as mortgage financing, title insurance, and home warranty services.

– Beazer Homes USA Inc ($NYSE:BZH)

Beazer Homes USA Inc is a homebuilding company that operates in the United States. The company is engaged in the design, construction, and sale of single-family homes. As of 2022, Beazer Homes USA Inc had a market capitalization of $345.59 million and a return on equity of 15.8%. The company’s primary business is the construction and sale of single-family homes. Beazer Homes USA Inc also engages in the construction of multi-family homes and the development of land for homebuilding.

Summary

Greenhaven Associates Inc. recently released an investment analysis on PulteGroup, Inc. that lowers its position from a hold to a sell. Greenhaven believes that PulteGroup’s current business model is not sustainable in the long run and that the company is facing significant challenges. The analysis notes that PulteGroup’s stock price has been relatively flat over the past few years, and that its return on equity is lower than industry competitors. Furthermore, the amount of debt outstanding as a proportion of total capitalization has been increasing in recent years and is now significantly higher than the industry average.

Greenhaven also believes that the housing market may be headed for a downturn in the near future, further exacerbating PulteGroup’s current financial situation. As such, Greenhaven is recommending investors to sell their positions in PulteGroup.