DR HORTON INC (DHI) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:DHI - US23331A1097 - Common Stock
159.71 USD
+2.43 (+1.55%)
159 USD
-0.71 (-0.44%)
Overall DHI gets a fundamental rating of 6 out of 10. We evaluated DHI against 60 industry peers in the Household Durables industry. While DHI belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. DHI has a decent growth rate and is not valued too expensively.
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.
In the past 5 years DHI has always been profitable.
DHI had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
DHI's Return On Assets of 10.11% is amongst the best of the industry. DHI outperforms 85.00% of its industry peers.
DHI's Return On Equity of 14.82% is fine compared to the rest of the industry. DHI outperforms 68.33% of its industry peers.
The Return On Invested Capital of DHI (12.10%) is better than 83.33% of its industry peers.
DHI had an Average Return On Invested Capital over the past 3 years of 14.99%. This is significantly above the industry average of 9.73%.
| 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
With an excellent Profit Margin value of 10.47%, DHI belongs to the best of the industry, outperforming 85.00% 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 85.00% of its industry peers.
In the last couple of years the Operating Margin of DHI has remained more or less at the same level.
The Gross Margin of DHI (24.03%) is comparable to the rest of the industry.
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
DHI has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
The number of shares outstanding for DHI has been reduced compared to 1 year ago.
Compared to 5 years ago, DHI has less shares outstanding
DHI has a worse debt/assets ratio than last year.
2.2 Solvency
DHI has an Altman-Z score of 5.85. 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 5.85, DHI belongs to the top of the industry, outperforming 83.33% of the companies in the same industry.
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.
With a decent Debt to FCF ratio value of 1.82, DHI is doing good in the industry, outperforming 71.67% of the companies in the same industry.
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 58.33% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.24 | ||
| Debt/FCF | 1.82 | ||
| Altman-Z | 5.85 |
ROIC/WACC1.35
WACC8.98%
2.3 Liquidity
DHI has a Current Ratio of 4.66. This indicates that DHI is financially healthy and has no problem in meeting its short term obligations.
DHI has a Current ratio of 4.66. This is in the better half of the industry: DHI outperforms 70.00% of its industry peers.
A Quick Ratio of 0.56 indicates that DHI may have some problems paying its short term obligations.
DHI's Quick ratio of 0.56 is on the low side compared to the rest of the industry. DHI is outperformed by 71.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 4.66 | ||
| Quick Ratio | 0.56 |
3. Growth
3.1 Past
DHI shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -19.29%.
DHI shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 12.86% yearly.
DHI shows a decrease in Revenue. In the last year, the revenue decreased by -6.93%.
Measured over the past years, DHI shows a quite strong growth in Revenue. The Revenue has been growing by 11.02% on average per year.
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.
The Revenue is expected to grow by 7.20% on average over the next years.
EPS Next Y-0.23%
EPS Next 2Y8.2%
EPS Next 3Y13.3%
EPS Next 5Y19.04%
Revenue Next Year0.12%
Revenue Next 2Y2.85%
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.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 13.78, which indicates a correct valuation of DHI.
DHI's Price/Earnings ratio is in line with the industry average.
When comparing the Price/Earnings ratio of DHI to the average of the S&P500 Index (27.25), we can say DHI is valued slightly cheaper.
The Price/Forward Earnings ratio is 13.81, which indicates a correct valuation of DHI.
Compared to the rest of the industry, the Price/Forward Earnings ratio of DHI indicates a somewhat cheap valuation: DHI is cheaper than 61.67% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of DHI to the average of the S&P500 Index (23.98), we can say DHI is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.78 | ||
| Fwd PE | 13.81 |
4.2 Price Multiples
DHI's Enterprise Value to EBITDA is on the same level as the industry average.
Based on the Price/Free Cash Flow ratio, DHI is valued a bit cheaper than 66.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.21 | ||
| EV/EBITDA | 9.57 |
4.3 Compensation for Growth
The decent profitability rating of DHI 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)1.07
EPS Next 2Y8.2%
EPS Next 3Y13.3%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.23%, DHI has a reasonable but not impressive dividend return.
DHI's Dividend Yield is a higher than the industry average which is at 1.19.
Compared to the average S&P500 Dividend Yield of 1.92, DHI is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.23% |
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 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
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 2Y8.2%
EPS Next 3Y13.3%
159.71
+2.43 (+1.55%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryHousehold Durables
Earnings (Last)
Earnings (Next)
Inst Owners89.61%
Inst Owner Change0.31%
Ins Owners0.66%
Ins Owner Change9.74%
Market Cap46.64B
Revenue(TTM)34.25B
Net Income(TTM)3.59B
Analysts70
Price Target167.72 (5.02%)
Short Float %5.48%
Short Ratio4.67
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.23% |
Yearly Dividend1.6
Dividend Growth(5Y)18%
DP13.8%
Div Incr Years10
Div Non Decr Years10
Ex-DateN/A
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)0.43%
PT rev (3m)-0.48%
EPS NQ rev (1m)-0.41%
EPS NQ rev (3m)-14.2%
EPS NY rev (1m)-0.03%
EPS NY rev (3m)-7.94%
Revenue NQ rev (1m)-0.43%
Revenue NQ rev (3m)-7.22%
Revenue NY rev (1m)-0.47%
Revenue NY rev (3m)-1.89%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.78 | ||
| Fwd PE | 13.81 | ||
| P/S | 1.36 | ||
| P/FCF | 14.21 | ||
| P/OCF | 13.64 | ||
| P/B | 1.93 | ||
| P/tB | 1.94 | ||
| EV/EBITDA | 9.57 |
EPS(TTM)11.59
EY7.26%
EPS(NY)11.56
Fwd EY7.24%
FCF(TTM)11.24
FCFY7.04%
OCF(TTM)11.71
OCFY7.33%
SpS117.27
BVpS82.83
TBVpS82.27
PEG (NY)N/A
PEG (5Y)1.07
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 | 5.85 |
F-Score3
WACC8.98%
ROIC/WACC1.35
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-0.23%
EPS Next 2Y8.2%
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 Year0.12%
Revenue Next 2Y2.85%
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 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 13.78 and the Price/Book (PB) ratio is 1.93.
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 -0.23% in the next year.