DR HORTON INC (DHI)
US23331A1097 - Common Stock
We assign a fundamental rating of 6 out of 10 to DHI. DHI was compared to 67 industry peers in the Household Durables industry. DHI has an excellent profitability rating, but there are some minor concerns on its financial health. DHI has a correct valuation and a medium growth rate.
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.
In the past 5 years DHI always reported a positive cash flow from operatings.
1.2 Ratios
DHI has a Return On Assets of 14.43%. This is amongst the best in the industry. DHI outperforms 90.91% of its industry peers.
With an excellent Return On Equity value of 20.84%, DHI belongs to the best of the industry, outperforming 84.85% of the companies in the same industry.
DHI has a better Return On Invested Capital (17.03%) than 95.45% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for DHI is significantly above the industry average of 10.02%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 14.43% | ||
| ROE | 20.84% | ||
| ROIC | 17.03% |
ROA(3y)17.08%
ROA(5y)14.84%
ROE(3y)26.39%
ROE(5y)23.07%
ROIC(3y)20.38%
ROIC(5y)17.57%
1.3 Margins
DHI has a Profit Margin of 13.39%. This is amongst the best in the industry. DHI outperforms 87.88% of its industry peers.
DHI's Profit Margin has improved in the last couple of years.
The Operating Margin of DHI (18.08%) is better than 92.42% of its industry peers.
DHI's Operating Margin has improved in the last couple of years.
With a Gross Margin value of 26.46%, DHI perfoms like the industry average, outperforming 50.00% of the companies in the same industry.
DHI's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 18.08% | ||
| PM (TTM) | 13.39% | ||
| GM | 26.46% |
OM growth 3Y7.53%
OM growth 5Y6.67%
PM growth 3Y4.62%
PM growth 5Y8.05%
GM growth 3Y2.88%
GM growth 5Y2.81%
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 better debt/assets ratio than last year.
2.2 Solvency
DHI has an Altman-Z score of 6.21. This indicates that DHI is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of DHI (6.21) is better than 93.94% of its industry peers.
DHI has a debt to FCF ratio of 2.68. This is a good value and a sign of high solvency as DHI would need 2.68 years to pay back of all of its debts.
The Debt to FCF ratio of DHI (2.68) is comparable to the rest of the industry.
A Debt/Equity ratio of 0.24 indicates that DHI is not too dependend on debt financing.
DHI has a Debt to Equity ratio of 0.24. This is comparable to the rest of the industry: DHI outperforms 57.58% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.24 | ||
| Debt/FCF | 2.68 | ||
| Altman-Z | 6.21 |
ROIC/WACC1.6
WACC10.66%
2.3 Liquidity
DHI has a Current Ratio of 4.62. This indicates that DHI is financially healthy and has no problem in meeting its short term obligations.
DHI's Current ratio of 4.62 is fine compared to the rest of the industry. DHI outperforms 77.27% of its industry peers.
A Quick Ratio of 0.57 indicates that DHI may have some problems paying its short term obligations.
DHI's Quick ratio of 0.57 is on the low side compared to the rest of the industry. DHI is outperformed by 80.30% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 4.62 | ||
| Quick Ratio | 0.57 |
3. Growth
3.1 Past
The earnings per share for DHI have decreased by -0.94% in the last year.
DHI shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 27.67% yearly.
The Revenue has grown by 10.12% in the past year. This is quite good.
The Revenue has been growing by 17.15% on average over the past years. This is quite good.
EPS 1Y (TTM)-0.94%
EPS 3Y29.79%
EPS 5Y27.67%
EPS growth Q2Q28.94%
Revenue 1Y (TTM)10.12%
Revenue growth 3Y20.41%
Revenue growth 5Y17.15%
Revenue growth Q2Q14.23%
3.2 Future
DHI is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 6.51% yearly.
DHI is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.03% yearly.
EPS Next Y3.26%
EPS Next 2Y6.41%
EPS Next 3Y7.54%
EPS Next 5Y6.51%
Revenue Next Year4.08%
Revenue Next 2Y5.45%
Revenue Next 3Y6.42%
Revenue Next 5Y5.03%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
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 9.70 indicates a reasonable valuation of DHI.
Compared to the rest of the industry, the Price/Earnings ratio of DHI indicates a somewhat cheap valuation: DHI is cheaper than 72.73% of the companies listed in the same industry.
DHI's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 24.55.
Based on the Price/Forward Earnings ratio of 9.09, the valuation of DHI can be described as reasonable.
83.33% of the companies in the same industry are more expensive than DHI, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of DHI to the average of the S&P500 Index (20.92), we can say DHI is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.7 | ||
| Fwd PE | 9.09 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, DHI is valued a bit cheaper than 75.76% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, DHI is valued a bit more expensive than 65.15% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 21.3 | ||
| EV/EBITDA | 7.11 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The excellent profitability rating of DHI may justify a higher PE ratio.
PEG (NY)2.98
PEG (5Y)0.35
EPS Next 2Y6.41%
EPS Next 3Y7.54%
5. Dividend
5.1 Amount
With a yearly dividend of 0.83%, DHI is not a good candidate for dividend investing.
DHI's Dividend Yield is a higher than the industry average which is at 3.45.
With a Dividend Yield of 0.83, DHI pays less dividend than the S&P500 average, which is at 2.39.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.83% |
5.2 History
The dividend of DHI is nicely growing with an annual growth rate of 14.91%!
DHI has paid a dividend for at least 10 years, which is a reliable track record.
DHI has not decreased its dividend in the past 5 years, so it has a somewhat stable track record.
Dividend Growth(5Y)14.91%
Div Incr Years9
Div Non Decr Years9
5.3 Sustainability
DHI pays out 7.43% 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.
DP7.43%
EPS Next 2Y6.41%
EPS Next 3Y7.54%
DR HORTON INC
NYSE:DHI (5/1/2024, 7:04:00 PM)
After market: 146.5 +4.02 (+2.82%)142.48
-0.01 (-0.01%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryHousehold Durables
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap47.28B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.83% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
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EPS beat(8)
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EPS beat(16)
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Revenue beat(2)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.7 | ||
| Fwd PE | 9.09 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)2.98
PEG (5Y)0.35
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 14.43% | ||
| ROE | 20.84% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 18.08% | ||
| PM (TTM) | 13.39% | ||
| GM | 26.46% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover1.08
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.24 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 4.62 | ||
| Quick Ratio | 0.57 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)-0.94%
EPS 3Y29.79%
EPS 5Y
EPS growth Q2Q
EPS Next Y3.26%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)10.12%
Revenue growth 3Y20.41%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y