e company sells at price points from under $100,000 to more than $1 million in various markets (Warfel 62). Pulte has also established a financial services business unit designed to assist its homebuyers with financing. This is not unusual in the residential construction business, since mortgages are a critical part of the homebuying process and having a financial services unit enables the company to capture more revenue.
Pulte offers homes across the major segments of the residential industry, including first-time homes with low price points (these may be attached or detached residences), move-up homes positioned for both first-time and second-time move-ups, and adult residences that are smaller and generally single level. The company's participation the active adult segment was enhanced in 2001 by its acquisition of a market leader in this area, Del Webb Corporation ("2001 Annual Report").
Pulte's sales have increased at a strong 17.68 percent over the past five years, although this is below the industry average of 20.80 percent for the same period. Over the past five years, its earnings per share outpaced the industry as a whole at 36.74 percent for the company compared to 32.96 for the industry. However, the company's earnings per share declined 1.34 percent in the most recent quarter compared to the same quarter one year ago. Pulte's debt is in line with the industry as a whole (with long term and total debt to equity levels of 0.76:1 and 0.99:1 as opposed to the industry's 0.97:1 and 1.01:1, respectively). However, the company is well below industry-level in terms of gross margin (9.04 percent compared to the industry's 20.20 percent) although the company's profit margin is currently in line with the industry overall at 5.62 percent (compared to the industry's 5.48 percent) ("Ratio Comparison"). The company's in-line performance with the industry for net profit given its relatively poor gross margin standing indicate...