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 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
In the past year DFH was profitable.
In the past year DFH has reported a negative cash flow from operations.
DFH had positive earnings in each of the past 5 years.
In multiple years DFH reported negative operating cash flow during the last 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 9.67%, DFH is in the better half of the industry, outperforming 70.31% of the companies in the same industry.
The Return On Equity of DFH (23.10%) is better than 84.38% of its industry peers.
The Return On Invested Capital of DFH (16.97%) is better than 87.50% of its industry peers.
The Average Return On Invested Capital over the past 3 years for DFH is significantly above the industry average of 12.29%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.67% | ||
| ROE | 23.1% | ||
| ROIC | 16.97% |
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 (7.23%) is comparable to the rest of the industry.
DFH's Profit Margin has improved in the last couple of years.
DFH's Operating Margin of 13.74% is amongst the best of the industry. DFH outperforms 81.25% of its industry peers.
DFH's Operating Margin has improved in the last couple of years.
DFH's Gross Margin of 22.91% is on the low side compared to the rest of the industry. DFH is outperformed by 64.06% of its industry peers.
In the last couple of years the Gross Margin of DFH has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 13.74% | ||
| PM (TTM) | 7.23% | ||
| GM | 22.91% |
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.
The number of shares outstanding for DFH has been increased compared to 5 years ago.
DFH has a worse debt/assets ratio than last year.
2.2 Solvency
DFH has an Altman-Z score of 3.52. This indicates that DFH is financially healthy and has little risk of bankruptcy at the moment.
With a decent Altman-Z score value of 3.52, DFH is doing good in the industry, outperforming 65.63% of the companies in the same industry.
DFH has a Debt/Equity ratio of 0.92. This is a neutral value indicating DFH is somewhat dependend on debt financing.
DFH has a Debt to Equity ratio of 0.92. This is in the lower half of the industry: DFH underperforms 75.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.92 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 3.52 |
ROIC/WACC1.45
WACC11.69%
2.3 Liquidity
A Current Ratio of 3.65 indicates that DFH has no problem at all paying its short term obligations.
DFH has a better Current ratio (3.65) than 67.19% of its industry peers.
A Quick Ratio of 0.56 indicates that DFH may have some problems paying its short term obligations.
With a Quick ratio value of 0.56, DFH is not doing good in the industry: 73.44% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.65 | ||
| Quick Ratio | 0.56 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 17.54% over the past year.
DFH shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 53.22% yearly.
Looking at the last year, DFH shows a quite strong growth in Revenue. The Revenue has grown by 18.75% in the last year.
The Revenue has been growing by 43.01% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)17.54%
EPS 3Y42%
EPS 5Y53.22%
EPS Q2Q%29%
Revenue 1Y (TTM)18.75%
Revenue growth 3Y32.26%
Revenue growth 5Y43.01%
Sales Q2Q%37.15%
3.2 Future
The Earnings Per Share is expected to decrease by -1.11% on average over the next years.
The Revenue is expected to grow by 5.04% on average over the next years.
EPS Next Y-12.17%
EPS Next 2Y-1.11%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year5.22%
Revenue Next 2Y5.04%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
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 6.79, 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 76.56% of the companies are valued more expensively.
DFH's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 28.22.
The Price/Forward Earnings ratio is 7.73, which indicates a rather cheap valuation of DFH.
Based on the Price/Forward Earnings ratio, DFH is valued a bit cheaper than the industry average as 71.88% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 20.86, DFH is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.79 | ||
| Fwd PE | 7.73 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, DFH is valued cheaply inside the industry as 87.50% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 4.96 |
4.3 Compensation for Growth
The decent profitability rating of DFH may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.13
EPS Next 2Y-1.11%
EPS Next 3YN/A
5. Dividend
5.1 Amount
DFH does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
22.74
+0.65 (+2.94%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryHousehold Durables
Earnings (Last)
Earnings (Next)
Inst Owners94.44%
Inst Owner Change0.96%
Ins Owners23.68%
Ins Owner Change-0.32%
Market Cap2.13B
Analysts48
Price Target27.54 (21.11%)
Short Float %21.98%
Short Ratio11.94
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)-0.85%
Min EPS beat(2)-17.79%
Max EPS beat(2)16.08%
EPS beat(4)2
Avg EPS beat(4)-3.87%
Min EPS beat(4)-17.79%
Max EPS beat(4)16.08%
EPS beat(8)6
Avg EPS beat(8)30.07%
EPS beat(12)9
Avg EPS beat(12)25.63%
EPS beat(16)10
Avg EPS beat(16)12.56%
Revenue beat(2)1
Avg Revenue beat(2)2.21%
Min Revenue beat(2)-6.51%
Max Revenue beat(2)10.93%
Revenue beat(4)1
Avg Revenue beat(4)-1.63%
Min Revenue beat(4)-7.53%
Max Revenue beat(4)10.93%
Revenue beat(8)5
Avg Revenue beat(8)13.5%
Revenue beat(12)8
Avg Revenue beat(12)10.67%
Revenue beat(16)9
Avg Revenue beat(16)3.89%
PT rev (1m)-6.9%
PT rev (3m)-8.47%
EPS NQ rev (1m)13.17%
EPS NQ rev (3m)16.17%
EPS NY rev (1m)-10.08%
EPS NY rev (3m)-11.42%
Revenue NQ rev (1m)14.76%
Revenue NQ rev (3m)30.04%
Revenue NY rev (1m)4.49%
Revenue NY rev (3m)6.2%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.79 | ||
| Fwd PE | 7.73 | ||
| P/S | 0.48 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 1.53 | ||
| P/tB | 1.95 | ||
| EV/EBITDA | 4.96 |
EPS(TTM)3.35
EY14.73%
EPS(NY)2.94
Fwd EY12.94%
FCF(TTM)-3.01
FCFYN/A
OCF(TTM)-2.74
OCFYN/A
SpS47.5
BVpS14.87
TBVpS11.66
PEG (NY)N/A
PEG (5Y)0.13
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.67% | ||
| ROE | 23.1% | ||
| ROCE | 22.05% | ||
| ROIC | 16.97% | ||
| ROICexc | 18.83% | ||
| ROICexgc | 22.66% | ||
| OM | 13.74% | ||
| PM (TTM) | 7.23% | ||
| GM | 22.91% | ||
| 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 Turnover1.34
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.92 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 2.07 | ||
| Cap/Depr | 247.82% | ||
| Cap/Sales | 0.57% | ||
| Interest Coverage | 3.07 | ||
| Cash Conversion | N/A | ||
| Profit Quality | N/A | ||
| Current Ratio | 3.65 | ||
| Quick Ratio | 0.56 | ||
| Altman-Z | 3.52 |
F-Score2
WACC11.69%
ROIC/WACC1.45
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)17.54%
EPS 3Y42%
EPS 5Y53.22%
EPS Q2Q%29%
EPS Next Y-12.17%
EPS Next 2Y-1.11%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)18.75%
Revenue growth 3Y32.26%
Revenue growth 5Y43.01%
Sales Q2Q%37.15%
Revenue Next Year5.22%
Revenue Next 2Y5.04%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y20.13%
EBIT growth 3Y50.81%
EBIT growth 5Y70.31%
EBIT Next Year23.4%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-176.33%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-168.58%
OCF growth 3YN/A
OCF growth 5YN/A