DREAM FINDERS HOMES INC - A (DFH) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:DFH - US26154D1000 - Common Stock
17.49 USD
+0.34 (+1.98%)
17.4219 USD
-0.07 (-0.39%)
DFH gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 60 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 correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
In the past year DFH was profitable.
In the past year DFH had a positive 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 7.15%, DFH is in the better half of the industry, outperforming 66.67% of the companies in the same industry.
The Return On Equity of DFH (18.02%) is better than 78.33% of its industry peers.
The Return On Invested Capital of DFH (13.54%) is better than 86.67% 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 9.69%.
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
Looking at the Profit Margin, with a value of 5.87%, DFH is in the better half of the industry, outperforming 61.67% of the companies in the same industry.
DFH's Profit Margin has improved in the last couple of years.
The Operating Margin of DFH (12.56%) is better than 76.67% of its industry peers.
In the last couple of years the Operating Margin of DFH has grown nicely.
DFH has a worse Gross Margin (22.51%) than 66.67% of its industry peers.
DFH's Gross Margin has improved in the last couple of years.
| 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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so DFH is still 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 3.15 indicates that DFH is not in any danger for bankruptcy at the moment.
DFH has a Altman-Z score (3.15) which is comparable to the rest of the industry.
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.
DFH has a worse Debt to FCF ratio (43.98) than 63.33% of its industry peers.
DFH has a Debt/Equity ratio of 1.16. This is a high value indicating a heavy dependency on external financing.
Looking at the Debt to Equity ratio, with a value of 1.16, DFH is doing worse than 76.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.16 | ||
| Debt/FCF | 43.98 | ||
| Altman-Z | 3.15 |
ROIC/WACC1.07
WACC12.65%
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.
The Current ratio of DFH (4.89) is better than 71.67% of its industry peers.
A Quick Ratio of 0.61 indicates that DFH may have some problems paying 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 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 4.89 | ||
| Quick Ratio | 0.61 |
3. Growth
3.1 Past
DFH shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -6.54%.
The Earnings Per Share has been growing by 53.22% on average over the past years. This is a very strong growth
DFH shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 15.95%.
DFH shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 43.01% yearly.
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 -13.10% on average over the next years. This is quite bad
DFH is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.45% yearly.
EPS Next Y-31.73%
EPS Next 2Y-20.92%
EPS Next 3Y-13.1%
EPS Next 5YN/A
Revenue Next Year-0.72%
Revenue Next 2Y0.56%
Revenue Next 3Y2.45%
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.
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 6.12.
Compared to the rest of the industry, the Price/Earnings ratio of DFH indicates a rather cheap valuation: DFH is cheaper than 91.67% of the companies listed in the same industry.
DFH's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.17.
Based on the Price/Forward Earnings ratio of 8.35, the valuation of DFH can be described as reasonable.
Based on the Price/Forward Earnings ratio, DFH is valued cheaply inside the industry as 91.67% of the companies are valued more expensively.
DFH is valuated cheaply when we compare the Price/Forward Earnings ratio to 23.79, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.12 | ||
| Fwd PE | 8.35 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, DFH is valued cheaper than 91.67% 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 61.67% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 40.4 | ||
| EV/EBITDA | 5.17 |
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 -13.10% in the coming years.
PEG (NY)N/A
PEG (5Y)0.11
EPS Next 2Y-20.92%
EPS Next 3Y-13.1%
5. Dividend
5.1 Amount
No dividends for DFH!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
17.49
+0.34 (+1.98%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryHousehold Durables
Earnings (Last)
Earnings (Next)
Inst Owners89.71%
Inst Owner Change0%
Ins Owners17.86%
Ins Owner Change-3.05%
Market Cap1.62B
Revenue(TTM)4.67B
Net Income(TTM)274.23M
Analysts46.67
Price Target23.97 (37.05%)
Short Float %15.64%
Short Ratio12.09
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
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)0%
PT rev (3m)-14.55%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-11.34%
EPS NY rev (1m)2.39%
EPS NY rev (3m)-4.92%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-17.33%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-8.92%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.12 | ||
| Fwd PE | 8.35 | ||
| P/S | 0.35 | ||
| P/FCF | 40.4 | ||
| P/OCF | 26.05 | ||
| P/B | 1.07 | ||
| P/tB | 1.41 | ||
| EV/EBITDA | 5.17 |
EPS(TTM)2.86
EY16.35%
EPS(NY)2.1
Fwd EY11.98%
FCF(TTM)0.43
FCFY2.48%
OCF(TTM)0.67
OCFY3.84%
SpS50.36
BVpS16.41
TBVpS12.36
PEG (NY)N/A
PEG (5Y)0.11
Graham Number32.49
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 | 3.15 |
F-Score5
WACC12.65%
ROIC/WACC1.07
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-31.73%
EPS Next 2Y-20.92%
EPS Next 3Y-13.1%
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 Year7.32%
EBIT Next 3Y-0.43%
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.
Can you provide the valuation status for DREAM FINDERS HOMES INC - A?
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.
What are the PE and PB ratios of DREAM FINDERS HOMES INC - A (DFH) stock?
The Price/Earnings (PE) ratio for DREAM FINDERS HOMES INC - A (DFH) is 6.12 and the Price/Book (PB) ratio is 1.07.
Can you provide the dividend sustainability for DFH stock?
The dividend rating of DREAM FINDERS HOMES INC - A (DFH) is 0 / 10 and the dividend payout ratio is 4.92%.