QUOTE AND NEWS
The Hindu Business Line  Apr 10  Comment 
Taking cognisance of the growing digital audience, television audience measurement firm Broadcast Audience Research Council (BARC) India said it will roll out its digital measurement service in a pha...
CNNMoney.com  Mar 23  Comment 
Read full story for latest details.
Clusterstock  Mar 9  Comment 
The cookie-cutter neighborhood is an iconic American symbol of suburbia — the architecture is uniform, the lawns manicured, the colors drawn from the same palette. Facades of the houses may vary, but local kids immediately know where to find the...
Motley Fool  Feb 7  Comment 
Sales are soaring and 2017 looks bright, but investors should watch out for rising interest rates long-term.
The Hindu Business Line  Feb 6  Comment 
Art By Children (ABC) -- the outreach programme powered by Merck in association with Kochi Muziris Biennale and supported by the State Education Department -- has successfully completed the first pha...
newratings.com  Jan 26  Comment 
WASHINGTON (dpa-AFX) - PulteGroup, Inc. (PHM) reported a profit for its fourth quarter that climbed compared to the same period last year. The company said its bottom line came in at $273.17 million, or $0.83 per share. This was higher than...




 

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
Wikinvest © 2006, 2007, 2008, 2009, 2010, 2011, 2012. Use of this site is subject to express Terms of Service, Privacy Policy, and Disclaimer. By continuing past this page, you agree to abide by these terms. Any information provided by Wikinvest, including but not limited to company data, competitors, business analysis, market share, sales revenues and other operating metrics, earnings call analysis, conference call transcripts, industry information, or price targets should not be construed as research, trading tips or recommendations, or investment advice and is provided with no warrants as to its accuracy. Stock market data, including US and International equity symbols, stock quotes, share prices, earnings ratios, and other fundamental data is provided by data partners. Stock market quotes delayed at least 15 minutes for NASDAQ, 20 mins for NYSE and AMEX. Market data by Xignite. See data providers for more details. Company names, products, services and branding cited herein may be trademarks or registered trademarks of their respective owners. The use of trademarks or service marks of another is not a representation that the other is affiliated with, sponsors, is sponsored by, endorses, or is endorsed by Wikinvest.
Powered by MediaWiki