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Want To Invest In PulteGroup, Inc. (NYSE:PHM)? Here's How It Performed Lately

Simply Wall St

Examining PulteGroup, Inc.'s (NYSE:PHM) past track record of performance is a useful exercise for investors. It allows us to reflect on whether the company has met or exceed expectations, which is a powerful signal for future performance. Below, I will assess PHM's latest performance announced on 30 June 2019 and weight these figures against its longer term trend and industry movements.

See our latest analysis for PulteGroup

How PHM fared against its long-term earnings performance and its industry

PHM's trailing twelve-month earnings (from 30 June 2019) of US$923m has jumped 24% compared to the previous year.

Furthermore, this one-year growth rate has exceeded its 5-year annual growth average of -2.1%, indicating the rate at which PHM is growing has accelerated. What's enabled this growth? Let's see if it is solely owing to industry tailwinds, or if PulteGroup has seen some company-specific growth.

NYSE:PHM Income Statement, October 17th 2019

In terms of returns from investment, PulteGroup has fallen short of achieving a 20% return on equity (ROE), recording 18% instead. However, its return on assets (ROA) of 9.0% exceeds the US Consumer Durables industry of 6.8%, indicating PulteGroup has used its assets more efficiently. And finally, its return on capital (ROC), which also accounts for PulteGroup’s debt level, has increased over the past 3 years from 12% to 16%.

What does this mean?

PulteGroup's track record can be a valuable insight into its earnings performance, but it certainly doesn't tell the whole story. Companies that have performed well in the past, such as PulteGroup gives investors conviction. However, the next step would be to assess whether the future looks as optimistic. You should continue to research PulteGroup to get a better picture of the stock by looking at:

  1. Future Outlook: What are well-informed industry analysts predicting for PHM’s future growth? Take a look at our free research report of analyst consensus for PHM’s outlook.
  2. Financial Health: Are PHM’s operations financially sustainable? Balance sheets can be hard to analyze, which is why we’ve done it for you. Check out our financial health checks here.
  3. Other High-Performing Stocks: Are there other stocks that provide better prospects with proven track records? Explore our free list of these great stocks here.

NB: Figures in this article are calculated using data from the trailing twelve months from 30 June 2019. This may not be consistent with full year annual report figures.

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.