How Does This Homebuilder Operate?
PulteGroup is a U.S. homebuilder that develops and sells residential housing. It operates through brands that cover different buyer segments, from first-time to move-up and active adult. The business combines land acquisition, community development, home construction, and sales execution. Its scale is reflected in a market capitalization of about USD 24.1 billion.
Are Margins and Returns Holding Up?
FundamentalsFor 2025, reported in USD, revenue was about USD 17.3 billion with net income of roughly USD 2.2 billion. Revenue declined 3.5% year over year, while trailing margins remained elevated, including a 25.71% gross margin, a 15.92% operating margin, and a 12.14% net profit margin.
Capital intensity was modest, with depreciation and amortization of about USD 112.5 million and capital expenditures of roughly USD 122.7 million. Total debt stood at around USD 1.6 billion. On the returns side, trailing ROE was 15.92%, and a return-
Is the Market Underpricing Its Cash Flows?
DCF / MultiplesAt USD 126.55, the share price sits below the range implied by discounted cash flow modeling, placing the stock under the weaker-
Valuation Hinges on Sustained Returns
TakeawayThe setup leans on returns staying close to recent levels. Margins and capital discipline need to hold through softer revenue. If returns fade, valuation support narrows quickly. If returns persist, the current price looks hard to justify as “full.”