PHMNEUTRAL

Gross Margin

24.1%

Higher than 33% of Consumer Cyclical sector peers

Updated 32h ago

Sector Performance

33th percentile

PHM

24.1%

Sector Median

36.3%

Sector Avg

30.2%

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Deep Analysis

PulteGroup's gross margin of 24.1% means that for every dollar of revenue, the company keeps 24.1 cents after covering the direct costs of building homes, with the rest going to those costs.

This is well below the sector median of 36.3% for Consumer Cyclical companies, placing PulteGroup in the 33rd percentile among peers — meaning two-thirds of its competitors have a higher gross margin. The trend data are not available: the year-over-year change is N/A, the quarter-over-quarter change is N/A, and there are no recorded values for the last eight quarters beyond the current figure. Because the gross margin is low relative to peers and no trend can be assessed, investors face the risk that the margin may be structurally weak or temporary, but there is no directional information to gauge improvement or deterioration. This metric supports the overall NEUTRAL verdict, as the below-median level points to a competitive disadvantage that is offset by the lack of trend data to confirm a negative trajectory.

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 24.1% compares to a Consumer Cyclical sector median of 36.3%, placing it in the 33th percentile.

Who are PHM's closest peers by Gross Margin?

The closest Consumer Cyclical peers by Gross Margin include: BBWI (42.6%), SE (44.3%), YUM (44.7%), RIDE (49.4%), CZR (50.3%).

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.