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Why PulteGroup, Inc. (NYSE:PHM) Could Have A Place In Your Portfolio

Simply Wall St

PulteGroup, Inc. (NYSE:PHM) is a company with exceptional fundamental characteristics. Upon building up an investment case for a stock, we should look at various aspects. In the case of PHM, it is a company with great financial health as well as a a strong track record of performance. Below, I've touched on some key aspects you should know on a high level. If you're interested in understanding beyond my broad commentary, read the full report on PulteGroup here.

Solid track record with adequate balance sheet

PHM delivered a bottom-line expansion of 93% in the prior year, with its most recent earnings level surpassing its average level over the last five years. This strong performance generated a robust double-digit return on equity of 21%, which is an notable feat for the company. PHM is financially robust, with ample cash on hand and short-term investments to meet upcoming liabilities. This indicates that PHM has sufficient cash flows and proper cash management in place, which is a key determinant of the company’s health. PHM appears to have made good use of debt, producing operating cash levels of 0.44x total debt in the prior year. This is a strong indication that debt is reasonably met with cash generated.

NYSE:PHM Income Statement, July 24th 2019

Next Steps:

For PulteGroup, there are three pertinent aspects you should look 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. Valuation: What is PHM worth today? Is the stock undervalued, even when its growth outlook is factored into its intrinsic value? The intrinsic value infographic in our free research report helps visualize whether PHM is currently mispriced by the market.
  3. Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of PHM? Explore our interactive list of stocks with large potential to get an idea of what else is out there you may be missing!

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.