Why Invest

Value Creation: PulteGroup’s Defined Strategy for Creating Long-term Shareholder Value

After extensive analysis showed that homebuilding companies that consistently delivered high returns on invested capital (ROIC) generated greater total shareholder returns, PulteGroup launched its Value Creation strategy in 2011 with the goal of achieving higher returns on invested capital (ROIC) over the housing cycle. In support of its Value Creation strategy, the Company implemented a series of initiatives to improve its fundamental operating and financial results by:

  • Expanding homebuilding gross and operating margins
  • Capturing greater production efficiency through its innovative Common Plan Management process
  • Increasing inventory turns and overall asset efficiency
  • More effectively allocating capital

In five years of operating under Value Creation, PulteGroup has seen its performance on key business metrics rise to be among the industry leaders which, in turn, has driven significant gains in pretax income and ROIC.

Our capital allocation priorities are aligned with our Value Creation strategy:

Priority #1: Invest in core business, including opportunistic M&A.
Priority #2: Return funds through an established dividend.
Priority #3: Routinely return excess capital to shareholders via share buybacks.

PulteGroup is one of the nation’s largest and most diversified homebuilders, with operations in approximately 50 major metro markets across the country.

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The Company employs a unique multi-branded approach to the market through which it serves all primary buyer categories: first time, move up and active adults.

The Company maintains a diversified and well-balanced position among the consumer groups, while being the industry leader in developing lifestyle communities to serve active baby boomers as they move toward retirement.

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