DREAM FINDERS HOMES INC - A (DFH) Stock Fundamental Analysis
USA - NYSE:DFH - US26154D1000 - Common Stock
26.42 USD
+0.36 (+1.38%)
26.42 USD
0 (0%)
We assign a fundamental rating of 5 out of 10 to DFH. DFH was compared to 63 industry peers in the Household Durables industry. While DFH has a great profitability rating, there are quite some 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 negative operating cash flow in the past year.
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
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.
The Return On Invested Capital of DFH (15.27%) is better than 87.30% 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 10.32%.
| 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 63.49% of the companies in the same industry.
In the last couple of years the Profit Margin of DFH has grown nicely.
DFH has a Operating Margin of 13.10%. This is amongst the best in the industry. DFH outperforms 82.54% of its industry peers.
In the last couple of years the Operating Margin of DFH has grown nicely.
Looking at the Gross Margin, with a value of 22.92%, DFH is doing worse than 68.25% of the companies in the same industry.
DFH's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 13.1% | ||
| 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
DFH has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
The number of shares outstanding for DFH has been increased compared to 1 year ago.
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 3.50 indicates that DFH is not in any danger for bankruptcy at the moment.
DFH's Altman-Z score of 3.50 is in line compared to the rest of the industry. DFH outperforms 55.56% of its industry peers.
DFH has a Debt/Equity ratio of 1.07. This is a high value indicating a heavy dependency on external financing.
The Debt to Equity ratio of DFH (1.07) is worse than 74.60% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.07 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 3.5 |
ROIC/WACC1.31
WACC11.66%
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.
DFH has a better Current ratio (4.14) than 73.02% of its industry peers.
A Quick Ratio of 0.47 indicates that DFH may have some problems paying its short term obligations.
The Quick ratio of DFH (0.47) is worse than 79.37% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 4.14 | ||
| Quick Ratio | 0.47 |
3. Growth
3.1 Past
DFH shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -0.64%.
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 20.18% 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)-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
DFH is expected to show a decrease in Earnings Per Share. In the coming years, the EPS will decrease by -7.57% yearly.
Based on estimates for the next years, DFH will show a small growth in Revenue. The Revenue will grow by 4.28% on average per year.
EPS Next Y-28.2%
EPS Next 2Y-14.54%
EPS Next 3Y-7.57%
EPS Next 5YN/A
Revenue Next Year9%
Revenue Next 2Y5.05%
Revenue Next 3Y4.28%
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
With a Price/Earnings ratio of 8.55, the valuation of DFH can be described as very reasonable.
Based on the Price/Earnings ratio, DFH is valued a bit cheaper than the industry average as 77.78% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 27.86, DFH is valued rather cheaply.
A Price/Forward Earnings ratio of 10.80 indicates a reasonable valuation of DFH.
Based on the Price/Forward Earnings ratio, DFH is valued a bit cheaper than 69.84% of the companies 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 23.32.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.55 | ||
| Fwd PE | 10.8 |
4.2 Price Multiples
DFH's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. DFH is cheaper than 84.13% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 6.08 |
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 -7.57% in the coming years.
PEG (NY)N/A
PEG (5Y)0.16
EPS Next 2Y-14.54%
EPS Next 3Y-7.57%
5. Dividend
5.1 Amount
No dividends for DFH!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
26.42
+0.36 (+1.38%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryHousehold Durables
Earnings (Last)
Earnings (Next)
Inst Owners91.67%
Inst Owner Change0%
Ins Owners18.82%
Ins Owner Change-3.06%
Market Cap2.45B
Analysts46.67
Price Target28.05 (6.17%)
Short Float %17.72%
Short Ratio14.09
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)3.77%
PT rev (3m)1.85%
EPS NQ rev (1m)-31.7%
EPS NQ rev (3m)-33.95%
EPS NY rev (1m)-18.12%
EPS NY rev (3m)-21.46%
Revenue NQ rev (1m)-4.53%
Revenue NQ rev (3m)-3.5%
Revenue NY rev (1m)-1.13%
Revenue NY rev (3m)-0.88%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.55 | ||
| Fwd PE | 10.8 | ||
| P/S | 0.52 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 1.66 | ||
| P/tB | 2.22 | ||
| EV/EBITDA | 6.08 |
EPS(TTM)3.09
EY11.7%
EPS(NY)2.45
Fwd EY9.26%
FCF(TTM)-0.5
FCFYN/A
OCF(TTM)-0.13
OCFYN/A
SpS50.69
BVpS15.96
TBVpS11.9
PEG (NY)N/A
PEG (5Y)0.16
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 | 3.5 |
F-Score2
WACC11.66%
ROIC/WACC1.31
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-28.2%
EPS Next 2Y-14.54%
EPS Next 3Y-7.57%
EPS Next 5YN/A
Revenue 1Y (TTM)20.18%
Revenue growth 3Y32.26%
Revenue growth 5Y43.01%
Sales Q2Q%8.98%
Revenue Next Year9%
Revenue Next 2Y5.05%
Revenue Next 3Y4.28%
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