DR HORTON INC (DHI) Stock Fundamental Analysis
NYSE:DHI - New York Stock Exchange, Inc. - US23331A1097 - Common Stock - Currency: USD
Taking everything into account, DHI scores 7 out of 10 in our fundamental rating. DHI was compared to 64 industry peers in the Household Durables industry. DHI has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. 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.
Each year in the past 5 years DHI has been profitable.
In the past 5 years DHI always reported a positive cash flow from operatings.
1.2 Ratios
DHI has a better Return On Assets (12.03%) than 87.50% of its industry peers.
The Return On Equity of DHI (17.64%) is better than 78.13% of its industry peers.
DHI has a better Return On Invested Capital (14.00%) than 79.69% of its industry peers.
The Average Return On Invested Capital over the past 3 years for DHI is significantly above the industry average of 10.34%.
The last Return On Invested Capital (14.00%) 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 | 12.03% | ||
| ROE | 17.64% | ||
| ROIC | 14% |
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
DHI's Profit Margin of 12.15% is amongst the best of the industry. DHI outperforms 90.63% of its industry peers.
In the last couple of years the Profit Margin of DHI has grown nicely.
DHI's Operating Margin of 16.33% is amongst the best of the industry. DHI outperforms 89.06% of its industry peers.
In the last couple of years the Operating Margin of DHI has grown nicely.
DHI has a Gross Margin (25.72%) which is in line with its industry peers.
DHI's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 16.33% | ||
| PM (TTM) | 12.15% | ||
| GM | 25.72% |
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.
Compared to 1 year ago, DHI has less shares outstanding
Compared to 5 years ago, DHI has less shares outstanding
DHI has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 5.56 indicates that DHI is not in any danger for bankruptcy at the moment.
DHI has a Altman-Z score of 5.56. This is amongst the best in the industry. DHI outperforms 84.38% of its industry peers.
The Debt to FCF ratio of DHI is 2.39, which is a good value as it means it would take DHI, 2.39 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of DHI (2.39) is better than 71.88% of its industry peers.
A Debt/Equity ratio of 0.26 indicates that DHI is not too dependend on debt financing.
DHI has a Debt to Equity ratio (0.26) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.26 | ||
| Debt/FCF | 2.39 | ||
| Altman-Z | 5.56 |
ROIC/WACC1.42
WACC9.88%
2.3 Liquidity
DHI has a Current Ratio of 5.12. This indicates that DHI is financially healthy and has no problem in meeting its short term obligations.
With a decent Current ratio value of 5.12, DHI is doing good in the industry, outperforming 78.13% of the companies in the same industry.
A Quick Ratio of 0.51 indicates that DHI may have some problems paying its short term obligations.
DHI has a worse Quick ratio (0.51) than 67.19% of its industry peers.
DHI does not score too well on the current and quick ratio evaluation. However, as it has 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 | 5.12 | ||
| Quick Ratio | 0.51 |
3. Growth
3.1 Past
The earnings per share for DHI have decreased strongly by -10.07% 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 -4.71% in the last year.
The Revenue has been growing by 15.91% on average over the past years. This is quite good.
EPS 1Y (TTM)-10.07%
EPS 3Y7.75%
EPS 5Y27.63%
EPS Q2Q%-26.7%
Revenue 1Y (TTM)-4.71%
Revenue growth 3Y9.84%
Revenue growth 5Y15.91%
Sales Q2Q%-15.08%
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 9.99% yearly.
Based on estimates for the next years, DHI will show a small growth in Revenue. The Revenue will grow by 4.46% on average per year.
EPS Next Y-19.31%
EPS Next 2Y-6.01%
EPS Next 3Y2.54%
EPS Next 5Y9.99%
Revenue Next Year-8.47%
Revenue Next 2Y-2.64%
Revenue Next 3Y1.18%
Revenue Next 5Y4.46%
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
Based on the Price/Earnings ratio of 10.11, the valuation of DHI can be described as reasonable.
Based on the Price/Earnings ratio, DHI is valued a bit cheaper than 60.94% of the companies in the same industry.
DHI is valuated cheaply when we compare the Price/Earnings ratio to 27.15, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 10.53, the valuation of DHI can be described as reasonable.
Compared to the rest of the industry, the Price/Forward Earnings ratio of DHI is on the same level as its industry peers.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.60, DHI is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.11 | ||
| Fwd PE | 10.53 |
4.2 Price Multiples
DHI's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. DHI is cheaper than 62.50% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, DHI is valued a bit cheaper than the industry average as 73.44% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.03 | ||
| EV/EBITDA | 7.2 |
4.3 Compensation for Growth
The excellent profitability rating of DHI may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.37
EPS Next 2Y-6.01%
EPS Next 3Y2.54%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.26%, DHI has a reasonable but not impressive dividend return.
DHI's Dividend Yield is a higher than the industry average which is at 3.49.
Compared to an average S&P500 Dividend Yield of 2.42, DHI's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.26% |
5.2 History
On average, the dividend of DHI grows each year by 14.84%, which is quite nice.
DHI has been paying a dividend for at least 10 years, so it has 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
10.49% of the earnings are spent on dividend by DHI. This is a low number and sustainable payout ratio.
DHI's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP10.49%
EPS Next 2Y-6.01%
EPS Next 3Y2.54%
NYSE:DHI (7/1/2025, 1:12:07 PM)
133.52
+4.6 (+3.57%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryHousehold Durables
Earnings (Last)
Earnings (Next)
Inst Owners84.99%
Inst Owner Change-2.79%
Ins Owners0.57%
Ins Owner Change2.98%
Market Cap41.01B
Analysts70
Price Target155.11 (16.17%)
Short Float %2.71%
Short Ratio2.24
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.26% |
Yearly Dividend1.2
Dividend Growth(5Y)14.84%
DP10.49%
Div Incr Years10
Div Non Decr Years10
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)3.34%
Min EPS beat(2)-2.98%
Max EPS beat(2)9.66%
EPS beat(4)2
Avg EPS beat(4)2.01%
Min EPS beat(4)-6.87%
Max EPS beat(4)9.66%
EPS beat(8)5
Avg EPS beat(8)8.64%
EPS beat(12)8
Avg EPS beat(12)10.32%
EPS beat(16)12
Avg EPS beat(16)10.76%
Revenue beat(2)1
Avg Revenue beat(2)0.89%
Min Revenue beat(2)-4.66%
Max Revenue beat(2)6.43%
Revenue beat(4)2
Avg Revenue beat(4)0.02%
Min Revenue beat(4)-4.66%
Max Revenue beat(4)6.43%
Revenue beat(8)6
Avg Revenue beat(8)3.57%
Revenue beat(12)8
Avg Revenue beat(12)4.57%
Revenue beat(16)12
Avg Revenue beat(16)4.03%
PT rev (1m)-0.13%
PT rev (3m)-11.08%
EPS NQ rev (1m)-0.02%
EPS NQ rev (3m)-19.64%
EPS NY rev (1m)-0.02%
EPS NY rev (3m)-11.81%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-13.58%
Revenue NY rev (1m)-0.05%
Revenue NY rev (3m)-7.64%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.11 | ||
| Fwd PE | 10.53 | ||
| P/S | 1.16 | ||
| P/FCF | 15.03 | ||
| P/OCF | 14.29 | ||
| P/B | 1.69 | ||
| P/tB | 1.7 | ||
| EV/EBITDA | 7.2 |
EPS(TTM)13.21
EY9.89%
EPS(NY)12.68
Fwd EY9.5%
FCF(TTM)8.88
FCFY6.65%
OCF(TTM)9.34
OCFY7%
SpS114.97
BVpS79.19
TBVpS78.66
PEG (NY)N/A
PEG (5Y)0.37
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.03% | ||
| ROE | 17.64% | ||
| ROCE | 19.26% | ||
| ROIC | 14% | ||
| ROICexc | 15.2% | ||
| ROICexgc | 16.95% | ||
| OM | 16.33% | ||
| PM (TTM) | 12.15% | ||
| GM | 25.72% | ||
| FCFM | 7.73% |
ROA(3y)15.68%
ROA(5y)15.4%
ROE(3y)23.3%
ROE(5y)23.6%
ROIC(3y)18.65%
ROIC(5y)18.07%
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-Score4
Asset Turnover0.99
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.26 | ||
| Debt/FCF | 2.39 | ||
| Debt/EBITDA | 1.09 | ||
| Cap/Depr | 149.53% | ||
| Cap/Sales | 0.4% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 48.96% | ||
| Profit Quality | 63.57% | ||
| Current Ratio | 5.12 | ||
| Quick Ratio | 0.51 | ||
| Altman-Z | 5.56 |
F-Score4
WACC9.88%
ROIC/WACC1.42
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)-10.07%
EPS 3Y7.75%
EPS 5Y27.63%
EPS Q2Q%-26.7%
EPS Next Y-19.31%
EPS Next 2Y-6.01%
EPS Next 3Y2.54%
EPS Next 5Y9.99%
Revenue 1Y (TTM)-4.71%
Revenue growth 3Y9.84%
Revenue growth 5Y15.91%
Sales Q2Q%-15.08%
Revenue Next Year-8.47%
Revenue Next 2Y-2.64%
Revenue Next 3Y1.18%
Revenue Next 5Y4.46%
EBIT growth 1Y-13.91%
EBIT growth 3Y5.48%
EBIT growth 5Y24.26%
EBIT Next Year-24.69%
EBIT Next 3Y-2.94%
EBIT Next 5Y3.36%
FCF growth 1Y0.5%
FCF growth 3Y96.46%
FCF growth 5Y24.83%
OCF growth 1Y0.01%
OCF growth 3Y60.02%
OCF growth 5Y19.67%