PulteGroup, Inc. (PHM)

FairStock Score: 61/100 — STEADY

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I look at PulteGroup as a cyclical homebuilder, not a franchise with a wide moat. It buys land, builds houses, and sells them under brands such as Pulte Homes, Centex, and Del Webb. FairStock classifies it as CYCLICAL — Residential Construction: earnings follow the economic cycle. The numbers show that cycle clearly: in fiscal Q2 2026, the quarter ended 2026-06-30, revenue was $4.0B, net income $472.0M, and diluted EPS $2.48, down from $4.4B, $608.5M, and $3.03 in fiscal Q2 2025. For full fiscal 2025, the year ended 2025-12-31, revenue was $17.3B, net income $2.2B, and diluted EPS $11.12, versus $17.9B, $3.1B, and $14.69 in fiscal 2024, the year ended 2024-12-31. So earnings are falling, as one would expect when housing cools. Still, the balance sheet is a strength. The debt-to-equity ratio is only 0.19, the Altman Z-Score is 4.31, and the Piotroski F-Score is 7/9—all FairStock calculations from the provided data. Return on equity is 14.90% and ROCE 9.21%, respectable for a cyclical. Free cash flow is $1.5B over the trailing twelve months, a 7.2% FCF yield. At the 2026-10-13 close of $111.58, the FairStock P/E is 11.40, P/B 1.61, and EV/EBITDA 8.39. The Graham Number is $122.68, leaving a 9.05% margin of safety—modest, not deep. For a Graham-style investor, this is a statistically cheap cyclical with a solid balance sheet. But the lack of a durable moat and falling profits mean price matters. I would want a larger discount to account for the cycle.

In plain English: PulteGroup builds and sells homes in the United States under brands such as Pulte Homes, Centex, and Del Webb. Profits have fallen from a year ago because homebuilding is a cyclical business, but the company carries little debt and still produces solid cash. At the recent share price, the stock looks somewhat inexpensive compared with its earnings, though not a screaming bargain.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer