PHMNEUTRAL

Return on Equity (ROE)

16.2%

Higher than 68% of Consumer Cyclical sector peers

Updated 32h ago

Sector Performance

68th percentile

PHM

16.2%

Sector Median

8.5%

Sector Avg

-18.9%

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Deep Analysis

Return on Equity (ROE) measures how much profit a company generates for each dollar of shareholders’ equity, so PulteGroup's 16.2% means it earns $0.16 for every $1 invested.

This is well above the Consumer Cyclical sector median of 8.5%, placing PulteGroup in the 68th percentile among its peers. However, the year-over-year and quarter-over-quarter changes are not available, and the trend over the last eight quarters is also reported as not available, so no directional pattern can be assessed. The combination of a high relative ROE with no trend data suggests the current profitability level is favorable, but the absence of change information leaves uncertainty about whether that strength is stable or deteriorating. For investment risk, the strong ROE relative to peers points to efficient capital use, yet the lack of trend data means you cannot gauge momentum or sustainability. This metric supports the overall NEUTRAL verdict on PulteGroup because a solid ROE percentile is positive, but the missing trend does not provide enough conviction to upgrade or downgrade the stock.

Frequently Asked Questions

What does the Return on Equity (ROE) tell investors about PHM?

ROE measures how effectively management turns equity into profit. Consistently above 15% is typically considered strong. Negative equity distorts this metric.

How is the Return on Equity (ROE) calculated?

Return on Equity (ROE) is calculated as: Net Income / Shareholders' Equity.

How does PHM's Return on Equity (ROE) compare to its sector?

PHM's Return on Equity (ROE) of 16.2% compares to a Consumer Cyclical sector median of 8.5%, placing it in the 68th percentile.

Who are PHM's closest peers by Return on Equity (ROE)?

The closest Consumer Cyclical peers by Return on Equity (ROE) include: APTV (1.8%), DKNG (0.6%), LI (-2.5%), HMC (-3.8%), CROX (-6.1%).

The Formula

Net Income / Shareholders' Equity

Why It Matters

ROE measures how effectively management turns equity into profit. Consistently above 15% is typically considered strong. Negative equity distorts this metric.