DR HORTON INC (DHI) Stock Fundamental Analysis
NYSE:DHI - New York Stock Exchange, Inc. - US23331A1097 - Common Stock - Currency: USD
Overall DHI gets a fundamental rating of 7 out of 10. We evaluated DHI against 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 is not valued too expensively and it also shows a decent growth rate. With these ratings, DHI could be worth investigating further for quality investing!.
1. Profitability
1.1 Basic Checks
DHI had positive earnings in the past year.
In the past year DHI had a positive cash flow from operations.
In the past 5 years DHI has always been profitable.
In the past 5 years DHI always reported a positive cash flow from operatings.
1.2 Ratios
DHI's Return On Assets of 13.29% is amongst the best of the industry. DHI outperforms 90.63% of its industry peers.
DHI's Return On Equity of 18.66% is fine compared to the rest of the industry. DHI outperforms 76.56% of its industry peers.
With an excellent Return On Invested Capital value of 15.52%, DHI belongs to the best of the industry, outperforming 82.81% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for DHI is significantly above the industry average of 12.30%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 13.29% | ||
| ROE | 18.66% | ||
| ROIC | 15.52% |
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 has a Profit Margin of 12.69%. This is amongst the best in the industry. DHI outperforms 89.06% of its industry peers.
In the last couple of years the Profit Margin of DHI has grown nicely.
With an excellent Operating Margin value of 16.97%, DHI belongs to the best of the industry, outperforming 87.50% of the companies in the same industry.
In the last couple of years the Operating Margin of DHI has grown nicely.
DHI has a Gross Margin (25.89%) 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 | 16.97% | ||
| PM (TTM) | 12.69% | ||
| GM | 25.89% |
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
DHI has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
The number of shares outstanding for DHI has been reduced compared to 1 year ago.
DHI has less shares outstanding than it did 5 years ago.
The debt/assets ratio for DHI is higher compared to a year ago.
2.2 Solvency
DHI has an Altman-Z score of 5.88. This indicates that DHI is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 5.88, DHI belongs to the top of the industry, outperforming 92.19% of the companies in the same industry.
DHI has a debt to FCF ratio of 1.78. This is a very positive value and a sign of high solvency as it would only need 1.78 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 1.78, DHI is in the better half of the industry, outperforming 73.44% of the companies in the same industry.
A Debt/Equity ratio of 0.20 indicates that DHI is not too dependend on debt financing.
DHI's Debt to Equity ratio of 0.20 is fine compared to the rest of the industry. DHI outperforms 65.63% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.2 | ||
| Debt/FCF | 1.78 | ||
| Altman-Z | 5.88 |
ROIC/WACC1.83
WACC8.5%
2.3 Liquidity
A Current Ratio of 5.63 indicates that DHI has no problem at all paying its short term obligations.
DHI's Current ratio of 5.63 is fine compared to the rest of the industry. DHI outperforms 76.56% of its industry peers.
A Quick Ratio of 0.65 indicates that DHI may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.65, DHI is doing worse than 67.19% of the companies in the same industry.
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 | 5.63 | ||
| Quick Ratio | 0.65 |
3. Growth
3.1 Past
DHI shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -10.07%.
DHI shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 27.63% yearly.
DHI shows a small growth in Revenue. In the last year, the Revenue has grown by 3.78%.
DHI shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 15.91% yearly.
EPS 1Y (TTM)-10.07%
EPS 3Y7.75%
EPS 5Y27.63%
EPS Q2Q%-26.7%
Revenue 1Y (TTM)3.78%
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 10.77% yearly.
Based on estimates for the next years, DHI will show a small growth in Revenue. The Revenue will grow by 5.91% on average per year.
EPS Next Y-8.51%
EPS Next 2Y1.11%
EPS Next 3Y6.76%
EPS Next 5Y10.77%
Revenue Next Year-1.38%
Revenue Next 2Y1.96%
Revenue Next 3Y3.81%
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.
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
Based on the Price/Earnings ratio of 9.18, the valuation of DHI can be described as reasonable.
Compared to the rest of the industry, the Price/Earnings ratio of DHI is on the same level as its industry peers.
When comparing the Price/Earnings ratio of DHI to the average of the S&P500 Index (28.29), we can say DHI is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 8.26, the valuation of DHI can be described as reasonable.
62.50% 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 (21.08), we can say DHI is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.18 | ||
| Fwd PE | 8.26 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as DHI.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of DHI indicates a somewhat cheap valuation: DHI is cheaper than 64.06% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.36 | ||
| EV/EBITDA | 6.25 |
4.3 Compensation for Growth
The excellent profitability rating of DHI may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.33
EPS Next 2Y1.11%
EPS Next 3Y6.76%
5. Dividend
5.1 Amount
DHI has a Yearly Dividend Yield of 1.36%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 3.80, DHI pays a bit more dividend than its industry peers.
With a Dividend Yield of 1.36, DHI pays less dividend than the S&P500 average, which is at 2.57.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.36% |
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
5.3 Sustainability
9.11% 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.
DP9.11%
EPS Next 2Y1.11%
EPS Next 3Y6.76%
121.25
+3.71 (+3.16%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryHousehold Durables
Earnings (Last)
Earnings (Next)
Inst Owners85.17%
Inst Owner Change0.04%
Ins Owners0.54%
Ins Owner Change12.31%
Market Cap38.21B
Analysts70
Price Target172.26 (42.07%)
Short Float %2.41%
Short Ratio1.82
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.36% |
Yearly Dividend1.2
Dividend Growth(5Y)14.84%
DP9.11%
Div Incr Years10
Div Non Decr Years10
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)1.39%
Min EPS beat(2)-6.87%
Max EPS beat(2)9.66%
EPS beat(4)3
Avg EPS beat(4)6.19%
Min EPS beat(4)-6.87%
Max EPS beat(4)13.72%
EPS beat(8)6
Avg EPS beat(8)14%
EPS beat(12)9
Avg EPS beat(12)12.11%
EPS beat(16)13
Avg EPS beat(16)11.96%
Revenue beat(2)1
Avg Revenue beat(2)1.69%
Min Revenue beat(2)-3.06%
Max Revenue beat(2)6.43%
Revenue beat(4)3
Avg Revenue beat(4)3.45%
Min Revenue beat(4)-3.06%
Max Revenue beat(4)9.09%
Revenue beat(8)7
Avg Revenue beat(8)6.9%
Revenue beat(12)9
Avg Revenue beat(12)5.29%
Revenue beat(16)13
Avg Revenue beat(16)4.6%
PT rev (1m)-1.54%
PT rev (3m)-7.94%
EPS NQ rev (1m)-0.81%
EPS NQ rev (3m)-18.38%
EPS NY rev (1m)0.75%
EPS NY rev (3m)-6.99%
Revenue NQ rev (1m)-0.25%
Revenue NQ rev (3m)-8.37%
Revenue NY rev (1m)-0.49%
Revenue NY rev (3m)-1.96%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.18 | ||
| Fwd PE | 8.26 | ||
| P/S | 1.04 | ||
| P/FCF | 13.36 | ||
| P/OCF | 12.78 | ||
| P/B | 1.53 | ||
| P/tB | 1.54 | ||
| EV/EBITDA | 6.25 |
EPS(TTM)13.21
EY10.89%
EPS(NY)14.68
Fwd EY12.11%
FCF(TTM)9.07
FCFY7.48%
OCF(TTM)9.49
OCFY7.83%
SpS116.43
BVpS79.16
TBVpS78.64
PEG (NY)N/A
PEG (5Y)0.33
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 13.29% | ||
| ROE | 18.66% | ||
| ROCE | 20.9% | ||
| ROIC | 15.52% | ||
| ROICexc | 17.24% | ||
| ROICexgc | 19.26% | ||
| OM | 16.97% | ||
| PM (TTM) | 12.69% | ||
| GM | 25.89% | ||
| FCFM | 7.79% |
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 Turnover1.05
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.2 | ||
| Debt/FCF | 1.78 | ||
| Debt/EBITDA | 0.78 | ||
| Cap/Depr | 143.64% | ||
| Cap/Sales | 0.36% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 47.33% | ||
| Profit Quality | 61.43% | ||
| Current Ratio | 5.63 | ||
| Quick Ratio | 0.65 | ||
| Altman-Z | 5.88 |
F-Score4
WACC8.5%
ROIC/WACC1.83
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-8.51%
EPS Next 2Y1.11%
EPS Next 3Y6.76%
EPS Next 5Y10.77%
Revenue 1Y (TTM)3.78%
Revenue growth 3Y9.84%
Revenue growth 5Y15.91%
Sales Q2Q%-15.08%
Revenue Next Year-1.38%
Revenue Next 2Y1.96%
Revenue Next 3Y3.81%
Revenue Next 5Y5.91%
EBIT growth 1Y-2.99%
EBIT growth 3Y5.48%
EBIT growth 5Y24.26%
EBIT Next Year-11.22%
EBIT Next 3Y1.58%
EBIT Next 5Y5.04%
FCF growth 1Y104.18%
FCF growth 3Y96.46%
FCF growth 5Y24.83%
OCF growth 1Y91.05%
OCF growth 3Y60.02%
OCF growth 5Y19.67%