DR HORTON INC (DHI) Stock Fundamental Analysis
USA - NYSE:DHI - US23331A1097 - Common Stock
168.125 USD
+0.93 (+0.55%)
Overall DHI gets a fundamental rating of 7 out of 10. We evaluated DHI against 63 industry peers in the Household Durables industry. DHI gets an excellent profitability rating and is at the same time showing great financial health properties. DHI is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
DHI had positive earnings in the past year.
DHI had a positive operating cash flow in the past year.
DHI had positive earnings in each of the past 5 years.
In the past 5 years DHI always reported a positive cash flow from operatings.
1.2 Ratios
DHI's Return On Assets of 10.89% is amongst the best of the industry. DHI outperforms 87.30% of its industry peers.
DHI has a Return On Equity of 16.48%. This is in the better half of the industry: DHI outperforms 71.43% of its industry peers.
DHI's Return On Invested Capital of 12.73% is fine compared to the rest of the industry. DHI outperforms 77.78% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for DHI is significantly above the industry average of 10.52%.
The 3 year average ROIC (18.65%) for DHI is well above the current ROIC(12.73%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.89% | ||
| ROE | 16.48% | ||
| ROIC | 12.73% |
ROA(3y)15.68%
ROA(5y)15.4%
ROE(3y)23.3%
ROE(5y)23.6%
ROIC(3y)18.65%
ROIC(5y)18.07%
1.3 Margins
With an excellent Profit Margin value of 11.46%, DHI belongs to the best of the industry, outperforming 90.48% of the companies in the same industry.
DHI's Profit Margin has improved in the last couple of years.
The Operating Margin of DHI (15.48%) is better than 88.89% of its industry peers.
DHI's Operating Margin has improved in the last couple of years.
With a Gross Margin value of 25.08%, DHI perfoms like the industry average, outperforming 46.03% of the companies in the same industry.
DHI's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 15.48% | ||
| PM (TTM) | 11.46% | ||
| GM | 25.08% |
OM growth 3Y-3.96%
OM growth 5Y7.21%
PM growth 3Y-4.92%
PM growth 5Y7.03%
GM growth 3Y-2.88%
GM growth 5Y3.16%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so DHI is creating value.
The number of shares outstanding for DHI has been reduced compared to 1 year ago.
The number of shares outstanding for DHI has been reduced compared to 5 years ago.
The debt/assets ratio for DHI is higher compared to a year ago.
2.2 Solvency
DHI has an Altman-Z score of 5.80. This indicates that DHI is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of DHI (5.80) is better than 82.54% of its industry peers.
DHI has a debt to FCF ratio of 2.60. This is a good value and a sign of high solvency as DHI would need 2.60 years to pay back of all of its debts.
DHI has a Debt to FCF ratio of 2.60. This is in the better half of the industry: DHI outperforms 73.02% of its industry peers.
A Debt/Equity ratio of 0.30 indicates that DHI is not too dependend on debt financing.
DHI has a Debt to Equity ratio of 0.30. This is comparable to the rest of the industry: DHI outperforms 55.56% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.3 | ||
| Debt/FCF | 2.6 | ||
| Altman-Z | 5.8 |
ROIC/WACC1.43
WACC8.91%
2.3 Liquidity
DHI has a Current Ratio of 4.91. This indicates that DHI is financially healthy and has no problem in meeting its short term obligations.
Looking at the Current ratio, with a value of 4.91, DHI is in the better half of the industry, outperforming 76.19% of the companies in the same industry.
A Quick Ratio of 0.50 indicates that DHI may have some problems paying its short term obligations.
DHI has a worse Quick ratio (0.50) than 74.60% of its industry peers.
The current and quick ratio evaluation for DHI is rather negative, while it does have excellent solvency and profitability. These ratios do not necessarly indicate liquidity issues and need to be evaluated against the specifics of the business.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 4.91 | ||
| Quick Ratio | 0.5 |
3. Growth
3.1 Past
The earnings per share for DHI have decreased strongly by -16.25% in the last year.
The Earnings Per Share has been growing by 27.63% on average over the past years. This is a very strong growth
The Revenue has decreased by -7.31% in the past year.
Measured over the past years, DHI shows a quite strong growth in Revenue. The Revenue has been growing by 15.91% on average per year.
EPS 1Y (TTM)-16.25%
EPS 3Y7.75%
EPS 5Y27.63%
EPS Q2Q%-18.05%
Revenue 1Y (TTM)-7.31%
Revenue growth 3Y9.84%
Revenue growth 5Y15.91%
Sales Q2Q%-7.43%
3.2 Future
DHI is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 11.11% yearly.
Based on estimates for the next years, DHI will show a small growth in Revenue. The Revenue will grow by 4.49% on average per year.
EPS Next Y-16.62%
EPS Next 2Y-6.48%
EPS Next 3Y0.86%
EPS Next 5Y11.11%
Revenue Next Year-7.96%
Revenue Next 2Y-3.1%
Revenue Next 3Y0.34%
Revenue Next 5Y4.49%
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.
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
The Price/Earnings ratio is 13.48, which indicates a correct valuation of DHI.
The rest of the industry has a similar Price/Earnings ratio as DHI.
DHI's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.54.
A Price/Forward Earnings ratio of 13.39 indicates a correct valuation of DHI.
Compared to the rest of the industry, the Price/Forward Earnings ratio of DHI is on the same level as its industry peers.
The average S&P500 Price/Forward Earnings ratio is at 23.05. DHI is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.48 | ||
| Fwd PE | 13.39 |
4.2 Price Multiples
DHI's Enterprise Value to EBITDA ratio is in line with the industry average.
71.43% of the companies in the same industry are more expensive than DHI, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18 | ||
| EV/EBITDA | 9.69 |
4.3 Compensation for Growth
The excellent profitability rating of DHI may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.49
EPS Next 2Y-6.48%
EPS Next 3Y0.86%
5. Dividend
5.1 Amount
DHI has a yearly dividend return of 0.97%, which is pretty low.
Compared to an average industry Dividend Yield of 2.76, DHI pays a bit more dividend than its industry peers.
With a Dividend Yield of 0.97, DHI pays less dividend than the S&P500 average, which is at 2.41.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.97% |
5.2 History
The dividend of DHI is nicely growing with an annual growth rate of 14.84%!
DHI has paid a dividend for at least 10 years, which is a reliable track record.
DHI has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)14.84%
Div Incr Years10
Div Non Decr Years10
5.3 Sustainability
DHI pays out 11.96% of its income as dividend. This is a sustainable payout ratio.
The dividend of DHI is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP11.96%
EPS Next 2Y-6.48%
EPS Next 3Y0.86%
NYSE:DHI (9/29/2025, 11:26:04 AM)
168.125
+0.93 (+0.55%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryHousehold Durables
Earnings (Last)
Earnings (Next)
Inst Owners85.77%
Inst Owner Change-2.01%
Ins Owners0.56%
Ins Owner Change-2.85%
Market Cap50.12B
Analysts68
Price Target167.17 (-0.57%)
Short Float %4.09%
Short Ratio2.55
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.97% |
Yearly Dividend1.2
Dividend Growth(5Y)14.84%
DP11.96%
Div Incr Years10
Div Non Decr Years10
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)6.26%
Min EPS beat(2)-2.98%
Max EPS beat(2)15.5%
EPS beat(4)2
Avg EPS beat(4)3.83%
Min EPS beat(4)-6.87%
Max EPS beat(4)15.5%
EPS beat(8)5
Avg EPS beat(8)5.8%
EPS beat(12)8
Avg EPS beat(12)11.36%
EPS beat(16)12
Avg EPS beat(16)11.14%
Revenue beat(2)1
Avg Revenue beat(2)-0.2%
Min Revenue beat(2)-4.66%
Max Revenue beat(2)4.26%
Revenue beat(4)2
Avg Revenue beat(4)0.74%
Min Revenue beat(4)-4.66%
Max Revenue beat(4)6.43%
Revenue beat(8)6
Avg Revenue beat(8)2.25%
Revenue beat(12)9
Avg Revenue beat(12)5.2%
Revenue beat(16)12
Avg Revenue beat(16)4.27%
PT rev (1m)2.34%
PT rev (3m)7.78%
EPS NQ rev (1m)0.25%
EPS NQ rev (3m)-3.62%
EPS NY rev (1m)0.03%
EPS NY rev (3m)3.34%
Revenue NQ rev (1m)0.03%
Revenue NQ rev (3m)-4.1%
Revenue NY rev (1m)0.19%
Revenue NY rev (3m)0.55%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.48 | ||
| Fwd PE | 13.39 | ||
| P/S | 1.45 | ||
| P/FCF | 18 | ||
| P/OCF | 17.22 | ||
| P/B | 2.08 | ||
| P/tB | 2.1 | ||
| EV/EBITDA | 9.69 |
EPS(TTM)12.47
EY7.42%
EPS(NY)12.56
Fwd EY7.47%
FCF(TTM)9.34
FCFY5.56%
OCF(TTM)9.76
OCFY5.81%
SpS115.98
BVpS80.68
TBVpS80.13
PEG (NY)N/A
PEG (5Y)0.49
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.89% | ||
| ROE | 16.48% | ||
| ROCE | 17.64% | ||
| ROIC | 12.73% | ||
| ROICexc | 13.86% | ||
| ROICexgc | 15.45% | ||
| OM | 15.48% | ||
| PM (TTM) | 11.46% | ||
| GM | 25.08% | ||
| FCFM | 8.06% |
ROA(3y)15.68%
ROA(5y)15.4%
ROE(3y)23.3%
ROE(5y)23.6%
ROIC(3y)18.65%
ROIC(5y)18.07%
ROICexc(3y)21.3%
ROICexc(5y)21.07%
ROICexgc(3y)23.91%
ROICexgc(5y)23.3%
ROCE(3y)25.99%
ROCE(5y)25.32%
ROICexcg growth 3Y-8.14%
ROICexcg growth 5Y5.96%
ROICexc growth 3Y-9.18%
ROICexc growth 5Y5.08%
OM growth 3Y-3.96%
OM growth 5Y7.21%
PM growth 3Y-4.92%
PM growth 5Y7.03%
GM growth 3Y-2.88%
GM growth 5Y3.16%
F-Score3
Asset Turnover0.95
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.3 | ||
| Debt/FCF | 2.6 | ||
| Debt/EBITDA | 1.33 | ||
| Cap/Depr | 128.82% | ||
| Cap/Sales | 0.36% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 53.42% | ||
| Profit Quality | 70.27% | ||
| Current Ratio | 4.91 | ||
| Quick Ratio | 0.5 | ||
| Altman-Z | 5.8 |
F-Score3
WACC8.91%
ROIC/WACC1.43
Cap/Depr(3y)178.02%
Cap/Depr(5y)250.53%
Cap/Sales(3y)0.44%
Cap/Sales(5y)0.74%
Profit Quality(3y)45.73%
Profit Quality(5y)38.28%
High Growth Momentum
Growth
EPS 1Y (TTM)-16.25%
EPS 3Y7.75%
EPS 5Y27.63%
EPS Q2Q%-18.05%
EPS Next Y-16.62%
EPS Next 2Y-6.48%
EPS Next 3Y0.86%
EPS Next 5Y11.11%
Revenue 1Y (TTM)-7.31%
Revenue growth 3Y9.84%
Revenue growth 5Y15.91%
Sales Q2Q%-7.43%
Revenue Next Year-7.96%
Revenue Next 2Y-3.1%
Revenue Next 3Y0.34%
Revenue Next 5Y4.49%
EBIT growth 1Y-20.21%
EBIT growth 3Y5.48%
EBIT growth 5Y24.26%
EBIT Next Year-22.98%
EBIT Next 3Y-4.18%
EBIT Next 5Y3.58%
FCF growth 1Y-13.97%
FCF growth 3Y96.46%
FCF growth 5Y24.83%
OCF growth 1Y-14.03%
OCF growth 3Y60.02%
OCF growth 5Y19.67%