DREAM FINDERS HOMES INC - A (DFH) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:DFH - US26154D1000 - Common Stock
19.77 USD
-0.05 (-0.25%)
19.77 USD
0 (0%)
DFH gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 61 industry peers in the Household Durables industry. While DFH belongs to the best of the industry regarding profitability, there are concerns on its financial health. DFH has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
DFH had positive earnings in the past year.
DFH had a positive operating cash flow in the past year.
Each year in the past 5 years DFH has been profitable.
The reported operating cash flow has been mixed in the past 5 years: DFH reported negative operating cash flow in multiple years.
1.2 Ratios
DFH has a Return On Assets of 7.15%. This is in the better half of the industry: DFH outperforms 67.21% of its industry peers.
Looking at the Return On Equity, with a value of 18.02%, DFH is in the better half of the industry, outperforming 78.69% of the companies in the same industry.
The Return On Invested Capital of DFH (13.54%) is better than 86.89% of its industry peers.
DFH had an Average Return On Invested Capital over the past 3 years of 17.59%. This is significantly above the industry average of 9.75%.
The 3 year average ROIC (17.59%) for DFH is well above the current ROIC(13.54%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.15% | ||
| ROE | 18.02% | ||
| ROIC | 13.54% |
ROA(3y)10.38%
ROA(5y)9.51%
ROE(3y)26.96%
ROE(5y)28.92%
ROIC(3y)17.59%
ROIC(5y)14.61%
1.3 Margins
The Profit Margin of DFH (5.87%) is better than 62.30% of its industry peers.
In the last couple of years the Profit Margin of DFH has grown nicely.
The Operating Margin of DFH (12.56%) is better than 77.05% of its industry peers.
In the last couple of years the Operating Margin of DFH has grown nicely.
With a Gross Margin value of 22.51%, DFH is not doing good in the industry: 68.85% of the companies in the same industry are doing better.
In the last couple of years the Gross Margin of DFH has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 12.56% | ||
| PM (TTM) | 5.87% | ||
| GM | 22.51% |
OM growth 3Y14.02%
OM growth 5Y19.09%
PM growth 3Y5.78%
PM growth 5Y9.23%
GM growth 3Y8.25%
GM growth 5Y10.52%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), DFH is creating some value.
The number of shares outstanding for DFH has been increased compared to 1 year ago.
Compared to 5 years ago, DFH has more shares outstanding
Compared to 1 year ago, DFH has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 3.22 indicates that DFH is not in any danger for bankruptcy at the moment.
DFH's Altman-Z score of 3.22 is in line compared to the rest of the industry. DFH outperforms 55.74% of its industry peers.
DFH has a debt to FCF ratio of 43.98. This is a negative value and a sign of low solvency as DFH would need 43.98 years to pay back of all of its debts.
The Debt to FCF ratio of DFH (43.98) is worse than 60.66% of its industry peers.
A Debt/Equity ratio of 1.16 is on the high side and indicates that DFH has dependencies on debt financing.
DFH's Debt to Equity ratio of 1.16 is on the low side compared to the rest of the industry. DFH is outperformed by 77.05% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.16 | ||
| Debt/FCF | 43.98 | ||
| Altman-Z | 3.22 |
ROIC/WACC1.13
WACC11.99%
2.3 Liquidity
DFH has a Current Ratio of 4.89. This indicates that DFH is financially healthy and has no problem in meeting its short term obligations.
Looking at the Current ratio, with a value of 4.89, DFH is in the better half of the industry, outperforming 70.49% of the companies in the same industry.
DFH has a Quick Ratio of 4.89. This is a bad value and indicates that DFH is not financially healthy enough and could expect problems in meeting its short term obligations.
DFH's Quick ratio of 0.61 is on the low side compared to the rest of the industry. DFH is outperformed by 65.57% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 4.89 | ||
| Quick Ratio | 0.61 |
3. Growth
3.1 Past
The earnings per share for DFH have decreased by -6.54% in the last year.
The Earnings Per Share has been growing by 53.22% on average over the past years. This is a very strong growth
The Revenue has grown by 15.95% in the past year. This is quite good.
Measured over the past years, DFH shows a very strong growth in Revenue. The Revenue has been growing by 43.01% on average per year.
EPS 1Y (TTM)-6.54%
EPS 3Y42%
EPS 5Y53.22%
EPS Q2Q%-32.86%
Revenue 1Y (TTM)15.95%
Revenue growth 3Y32.26%
Revenue growth 5Y43.01%
Sales Q2Q%-3.68%
3.2 Future
The Earnings Per Share is expected to decrease by -10.44% on average over the next years. This is quite bad
Based on estimates for the next years, DFH will show a small growth in Revenue. The Revenue will grow by 2.45% on average per year.
EPS Next Y-30.61%
EPS Next 2Y-17.23%
EPS Next 3Y-10.44%
EPS Next 5YN/A
Revenue Next Year-0.72%
Revenue Next 2Y0.56%
Revenue Next 3Y2.45%
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
DFH is valuated cheaply with a Price/Earnings ratio of 6.91.
DFH's Price/Earnings ratio is rather cheap when compared to the industry. DFH is cheaper than 86.89% of the companies in the same industry.
When comparing the Price/Earnings ratio of DFH to the average of the S&P500 Index (26.31), we can say DFH is valued rather cheaply.
With a Price/Forward Earnings ratio of 8.61, the valuation of DFH can be described as very reasonable.
86.89% of the companies in the same industry are more expensive than DFH, based on the Price/Forward Earnings ratio.
DFH's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 36.59.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.91 | ||
| Fwd PE | 8.61 |
4.2 Price Multiples
DFH's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. DFH is cheaper than 88.52% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of DFH indicates a slightly more expensive valuation: DFH is more expensive than 60.66% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 45.73 | ||
| EV/EBITDA | 5.59 |
4.3 Compensation for Growth
DFH has a very decent profitability rating, which may justify a higher PE ratio.
A cheap valuation may be justified as DFH's earnings are expected to decrease with -10.44% in the coming years.
PEG (NY)N/A
PEG (5Y)0.13
EPS Next 2Y-17.23%
EPS Next 3Y-10.44%
5. Dividend
5.1 Amount
DFH does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
19.77
-0.05 (-0.25%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryHousehold Durables
Earnings (Last)
Earnings (Next)
Inst Owners91.67%
Inst Owner Change-8.43%
Ins Owners18.82%
Ins Owner Change-3.05%
Market Cap1.84B
Revenue(TTM)4.67B
Net Income(TTM)274.23M
Analysts46.67
Price Target23.97 (21.24%)
Short Float %15.94%
Short Ratio13.94
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly Dividend0.14
Dividend Growth(5Y)N/A
DP4.92%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-8.2%
Min EPS beat(2)-9.11%
Max EPS beat(2)-7.3%
EPS beat(4)1
Avg EPS beat(4)-3.87%
Min EPS beat(4)-15.13%
Max EPS beat(4)16.08%
EPS beat(8)3
Avg EPS beat(8)-1.03%
EPS beat(12)7
Avg EPS beat(12)17.64%
EPS beat(16)10
Avg EPS beat(16)17.54%
Revenue beat(2)1
Avg Revenue beat(2)-4.61%
Min Revenue beat(2)-16.25%
Max Revenue beat(2)7.02%
Revenue beat(4)2
Avg Revenue beat(4)-1.38%
Min Revenue beat(4)-16.25%
Max Revenue beat(4)10.93%
Revenue beat(8)3
Avg Revenue beat(8)0.3%
Revenue beat(12)7
Avg Revenue beat(12)8.1%
Revenue beat(16)10
Avg Revenue beat(16)7.01%
PT rev (1m)-14.55%
PT rev (3m)-11.32%
EPS NQ rev (1m)-18.06%
EPS NQ rev (3m)-37.64%
EPS NY rev (1m)-3.36%
EPS NY rev (3m)-20.87%
Revenue NQ rev (1m)-17.33%
Revenue NQ rev (3m)-21.1%
Revenue NY rev (1m)-8.92%
Revenue NY rev (3m)-9.95%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.91 | ||
| Fwd PE | 8.61 | ||
| P/S | 0.39 | ||
| P/FCF | 45.73 | ||
| P/OCF | 29.49 | ||
| P/B | 1.21 | ||
| P/tB | 1.6 | ||
| EV/EBITDA | 5.59 |
EPS(TTM)2.86
EY14.47%
EPS(NY)2.3
Fwd EY11.61%
FCF(TTM)0.43
FCFY2.19%
OCF(TTM)0.67
OCFY3.39%
SpS50.29
BVpS16.38
TBVpS12.35
PEG (NY)N/A
PEG (5Y)0.13
Graham Number32.47
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.15% | ||
| ROE | 18.02% | ||
| ROCE | 17.59% | ||
| ROIC | 13.54% | ||
| ROICexc | 14.64% | ||
| ROICexgc | 18.71% | ||
| OM | 12.56% | ||
| PM (TTM) | 5.87% | ||
| GM | 22.51% | ||
| FCFM | 0.86% |
ROA(3y)10.38%
ROA(5y)9.51%
ROE(3y)26.96%
ROE(5y)28.92%
ROIC(3y)17.59%
ROIC(5y)14.61%
ROICexc(3y)21.6%
ROICexc(5y)17.52%
ROICexgc(3y)25.76%
ROICexgc(5y)20.91%
ROCE(3y)22.85%
ROCE(5y)18.98%
ROICexgc growth 3Y17.87%
ROICexgc growth 5Y17.57%
ROICexc growth 3Y18.62%
ROICexc growth 5Y15.29%
OM growth 3Y14.02%
OM growth 5Y19.09%
PM growth 3Y5.78%
PM growth 5Y9.23%
GM growth 3Y8.25%
GM growth 5Y10.52%
F-Score5
Asset Turnover1.22
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.16 | ||
| Debt/FCF | 43.98 | ||
| Debt/EBITDA | 2.94 | ||
| Cap/Depr | 157.6% | ||
| Cap/Sales | 0.47% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 10.37% | ||
| Profit Quality | 14.64% | ||
| Current Ratio | 4.89 | ||
| Quick Ratio | 0.61 | ||
| Altman-Z | 3.22 |
F-Score5
WACC11.99%
ROIC/WACC1.13
Cap/Depr(3y)114.02%
Cap/Depr(5y)92.11%
Cap/Sales(3y)0.29%
Cap/Sales(5y)0.25%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-6.54%
EPS 3Y42%
EPS 5Y53.22%
EPS Q2Q%-32.86%
EPS Next Y-30.61%
EPS Next 2Y-17.23%
EPS Next 3Y-10.44%
EPS Next 5YN/A
Revenue 1Y (TTM)15.95%
Revenue growth 3Y32.26%
Revenue growth 5Y43.01%
Sales Q2Q%-3.68%
Revenue Next Year-0.72%
Revenue Next 2Y0.56%
Revenue Next 3Y2.45%
Revenue Next 5YN/A
EBIT growth 1Y9.24%
EBIT growth 3Y50.81%
EBIT growth 5Y70.31%
EBIT Next Year15.35%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-90.02%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-84.72%
OCF growth 3YN/A
OCF growth 5YN/A
DREAM FINDERS HOMES INC - A / DFH FAQ
What is the ChartMill fundamental rating of DREAM FINDERS HOMES INC - A (DFH) stock?
ChartMill assigns a fundamental rating of 5 / 10 to DFH.
What is the valuation status for DFH stock?
ChartMill assigns a valuation rating of 6 / 10 to DREAM FINDERS HOMES INC - A (DFH). This can be considered as Fairly Valued.
Can you provide the profitability details for DREAM FINDERS HOMES INC - A?
DREAM FINDERS HOMES INC - A (DFH) has a profitability rating of 7 / 10.
How financially healthy is DREAM FINDERS HOMES INC - A?
The financial health rating of DREAM FINDERS HOMES INC - A (DFH) is 3 / 10.
What is the earnings growth outlook for DREAM FINDERS HOMES INC - A?
The Earnings per Share (EPS) of DREAM FINDERS HOMES INC - A (DFH) is expected to decline by -30.61% in the next year.