Why Peter Lynch may take an interest in DR HORTON INC (NYSE:DHI)

Peter Lynch, one of the most successful investors of all time, focused on growth stocks with strong fundamentals and a business model that’s easy to understand. Let’s analyze whether DR HORTON INC (NYSE:DHI) fits his legendary investment approach.

Does DR HORTON INC (NYSE:DHI) meet Peter Lynch’s stock-picking criteria?

• DHI has achieved an impressive Return on Equity (ROE) of 18.66%, showcasing its ability to generate favorable returns for shareholders.
• A Debt/Equity ratio of 0.2 suggests that DHI is managing its debt levels responsibly.
• DHI has experienced 27.63 growth in EPS over a 5-year period, demonstrating its ability to generate sustained and positive earnings momentum.
• With a PEG ratio at 0.3, DHI is priced attractively relative to its earnings expansion.
• DHI maintains a healthy liquidity position with a Current Ratio of 5.63.

A complete fundamental analysis of DHI

Every day, ChartMill assigns a Fundamental Rating to each stock, providing a score ranging from 0 to 10. This rating is determined by evaluating various fundamental indicators and properties.

DHI gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 65 industry peers in the Household Durables industry. Both the health and profitability get an excellent rating, making DHI a very profitable company, without any liquidiy or solvency issues. DHI has a decent growth rate and is not valued too expensively. With these ratings, DHI could be worth investigating further for quality investing!.

For an up to date full fundamental analysis you can check the fundamental report of DHI

Every day, new Affordable Growth stocks can be found on ChartMill in our Peter Lynch screener.

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.