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DR HORTON INC (DHI) Stock Fundamental Analysis

NYSE:DHI - New York Stock Exchange, Inc. - US23331A1097 - Common Stock - Currency: USD

126.34  +1.59 (+1.27%)

After market: 126.34 0 (0%)

Fundamental Rating

7

Overall DHI gets a fundamental rating of 7 out of 10. We evaluated DHI against 64 industry peers in the Household Durables industry. DHI scores excellent points on both the profitability and health parts. This is a solid base for a good stock. DHI is not valued too expensively and it also shows a decent growth rate.


Dividend Valuation Growth Profitability Health

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9

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.
DHI had a positive operating cash flow in each of the past 5 years.
DHI Yearly Net Income VS EBIT VS OCF VS FCFDHI Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2B 4B 6B

1.2 Ratios

The Return On Assets of DHI (12.03%) is better than 84.38% of its industry peers.
The Return On Equity of DHI (17.64%) is better than 73.44% of its industry peers.
The Return On Invested Capital of DHI (13.95%) is better 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 12.29%.
The 3 year average ROIC (18.65%) for DHI is well above the current ROIC(13.95%). The reason for the recent decline needs to be investigated.
Industry RankSector Rank
ROA 12.03%
ROE 17.64%
ROIC 13.95%
ROA(3y)15.68%
ROA(5y)15.4%
ROE(3y)23.3%
ROE(5y)23.6%
ROIC(3y)18.65%
ROIC(5y)18.07%
DHI Yearly ROA, ROE, ROICDHI Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 10 20 30

1.3 Margins

DHI's Profit Margin of 12.15% is amongst the best of the industry. DHI outperforms 85.94% of its industry peers.
In the last couple of years the Profit Margin of DHI has grown nicely.
DHI's Operating Margin of 16.26% is amongst the best of the industry. DHI outperforms 87.50% of its industry peers.
DHI's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 25.65%, DHI is in line with its industry, outperforming 48.44% of the companies in the same industry.
DHI's Gross Margin has improved in the last couple of years.
Industry RankSector Rank
OM 16.26%
PM (TTM) 12.15%
GM 25.65%
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%
DHI Yearly Profit, Operating, Gross MarginsDHI Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 10 20 30

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7

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.
DHI has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, DHI has less shares outstanding
Compared to 1 year ago, DHI has a worse debt to assets ratio.
DHI Yearly Shares OutstandingDHI Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 100M 200M 300M
DHI Yearly Total Debt VS Total AssetsDHI Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 10B 20B 30B

2.2 Solvency

DHI has an Altman-Z score of 5.56. This indicates that DHI is financially healthy and has little risk of bankruptcy at the moment.
DHI has a better Altman-Z score (5.56) than 90.63% 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.
With a decent Debt to FCF ratio value of 2.39, DHI is doing good in the industry, outperforming 68.75% of the companies in the same industry.
DHI has a Debt/Equity ratio of 0.27. This is a healthy value indicating a solid balance between debt and equity.
DHI has a Debt to Equity ratio (0.27) which is in line with its industry peers.
Industry RankSector Rank
Debt/Equity 0.27
Debt/FCF 2.39
Altman-Z 5.56
ROIC/WACC1.67
WACC8.33%
DHI Yearly LT Debt VS Equity VS FCFDHI Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 5B 10B 15B 20B 25B

2.3 Liquidity

DHI has a Current Ratio of 6.71. This indicates that DHI is financially healthy and has no problem in meeting its short term obligations.
DHI has a Current ratio of 6.71. This is amongst the best in the industry. DHI outperforms 82.81% of its industry peers.
DHI has a Quick Ratio of 6.71. This is a bad value and indicates that DHI is not financially healthy enough and could expect problems in meeting its short term obligations.
The Quick ratio of DHI (0.57) is worse than 68.75% of its industry peers.
Industry RankSector Rank
Current Ratio 6.71
Quick Ratio 0.57
DHI Yearly Current Assets VS Current LiabilitesDHI Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 5B 10B 15B 20B 25B

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4

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
DHI shows a decrease in Revenue. In the last year, the revenue decreased by -4.71%.
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)-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

The Earnings Per Share is expected to grow by 10.77% 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 5.91% yearly.
EPS Next Y-13.46%
EPS Next 2Y-1.9%
EPS Next 3Y5.18%
EPS Next 5Y10.77%
Revenue Next Year-6.44%
Revenue Next 2Y-1.56%
Revenue Next 3Y2.22%
Revenue Next 5Y5.91%

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.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
DHI Yearly Revenue VS EstimatesDHI Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2016 2018 2020 2022 2024 2026 2028 2030 2032 10B 20B 30B 40B
DHI Yearly EPS VS EstimatesDHI Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2016 2018 2020 2022 2024 2026 2028 2030 2032 5 10 15 20 25

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6

4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings ratio is 9.56, which indicates a very decent valuation of DHI.
DHI's Price/Earnings ratio is in line with the industry average.
DHI's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 28.88.
A Price/Forward Earnings ratio of 9.14 indicates a reasonable valuation of DHI.
Based on the Price/Forward Earnings ratio, DHI is valued a bit cheaper than the industry average as 62.50% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 21.20. DHI is valued rather cheaply when compared to this.
Industry RankSector Rank
PE 9.56
Fwd PE 9.14
DHI Price Earnings VS Forward Price EarningsDHI Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20 25

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 67.19% of the companies in the same industry.
Industry RankSector Rank
P/FCF 14.29
EV/EBITDA 7.37
DHI Per share dataDHI EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 20 40 60 80 100

4.3 Compensation for Growth

The excellent profitability rating of DHI may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.35
EPS Next 2Y-1.9%
EPS Next 3Y5.18%

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6

5. Dividend

5.1 Amount

DHI has a Yearly Dividend Yield of 1.27%.
DHI's Dividend Yield is a higher than the industry average which is at 3.61.
With a Dividend Yield of 1.27, DHI pays less dividend than the S&P500 average, which is at 2.45.
Industry RankSector Rank
Dividend Yield 1.27%

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 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
DHI Yearly Dividends per shareDHI Yearly Dividends per shareYearly Dividends per share 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0.2 0.4 0.6 0.8 1

5.3 Sustainability

DHI pays out 10.49% of its income as dividend. This is a 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-1.9%
EPS Next 3Y5.18%
DHI Yearly Income VS Free CF VS DividendDHI Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 1B 2B 3B 4B 5B
DHI Dividend Payout.DHI Dividend Payout, showing the Payout Ratio.DHI Dividend Payout.PayoutRetained Earnings

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DR HORTON INC

NYSE:DHI (4/30/2025, 8:04:00 PM)

After market: 126.34 0 (0%)

126.34

+1.59 (+1.27%)

Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryHousehold Durables
Earnings (Last)04-17 2025-04-17/bmo
Earnings (Next)07-16 2025-07-16/amc
Inst Owners85.17%
Inst Owner Change0.89%
Ins Owners0.54%
Ins Owner Change13.39%
Market Cap38.99B
Analysts70
Price Target155.26 (22.89%)
Short Float %2.62%
Short Ratio1.85
Dividend
Industry RankSector Rank
Dividend Yield 1.27%
Yearly Dividend1.2
Dividend Growth(5Y)14.84%
DP10.49%
Div Incr Years10
Div Non Decr Years10
Ex-Date05-02 2025-05-02 (0.4)
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)-11.25%
PT rev (3m)-17.02%
EPS NQ rev (1m)-12.99%
EPS NQ rev (3m)-24.28%
EPS NY rev (1m)-5.4%
EPS NY rev (3m)-12.02%
Revenue NQ rev (1m)-8.46%
Revenue NQ rev (3m)-11.87%
Revenue NY rev (1m)-5.59%
Revenue NY rev (3m)-6.94%
Valuation
Industry RankSector Rank
PE 9.56
Fwd PE 9.14
P/S 1.1
P/FCF 14.29
P/OCF 13.58
P/B 1.6
P/tB 1.61
EV/EBITDA 7.37
EPS(TTM)13.21
EY10.46%
EPS(NY)13.82
Fwd EY10.94%
FCF(TTM)8.84
FCFY7%
OCF(TTM)9.3
OCFY7.36%
SpS114.43
BVpS78.82
TBVpS78.29
PEG (NY)N/A
PEG (5Y)0.35
Profitability
Industry RankSector Rank
ROA 12.03%
ROE 17.64%
ROCE 18.3%
ROIC 13.95%
ROICexc 15.14%
ROICexgc 17.31%
OM 16.26%
PM (TTM) 12.15%
GM 25.65%
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 RankSector Rank
Debt/Equity 0.27
Debt/FCF 2.39
Debt/EBITDA 1.12
Cap/Depr 149.53%
Cap/Sales 0.4%
Interest Coverage 250
Cash Conversion 49.18%
Profit Quality 63.57%
Current Ratio 6.71
Quick Ratio 0.57
Altman-Z 5.56
F-Score4
WACC8.33%
ROIC/WACC1.67
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-13.46%
EPS Next 2Y-1.9%
EPS Next 3Y5.18%
EPS Next 5Y10.77%
Revenue 1Y (TTM)-4.71%
Revenue growth 3Y9.84%
Revenue growth 5Y15.91%
Sales Q2Q%-15.08%
Revenue Next Year-6.44%
Revenue Next 2Y-1.56%
Revenue Next 3Y2.22%
Revenue Next 5Y5.91%
EBIT growth 1Y-14.29%
EBIT growth 3Y5.48%
EBIT growth 5Y24.26%
EBIT Next Year-11.22%
EBIT Next 3Y1.58%
EBIT Next 5Y5.04%
FCF growth 1Y0.5%
FCF growth 3Y96.46%
FCF growth 5Y24.83%
OCF growth 1Y0.01%
OCF growth 3Y60.02%
OCF growth 5Y19.67%