DR HORTON INC (DHI) Stock Fundamental Analysis
NYSE:DHI - US23331A1097 - Common Stock
183.975 USD
+2.17 (+1.2%)
DHI gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 63 industry peers in the Household Durables industry. Both the health and profitability get an excellent rating, making DHI a very profitable company, without any liquidiy or solvency issues. DHI has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
DHI had positive earnings in the past year.
In the past year DHI had a positive cash flow from operations.
In the past 5 years DHI has always been profitable.
DHI had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 10.89%, DHI belongs to the top of the industry, outperforming 87.30% of the companies in the same industry.
With a decent Return On Equity value of 16.48%, DHI is doing good in the industry, outperforming 71.43% of the companies in the same industry.
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.
The Average Return On Invested Capital over the past 3 years for DHI is significantly above the industry average of 10.51%.
The last Return On Invested Capital (12.73%) for DHI is well below the 3 year average (18.65%), which needs to be investigated, but indicates that DHI had better years and this may not be a problem.
| 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
Looking at the Profit Margin, with a value of 11.46%, DHI belongs to the top 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.
With an excellent Operating Margin value of 15.48%, DHI belongs to the best of the industry, outperforming 88.89% of the companies in the same industry.
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
DHI has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
The number of shares outstanding for DHI has been reduced compared to 1 year ago.
DHI has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, DHI has a worse debt to assets ratio.
2.2 Solvency
DHI has an Altman-Z score of 6.01. This indicates that DHI is financially healthy and has little risk of bankruptcy at the moment.
DHI has a Altman-Z score of 6.01. This is amongst the best in the industry. DHI outperforms 84.13% 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.
With a decent Debt to FCF ratio value of 2.60, DHI is doing good in the industry, outperforming 73.02% of the companies in the same industry.
DHI has a Debt/Equity ratio of 0.30. This is a healthy value indicating a solid balance between debt and equity.
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 | 6.01 |
ROIC/WACC1.46
WACC8.74%
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.
DHI has a better Current ratio (4.91) than 76.19% of its industry peers.
DHI has a Quick Ratio of 4.91. This is a bad value and indicates that DHI is not financially healthy enough and could expect problems in meeting its short term obligations.
DHI has a Quick ratio of 0.50. This is in the lower half of the industry: DHI underperforms 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
Looking at the last year, DHI shows a decrease in Revenue. The Revenue has decreased by -7.31% in the last year.
DHI shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 15.91% yearly.
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-16.64%
EPS Next 2Y-6.93%
EPS Next 3Y-0.28%
EPS Next 5Y11.11%
Revenue Next Year-8.13%
Revenue Next 2Y-3.45%
Revenue Next 3Y-0.33%
Revenue Next 5Y4.49%
3.3 Evolution
Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past 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
The Price/Earnings ratio is 14.75, which indicates a correct valuation of DHI.
The rest of the industry has a similar Price/Earnings ratio as DHI.
The average S&P500 Price/Earnings ratio is at 27.06. DHI is valued slightly cheaper when compared to this.
Based on the Price/Forward Earnings ratio of 14.79, the valuation of DHI can be described as correct.
The rest of the industry has a similar Price/Forward Earnings ratio as DHI.
DHI's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 22.69.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.75 | ||
| Fwd PE | 14.79 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as DHI.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of DHI indicates a somewhat cheap valuation: DHI is cheaper than 71.43% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 19.69 | ||
| EV/EBITDA | 10.49 |
4.3 Compensation for Growth
DHI has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.53
EPS Next 2Y-6.93%
EPS Next 3Y-0.28%
5. Dividend
5.1 Amount
With a yearly dividend of 0.91%, DHI is not a good candidate for dividend investing.
DHI's Dividend Yield is a higher than the industry average which is at 2.72.
With a Dividend Yield of 0.91, DHI pays less dividend than the S&P500 average, which is at 2.45.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.91% |
5.2 History
On average, the dividend of DHI grows each year by 14.84%, which is quite nice.
DHI has paid a dividend for at least 10 years, which is a reliable track record.
DHI has not decreased their dividend for at least 10 years, which is a reliable track record.
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-6.93%
EPS Next 3Y-0.28%
NYSE:DHI (9/8/2025, 12:21:05 PM)
183.975
+2.17 (+1.2%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryHousehold Durables
Earnings (Last)
Earnings (Next)
Inst Owners87.84%
Inst Owner Change-2.01%
Ins Owners0.59%
Ins Owner Change1.22%
Market Cap54.85B
Analysts68
Price Target163.52 (-11.12%)
Short Float %3.52%
Short Ratio2.16
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.91% |
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)9.35%
PT rev (3m)5.42%
EPS NQ rev (1m)-0.05%
EPS NQ rev (3m)-17.83%
EPS NY rev (1m)3.31%
EPS NY rev (3m)3.29%
Revenue NQ rev (1m)-0.26%
Revenue NQ rev (3m)-12.32%
Revenue NY rev (1m)-0.05%
Revenue NY rev (3m)0.32%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.75 | ||
| Fwd PE | 14.79 | ||
| P/S | 1.59 | ||
| P/FCF | 19.69 | ||
| P/OCF | 18.84 | ||
| P/B | 2.28 | ||
| P/tB | 2.3 | ||
| EV/EBITDA | 10.49 |
EPS(TTM)12.47
EY6.78%
EPS(NY)12.44
Fwd EY6.76%
FCF(TTM)9.34
FCFY5.08%
OCF(TTM)9.76
OCFY5.31%
SpS115.98
BVpS80.68
TBVpS80.13
PEG (NY)N/A
PEG (5Y)0.53
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 | 6.01 |
F-Score3
WACC8.74%
ROIC/WACC1.46
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-16.64%
EPS Next 2Y-6.93%
EPS Next 3Y-0.28%
EPS Next 5Y11.11%
Revenue 1Y (TTM)-7.31%
Revenue growth 3Y9.84%
Revenue growth 5Y15.91%
Sales Q2Q%-7.43%
Revenue Next Year-8.13%
Revenue Next 2Y-3.45%
Revenue Next 3Y-0.33%
Revenue Next 5Y4.49%
EBIT growth 1Y-20.21%
EBIT growth 3Y5.48%
EBIT growth 5Y24.26%
EBIT Next Year-22.35%
EBIT Next 3Y-5.38%
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%