DR HORTON INC (DHI) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:DHI - US23331A1097 - Common Stock
155.96 USD
-5.04 (-3.13%)
155.67 USD
-0.29 (-0.19%)
We assign a fundamental rating of 6 out of 10 to DHI. DHI was compared to 60 industry peers in the Household Durables industry. While DHI has a great profitability rating, there are some minor concerns on its financial health. DHI has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
- In the past year DHI was profitable.
- 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
- DHI's Return On Assets of 10.11% is amongst the best of the industry. DHI outperforms 85.00% of its industry peers.
- DHI's Return On Equity of 14.82% is fine compared to the rest of the industry. DHI outperforms 68.33% of its industry peers.
- With an excellent Return On Invested Capital value of 12.10%, DHI belongs to the best of the industry, outperforming 83.33% of the companies in the same industry.
- DHI had an Average Return On Invested Capital over the past 3 years of 14.99%. This is significantly above the industry average of 9.71%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.11% | ||
| ROE | 14.82% | ||
| ROIC | 12.1% |
ROA(3y)12.62%
ROA(5y)14.91%
ROE(3y)18.17%
ROE(5y)22.55%
ROIC(3y)14.99%
ROIC(5y)17.72%
1.3 Margins
- DHI has a better Profit Margin (10.47%) than 85.00% of its industry peers.
- DHI's Profit Margin has declined in the last couple of years.
- DHI's Operating Margin of 14.19% is amongst the best of the industry. DHI outperforms 85.00% of its industry peers.
- DHI's Operating Margin has been stable in the last couple of years.
- DHI's Gross Margin of 24.03% is in line compared to the rest of the industry. DHI outperforms 43.33% of its industry peers.
- In the last couple of years the Gross Margin of DHI has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 14.19% | ||
| PM (TTM) | 10.47% | ||
| GM | 24.03% |
OM growth 3Y-14.91%
OM growth 5Y-0.59%
PM growth 3Y-15.74%
PM growth 5Y-2.18%
GM growth 3Y-8.68%
GM growth 5Y-0.33%
2. Health
2.1 Basic Checks
- DHI has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
- Compared to 1 year ago, DHI has less shares outstanding
- DHI has less shares outstanding than it did 5 years ago.
- DHI has a worse debt/assets ratio than last year.
2.2 Solvency
- DHI has an Altman-Z score of 5.91. This indicates that DHI is financially healthy and has little risk of bankruptcy at the moment.
- With an excellent Altman-Z score value of 5.91, DHI belongs to the best of the industry, outperforming 81.67% of the companies in the same industry.
- DHI has a debt to FCF ratio of 1.82. This is a very positive value and a sign of high solvency as it would only need 1.82 years to pay back of all of its debts.
- DHI's Debt to FCF ratio of 1.82 is fine compared to the rest of the industry. DHI outperforms 71.67% of its industry peers.
- A Debt/Equity ratio of 0.24 indicates that DHI is not too dependend on debt financing.
- With a Debt to Equity ratio value of 0.24, DHI perfoms like the industry average, outperforming 58.33% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.24 | ||
| Debt/FCF | 1.82 | ||
| Altman-Z | 5.91 |
ROIC/WACC1.33
WACC9.08%
2.3 Liquidity
- DHI has a Current Ratio of 4.66. This indicates that DHI is financially healthy and has no problem in meeting its short term obligations.
- The Current ratio of DHI (4.66) is better than 70.00% of its industry peers.
- DHI has a Quick Ratio of 4.66. 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's Quick ratio of 0.56 is on the low side compared to the rest of the industry. DHI is outperformed by 71.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 4.66 | ||
| Quick Ratio | 0.56 |
3. Growth
3.1 Past
- The earnings per share for DHI have decreased strongly by -19.29% in the last year.
- DHI shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 12.86% yearly.
- DHI shows a decrease in Revenue. In the last year, the revenue decreased by -6.93%.
- DHI shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 11.02% yearly.
EPS 1Y (TTM)-19.29%
EPS 3Y-11.18%
EPS 5Y12.86%
EPS Q2Q%-22.45%
Revenue 1Y (TTM)-6.93%
Revenue growth 3Y0.76%
Revenue growth 5Y11.02%
Sales Q2Q%-3.25%
3.2 Future
- The Earnings Per Share is expected to grow by 19.04% on average over the next years. This is quite good.
- DHI is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.20% yearly.
EPS Next Y-0.23%
EPS Next 2Y8.2%
EPS Next 3Y13.3%
EPS Next 5Y19.04%
Revenue Next Year0.12%
Revenue Next 2Y2.85%
Revenue Next 3Y4.92%
Revenue Next 5Y7.2%
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 accelerating.
- 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
- A Price/Earnings ratio of 13.46 indicates a correct valuation of DHI.
- Compared to the rest of the industry, the Price/Earnings ratio of DHI is on the same level as its industry peers.
- Compared to an average S&P500 Price/Earnings ratio of 27.47, DHI is valued rather cheaply.
- With a Price/Forward Earnings ratio of 13.49, DHI is valued correctly.
- Based on the Price/Forward Earnings ratio, DHI is valued a bit cheaper than 61.67% of the companies in the same industry.
- Compared to an average S&P500 Price/Forward Earnings ratio of 24.26, DHI is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.46 | ||
| Fwd PE | 13.49 |
4.2 Price Multiples
- DHI's Enterprise Value to EBITDA is on the same level as the industry average.
- Based on the Price/Free Cash Flow ratio, DHI is valued a bit cheaper than the industry average as 66.67% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.87 | ||
| EV/EBITDA | 9.79 |
4.3 Compensation for Growth
- DHI has a very decent profitability rating, which may justify a higher PE ratio.
- A more expensive valuation may be justified as DHI's earnings are expected to grow with 13.30% in the coming years.
PEG (NY)N/A
PEG (5Y)1.05
EPS Next 2Y8.2%
EPS Next 3Y13.3%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 1.23%, DHI has a reasonable but not impressive dividend return.
- Compared to an average industry Dividend Yield of 1.19, DHI pays a bit more dividend than its industry peers.
- Compared to the average S&P500 Dividend Yield of 1.89, DHI is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.23% |
5.2 History
- On average, the dividend of DHI grows each year by 18.00%, which is quite nice.
- 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)18%
Div Incr Years10
Div Non Decr Years10
5.3 Sustainability
- DHI pays out 13.80% of its income as dividend. This is a sustainable payout ratio.
- DHI's earnings are growing around the same pace than its dividend. As long as the earnings growth is kept the dividend growth is sustainable.
DP13.8%
EPS Next 2Y8.2%
EPS Next 3Y13.3%
155.96
-5.04 (-3.13%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryHousehold Durables
Earnings (Last)10-28 2025-10-28/bmo
Earnings (Next)01-20 2026-01-20/bmo
Inst Owners89.61%
Inst Owner Change0.31%
Ins Owners0.66%
Ins Owner Change9.74%
Market Cap45.55B
Revenue(TTM)34.25B
Net Income(TTM)3.59B
Analysts70
Price Target167.72 (7.54%)
Short Float %5.48%
Short Ratio4.67
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.23% |
Yearly Dividend1.6
Dividend Growth(5Y)18%
DP13.8%
Div Incr Years10
Div Non Decr Years10
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)3.58%
Min EPS beat(2)-8.34%
Max EPS beat(2)15.5%
EPS beat(4)2
Avg EPS beat(4)3.46%
Min EPS beat(4)-8.34%
Max EPS beat(4)15.5%
EPS beat(8)4
Avg EPS beat(8)3.24%
EPS beat(12)8
Avg EPS beat(12)11.43%
EPS beat(16)11
Avg EPS beat(16)10.12%
Revenue beat(2)2
Avg Revenue beat(2)3.03%
Min Revenue beat(2)1.8%
Max Revenue beat(2)4.26%
Revenue beat(4)3
Avg Revenue beat(4)1.96%
Min Revenue beat(4)-4.66%
Max Revenue beat(4)6.43%
Revenue beat(8)6
Avg Revenue beat(8)2%
Revenue beat(12)10
Avg Revenue beat(12)5.7%
Revenue beat(16)12
Avg Revenue beat(16)4.31%
PT rev (1m)0.43%
PT rev (3m)-0.48%
EPS NQ rev (1m)-0.41%
EPS NQ rev (3m)-14.2%
EPS NY rev (1m)-0.03%
EPS NY rev (3m)-7.94%
Revenue NQ rev (1m)-0.43%
Revenue NQ rev (3m)-7.22%
Revenue NY rev (1m)-0.47%
Revenue NY rev (3m)-1.89%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.46 | ||
| Fwd PE | 13.49 | ||
| P/S | 1.33 | ||
| P/FCF | 13.87 | ||
| P/OCF | 13.32 | ||
| P/B | 1.88 | ||
| P/tB | 1.9 | ||
| EV/EBITDA | 9.79 |
EPS(TTM)11.59
EY7.43%
EPS(NY)11.56
Fwd EY7.41%
FCF(TTM)11.24
FCFY7.21%
OCF(TTM)11.71
OCFY7.51%
SpS117.27
BVpS82.83
TBVpS82.27
PEG (NY)N/A
PEG (5Y)1.05
Graham Number146.97
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.11% | ||
| ROE | 14.82% | ||
| ROCE | 16.59% | ||
| ROIC | 12.1% | ||
| ROICexc | 13.4% | ||
| ROICexgc | 15.21% | ||
| OM | 14.19% | ||
| PM (TTM) | 10.47% | ||
| GM | 24.03% | ||
| FCFM | 9.59% |
ROA(3y)12.62%
ROA(5y)14.91%
ROE(3y)18.17%
ROE(5y)22.55%
ROIC(3y)14.99%
ROIC(5y)17.72%
ROICexc(3y)17.22%
ROICexc(5y)20.33%
ROICexgc(3y)19.35%
ROICexgc(5y)22.67%
ROCE(3y)20.7%
ROCE(5y)24.66%
ROICexgc growth 3Y-19.46%
ROICexgc growth 5Y-4.06%
ROICexc growth 3Y-19.65%
ROICexc growth 5Y-5.07%
OM growth 3Y-14.91%
OM growth 5Y-0.59%
PM growth 3Y-15.74%
PM growth 5Y-2.18%
GM growth 3Y-8.68%
GM growth 5Y-0.33%
F-Score3
Asset Turnover0.97
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.24 | ||
| Debt/FCF | 1.82 | ||
| Debt/EBITDA | 1.17 | ||
| Cap/Depr | 135.64% | ||
| Cap/Sales | 0.4% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 68.93% | ||
| Profit Quality | 91.58% | ||
| Current Ratio | 4.66 | ||
| Quick Ratio | 0.56 | ||
| Altman-Z | 5.91 |
F-Score3
WACC9.08%
ROIC/WACC1.33
Cap/Depr(3y)162.55%
Cap/Depr(5y)206.31%
Cap/Sales(3y)0.42%
Cap/Sales(5y)0.53%
Profit Quality(3y)73.9%
Profit Quality(5y)47.03%
High Growth Momentum
Growth
EPS 1Y (TTM)-19.29%
EPS 3Y-11.18%
EPS 5Y12.86%
EPS Q2Q%-22.45%
EPS Next Y-0.23%
EPS Next 2Y8.2%
EPS Next 3Y13.3%
EPS Next 5Y19.04%
Revenue 1Y (TTM)-6.93%
Revenue growth 3Y0.76%
Revenue growth 5Y11.02%
Sales Q2Q%-3.25%
Revenue Next Year0.12%
Revenue Next 2Y2.85%
Revenue Next 3Y4.92%
Revenue Next 5Y7.2%
EBIT growth 1Y-23.72%
EBIT growth 3Y-14.26%
EBIT growth 5Y10.37%
EBIT Next Year-3.37%
EBIT Next 3Y10.26%
EBIT Next 5Y11.39%
FCF growth 1Y62.19%
FCF growth 3Y99.49%
FCF growth 5Y23.68%
OCF growth 1Y56.22%
OCF growth 3Y82.61%
OCF growth 5Y19.2%
DR HORTON INC / DHI FAQ
What is the fundamental rating for DHI stock?
ChartMill assigns a fundamental rating of 6 / 10 to DHI.
Can you provide the valuation status for DR HORTON INC?
ChartMill assigns a valuation rating of 5 / 10 to DR HORTON INC (DHI). This can be considered as Fairly Valued.
Can you provide the profitability details for DR HORTON INC?
DR HORTON INC (DHI) has a profitability rating of 7 / 10.
What is the valuation of DR HORTON INC based on its PE and PB ratios?
The Price/Earnings (PE) ratio for DR HORTON INC (DHI) is 13.46 and the Price/Book (PB) ratio is 1.88.
What is the earnings growth outlook for DR HORTON INC?
The Earnings per Share (EPS) of DR HORTON INC (DHI) is expected to decline by -0.23% in the next year.