DREAM FINDERS HOMES INC - A (DFH)
US26154D1000 - Common Stock
Taking everything into account, DFH scores 7 out of 10 in our fundamental rating. DFH was compared to 67 industry peers in the Household Durables industry. DFH scores excellent on profitability, but there are some minor concerns on its financial health. DFH is growing strongly while it also seems undervalued. This is an interesting combination These ratings could make DFH a good candidate for value and growth investing.
1. Profitability
1.1 Basic Checks
In the past year DFH was profitable.
DFH had a positive operating cash flow in the past year.
Each year in the past 5 years DFH has been profitable.
Of the past 5 years DFH 4 years had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 11.02%, DFH belongs to the top of the industry, outperforming 80.30% of the companies in the same industry.
With an excellent Return On Equity value of 26.32%, DFH belongs to the best of the industry, outperforming 90.91% of the companies in the same industry.
With an excellent Return On Invested Capital value of 19.23%, DFH belongs to the best of the industry, outperforming 96.97% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for DFH is significantly above the industry average of 10.00%.
The last Return On Invested Capital (19.23%) for DFH is above the 3 year average (15.01%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.02% | ||
| ROE | 26.32% | ||
| ROIC | 19.23% |
ROA(3y)9.23%
ROA(5y)8.92%
ROE(3y)26.62%
ROE(5y)29.58%
ROIC(3y)15.01%
ROIC(5y)12.79%
1.3 Margins
The Profit Margin of DFH (7.54%) is better than 63.64% of its industry peers.
In the last couple of years the Profit Margin of DFH has grown nicely.
Looking at the Operating Margin, with a value of 13.58%, DFH belongs to the top of the industry, outperforming 80.30% of the companies in the same industry.
DFH's Operating Margin has improved in the last couple of years.
DFH has a worse Gross Margin (22.93%) than 68.18% of its industry peers.
DFH's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 13.58% | ||
| PM (TTM) | 7.54% | ||
| GM | 22.93% |
OM growth 3Y25.82%
OM growth 5Y29.6%
PM growth 3Y4.43%
PM growth 5Y18.7%
GM growth 3Y15.01%
GM growth 5Y12.02%
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.
DFH has more shares outstanding than it did 1 year ago.
DFH has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, DFH has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 4.36 indicates that DFH is not in any danger for bankruptcy at the moment.
The Altman-Z score of DFH (4.36) is better than 71.21% of its industry peers.
DFH has a debt to FCF ratio of 2.23. This is a good value and a sign of high solvency as DFH would need 2.23 years to pay back of all of its debts.
DFH has a better Debt to FCF ratio (2.23) than 63.64% of its industry peers.
A Debt/Equity ratio of 0.77 indicates that DFH is somewhat dependend on debt financing.
DFH's Debt to Equity ratio of 0.77 is on the low side compared to the rest of the industry. DFH is outperformed by 71.21% of its industry peers.
Even though the debt/equity ratio score it not favorable for DFH, it has very limited outstanding debt, so we won't put too much weight on the DE evaluation.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.77 | ||
| Debt/FCF | 2.23 | ||
| Altman-Z | 4.36 |
ROIC/WACC1.74
WACC11.04%
2.3 Liquidity
DFH has a Current Ratio of 3.67. This indicates that DFH is financially healthy and has no problem in meeting its short term obligations.
The Current ratio of DFH (3.67) is better than 65.15% of its industry peers.
DFH has a Quick Ratio of 3.67. 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 0.98, DFH perfoms like the industry average, outperforming 46.97% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.67 | ||
| Quick Ratio | 0.98 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 16.80% over the past year.
The Earnings Per Share has been growing by 71.41% 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 12.15%.
The Revenue has been growing by 48.32% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)16.8%
EPS 3Y48.1%
EPS 5Y71.41%
EPS growth Q2Q28.21%
Revenue 1Y (TTM)12.15%
Revenue growth 3Y48.97%
Revenue growth 5Y48.32%
Revenue growth Q2Q3.5%
3.2 Future
The Earnings Per Share is expected to grow by 10.94% on average over the next years. This is quite good.
DFH is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 10.98% yearly.
EPS Next Y19.35%
EPS Next 2Y10.94%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year20.95%
Revenue Next 2Y10.98%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
Although the future Revenue growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 10.96, the valuation of DFH can be described as very reasonable.
DFH's Price/Earnings is on the same level as the industry average.
The average S&P500 Price/Earnings ratio is at 28.28. DFH is valued rather cheaply when compared to this.
With a Price/Forward Earnings ratio of 9.18, the valuation of DFH can be described as very reasonable.
Compared to the rest of the industry, the Price/Forward Earnings ratio of DFH indicates a somewhat cheap valuation: DFH is cheaper than 74.24% of the companies listed in the same industry.
DFH is valuated cheaply when we compare the Price/Forward Earnings ratio to 20.88, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.96 | ||
| Fwd PE | 9.18 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of DFH indicates a rather cheap valuation: DFH is cheaper than 87.88% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, DFH is valued a bit cheaper than 72.73% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.88 | ||
| EV/EBITDA | 6.43 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
DFH has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)0.57
PEG (5Y)0.15
EPS Next 2Y10.94%
EPS Next 3YN/A
5. Dividend
5.1 Amount
No dividends for DFH!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
DREAM FINDERS HOMES INC - A
NYSE:DFH (5/3/2024, 7:04:01 PM)
After market: 31.23 0 (0%)31.23
-1.05 (-3.25%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryHousehold Durables
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap2.91B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
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Min EPS beat(2)
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EPS beat(8)
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EPS beat(12)
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EPS beat(16)
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Revenue beat(2)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
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Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.96 | ||
| Fwd PE | 9.18 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)0.57
PEG (5Y)0.15
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.02% | ||
| ROE | 26.32% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 13.58% | ||
| PM (TTM) | 7.54% | ||
| GM | 22.93% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover1.46
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.77 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 3.67 | ||
| Quick Ratio | 0.98 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)16.8%
EPS 3Y48.1%
EPS 5Y
EPS growth Q2Q
EPS Next Y19.35%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)12.15%
Revenue growth 3Y48.97%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
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