QUOTE AND NEWS
OilVoice  Nov 28  Comment 
The Board of Directors of Sunshine Oilsands Ltd. (HKEX:2012) hereby announces the following: ALL PHA ...
Forbes  Oct 27  Comment 
The DividendRank formula at Dividend Channel ranks a coverage universe of thousands of dividend stocks, according to a proprietary formula designed to identify those stocks that combine two important characteristics — strong fundamentals and a...
Clusterstock  Oct 20  Comment 
US real estate is so large and complex that it can sometimes be hard to get a good view of the health of the market. Between the boatload of data and the nearly 70 million single-family homes, it's rare to get a full picture of the state of the...
Benzinga  Sep 15  Comment 
Deutsche Bank expressed the confidence that PulteGroup, Inc. (NYSE: PHM) new management under Ryan Marshall would not change the strategy from the one pursued by former CEO Richard Dugas in respect of value creation. Therefore, analysts Nishu Sood...
Forbes  Sep 13  Comment 
The DividendRank formula at Dividend Channel ranks a coverage universe of thousands of dividend stocks, according to a proprietary formula designed to identify those stocks that combine two important characteristics — strong fundamentals and a...
newratings.com  Sep 8  Comment 
WASHINGTON (dpa-AFX) - PulteGroup Inc. (PHM) said that it has appointed Ryan Marshall, PulteGroup's President, as Chief Executive Officer effective immediately. Marshall, who has also become a member of the Board, succeeds Richard Dugas, Jr....
Benzinga  Jul 25  Comment 
  Hewlett Packard Enterprise Co (NYSE: HPE) shares touched a new 52-week high of $20.42. Citi upgraded the rating on Hewlett Packard Enterprise from Neutral to Buy, while raising the price target from $20 to $25. PulteGroup, Inc....




 

Pulte Homes (PHM) (NYSE:PHM) is a homebuilder. In 2009, the company sold 15,013 homes across 27 states in all regions of the country.[1] Pulte targets first-time and move-up buyers, with most of its properties being single-family detached homes. At an average home selling price of $258,000, the company offers homes that are more expensive than the national median home price of around $210,000.[1]

The company operates in a highly cyclical industry. New home construction, home prices and new home sales volume are heavily dependent upon job growth, interest rates, and the business cycle at large. Low interest rates and high job growth bode well for homebuilding, but as the recent subprime lending crisis and depressed housing market has illustrated, things can sour quickly and the business can be difficult to predict. Key homebuilding numbers, such as housing starts and existing home sales have continued to come in weak of late. Homebuilding is highly competitive and marked by few barriers to entry, low profit margins, and high financial leverage.

Since early 2006, the U.S. housing market has been unfavorably impacted by a lack of consumer confidence, tightened mortgage standards, and large supplies of resale and new home inventories and related pricing pressures. These factors have contributed to weakened demand for new homes, slower sales, and increased price discounts and sales incentives to attract homebuyers. All of these contribute negatively to PHM's revenues and net income. This could not posisbly have been more helpful!

Competition

The company competes against a highly fragmented base of other homebuilders. These companies may be national or local players and given the highly competitive nature of the industry, competition is stiff and often marked by low margins and low returns on capital. The company also competes for buyers with existing homes that have hit the market, and competes more broadly with other housing alternatives such as apartments and mobile homes.

Some of PHM's top competitors include Lennar (LEN), D.R. Horton (DHI), Centex (CTX), KB Home (KBH), HOVNANIAN ENTERPRISES (HOV), Beazer Homes USA (BZH), and Ryland Group (RYL).

Footnotes

  1. 1.0 1.1 PHM 10-K 2009 Item 1 Pg. 4
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