DREAM FINDERS HOMES INC - A (DFH) Stock Fundamental Analysis
NYSE:DFH - US26154D1000 - Common Stock
29.04 USD
-0.6 (-2.02%)
29.04 USD
0 (0%)
DFH gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 63 industry peers in the Household Durables industry. DFH scores excellent on profitability, but there are 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
In the past year DFH was profitable.
DFH had a negative operating cash flow in the past year.
In the past 5 years DFH has always been profitable.
In multiple years DFH reported negative operating cash flow during the last 5 years.
1.2 Ratios
DFH has a Return On Assets of 8.16%. This is in the better half of the industry: DFH outperforms 69.84% of its industry peers.
DFH has a better Return On Equity (20.09%) than 85.71% of its industry peers.
DFH has a better Return On Invested Capital (15.27%) than 84.13% 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 10.51%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.16% | ||
| ROE | 20.09% | ||
| ROIC | 15.27% |
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
Looking at the Profit Margin, with a value of 6.33%, DFH is in the better half of the industry, outperforming 60.32% of the companies in the same industry.
DFH's Profit Margin has improved in the last couple of years.
DFH's Operating Margin of 13.10% is amongst the best of the industry. DFH outperforms 82.54% of its industry peers.
DFH's Operating Margin has improved in the last couple of years.
DFH has a worse Gross Margin (22.92%) than 68.25% of its industry peers.
In the last couple of years the Gross Margin of DFH has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 13.1% | ||
| PM (TTM) | 6.33% | ||
| GM | 22.92% |
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.
Compared to 1 year ago, DFH has more shares outstanding
DFH has more shares outstanding than it did 5 years ago.
DFH has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 3.58 indicates that DFH is not in any danger for bankruptcy at the moment.
DFH has a better Altman-Z score (3.58) than 60.32% of its industry peers.
A Debt/Equity ratio of 1.07 is on the high side and indicates that DFH has dependencies on debt financing.
DFH has a worse Debt to Equity ratio (1.07) than 74.60% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.07 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 3.58 |
ROIC/WACC1.33
WACC11.49%
2.3 Liquidity
DFH has a Current Ratio of 4.14. 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 4.14, DFH is in the better half of the industry, outperforming 73.02% of the companies in the same industry.
A Quick Ratio of 0.47 indicates that DFH may have some problems paying its short term obligations.
DFH's Quick ratio of 0.47 is on the low side compared to the rest of the industry. DFH is outperformed by 79.37% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 4.14 | ||
| Quick Ratio | 0.47 |
3. Growth
3.1 Past
The earnings per share for DFH have decreased by -0.64% 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
DFH shows a strong growth in Revenue. In the last year, the Revenue has grown by 20.18%.
The Revenue has been growing by 43.01% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)-0.64%
EPS 3Y42%
EPS 5Y53.22%
EPS Q2Q%-30.86%
Revenue 1Y (TTM)20.18%
Revenue growth 3Y32.26%
Revenue growth 5Y43.01%
Sales Q2Q%8.98%
3.2 Future
Based on estimates for the next years, DFH will show a decrease in Earnings Per Share. The EPS will decrease by -3.01% on average per year.
The Revenue is expected to grow by 6.55% on average over the next years.
EPS Next Y-12.31%
EPS Next 2Y-3.01%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year10.25%
Revenue Next 2Y6.55%
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
Based on the Price/Earnings ratio of 9.40, the valuation of DFH can be described as reasonable.
Based on the Price/Earnings ratio, DFH is valued a bit cheaper than the industry average as 69.84% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 27.03, DFH is valued rather cheaply.
DFH is valuated reasonably with a Price/Forward Earnings ratio of 9.22.
Compared to the rest of the industry, the Price/Forward Earnings ratio of DFH indicates a rather cheap valuation: DFH is cheaper than 84.13% of the companies listed in the same industry.
DFH's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 22.54.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.4 | ||
| Fwd PE | 9.22 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, DFH is valued cheaply inside the industry as 80.95% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 6.55 |
4.3 Compensation for Growth
The decent profitability rating of DFH may justify a higher PE ratio.
DFH's earnings are expected to decrease with -3.01% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)0.18
EPS Next 2Y-3.01%
EPS Next 3YN/A
5. Dividend
5.1 Amount
No dividends for DFH!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
29.04
-0.6 (-2.02%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryHousehold Durables
Earnings (Last)
Earnings (Next)
Inst Owners87.74%
Inst Owner Change-1.12%
Ins Owners18.08%
Ins Owner Change-4.85%
Market Cap2.70B
Analysts46.67
Price Target27.03 (-6.92%)
Short Float %18.54%
Short Ratio12.53
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly Dividend0.14
Dividend Growth(5Y)N/A
DP5.66%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-12.12%
Min EPS beat(2)-15.13%
Max EPS beat(2)-9.11%
EPS beat(4)1
Avg EPS beat(4)-6.49%
Min EPS beat(4)-17.79%
Max EPS beat(4)16.08%
EPS beat(8)4
Avg EPS beat(8)2.86%
EPS beat(12)7
Avg EPS beat(12)17.54%
EPS beat(16)10
Avg EPS beat(16)14.35%
Revenue beat(2)1
Avg Revenue beat(2)-0.1%
Min Revenue beat(2)-7.23%
Max Revenue beat(2)7.02%
Revenue beat(4)2
Avg Revenue beat(4)1.05%
Min Revenue beat(4)-7.23%
Max Revenue beat(4)10.93%
Revenue beat(8)4
Avg Revenue beat(8)2.54%
Revenue beat(12)7
Avg Revenue beat(12)8.75%
Revenue beat(16)10
Avg Revenue beat(16)5.86%
PT rev (1m)0%
PT rev (3m)-1.85%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-6.57%
EPS NY rev (1m)-4.08%
EPS NY rev (3m)-4.08%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)13.68%
Revenue NY rev (1m)0.63%
Revenue NY rev (3m)0.25%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.4 | ||
| Fwd PE | 9.22 | ||
| P/S | 0.57 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 1.82 | ||
| P/tB | 2.44 | ||
| EV/EBITDA | 6.55 |
EPS(TTM)3.09
EY10.64%
EPS(NY)3.15
Fwd EY10.85%
FCF(TTM)-0.5
FCFYN/A
OCF(TTM)-0.13
OCFYN/A
SpS50.69
BVpS15.96
TBVpS11.9
PEG (NY)N/A
PEG (5Y)0.18
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.16% | ||
| ROE | 20.09% | ||
| ROCE | 19.85% | ||
| ROIC | 15.27% | ||
| ROICexc | 16.38% | ||
| ROICexgc | 21.23% | ||
| OM | 13.1% | ||
| PM (TTM) | 6.33% | ||
| GM | 22.92% | ||
| 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-Score2
Asset Turnover1.29
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.07 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 2.51 | ||
| Cap/Depr | 279.43% | ||
| Cap/Sales | 0.74% | ||
| Interest Coverage | N/A | ||
| Cash Conversion | N/A | ||
| Profit Quality | N/A | ||
| Current Ratio | 4.14 | ||
| Quick Ratio | 0.47 | ||
| Altman-Z | 3.58 |
F-Score2
WACC11.49%
ROIC/WACC1.33
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)-0.64%
EPS 3Y42%
EPS 5Y53.22%
EPS Q2Q%-30.86%
EPS Next Y-12.31%
EPS Next 2Y-3.01%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)20.18%
Revenue growth 3Y32.26%
Revenue growth 5Y43.01%
Sales Q2Q%8.98%
Revenue Next Year10.25%
Revenue Next 2Y6.55%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y15.85%
EBIT growth 3Y50.81%
EBIT growth 5Y70.31%
EBIT Next Year15.35%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-118.7%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-104.58%
OCF growth 3YN/A
OCF growth 5YN/A