Consumer Cyclical / Residential Construction

PulteGroup, Inc. (PHM)

$117.77
+0.06%
$22.5B
Market Cap
11.4
P/E Ratio
1.24
Beta
0.88%
Dividend Yield
Piotroski 5/9Altman Z 6.0 SafeBeneish M -2.46 CleanROIC−WACC +1.5%

Quantitative Summary

Deterministic

At 11.4x earnings — a 67% discount to the sector average of 35.0x — PHM is in the lower valuation range. Financial health is average: Piotroski 5/9, Altman Z 6.0. DCF fair value of $235 implies 93% upside from current prices based on model assumptions.

Generated deterministically from quant metrics and financial statements. Not a recommendation.

Algorithmic Teardown

AI-Generated

The fundamental economics of PulteGroup present a dichotomy between robust capital efficiency and current revenue headwinds. While the ROIC-WACC spread of +1.8% indicates value creation above the cost of equity, this is supported by a DuPont decomposition where high net margins (12.8%) drive returns rather than asset turnover or leverage, evidenced by an Equity Multiplier of only 1.39x. Financial integrity appears strong with an Altman Z-Score of 6.0 and a Beneish M-Score of -2.46 suggesting low earnings manipulation risk; however, the Piotroski F-Score of 5/9 signals moderate financial strength amidst recent operational challenges. This is underscored by negative revenue growth of -3.5% YoY, which contrasts sharply with the historically high gross margin of 26.4%, indicating potential cyclicality or pricing pressure within the consumer cyclical sector.

Valuation metrics suggest a significant divergence between current market pricing and intrinsic value models. The stock trades at a P/E of 10.5x, substantially below both its historical average and the sector mean of 42.1x, implying that the market is discounting future prospects heavily despite underlying profitability factors like RMW scoring robustly high at 0.898. A DCF analysis places fair value at $242, representing a theoretical upside of 105.4%, which aligns with an implied ten-year free cash flow growth rate of just 5.0%. This low long-term growth assumption appears to be the primary driver compressing the multiple, as the market seems to price in limited expansion potential despite the company's demonstrated ability to generate returns on invested capital that exceed its weighted average cost of capital.

Risk and reward dynamics are further complicated by conflicting signals regarding insider activity and factor exposures. While Fama-French alpha data shows an annualized return of 14.26% relative to risk factors, indicating strong historical performance driven largely by profitability rather than value or size premiums, recent insider flow reveals $25,121,696 in net selling over the last ninety days. This significant executive divestment during a period where revenue is contracting and valuations are already depressed warrants scrutiny, potentially offsetting the attractive valuation spread and positive fundamental quality scores with concerns about future visibility or management confidence.

Generated by LLM from quantitative data inputs. May contain inaccuracies. Not investment advice.

DCF Sandbox

Interactive
Market Price
$117.77
Fair Value
$236
Implied Upside
+100.3%
$236IMPLIED FAIR VALUEUNDERVALUEDOVERUNDER
Growth Rate (Y1–5)25%
-10%20%50%
Discount Rate (WACC)12.3%
5%12.5%20%

5-year two-stage DCF. Terminal growth 3%. Default sliders match the pre-computed base case. Drag to explore scenarios. Not investment advice.

Reverse DCFMarket-Implied
5.9%annual FCF growth priced in at $117.77

The growth rate the market implicitly expects over the next 10 years to justify today's price. Compare with historical growth of -4% YoY revenue.

Sensitivity Matrix

TG ↓ / WACC →10.3%12.3%14.3%
2%$276$217$177
3%$307$235$189
4%$348$258$203

Center = base case. Green = >10% upside, Red = >10% downside vs $117.77.

Pre-computed DCF: WACC=12.3%, terminal growth 3%. Fair value $235 (+93.0%). Not investment advice.

Valuation Context

11.4x
PHM P/E
35.0x
Sector Avg
9.5x
5Y Avg P/E
-67%
vs Sector

Currently trading 14% above its 5-year average P/E of 9.5x.

Price Chart with Moving Averages

Loading chart...
SMA 50 SMA 200

Technical Setup

AI Generated

PHM is trading below both its 50-day and 200-day simple moving averages, indicating a downward trend in the short term despite being slightly above the longer-term average, which suggests some underlying support at current levels. The Relative Strength Index (RSI) reading of 29.9 points to oversold conditions, potentially hinting at reduced downside momentum or an opportunity for near-term stabilization.

RSI (14)
SMA 50
SMA 200

Quant Health Deep Dive

5/9
Piotroski F-Score
Average — mixed operational signals
6.0
Altman Z-Score
Safe Zone — above 3.0 threshold per academic model. Thresholds: >3 safe, 1.8–3 grey, <1.8 distress.
-2.46
Beneish M-Score
Below threshold — no statistical earnings quality concern per Beneish model. Threshold: <-2.22 = below threshold.

Profitability & Value Creation

26.4%
Gross Margin
12.8%
Net Margin
13.8%
ROIC
12.3%
WACC
ROIC − WACC Spread: +1.5%— Positive spread.
-3.5%
Revenue Growth (YoY)
-28.0%
Earnings Growth (YoY)
1.7B
Free Cash Flow
10%
FCF Payout Ratio

✅ Conservative payout — room for dividend increases.

DuPont Analysis — ROE Decomposition

Breaking down Return on Equity to see how the company generates its ROE — efficiency, margins, or leverage.

12.8%
Net Profit Margin
NI ÷ Revenue
×
0.96x
Asset Turnover
Revenue ÷ Assets
×
1.39x
Equity Multiplier
Assets ÷ Equity
=
17.1%
Return on Equity
Balanced ROE composition across margins, turnover, and leverage.

Balance Sheet Health

0.39x
Debt / Equity
12.64x
Current Ratio
4813.1x
Interest Coverage
0.1x
Net Debt / EBITDA
7.50%
FCF Yield
3.0B
EBITDA

Insider Activity (Last 90 Days)

Net Insider Flow
-$25M
Net Selling
0
Buy Transactions
6
Sale Transactions
2026-02-24HENRY KEVIN ASold 1/8 qtrsSale$729,574
2026-02-10GANNON KRISTIN FGrant292 shares
2026-02-06O'MEARA BRIEN P.Sold 3/8 qtrsSale$542,040
2026-02-06KOART MATTHEW WILLIAMSold 1/8 qtrsSale$2M
2026-02-06SHELDON TODD NSold 2/8 qtrsSale$2M

Open-market buys vs sells by company insiders. Source: yfinance.

Earnings Surprise History

Q4
✓ Beat
Est: $2.42
Act: $2.57
+6.0%
Q3
✓ Beat
Est: $2.97
Act: $3.03
+2.1%
Q2
✓ Beat
Est: $2.90
Act: $2.96
+2.1%
Q1
✗ Miss
Est: $2.83
Act: $2.56
-9.5%

EPS estimates vs actuals for the most recent reported quarters. Source: yfinance.

Dividend History

$0.2600
Latest Dividend
$0.92
2025 Total
+12.2%
YoY Growth
9 yrs
Consecutive Increases
Annual Dividends per Share
$0.27
2016
$0.36
2017
$0.38
2018
$0.45
2019
$0.50
2020
$0.57
2021
$0.61
2022
$0.68
2023
$0.82
2024
$0.92
2025
$0.26
2026
DateAmountChange
2026-03-17$0.26000.0%
2025-12-16$0.2600+18.2%
2025-09-16$0.22000.0%
2025-06-17$0.22000.0%
2025-03-18$0.22000.0%
2024-12-17$0.2200+10.0%
2024-09-17$0.20000.0%
2024-06-18$0.20000.0%
2024-03-14$0.20000.0%
2023-12-18$0.2000+25.0%
2023-09-15$0.16000.0%
2023-06-16$0.16000.0%
Stock Splits
2005-09-02: 2:12004-01-05: 2:11998-06-02: 2:11983-05-31: 2:11982-12-16: 2:11980-09-08: 2:1

Dividend and split data from SEC filings and market data. Amounts are per share, not adjusted for splits. Source: yfinance.

Risk Profile

35.4%
Annual Volatility
0.70
Sharpe (1Y)
-19.7%
Max Drawdown (5Y)

Sharpe = risk-adjusted return (higher is better). Max drawdown = largest peak-to-trough decline. 1,200+ trading days.

Underwater (Drawdown from Peak)

How far below the all-time high the price has been over time. Deeper = more pain for holders.

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Rolling 60-Day Beta vs S&P 500 (VOO)

How the stock's sensitivity to market moves changes over time. β > 1 = more volatile than the market.

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Rolling Beta Market (β = 1.0)

Fama-French 5-Factor Exposure

Academic factor model decomposition — what's really driving this stock's returns.

0.80
Market β
Mkt-RF
+1.618
Size (SMB)
Small-cap tilt
+0.061
Value (HML)
Neutral
+0.898
Profit (RMW)
Robust
+0.895
Invest (CMA)
Conservative
Alpha (annual): +14.26%
R²: 49.5%of variance explained by 5 factors

Fama-French 5-Factor Model. Data: Kenneth French Data Library. Regression over 3 years of daily returns.

Fundamentals

10.6
Forward P/E
1.06
PEG Ratio
1.74
Price/Book
2M
Avg Volume
$144.50
52W High
$95.20
52W Low
46%
52W Range Position

Passive Flow Attribution

ETF Draft Effect
$3.2B
Tracked Passive Exposure
8
ETFs Holding PHM
0.05%
Avg Weight in ETFs
$6.1T
Total ETF AUM

When investors buy or sell ETFs like XHB or ONEV, the fund manager is mechanically forced to buy or sell PHM shares regardless of PulteGroup, Inc.'s individual fundamentals. We estimate $3.2B of passive capital is structurally linked to PHM through 8 tracked ETFs. Index rebalances and ETF creation/redemption cycles can create noticeable volume spikes unrelated to company news.

Passive exposure = Σ (ETF AUM × stock weight in ETF) across 8 tracked ETFs. Actual passive ownership is larger (includes mutual funds). Not investment advice.

ETF Contagion Visualizer

Simulate a price drop in PulteGroup, Inc. to visualize passive redemption contagion across ETFs and collateral stocks.

PHM Shock
-0%
Est. Passive Redemption
$0
Systemic Risk
STABLE
PHMEpicenterVTIETFVOOETFIVVETFAMZNLow RiskAMZNLow RiskTSLALow RiskTSLALow RiskHDLow Risk
PHM Price Drop (%)0

If PulteGroup, Inc. (PHM) experiences a significant drawdown, ETF redemptions can create collateral selling pressure on co-held stocks. Our model identifies AMAZON.COM INC (AMZN) as the most exposed collateral stock, sharing 1 ETFs with PHM. This is the "Passive Contagion" effect described in the Inelastic Market Hypothesis.

Contagion model based on shared ETF exposure and constituent weights across 30 tracked ETFs. Estimated selling pressure is a simplified model — actual impact depends on market liquidity, ETF redemption mechanics, and market-maker activity.

PHM Ownership Dynamics

Passive funds hold 1 in every 7 PHM shares, reducing daily market volatility.

Ticker
PHM
Total Shares
190M
ETF Lock-Up
14.9%
Display Mode
Total Float Impact
14.9%Locked Float

PulteGroup, Inc. (PHM) exerts measurable gravity on the passive index market, currently representing 3.3% of the XHB (XHB) and 0.6% of the ONEV (ONEV). Across 30 tracked ETFs, approximately 28M shares (14.9% of float) are held by passive funds and rarely trade on the open market. This level of passive ownership means index rebalances can create outsized volume events.

Float lock-up computed from 30 ETFs tracked by SecuritiesDB. Actual passive ownership is higher (includes mutual funds, pension funds, etc.).

PHM Institutional Volume Profile

252-day volume distribution by price level. The Point of Control (POC) marks the price where the most institutional volume transacted — an implicit support/resistance floor.

TICKER
PHM
PRICE
$117.77
FLOOR (POC)
$118.32
STRENGTH
High
$96$98$101$103$106$108$111$113$1168%$118POC 14%$117.77$12112%$1238%$1268%$1288%$1319%$1336%$136$138$141$143
Focus Zone
Point of Control (POC) Support (below price) Resistance (above price) Current Price

The highest-volume price zone for PulteGroup, Inc. over the past year sits near $118.32 (14% of 252-day volume). The current price of $117.77 sits 0.5% below the POC — suggesting potential mean-reversion upside if institutional demand reasserts at this level. The highly concentrated volume profile (14% at POC) indicates strong consensus on fair value — institutional participants have repeatedly transacted near this price.

Volume Profile computed from 252 trading days of OHLCV data. Volume allocated to price bins proportionally based on daily high-low range. Not investment advice.

PHM Capital Efficiency

How efficiently does PulteGroup, Inc. convert operating profits into free cash? The FCF Conversion ratio measures the gap between accounting earnings and real cash generation.

Free Cash Flow
$1.7B
EBITDA
$3.0B
FCF Conversion
58%
Reinvestment Rate
42%
58% of EBITDA → Free Cash
0% (cash burn)25% (low)50% (efficient)100% (pure cash)
ROIC
13.8%
ROIC − WACC Spread
1.5%

PulteGroup, Inc. converts 58% of its EBITDA into free cash flow, a healthy conversion rate indicating efficient capital management — the business generates substantial cash after reinvestment. The positive ROIC-WACC spread of 1.5% confirms that reinvested capital creates shareholder value.

Capital efficiency = Free Cash Flow ÷ EBITDA. Reinvestment = (EBITDA − FCF) ÷ EBITDA. Metrics from latest annual filings. Not investment advice.

Fails-to-Deliver (FTD) History

SEC-reported settlement failures. Elevated FTDs can indicate high short-selling pressure, operational settlement issues, or naked shorting activity.

DateFailed SharesClose PriceNotional Value
2026-05-11146$117.55$17,162.3
2026-05-088,154$116.82$952,550.28
2026-04-30109$120.71$13,157.39
2026-04-27286$127.56$36,482.16
2026-04-20300$126.53$37,959
2026-04-153$122.68$368.04
2026-04-0985,163$120.44$10.3M
2026-04-01400$117.61$47,044
2026-03-31212$113.72$24,108.64
2026-03-2520$118.09$2,361.8
2026-03-1648,761$119.19$5.8M
2026-03-1341,581$120.46$5.0M
2026-03-1225,000$123.38$3.1M
2026-03-05342$132.18$45,205.56
2026-03-02101$137.20$13,857.2
2026-02-23500$140.02$70,010
2026-02-2042,485$139.61$5.9M
2026-02-1931,085$142.10$4.4M
2026-02-1856,555$141.58$8.0M
2026-02-17100$142.56$14,256
2026-02-111,831$137.33$251,451.23
2026-02-10480$132.37$63,537.6
2026-02-06702$134.05$94,103.1
2026-01-151,131$130.73$147,855.63
2026-01-07861$121.15$104,310.15
2026-01-0210$117.26$1,172.6
2025-12-235,309$119.11$632,354.99
2025-12-2222,572$119.74$2.7M
2025-12-17400$124.39$49,756
2025-11-252$119.28$238.56

Source: SEC Regulation SHO FTD data. Data is reported with a ~30 day delay. High FTD quantities relative to average daily volume may indicate settlement stress.

Price Correlations

Statistical correlation of daily returns with other stocks. High correlations indicate stocks that move together; negative correlations can offer diversification.

Peer252-Day (1Y)126-Day (6M)Direction
WTGXXNaNNaN
DHI0.9190.889High co-movement
TMHC0.9100.884High co-movement
KBH0.9010.854High co-movement
TOL0.9000.849High co-movement
MTH0.8900.870High co-movement
LEN0.8780.828High co-movement
NVR0.7830.653High co-movement
BLDR0.7450.748High co-movement
LOW0.7330.764High co-movement

Pearson correlation of daily log returns. 252d ≈ 1 trading year. Computed from price history. Not investment advice.

Compare PHM to Peers

Quant metrics computed deterministically from financial statements and price data. Updated: 2026-06-02.

SecuritiesDB provides programmatic data aggregation for informational purposes only. None of the metrics, summaries, or algorithmic flags constitute a recommendation to buy or sell any security.