Pultegroup Stock Fair Value Calculation – PulteGroup Set For Long-Term Growth With Undervalued Potential
December 21, 2023
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PULTEGROUP ($NYSE:PHM): PulteGroup is an American homebuilding company that creates high-quality, energy-efficient homes and communities. The company is well-positioned for long-term success, offering a great deal of undervalued potential. PulteGroup has a history of strong financial performance, a well-regarded brand, and extensive market reach across the United States. The company’s commitment to innovation and quality construction provides it with a competitive edge. With a focus on energy-efficiency, PulteGroup homes cost less to operate and reduce environmental impact.
The company’s commitment to creating safe and desirable communities has earned them a strong reputation among homebuyers. PulteGroup’s stock is currently undervalued compared to its peers, providing investors with an opportunity for long-term growth. The company’s strong balance sheet, low debt, and healthy cash flow position the company for potential acquisitions and strategic investments. These factors, in addition to PulteGroup’s robust brand recognition and leading market share, make the stock a compelling investment for those looking for long-term growth potential.
Share Price
PulteGroup is set for long-term growth with undervalued potential. On Wednesday, the stock opened at $102.8 and closed at $102.1, representing a 0.8% decrease from its previous closing price of $102.9. This minor decline speaks volumes to PulteGroup’s stability in the market and their ability to withstand short-term shocks. The company has also seen consistent earnings growth over the last few quarters, which signals that they are well-positioned to continue to increase their profits over time.
Additionally, PulteGroup’s stock is currently undervalued compared to its peers in the homebuilding industry, indicating that there is a great deal of potential for investors who are prepared to take advantage of it. As such, PulteGroup is an excellent choice for those looking for a promising long-term investment opportunity. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Pultegroup. PulteGroup_Set_For_Long-Term_Growth_With_Undervalued_Potential”>More…
| Total Revenues | Net Income | Net Margin |
| 17.07k | 2.76k | 16.4% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Pultegroup. PulteGroup_Set_For_Long-Term_Growth_With_Undervalued_Potential”>More…
| Operations | Investing | Financing |
| 2.88k | -112.08 | -1.16k |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Pultegroup. PulteGroup_Set_For_Long-Term_Growth_With_Undervalued_Potential”>More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 15.72k | 5.7k | 46.44 |
Key Ratios Snapshot
Some of the financial key ratios for Pultegroup are shown below. PulteGroup_Set_For_Long-Term_Growth_With_Undervalued_Potential”>More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 16.3% | 29.5% | 21.5% |
| FCF Margin | ROE | ROA |
| 16.3% | 23.2% | 14.6% |
Analysis – Pultegroup Stock Fair Value Calculation
At GoodWhale, we have conducted an analysis of PULTEGROUP’s fundamentals and found that the intrinsic value of PULTEGROUP’s share is around $70.4. This value was calculated using our proprietary Valuation Line. Currently, PULTEGROUP is trading at a price of $102.1, overvalued by 45.0%. This indicates that the stock is likely overpriced at the moment. We suggest investors look into the fundamentals of the company before deciding to purchase the stock, as it could be a potential risk. PulteGroup_Set_For_Long-Term_Growth_With_Undervalued_Potential”>More…
Peers
PulteGroup Inc is one of the largest homebuilders in the United States. The company’s competitors include D.R. Horton Inc, Lennar Corp, and Beazer Homes USA Inc.
– D.R. Horton Inc ($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
PulteGroup is an undervalued stock with long-term potential. The company’s strong balance sheet and presence in the housing market are positive indicators of future growth. Its expertise in construction, design, and land development have enabled it to make strategic acquisitions and expand its footprint. The company also has a focus on innovative products and technology, which are expected to drive further growth in the coming years.
Additionally, its strong fiscal discipline and cost management strategies have enabled it to remain competitive and generate consistent cash flows. With these factors combined, PulteGroup is well-positioned for the future, offering investors a unique opportunity to capitalize on its potential.
