DR HORTON INC (DHI)
US23331A1097 - Common Stock
DHI gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 67 industry peers in the Household Durables industry. DHI gets an excellent profitability rating and is at the same time showing great financial health properties. DHI is not valued too expensively and it also shows a decent growth rate. These ratings would make DHI suitable for quality investing!
1. Profitability
1.1 Basic Checks
In the past year DHI was profitable.
DHI had a positive operating cash flow in the past year.
In the past 5 years DHI has always been profitable.
Each year in the past 5 years DHI had a positive operating cash flow.
1.2 Ratios
DHI has a better Return On Assets (14.43%) than 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 10.21%.
| 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
The Profit Margin of DHI (13.39%) is better than 87.88% of its industry peers.
DHI's Profit Margin has improved in the last couple of years.
DHI's Operating Margin of 18.08% is amongst the best of the industry. DHI outperforms 92.42% of its industry peers.
In the last couple of years the Operating Margin of DHI has grown nicely.
Looking at the Gross Margin, with a value of 26.46%, DHI is in line with its industry, outperforming 51.52% 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
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), DHI is creating value.
DHI has less shares outstanding than it did 1 year ago.
The number of shares outstanding for DHI has been reduced compared to 5 years ago.
Compared to 1 year ago, DHI has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 6.36 indicates that DHI is not in any danger for bankruptcy at the moment.
DHI has a better Altman-Z score (6.36) than 90.91% 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.
DHI has a Debt to FCF ratio of 2.68. This is in the better half of the industry: DHI outperforms 63.64% 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.
DHI's Debt to Equity ratio of 0.24 is fine compared to the rest of the industry. DHI outperforms 60.61% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.24 | ||
| Debt/FCF | 2.68 | ||
| Altman-Z | 6.36 |
ROIC/WACC1.64
WACC10.37%
2.3 Liquidity
A Current Ratio of 4.62 indicates that DHI has no problem at all paying its short term obligations.
The Current ratio of DHI (4.62) is better than 77.27% of its industry peers.
DHI has a Quick Ratio of 4.62. 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 0.57 is on the low side compared to the rest of the industry. DHI is outperformed by 78.79% of its industry peers.
The current and quick ratio evaluation for DHI is rather negative, while it does have 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 | 4.62 | ||
| Quick Ratio | 0.57 |
3. Growth
3.1 Past
DHI shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -0.94%.
The Earnings Per Share has been growing by 27.67% on average over the past years. This is a very strong growth
DHI shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 10.12%.
DHI shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 17.15% yearly.
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 quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 8.62% yearly.
The Revenue is expected to grow by 6.29% on average over the next years.
EPS Next Y3.26%
EPS Next 2Y6.41%
EPS Next 3Y7.54%
EPS Next 5Y8.62%
Revenue Next Year4.08%
Revenue Next 2Y5.45%
Revenue Next 3Y6.42%
Revenue Next 5Y6.29%
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
The Price/Earnings ratio is 10.31, which indicates a very decent 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 68.18% 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 28.60.
A Price/Forward Earnings ratio of 9.67 indicates a reasonable valuation of DHI.
DHI's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. DHI is cheaper than 71.21% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 20.15, DHI is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.31 | ||
| Fwd PE | 9.67 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of DHI indicates a somewhat cheap valuation: DHI is cheaper than 77.27% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, DHI is valued a bit more expensive than 62.12% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 22.48 | ||
| EV/EBITDA | 7.5 |
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)3.17
PEG (5Y)0.37
EPS Next 2Y6.41%
EPS Next 3Y7.54%
5. Dividend
5.1 Amount
With a yearly dividend of 0.79%, DHI is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 2.40, DHI pays a bit more dividend than its industry peers.
With a Dividend Yield of 0.79, DHI pays less dividend than the S&P500 average, which is at 2.32.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.79% |
5.2 History
On average, the dividend of DHI grows each year by 14.91%, 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 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
7.43% of the earnings are spent on dividend by DHI. This is a low number and sustainable payout ratio.
The dividend of DHI is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP7.43%
EPS Next 2Y6.41%
EPS Next 3Y7.54%
DR HORTON INC
NYSE:DHI (5/17/2024, 7:04:00 PM)
After market: 151.5 0 (0%)151.5
+0.53 (+0.35%)
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 Cap49.89B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.79% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
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 | 10.31 | ||
| Fwd PE | 9.67 | ||
| 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)3.17
PEG (5Y)0.37
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