DR HORTON INC (DHI) Fundamental Analysis & Valuation

NYSE:DHI • US23331A1097

Current stock price

133.605 USD
+1.07 (+0.81%)
Last:

This DHI fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

7

1. DHI Profitability Analysis

1.1 Basic Checks

  • DHI had positive earnings in the past year.
  • In the past year DHI had a positive cash flow from operations.
  • DHI had positive earnings in each of the past 5 years.
  • Each year in the past 5 years DHI had a positive operating cash flow.
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 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2B 4B 6B

1.2 Ratios

  • DHI has a Return On Assets of 9.63%. This is amongst the best in the industry. DHI outperforms 85.00% of its industry peers.
  • With a decent Return On Equity value of 13.90%, DHI is doing good in the industry, outperforming 76.67% of the companies in the same industry.
  • Looking at the Return On Invested Capital, with a value of 11.56%, DHI belongs to the top of the industry, outperforming 83.33% of the companies in the same industry.
  • DHI had an Average Return On Invested Capital over the past 3 years of 14.99%. This is significantly above the industry average of 9.21%.
Industry RankSector Rank
ROA 9.63%
ROE 13.9%
ROIC 11.56%
ROA(3y)12.62%
ROA(5y)14.91%
ROE(3y)18.17%
ROE(5y)22.55%
ROIC(3y)14.99%
ROIC(5y)17.72%
DHI Yearly ROA, ROE, ROICDHI Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 10 20 30

1.3 Margins

  • With an excellent Profit Margin value of 9.95%, DHI belongs to the best of the industry, outperforming 86.67% of the companies in the same industry.
  • DHI's Profit Margin has declined in the last couple of years.
  • With an excellent Operating Margin value of 13.57%, DHI belongs to the best of the industry, outperforming 81.67% of the companies in the same industry.
  • 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 (23.61%) which is comparable to the rest of the industry.
  • DHI's Gross Margin has been stable in the last couple of years.
Industry RankSector Rank
OM 13.57%
PM (TTM) 9.95%
GM 23.61%
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%
DHI Yearly Profit, Operating, Gross MarginsDHI Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 10 20 30

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7

2. DHI Health Analysis

2.1 Basic Checks

  • With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), DHI is creating some 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.
  • Compared to 1 year ago, DHI has a worse debt to assets ratio.
DHI Yearly Shares OutstandingDHI Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 100M 200M 300M
DHI Yearly Total Debt VS Total AssetsDHI Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 10B 20B 30B

2.2 Solvency

  • DHI has an Altman-Z score of 5.64. This indicates that DHI is financially healthy and has little risk of bankruptcy at the moment.
  • DHI has a Altman-Z score of 5.64. This is amongst the best in the industry. DHI outperforms 85.00% of its industry peers.
  • DHI has a debt to FCF ratio of 1.60. This is a very positive value and a sign of high solvency as it would only need 1.60 years to pay back of all of its debts.
  • DHI has a Debt to FCF ratio of 1.60. This is in the better half of the industry: DHI outperforms 73.33% of its industry peers.
  • A Debt/Equity ratio of 0.22 indicates that DHI is not too dependend on debt financing.
  • DHI has a better Debt to Equity ratio (0.22) than 61.67% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.22
Debt/FCF 1.6
Altman-Z 5.64
ROIC/WACC1.23
WACC9.41%
DHI Yearly LT Debt VS Equity VS FCFDHI Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 5B 10B 15B 20B 25B

2.3 Liquidity

  • DHI has a Current Ratio of 5.29. This indicates that DHI is financially healthy and has no problem in meeting its short term obligations.
  • Looking at the Current ratio, with a value of 5.29, DHI is in the better half of the industry, outperforming 75.00% of the companies in the same industry.
  • DHI has a Quick Ratio of 5.29. 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 0.55 is on the low side compared to the rest of the industry. DHI is outperformed by 80.00% of its industry peers.
Industry RankSector Rank
Current Ratio 5.29
Quick Ratio 0.55
DHI Yearly Current Assets VS Current LiabilitesDHI Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 5B 10B 15B 20B 25B

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4

3. DHI Growth Analysis

3.1 Past

  • The earnings per share for DHI have decreased strongly by -22.19% in the last year.
  • Measured over the past years, DHI shows a quite strong growth in Earnings Per Share. The EPS has been growing by 12.86% on average per year.
  • Looking at the last year, DHI shows a decrease in Revenue. The Revenue has decreased by -8.62% in the last year.
  • 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)-22.19%
EPS 3Y-11.18%
EPS 5Y12.86%
EPS Q2Q%-22.22%
Revenue 1Y (TTM)-8.62%
Revenue growth 3Y0.76%
Revenue growth 5Y11.02%
Sales Q2Q%-9.54%

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 6.98% yearly.
EPS Next Y-6.88%
EPS Next 2Y4.38%
EPS Next 3Y11.31%
EPS Next 5Y19.04%
Revenue Next Year0.01%
Revenue Next 2Y2.98%
Revenue Next 3Y4.45%
Revenue Next 5Y6.98%

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.
  • 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 2015 2017 2019 2021 2023 2025 2027 2029 2031 2033 10B 20B 30B 40B
DHI Yearly EPS VS EstimatesDHI Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2017 2019 2021 2023 2025 2027 2029 2031 2033 10 20 30

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5

4. DHI Valuation Analysis

4.1 Price/Earnings Ratio

  • The Price/Earnings ratio is 12.13, which indicates a correct valuation of DHI.
  • The rest of the industry has a similar Price/Earnings ratio as DHI.
  • When comparing the Price/Earnings ratio of DHI to the average of the S&P500 Index (24.75), we can say DHI is valued rather cheaply.
  • DHI is valuated reasonably with a Price/Forward Earnings ratio of 10.58.
  • Based on the Price/Forward Earnings ratio, DHI is valued a bit cheaper than 68.33% of the companies in the same industry.
  • Compared to an average S&P500 Price/Forward Earnings ratio of 22.10, DHI is valued rather cheaply.
Industry RankSector Rank
PE 12.13
Fwd PE 10.58
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.
  • Compared to the rest of the industry, the Price/Free Cash Flow ratio of DHI indicates a somewhat cheap valuation: DHI is cheaper than 78.33% of the companies listed in the same industry.
Industry RankSector Rank
P/FCF 11.13
EV/EBITDA 8.72
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

  • DHI has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.94
EPS Next 2Y4.38%
EPS Next 3Y11.31%

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Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

6

5. DHI Dividend Analysis

5.1 Amount

  • DHI has a Yearly Dividend Yield of 1.32%.
  • Compared to an average industry Dividend Yield of 1.31, DHI pays a bit more dividend than its industry peers.
  • Compared to the average S&P500 Dividend Yield of 1.89, DHI is paying slightly less dividend.
Industry RankSector Rank
Dividend Yield 1.32%

5.2 History

  • On average, the dividend of DHI grows each year by 18.00%, which is quite nice.
  • DHI has paid a dividend for at least 10 years, which is a reliable track record.
  • DHI has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)18%
Div Incr Years10
Div Non Decr Years10
DHI Yearly Dividends per shareDHI Yearly Dividends per shareYearly Dividends per share 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 0.5 1 1.5

5.3 Sustainability

  • 14.93% of the earnings are spent on dividend by DHI. This is a low number and 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.
DP14.93%
EPS Next 2Y4.38%
EPS Next 3Y11.31%
DHI Yearly Income VS Free CF VS DividendDHI Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 1B 2B 3B 4B 5B
DHI Dividend Payout.DHI Dividend Payout, showing the Payout Ratio.DHI Dividend Payout.PayoutRetained Earnings

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DHI Fundamentals: All Metrics, Ratios and Statistics

DR HORTON INC

NYSE:DHI (3/31/2026, 11:54:09 AM)

133.605

+1.07 (+0.81%)

Chartmill FA Rating
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryHousehold Durables
Earnings (Last)01-20
Earnings (Next)04-21
Inst Owners88.39%
Inst Owner Change-1.25%
Ins Owners0.66%
Ins Owner Change14.94%
Market Cap38.71B
Revenue(TTM)33.52B
Net Income(TTM)3.34B
Analysts69.23
Price Target165.26 (23.69%)
Short Float %6.44%
Short Ratio5.53
Dividend
Industry RankSector Rank
Dividend Yield 1.32%
Yearly Dividend1.6
Dividend Growth(5Y)18%
DP14.93%
Div Incr Years10
Div Non Decr Years10
Ex-Date02-05
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-2.19%
Min EPS beat(2)-8.34%
Max EPS beat(2)3.97%
EPS beat(4)2
Avg EPS beat(4)2.04%
Min EPS beat(4)-8.34%
Max EPS beat(4)15.5%
EPS beat(8)5
Avg EPS beat(8)4.11%
EPS beat(12)8
Avg EPS beat(12)10.01%
EPS beat(16)11
Avg EPS beat(16)9.59%
Revenue beat(2)2
Avg Revenue beat(2)2.11%
Min Revenue beat(2)1.8%
Max Revenue beat(2)2.42%
Revenue beat(4)3
Avg Revenue beat(4)0.95%
Min Revenue beat(4)-4.66%
Max Revenue beat(4)4.26%
Revenue beat(8)6
Avg Revenue beat(8)2.2%
Revenue beat(12)10
Avg Revenue beat(12)4.92%
Revenue beat(16)12
Avg Revenue beat(16)4.21%
PT rev (1m)-0.29%
PT rev (3m)-1.47%
EPS NQ rev (1m)-1.16%
EPS NQ rev (3m)-13.6%
EPS NY rev (1m)-0.34%
EPS NY rev (3m)-6.66%
Revenue NQ rev (1m)-0.01%
Revenue NQ rev (3m)-1.92%
Revenue NY rev (1m)-0.03%
Revenue NY rev (3m)-0.11%
Valuation
Industry RankSector Rank
PE 12.13
Fwd PE 10.58
P/S 1.15
P/FCF 11.13
P/OCF 10.67
P/B 1.61
P/tB 1.62
EV/EBITDA 8.72
EPS(TTM)11.01
EY8.24%
EPS(NY)12.63
Fwd EY9.45%
FCF(TTM)12
FCFY8.98%
OCF(TTM)12.52
OCFY9.37%
SpS115.72
BVpS82.83
TBVpS82.26
PEG (NY)N/A
PEG (5Y)0.94
Graham Number143.24
Profitability
Industry RankSector Rank
ROA 9.63%
ROE 13.9%
ROCE 15.56%
ROIC 11.56%
ROICexc 12.61%
ROICexgc 14.34%
OM 13.57%
PM (TTM) 9.95%
GM 23.61%
FCFM 10.37%
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-Score4
Asset Turnover0.97
Health
Industry RankSector Rank
Debt/Equity 0.22
Debt/FCF 1.6
Debt/EBITDA 1.16
Cap/Depr 144.42%
Cap/Sales 0.45%
Interest Coverage 250
Cash Conversion 77.94%
Profit Quality 104.25%
Current Ratio 5.29
Quick Ratio 0.55
Altman-Z 5.64
F-Score4
WACC9.41%
ROIC/WACC1.23
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)-22.19%
EPS 3Y-11.18%
EPS 5Y12.86%
EPS Q2Q%-22.22%
EPS Next Y-6.88%
EPS Next 2Y4.38%
EPS Next 3Y11.31%
EPS Next 5Y19.04%
Revenue 1Y (TTM)-8.62%
Revenue growth 3Y0.76%
Revenue growth 5Y11.02%
Sales Q2Q%-9.54%
Revenue Next Year0.01%
Revenue Next 2Y2.98%
Revenue Next 3Y4.45%
Revenue Next 5Y6.98%
EBIT growth 1Y-26.92%
EBIT growth 3Y-14.26%
EBIT growth 5Y10.37%
EBIT Next Year-9.58%
EBIT Next 3Y8.06%
EBIT Next 5Y11.16%
FCF growth 1Y9.57%
FCF growth 3Y99.49%
FCF growth 5Y23.68%
OCF growth 1Y9.23%
OCF growth 3Y82.61%
OCF growth 5Y19.2%

DR HORTON INC / DHI Fundamental Analysis FAQ

What is the fundamental rating for DHI stock?

ChartMill assigns a fundamental rating of 6 / 10 to DHI.


Can you provide the valuation status for DR HORTON INC?

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 valuation of DR HORTON INC based on its PE and PB ratios?

The Price/Earnings (PE) ratio for DR HORTON INC (DHI) is 12.13 and the Price/Book (PB) ratio is 1.61.


What is the earnings growth outlook for DR HORTON INC?

The Earnings per Share (EPS) of DR HORTON INC (DHI) is expected to decline by -6.88% in the next year.