Following Peter Lynch’s approach: Does DR HORTON INC (NYSE:DHI) fit the bill?

Lynch encouraged investors to look at businesses they understand and have strong financials. Does DR HORTON INC (NYSE:DHI) align with this approach? We take a closer look.

Checking the Peter Lynch growth stock criteria for DR HORTON INC (NYSE:DHI)

• With a favorable Return on Equity (ROE) of 18.66%, DHI demonstrates its ability to deliver attractive returns for shareholders. This metric highlights the company's effective management of assets and its profitability.
• A Debt/Equity ratio of 0.2 indicates that DHI is leveraging debt effectively without excessive risk.
• DHI has achieved 27.63 growth in EPS over the past 5 years, reflecting a sustained improvement in earnings performance.
• Considering its PEG ratio of 0.34, DHI may be an undervalued growth opportunity.
• DHI’s Current Ratio of 5.63 highlights its ability to sustain day-to-day operations without liquidity concerns.

What is the full fundamental picture of DHI telling us.

Every day ChartMill assigns a Fundamental Rating to every stock. The score ranges from 0 to 10 and is determined by evaluating multiple fundamental indicators and properties.

Overall DHI gets a fundamental rating of 7 out of 10. We evaluated DHI against 66 industry peers in the Household Durables industry. DHI has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. DHI is not valued too expensively and it also shows a decent growth rate. These ratings could make DHI a good candidate for quality investing.

Our latest full fundamental report of DHI contains the most current fundamental analsysis.

Our Peter Lynch screener lists more Affordable Growth stocks and is updated daily.

Disclaimer

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.