DR HORTON INC (DHI) Fundamental Analysis & Valuation

NYSE:DHI • US23331A1097

139.04 USD
-3.63 (-2.54%)
At close: Mar 12, 2026
139.46 USD
+0.42 (+0.3%)
After Hours: 3/12/2026, 6:40:00 PM
Overview Stock Chart Technical Analysis Fundamental Analysis Forecast Earnings Financials Ownership News

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

Fundamental Rating

6

DHI gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 60 industry peers in the Household Durables industry. DHI scores excellent points on both the profitability and health parts. This is a solid base for a good stock. DHI has a correct valuation and a medium growth rate.


Dividend Valuation Growth Profitability Health

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.
  • DHI had a positive operating cash flow in each of the past 5 years.
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 better Return On Assets (9.63%) than 85.00% of its industry peers.
  • DHI has a Return On Equity of 13.90%. This is in the better half of the industry: DHI outperforms 76.67% of its industry peers.
  • DHI has a better Return On Invested Capital (11.56%) 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 9.06%.
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

  • DHI has a Profit Margin of 9.95%. This is amongst the best in the industry. DHI outperforms 88.33% of its industry peers.
  • In the last couple of years the Profit Margin of DHI has declined.
  • DHI has a better Operating Margin (13.57%) than 83.33% of its industry peers.
  • DHI's Operating Margin has been stable in the last couple of years.
  • The Gross Margin of DHI (23.61%) 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 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

More info and screens

ROAROEROICOperating and Profit MarginShow most profitable peers

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.
  • Compared to 5 years ago, DHI has less shares outstanding
  • DHI has a worse debt/assets ratio than last year.
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 5.81. This indicates that DHI is financially healthy and has little risk of bankruptcy at the moment.
  • With an excellent Altman-Z score value of 5.81, DHI belongs to the best of the industry, outperforming 85.00% of the companies in the same industry.
  • 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 better Debt to FCF ratio (1.60) than 73.33% of its industry peers.
  • A Debt/Equity ratio of 0.22 indicates that DHI is not too dependend on debt financing.
  • Looking at the Debt to Equity ratio, with a value of 0.22, DHI is in the better half of the industry, outperforming 61.67% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 0.22
Debt/FCF 1.6
Altman-Z 5.81
ROIC/WACC1.25
WACC9.28%
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.
  • DHI has a Current ratio of 5.29. This is in the better half of the industry: DHI outperforms 73.33% of its industry peers.
  • 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

More info and screens

WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

4

3. DHI Growth Analysis

3.1 Past

  • The earnings per share for DHI have decreased strongly by -22.19% 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.
  • DHI shows a decrease in Revenue. In the last year, the revenue decreased by -8.62%.
  • The Revenue has been growing by 11.02% on average over the past years. This is quite good.
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

  • Based on estimates for the next years, DHI will show a quite strong growth in Earnings Per Share. The EPS will grow by 19.04% on average per year.
  • The Revenue is expected to grow by 6.98% on average over the next years.
EPS Next Y-6.88%
EPS Next 2Y4.38%
EPS Next 3Y11.31%
EPS Next 5Y19.04%
Revenue Next Year0.02%
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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Find the best growth stocksShow best growing peers

5

4. DHI Valuation Analysis

4.1 Price/Earnings Ratio

  • With a Price/Earnings ratio of 12.63, DHI is valued correctly.
  • 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 (25.71), we can say DHI is valued rather cheaply.
  • The Price/Forward Earnings ratio is 11.01, which indicates a very decent valuation of DHI.
  • Based on the Price/Forward Earnings ratio, DHI is valued a bit cheaper than 68.33% of the companies in the same industry.
  • DHI's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 23.82.
Industry RankSector Rank
PE 12.63
Fwd PE 11.01
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

  • The rest of the industry has a similar Enterprise Value to EBITDA ratio as DHI.
  • Based on the Price/Free Cash Flow ratio, DHI is valued a bit cheaper than 76.67% of the companies in the same industry.
Industry RankSector Rank
P/FCF 11.59
EV/EBITDA 9.35
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

  • The decent profitability rating of DHI may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.98
EPS Next 2Y4.38%
EPS Next 3Y11.31%

More info and screens

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

6

5. DHI Dividend Analysis

5.1 Amount

  • With a Yearly Dividend Yield of 1.20%, DHI has a reasonable but not impressive dividend return.
  • DHI's Dividend Yield is a higher than the industry average which is at 1.24.
  • Compared to the average S&P500 Dividend Yield of 1.82, DHI is paying slightly less dividend.
Industry RankSector Rank
Dividend Yield 1.2%

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
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

More info and screens

Find the best dividend stocksShow peers with best dividend

DHI Fundamentals: All Metrics, Ratios and Statistics

DR HORTON INC

NYSE:DHI (3/12/2026, 6:40:00 PM)

After market: 139.46 +0.42 (+0.3%)

139.04

-3.63 (-2.54%)

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 Change14.33%
Market Cap40.28B
Revenue(TTM)33.52B
Net Income(TTM)3.34B
Analysts69.23
Price Target165.74 (19.2%)
Short Float %6.11%
Short Ratio4.94
Dividend
Industry RankSector Rank
Dividend Yield 1.2%
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%
PT rev (3m)-0.76%
EPS NQ rev (1m)-0.75%
EPS NQ rev (3m)-13.42%
EPS NY rev (1m)-0.34%
EPS NY rev (3m)-6.69%
Revenue NQ rev (1m)-0.35%
Revenue NQ rev (3m)-2.94%
Revenue NY rev (1m)-0.06%
Revenue NY rev (3m)-0.57%
Valuation
Industry RankSector Rank
PE 12.63
Fwd PE 11.01
P/S 1.2
P/FCF 11.59
P/OCF 11.1
P/B 1.68
P/tB 1.69
EV/EBITDA 9.35
EPS(TTM)11.01
EY7.92%
EPS(NY)12.63
Fwd EY9.08%
FCF(TTM)12
FCFY8.63%
OCF(TTM)12.52
OCFY9.01%
SpS115.72
BVpS82.83
TBVpS82.26
PEG (NY)N/A
PEG (5Y)0.98
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 5.81
F-Score4
WACC9.28%
ROIC/WACC1.25
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 Year0.02%
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 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 12.63 and the Price/Book (PB) ratio is 1.68.


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.