Editor's Note: TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model.
NEW YORK (
) has been reiterated by TheStreet Ratings as a hold with a ratings score of C- . The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance and impressive record of earnings per share growth. However, as a counter to these strengths, we also find weaknesses including generally higher debt management risk and poor profit margins.
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Highlights from the ratings report include:
- The revenue growth greatly exceeded the industry average of 31.3%. Since the same quarter one year prior, revenues rose by 15.3%. Growth in the company's revenue appears to have helped boost the earnings per share.
- Powered by its strong earnings growth of 173.33% and other important driving factors, this stock has surged by 295.73% over the past year, outperforming the rise in the S&P 500 Index during the same period. Regarding the stock's future course, our hold rating indicates that we do not recommend additional investment in this stock despite its gains in the past year.
- The gross profit margin for PULTEGROUP INC is rather low; currently it is at 16.50%. Regardless of PHM's low profit margin, it has managed to increase from the same period last year. Despite the mixed results of the gross profit margin, PHM's net profit margin of 4.00% compares favorably to the industry average.
- Currently the debt-to-equity ratio of 1.57 is quite high overall and when compared to the industry average, suggesting that the current management of debt levels should be re-evaluated.
PulteGroup, Inc., through its subsidiaries, engages in homebuilding and financial services businesses primarily in the United States. PulteGroup has a market cap of $6.69 billion and is part of the industrial goods sector and materials & construction industry. The company has a P/E ratio of -79.3, below the S&P 500 P/E ratio of 17.7. Shares are up 179.7% year to date as of the close of trading on Thursday.
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--Written by a member of TheStreet Ratings Staff.
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