PHMNEUTRAL

PHM Gross Margin Analysis

25.0%

Higher than 33% of Consumer Cyclical sector peers

Updated 726h ago·SEC filings & market data

Key Takeaway

PulteGroup’s gross margin of 25.0% means that after subtracting the direct costs of building homes, the company keeps 25 cents of every sales dollar as gross profit.

Sector Performance

33th percentile

PHM

25.0%

Sector Median

34.5%

Sector Avg

27.6%

Prior Period

24.1%(Jul 2026)

↑ Improving

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Deep Analysis

PulteGroup’s gross margin of 25.0% means that after subtracting the direct costs of building homes, the company keeps 25 cents of every sales dollar as gross profit.

That figure sits well below the sector median of 36.6%, placing PulteGroup in the 34th percentile among consumer cyclical peers. The year-over-year change is unavailable, but the quarter-over-quarter change is +3.7%, reflecting an increase from 24.1% in the prior quarter. A below-median margin with a recent upward move suggests cost pressure or pricing weakness relative to peers, yet the latest quarter shows an early improvement. For an investor, the low level points to competitive disadvantage, while the positive QoQ trend offers a potential turnaround signal. This mix of weak level and improving trend supports the overall NEUTRAL verdict, as the metric neither confirms strong performance nor signals clear deterioration.

Frequently Asked Questions

What does the Gross Margin tell investors about PHM?

Gross margin reveals pricing power and cost structure. Software companies often sustain 70–80%; manufacturers typically 30–50%. Expansion is a bullish signal.

How is the Gross Margin calculated?

Gross Margin is calculated as: Gross Profit / Revenue.

How does PHM's Gross Margin compare to its sector?

PHM's Gross Margin of 25.0% compares to a Consumer Cyclical sector median of 34.5%, placing it in the 33th percentile.

Who are PHM's closest peers by Gross Margin?

The closest Consumer Cyclical peers by Gross Margin include: CHWY (30.1%), W (30.0%), JACK (29.9%), ROST (29.6%), RH (41.4%).

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Learn More About Gross Margin

Gross Margin vs Net Margin: Why the Gap Between Them Tells You Everything

Gross margin vs net margin: learn what the spread between them reveals about operating leverage, cost structure, and early warning signs in any stock.

The Formula

Gross Profit / Revenue

Why It Matters

Gross margin reveals pricing power and cost structure. Software companies often sustain 70–80%; manufacturers typically 30–50%. Expansion is a bullish signal.