DR HORTON INC (DHI) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:DHI - US23331A1097 - Common Stock
144.03 USD
-1.5 (-1.03%)
144.15 USD
+0.12 (+0.08%)
We assign a fundamental rating of 6 out of 10 to DHI. DHI was compared to 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 correct valuation and a medium growth rate.
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.
Each year in the past 5 years DHI has been profitable.
In the past 5 years DHI always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of DHI (10.11%) is better than 85.00% of its industry peers.
DHI has a Return On Equity of 14.82%. This is in the better half of the industry: DHI outperforms 71.67% of its industry peers.
Looking at the Return On Invested Capital, with a value of 12.10%, 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 9.70%.
| 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.
DHI's Operating Margin has been stable in the last couple of years.
DHI has a Gross Margin (24.03%) which is comparable to the rest of the industry.
In the last couple of years the Gross Margin of DHI has remained more or less at the same level.
| 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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so DHI is still 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.
DHI has a worse debt/assets ratio than last year.
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.
With an excellent Altman-Z score value of 5.64, DHI belongs to the best 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.
DHI has a Debt to FCF ratio of 1.82. This is in the better half of the industry: DHI outperforms 71.67% 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 in line compared to the rest of the industry. DHI outperforms 58.33% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.24 | ||
| Debt/FCF | 1.82 | ||
| Altman-Z | 5.64 |
ROIC/WACC1.35
WACC8.97%
2.3 Liquidity
A Current Ratio of 4.66 indicates that DHI has no problem at all paying its short term obligations.
The Current ratio of DHI (4.66) is better than 70.00% of its industry peers.
A Quick Ratio of 0.56 indicates that DHI may have some problems paying its short term obligations.
The Quick ratio of DHI (0.56) is worse than 71.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 4.66 | ||
| Quick Ratio | 0.56 |
3. Growth
3.1 Past
The earnings per share for DHI have decreased strongly by -19.29% in the last year.
DHI shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 12.86% yearly.
Looking at the last year, DHI shows a decrease in Revenue. The Revenue has decreased by -6.93% 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)-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
DHI is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 19.04% yearly.
DHI is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.20% yearly.
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
The EPS growth rate is accelerating: in the next years the growth will be better 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
DHI is valuated correctly with a Price/Earnings ratio of 12.43.
DHI's Price/Earnings ratio is in line with the industry average.
DHI's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 26.51.
Based on the Price/Forward Earnings ratio of 12.46, the valuation of DHI can be described as correct.
61.67% of the companies in the same industry are more expensive than DHI, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.13, DHI is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.43 | ||
| Fwd PE | 12.46 |
4.2 Price Multiples
DHI's Enterprise Value to EBITDA ratio is in line with 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 68.33% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.81 | ||
| EV/EBITDA | 8.79 |
4.3 Compensation for Growth
The decent profitability rating of DHI may justify a higher PE ratio.
A more expensive valuation may be justified as DHI's earnings are expected to grow with 13.30% in the coming years.
PEG (NY)N/A
PEG (5Y)0.97
EPS Next 2Y8.2%
EPS Next 3Y13.3%
5. Dividend
5.1 Amount
DHI has a Yearly Dividend Yield of 1.23%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 1.23, DHI pays a bit more dividend than its industry peers.
DHI's Dividend Yield is slightly below the S&P500 average, which is at 2.00.
| 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 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)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%
144.03
-1.5 (-1.03%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryHousehold Durables
Earnings (Last)
Earnings (Next)
Inst Owners89.27%
Inst Owner Change1.52%
Ins Owners0.66%
Ins Owner Change7.17%
Market Cap42.07B
Revenue(TTM)34.25B
Net Income(TTM)3.59B
Analysts68.8
Price Target167.72 (16.45%)
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)1.53%
PT rev (3m)0.33%
EPS NQ rev (1m)-0.63%
EPS NQ rev (3m)-15.02%
EPS NY rev (1m)-2.75%
EPS NY rev (3m)-7.94%
Revenue NQ rev (1m)-0.43%
Revenue NQ rev (3m)-7.22%
Revenue NY rev (1m)-1.19%
Revenue NY rev (3m)-1.89%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.43 | ||
| Fwd PE | 12.46 | ||
| P/S | 1.23 | ||
| P/FCF | 12.81 | ||
| P/OCF | 12.3 | ||
| P/B | 1.74 | ||
| P/tB | 1.75 | ||
| EV/EBITDA | 8.79 |
EPS(TTM)11.59
EY8.05%
EPS(NY)11.56
Fwd EY8.03%
FCF(TTM)11.24
FCFY7.81%
OCF(TTM)11.71
OCFY8.13%
SpS117.27
BVpS82.83
TBVpS82.27
PEG (NY)N/A
PEG (5Y)0.97
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 | 5.64 |
F-Score3
WACC8.97%
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 12.43 and the Price/Book (PB) ratio is 1.74.
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.