DR HORTON INC (DHI) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:DHI - US23331A1097 - Common Stock
158.62 USD
-2.11 (-1.31%)
158.68 USD
+0.06 (+0.04%)
DHI gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 61 industry peers in the Household Durables industry. While DHI has a great profitability rating, there are some minor concerns on its financial health. DHI is not valued too expensively and it also shows a decent growth rate.
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.
DHI had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With an excellent Return On Assets value of 10.11%, DHI belongs to the best of the industry, outperforming 85.25% of the companies in the same industry.
The Return On Equity of DHI (14.82%) is better than 72.13% of its industry peers.
DHI has a better Return On Invested Capital (12.10%) than 83.61% of its industry peers.
The Average Return On Invested Capital over the past 3 years for DHI is significantly above the industry average of 9.75%.
| 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
Looking at the Profit Margin, with a value of 10.47%, DHI belongs to the top of the industry, outperforming 85.25% of the companies in the same industry.
DHI's Profit Margin has declined in the last couple of years.
The Operating Margin of DHI (14.19%) is better than 85.25% of its industry peers.
In the last couple of years the Operating Margin of DHI has remained more or less at the same level.
DHI has a Gross Margin (24.03%) which is in line with its industry peers.
DHI's Gross Margin has been stable in the last couple of years.
| 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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), DHI is creating some value.
Compared to 1 year ago, DHI has less shares outstanding
The number of shares outstanding for DHI has been reduced compared to 5 years ago.
Compared to 1 year ago, DHI has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 5.87 indicates that DHI is not in any danger for bankruptcy at the moment.
DHI has a Altman-Z score of 5.87. This is amongst the best in the industry. DHI outperforms 85.25% of its industry peers.
The Debt to FCF ratio of DHI is 1.82, which is an excellent value as it means it would take DHI, only 1.82 years of fcf income to pay off all of its debts.
DHI's Debt to FCF ratio of 1.82 is fine compared to the rest of the industry. DHI outperforms 73.77% of its industry peers.
DHI has a Debt/Equity ratio of 0.24. This is a healthy value indicating a solid balance between debt and equity.
With a Debt to Equity ratio value of 0.24, DHI perfoms like the industry average, outperforming 59.02% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.24 | ||
| Debt/FCF | 1.82 | ||
| Altman-Z | 5.87 |
ROIC/WACC1.42
WACC8.54%
2.3 Liquidity
A Current Ratio of 4.66 indicates that DHI has no problem at all paying its short term obligations.
DHI has a better Current ratio (4.66) than 70.49% 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 has a worse Quick ratio (0.56) than 70.49% 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.
The Earnings Per Share has been growing by 12.86% on average over the past years. This is quite good.
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-0.21%
EPS Next 2Y8.12%
EPS Next 3Y13.3%
EPS Next 5Y19.04%
Revenue Next Year0.59%
Revenue Next 2Y3.08%
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
The Price/Earnings ratio is 13.69, which indicates a correct valuation of DHI.
DHI's Price/Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Earnings ratio of 26.46, DHI is valued a bit cheaper.
With a Price/Forward Earnings ratio of 13.71, DHI is valued correctly.
DHI's Price/Forward Earnings is on the same level as the industry average.
DHI's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 36.10.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.69 | ||
| Fwd PE | 13.71 |
4.2 Price Multiples
DHI's Enterprise Value to EBITDA ratio is in line with the industry average.
Based on the Price/Free Cash Flow ratio, DHI is valued a bit cheaper than the industry average as 68.85% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.11 | ||
| EV/EBITDA | 9.65 |
4.3 Compensation for Growth
DHI has a very decent profitability rating, which may justify a higher PE ratio.
DHI's earnings are expected to grow with 13.30% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)1.06
EPS Next 2Y8.12%
EPS Next 3Y13.3%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.12%, DHI has a reasonable but not impressive dividend return.
DHI's Dividend Yield is a higher than the industry average which is at 3.05.
With a Dividend Yield of 1.12, DHI pays less dividend than the S&P500 average, which is at 2.32.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.12% |
5.2 History
The dividend of DHI is nicely growing with an annual growth rate of 18.00%!
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)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 2Y8.12%
EPS Next 3Y13.3%
158.62
-2.11 (-1.31%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryHousehold Durables
Earnings (Last)
Earnings (Next)
Inst Owners89.27%
Inst Owner Change1.48%
Ins Owners0.66%
Ins Owner Change7.59%
Market Cap46.33B
Revenue(TTM)34.25B
Net Income(TTM)3.59B
Analysts68.8
Price Target167 (5.28%)
Short Float %4.66%
Short Ratio3.87
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.12% |
Yearly Dividend1.6
Dividend Growth(5Y)18%
DP13.8%
Div Incr Years10
Div Non Decr Years10
Ex-Date
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)-0.94%
PT rev (3m)2.13%
EPS NQ rev (1m)-1.81%
EPS NQ rev (3m)-13.84%
EPS NY rev (1m)-2.72%
EPS NY rev (3m)-7.01%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-4.89%
Revenue NY rev (1m)-0.72%
Revenue NY rev (3m)-0.71%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.69 | ||
| Fwd PE | 13.71 | ||
| P/S | 1.35 | ||
| P/FCF | 14.11 | ||
| P/OCF | 13.54 | ||
| P/B | 1.92 | ||
| P/tB | 1.93 | ||
| EV/EBITDA | 9.65 |
EPS(TTM)11.59
EY7.31%
EPS(NY)11.57
Fwd EY7.29%
FCF(TTM)11.24
FCFY7.09%
OCF(TTM)11.71
OCFY7.38%
SpS117.27
BVpS82.83
TBVpS82.27
PEG (NY)N/A
PEG (5Y)1.06
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 | 5.87 |
F-Score3
WACC8.54%
ROIC/WACC1.42
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-0.21%
EPS Next 2Y8.12%
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 Year0.59%
Revenue Next 2Y3.08%
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 ChartMill fundamental rating of DR HORTON INC (DHI) stock?
ChartMill assigns a fundamental rating of 6 / 10 to DHI.
What is the valuation status of DR HORTON INC (DHI) stock?
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 expected EPS growth for DR HORTON INC (DHI) stock?
The Earnings per Share (EPS) of DR HORTON INC (DHI) is expected to decline by -0.21% in the next year.
How sustainable is the dividend of DR HORTON INC (DHI) stock?
The dividend rating of DR HORTON INC (DHI) is 6 / 10 and the dividend payout ratio is 13.8%.