DREAM FINDERS HOMES INC - A (DFH) Stock Fundamental Analysis
NYSE:DFH - New York Stock Exchange, Inc. - US26154D1000 - Common Stock - Currency: USD
We assign a fundamental rating of 5 out of 10 to DFH. DFH was compared to 64 industry peers in the Household Durables industry. While DFH has a great profitability rating, there are quite some concerns on its financial health. DFH is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
DFH had positive earnings in the past year.
DFH had a negative 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
The Return On Assets of DFH (9.24%) is better than 67.19% of its industry peers.
DFH has a Return On Equity of 22.37%. This is amongst the best in the industry. DFH outperforms 89.06% of its industry peers.
Looking at the Return On Invested Capital, with a value of 16.03%, DFH belongs to the top of the industry, outperforming 87.50% of the companies in the same industry.
DFH had an Average Return On Invested Capital over the past 3 years of 17.59%. This is significantly above the industry average of 10.47%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.24% | ||
| ROE | 22.37% | ||
| ROIC | 16.03% |
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
DFH has a better Profit Margin (6.99%) than 60.94% of its industry peers.
DFH's Profit Margin has improved in the last couple of years.
With a decent Operating Margin value of 13.62%, DFH is doing good in the industry, outperforming 79.69% of the companies in the same industry.
DFH's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 23.30%, DFH is doing worse than 60.94% of the companies in the same industry.
DFH's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 13.62% | ||
| PM (TTM) | 6.99% | ||
| GM | 23.3% |
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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so DFH is still creating some value.
DFH has more shares outstanding than it did 1 year ago.
The number of shares outstanding for DFH has been increased compared to 5 years ago.
Compared to 1 year ago, DFH has a worse debt to assets ratio.
2.2 Solvency
DFH has an Altman-Z score of 3.53. This indicates that DFH is financially healthy and has little risk of bankruptcy at the moment.
DFH's Altman-Z score of 3.53 is fine compared to the rest of the industry. DFH outperforms 62.50% of its industry peers.
A Debt/Equity ratio of 1.02 is on the high side and indicates that DFH has dependencies on debt financing.
The Debt to Equity ratio of DFH (1.02) is worse than 73.44% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.02 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 3.53 |
ROIC/WACC1.34
WACC11.95%
2.3 Liquidity
DFH has a Current Ratio of 4.63. This indicates that DFH is financially healthy and has no problem in meeting its short term obligations.
DFH has a Current ratio of 4.63. This is in the better half of the industry: DFH outperforms 71.88% of its industry peers.
DFH has a Quick Ratio of 4.63. This is a bad value and indicates that DFH is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Quick ratio value of 0.70, DFH perfoms like the industry average, outperforming 40.63% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 4.63 | ||
| Quick Ratio | 0.7 |
3. Growth
3.1 Past
DFH shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 13.22%, which is quite good.
Measured over the past years, DFH shows a very strong growth in Earnings Per Share. The EPS has been growing by 53.22% on average per year.
The Revenue has grown by 21.18% in the past year. This is a very strong growth!
The Revenue has been growing by 43.01% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)13.22%
EPS 3Y42%
EPS 5Y53.22%
EPS Q2Q%-1.82%
Revenue 1Y (TTM)21.18%
Revenue growth 3Y32.26%
Revenue growth 5Y43.01%
Sales Q2Q%19.58%
3.2 Future
Based on estimates for the next years, DFH will show a decrease in Earnings Per Share. The EPS will decrease by -3.27% on average per year.
DFH is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.47% yearly.
EPS Next Y-8.58%
EPS Next 2Y-3.27%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year5.98%
Revenue Next 2Y4.47%
Revenue Next 3YN/A
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 6.59, the valuation of DFH can be described as very cheap.
Based on the Price/Earnings ratio, DFH is valued a bit cheaper than the industry average as 79.69% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 26.52, DFH is valued rather cheaply.
DFH is valuated cheaply with a Price/Forward Earnings ratio of 7.03.
78.13% of the companies in the same industry are more expensive than DFH, based on the Price/Forward Earnings ratio.
DFH is valuated cheaply when we compare the Price/Forward Earnings ratio to 22.25, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.59 | ||
| Fwd PE | 7.03 |
4.2 Price Multiples
DFH's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. DFH is cheaper than 89.06% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 5.12 |
4.3 Compensation for Growth
The decent profitability rating of DFH may justify a higher PE ratio.
A cheap valuation may be justified as DFH's earnings are expected to decrease with -3.27% in the coming years.
PEG (NY)N/A
PEG (5Y)0.12
EPS Next 2Y-3.27%
EPS Next 3YN/A
5. Dividend
5.1 Amount
DFH does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
22.02
-0.4 (-1.78%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryHousehold Durables
Earnings (Last)
Earnings (Next)
Inst Owners94.44%
Inst Owner Change-1.92%
Ins Owners23.68%
Ins Owner Change0.08%
Market Cap2.06B
Analysts48
Price Target27.54 (25.07%)
Short Float %20.77%
Short Ratio13.94
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly Dividend0.14
Dividend Growth(5Y)N/A
DP4.19%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)0.47%
Min EPS beat(2)-15.13%
Max EPS beat(2)16.08%
EPS beat(4)2
Avg EPS beat(4)-3.33%
Min EPS beat(4)-17.79%
Max EPS beat(4)16.08%
EPS beat(8)5
Avg EPS beat(8)15.19%
EPS beat(12)8
Avg EPS beat(12)19.86%
EPS beat(16)10
Avg EPS beat(16)12.15%
Revenue beat(2)1
Avg Revenue beat(2)1.85%
Min Revenue beat(2)-7.23%
Max Revenue beat(2)10.93%
Revenue beat(4)1
Avg Revenue beat(4)-1.56%
Min Revenue beat(4)-7.23%
Max Revenue beat(4)10.93%
Revenue beat(8)4
Avg Revenue beat(8)6.71%
Revenue beat(12)7
Avg Revenue beat(12)9.45%
Revenue beat(16)9
Avg Revenue beat(16)3.62%
PT rev (1m)0%
PT rev (3m)-6.9%
EPS NQ rev (1m)-4.72%
EPS NQ rev (3m)-5.61%
EPS NY rev (1m)4.08%
EPS NY rev (3m)-4.81%
Revenue NQ rev (1m)7.59%
Revenue NQ rev (3m)9.91%
Revenue NY rev (1m)0.72%
Revenue NY rev (3m)7.64%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.59 | ||
| Fwd PE | 7.03 | ||
| P/S | 0.45 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 1.43 | ||
| P/tB | 1.88 | ||
| EV/EBITDA | 5.12 |
EPS(TTM)3.34
EY15.17%
EPS(NY)3.13
Fwd EY14.23%
FCF(TTM)-0.86
FCFYN/A
OCF(TTM)-0.58
OCFYN/A
SpS49.31
BVpS15.4
TBVpS11.7
PEG (NY)N/A
PEG (5Y)0.12
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.24% | ||
| ROE | 22.37% | ||
| ROCE | 20.83% | ||
| ROIC | 16.03% | ||
| ROICexc | 17.79% | ||
| ROICexgc | 21.67% | ||
| OM | 13.62% | ||
| PM (TTM) | 6.99% | ||
| GM | 23.3% | ||
| FCFM | N/A |
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%
ROICexcg growth 3Y17.87%
ROICexcg 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-Score3
Asset Turnover1.32
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.02 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 2.31 | ||
| Cap/Depr | 233.96% | ||
| Cap/Sales | 0.57% | ||
| Interest Coverage | N/A | ||
| Cash Conversion | N/A | ||
| Profit Quality | N/A | ||
| Current Ratio | 4.63 | ||
| Quick Ratio | 0.7 | ||
| Altman-Z | 3.53 |
F-Score3
WACC11.95%
ROIC/WACC1.34
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)13.22%
EPS 3Y42%
EPS 5Y53.22%
EPS Q2Q%-1.82%
EPS Next Y-8.58%
EPS Next 2Y-3.27%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)21.18%
Revenue growth 3Y32.26%
Revenue growth 5Y43.01%
Sales Q2Q%19.58%
Revenue Next Year5.98%
Revenue Next 2Y4.47%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y21.94%
EBIT growth 3Y50.81%
EBIT growth 5Y70.31%
EBIT Next Year27.75%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-250.3%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-190.77%
OCF growth 3YN/A
OCF growth 5YN/A