PHMNEUTRAL

PHM Return on Equity (ROE) Analysis

14.9%

Higher than 68% of Consumer Cyclical sector peers

Updated 726h ago·SEC filings & market data

Key Takeaway

Return on equity (ROE) measures profit generated for each dollar of shareholders' equity — here, 14.9% means PulteGroup earns $14.90 per $100 of equity capital.

Sector Performance

68th percentile

PHM

14.9%

Sector Median

6.4%

Sector Avg

-38.1%

Prior Period

16.2%(Jul 2026)

↓ Declining

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Deep Analysis

Return on equity (ROE) measures profit generated for each dollar of shareholders' equity — here, 14.9% means PulteGroup earns $14.90 per $100 of equity capital.

That level sits above the sector median of 8.6%, placing the company in the 63rd percentile among its consumer cyclical peers. The trend shows no year-over-year figure is available, but quarter over quarter, ROE fell 8.0%, dropping from 16.2% to 14.9%. The combination of an above-median level with a recent quarterly decline suggests modest downside pressure on profitability efficiency, though the current return still offers a cushion relative to peers. This metric supports the overall NEUTRAL verdict: the strong comparative level is tempered by the negative quarterly movement, leaving no clear bullish or bearish push.

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 14.9% compares to a Consumer Cyclical sector median of 6.4%, 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: BWA (8.1%), TSLA (4.7%), AMCR (4.4%), JACK (8.6%), KMX (3.6%).

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Learn More About Return on Equity (ROE)

What Is Return on Equity (ROE) and Is Higher Always Better?

Return on equity ROE measures how efficiently a company generates profit from shareholder capital. Learn how to decompose ROE using DuPont analysis and why high leverage can make it dangerous—with Apple and JPMorgan examples.

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.