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1. Company Snapshot

1.a. Company Description

PulteGroup, Inc., through its subsidiaries, primarily engages in the homebuilding business in the United States.It acquires and develops land primarily for residential purposes; and constructs housing on such land.The company also offers various home designs, including single-family detached, townhomes, condominiums, and duplexes under the Centex, Pulte Homes, Del Webb, DiVosta Homes, American West, and John Wieland Homes and Neighborhoods brand names.


As of December 31, 2021, it controlled 228,296 lots, of which 109,078 were owned and 119,218 were under land option agreements.In addition, the company arranges financing through the origination of mortgage loans primarily for homebuyers; sells the servicing rights for the originated loans; and provides title insurance policies, and examination and closing services to homebuyers.PulteGroup, Inc.


was formerly known as Pulte Homes, Inc.and changed its name to PulteGroup, Inc.in March 2010.


The company was founded in 1950 and is headquartered in Atlanta, Georgia.

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1.b. Last Insights on PHM

PulteGroup's recent performance was driven by strong Q3 earnings, beating revenue and EPS estimates. The company's net income was $586 million, or $2.96 per share, although down from the prior year. A "Moderate Buy" rating from 15 brokerages, with a consensus target price of $136.92, signals optimism. Additionally, institutional investors, such as Oregon Public Employees Retirement Fund, increased their stake, while Brendel Financial Advisors LLC made a new $2.41 million investment. Unusually large options trading volumes also indicate positive sentiment.

1.c. Company Highlights

2. PulteGroup's Strong Q4 2025 Earnings: A Closer Look

PulteGroup reported a robust financial performance in Q4 2025, with home sale revenues reaching $4.3 billion, and a gross margin of 24.7%. The company's net income came in at $502 million, or $2.56 per share, slightly below the reported actual EPS of $2.88. The company's operating margins stood at 16.9% for the full year 2025, demonstrating its ability to maintain profitability. As Ryan Marshall noted, "our differentiated operating model, diversification, and balance across markets, buyer groups, and production have enabled us to deliver strong results."

Publication Date: Feb -02

📋 Highlights
  • 2025 Home Sales & Margins: Closed 29,500 homes, $16.7B revenue, 26.3% gross margin, and 16.9% operating margin.
  • Shareholder Returns: Returned $1.4B to shareholders via buybacks and dividends, with $2B cash and $5.2B investments.
  • Market Diversification: Operated in 47 markets, 40% move-up buyers, and 24% of Q4 closings from high-margin Del Webb communities.
  • 2026 Guidance: Expects $1B cash flow from operations, 11.2% debt-to-capital ratio, and 7–8% land cost inflation.
  • Florida Growth: 13% YoY increase in Florida sign-ups, with stable-to-improving inventory, offsetting weaker Texas/West demand.

Revenue and Margin Analysis

The company's home sale revenues for the full year 2025 were $16.7 billion, with a gross margin of 26.3%. The gross margin was impacted by land impairment charges and higher incentives in Q4 2025. For 2026, the company expects gross margins to be between 24.5% and 25%. House costs are expected to be flat to slightly down, while lot costs are anticipated to increase by 7% to 8%.

Valuation Metrics

Using the provided valuation metrics, we can assess what's priced into PulteGroup's stock. The P/E Ratio stands at 10.95, indicating a relatively reasonable valuation. The P/S Ratio is 1.41, suggesting a moderate price relative to sales. The company's ROE (%) is 23.53%, demonstrating a strong return on equity. With a Net Debt / EBITDA ratio of -0.0, PulteGroup's debt position appears healthy.

Operational Highlights

PulteGroup's diversified business platform, with operations in 47 markets, contributed to its strong performance. The company's Del Webb communities delivered high gross margins and were an essential driver of its superior returns. The company ended 2025 with $2 billion in cash, $5.2 billion in investments, and returned $1.4 billion to shareholders through share repurchases and dividends.

Guidance and Outlook

For 2026, PulteGroup expects to generate $1 billion in cash flow from operations, assuming $5.4 billion in land acquisition and development spend. The company is optimistic about the spring selling season, driven by improved affordability due to lower mortgage rates and new home prices that have reset lower. With a strong financial position and a debt to capital ratio of 11.2%, PulteGroup is well-positioned for future growth.

3. NewsRoom

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PulteGroup Announces Appointment of Kristin Gannon to its Board of Directors

Feb -09

Source: businesswire.com

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PulteGroup (NYSE:PHM) EVP Sells $1,919,842.20 in Stock

Feb -09

Source: defenseworld.net

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Ryan Marshall Sells 111,250 Shares of PulteGroup (NYSE:PHM) Stock

Feb -08

Source: defenseworld.net

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Del Webb Breaks Ground on Two New Resort-Style Communities in the Columbus Area

Feb -06

Source: businesswire.com

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Allianz Asset Management GmbH Sells 141,836 Shares of PulteGroup, Inc. $PHM

Feb -06

Source: defenseworld.net

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PulteGroup Target of Unusually High Options Trading (NYSE:PHM)

Feb -05

Source: defenseworld.net

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PulteGroup Announces Quarterly Cash Dividend of $0.26 Per Share

Feb -04

Source: businesswire.com

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PulteGroup Extends Build Your Future Scholarship in 2026 To Fuel the Future of the Homebuilding Workforce

Feb -04

Source: businesswire.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (7.31%)

6. Segments

Homebuilding - Florida

Expected Growth: 8.5%

Florida's strong economy, driven by tourism and retirees, fuels demand for housing. PulteGroup's diverse brand portfolio, including Pulte Homes, Del Webb, and Centex, cater to varying consumer preferences, driving growth in single-family homes and townhomes.

Homebuilding - West

Expected Growth: 6.3%

PulteGroup's West segment is driven by strong demand in Arizona, California, and Colorado, with Nevada and New Mexico providing additional growth opportunities, fueled by population growth and a shortage of housing supply.

Homebuilding - Southeast

Expected Growth: 7.3%

PulteGroup, Inc. benefits from a growing housing market, with a focus on first-time homebuyers and a strong presence in the Sun Belt region, driving long-term growth.

Homebuilding - Midwest

Expected Growth: 7.3%

PulteGroup's growth is driven by increasing housing demand, particularly in the 55+ age demographic, and its focus on entry-level and move-up buyers.

Homebuilding - Texas

Expected Growth: 7.5%

PulteGroup’s homebuilding operations in Texas benefit from the state’s strong economic growth, and growing population driven by major cities like Austin and Houston, as well as the company’s diverse product offerings and construction services.

Homebuilding - Northeast

Expected Growth: 5.5%

PulteGroup’s homebuilding operations in the Northeast region, driven by increasing demand for housing, low unemployment rates, and limited land supply, will fuel growth.

Homebuilding - Other

Expected Growth: 4.5%

PulteGroup’s Homebuilding - Other segment is driven by increasing demand for luxury homes, strategic land acquisition and development, and focus on construction quality, leading to higher average selling prices.

Financial Services

Expected Growth: 8.4%

PulteGroup’s growth is driven by increasing demand for new homes, strategic expansion into high-growth markets, and focus on first-time and move-up buyers.

7. Detailed Products

New Home Construction

PulteGroup builds and sells new homes in various communities across the United States, offering a range of floor plans, elevations, and amenities to suit different lifestyles and budgets.

Del Webb Active Adult Communities

Del Webb is a brand of PulteGroup that specializes in building active adult communities for people 55+, offering resort-style amenities and low-maintenance living.

Rental Properties

PulteGroup's rental division, Pulte Homes Rental, offers a range of rental properties, including single-family homes, townhomes, and apartments.

Land Development

PulteGroup's land development segment acquires, develops, and sells land to third-party builders, as well as develops land for its own homebuilding operations.

8. PulteGroup, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

PulteGroup, Inc. faces moderate threat from substitutes due to the availability of alternative housing options, such as apartments and condominiums.

Bargaining Power Of Customers

PulteGroup, Inc. has a diverse customer base, which reduces the bargaining power of individual customers, giving the company an upper hand in negotiations.

Bargaining Power Of Suppliers

PulteGroup, Inc. relies on various suppliers for materials and labor, but the company's large scale of operations gives it some bargaining power to negotiate prices.

Threat Of New Entrants

The high barriers to entry in the homebuilding industry, including regulatory hurdles and significant capital requirements, make it difficult for new entrants to compete with PulteGroup, Inc.

Intensity Of Rivalry

The homebuilding industry is highly competitive, with many established players competing for market share, leading to a high intensity of rivalry.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 19.75%
Debt Cost 3.95%
Equity Weight 80.25%
Equity Cost 11.76%
WACC 10.22%
Leverage 24.61%

11. Quality Control: PulteGroup, Inc. passed 7 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
PulteGroup

A-Score: 5.8/10

Value: 6.0

Growth: 8.8

Quality: 7.7

Yield: 2.0

Momentum: 4.0

Volatility: 6.3

1-Year Total Return ->

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Stock-Card
D.R. Horton

A-Score: 5.5/10

Value: 6.3

Growth: 7.6

Quality: 7.1

Yield: 2.0

Momentum: 4.0

Volatility: 6.0

1-Year Total Return ->

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Stock-Card
Toll Brothers

A-Score: 5.4/10

Value: 6.9

Growth: 7.3

Quality: 6.6

Yield: 2.0

Momentum: 3.5

Volatility: 6.3

1-Year Total Return ->

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Stock-Card
NVR

A-Score: 5.2/10

Value: 4.5

Growth: 7.6

Quality: 7.7

Yield: 0.0

Momentum: 3.0

Volatility: 8.3

1-Year Total Return ->

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Stock-Card
KB Home

A-Score: 4.9/10

Value: 7.8

Growth: 4.6

Quality: 5.3

Yield: 3.0

Momentum: 2.5

Volatility: 6.0

1-Year Total Return ->

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Stock-Card
Lennar

A-Score: 4.8/10

Value: 6.8

Growth: 4.3

Quality: 5.9

Yield: 3.0

Momentum: 2.5

Volatility: 6.3

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

137.33$

Current Price

137.33$

Potential

-0.00%

Expected Cash-Flows