DR HORTON INC (DHI) Stock Fundamental Analysis
USA - NYSE:DHI - US23331A1097 - Common Stock
153.75 USD
-5.11 (-3.22%)
155.1 USD
+1.35 (+0.88%)
We assign a fundamental rating of 7 out of 10 to DHI. DHI was compared to 61 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 has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
In the past year DHI was profitable.
DHI had a positive operating cash flow in the past year.
Each year in the past 5 years DHI has been profitable.
DHI had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With an excellent Return On Assets value of 10.89%, DHI belongs to the best of the industry, outperforming 86.89% of the companies in the same industry.
DHI has a better Return On Equity (16.48%) than 70.49% of its industry peers.
Looking at the Return On Invested Capital, with a value of 12.73%, DHI belongs to the top of the industry, outperforming 80.33% of the companies in the same industry.
DHI had an Average Return On Invested Capital over the past 3 years of 18.65%. This is significantly above the industry average of 10.34%.
The last Return On Invested Capital (12.73%) for DHI is well below the 3 year average (18.65%), which needs to be investigated, but indicates that DHI had better years and this may not be a problem.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.89% | ||
| ROE | 16.48% | ||
| ROIC | 12.73% |
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 11.46%. This is amongst the best in the industry. DHI outperforms 90.16% of its industry peers.
DHI's Profit Margin has improved in the last couple of years.
The Operating Margin of DHI (15.48%) is better than 88.52% of its industry peers.
DHI's Operating Margin has improved in the last couple of years.
DHI has a Gross Margin of 25.08%. This is comparable to the rest of the industry: DHI outperforms 44.26% of its industry peers.
In the last couple of years the Gross Margin of DHI has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 15.48% | ||
| PM (TTM) | 11.46% | ||
| GM | 25.08% |
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%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), DHI 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.
DHI has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 5.68 indicates that DHI is not in any danger for bankruptcy at the moment.
The Altman-Z score of DHI (5.68) is better than 81.97% of its industry peers.
The Debt to FCF ratio of DHI is 2.60, which is a good value as it means it would take DHI, 2.60 years of fcf income to pay off all of its debts.
DHI's Debt to FCF ratio of 2.60 is fine compared to the rest of the industry. DHI outperforms 70.49% of its industry peers.
DHI has a Debt/Equity ratio of 0.30. This is a healthy value indicating a solid balance between debt and equity.
DHI has a Debt to Equity ratio (0.30) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.3 | ||
| Debt/FCF | 2.6 | ||
| Altman-Z | 5.68 |
ROIC/WACC1.45
WACC8.77%
2.3 Liquidity
A Current Ratio of 4.91 indicates that DHI has no problem at all paying its short term obligations.
With a decent Current ratio value of 4.91, DHI is doing good in the industry, outperforming 75.41% of the companies in the same industry.
A Quick Ratio of 0.50 indicates that DHI may have some problems paying its short term obligations.
DHI has a Quick ratio of 0.50. This is in the lower half of the industry: DHI underperforms 77.05% of its industry peers.
The current and quick ratio evaluation for DHI is rather negative, while it does have 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 | 4.91 | ||
| Quick Ratio | 0.5 |
3. Growth
3.1 Past
DHI shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -16.25%.
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 decrease in Revenue. In the last year, the revenue decreased by -7.31%.
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)-16.25%
EPS 3Y7.75%
EPS 5Y27.63%
EPS Q2Q%-18.05%
Revenue 1Y (TTM)-7.31%
Revenue growth 3Y9.84%
Revenue growth 5Y15.91%
Sales Q2Q%-7.43%
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 11.11% yearly.
DHI is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.49% yearly.
EPS Next Y-16.54%
EPS Next 2Y-6.51%
EPS Next 3Y0.73%
EPS Next 5Y11.11%
Revenue Next Year-7.99%
Revenue Next 2Y-3.16%
Revenue Next 3Y0.3%
Revenue Next 5Y4.49%
3.3 Evolution
Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of 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 12.33, the valuation of DHI can be described as correct.
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 (26.83), we can say DHI is valued rather cheaply.
DHI is valuated correctly with a Price/Forward Earnings ratio of 12.25.
The rest of the industry has a similar Price/Forward Earnings ratio as DHI.
DHI's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 22.88.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.33 | ||
| Fwd PE | 12.25 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of DHI is on the same level as its industry peers.
DHI's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. DHI is cheaper than 62.30% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.46 | ||
| EV/EBITDA | 9.23 |
4.3 Compensation for Growth
The excellent profitability rating of DHI may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.45
EPS Next 2Y-6.51%
EPS Next 3Y0.73%
5. Dividend
5.1 Amount
DHI has a Yearly Dividend Yield of 1.01%. Purely for dividend investing, there may be better candidates out there.
DHI's Dividend Yield is a higher than the industry average which is at 3.05.
With a Dividend Yield of 1.01, DHI pays less dividend than the S&P500 average, which is at 2.30.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.01% |
5.2 History
The dividend of DHI is nicely growing with an annual growth rate of 14.84%!
DHI has been paying a dividend for at least 10 years, so it has 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
DHI pays out 11.96% of its income as dividend. This is a sustainable payout ratio.
The dividend of DHI is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP11.96%
EPS Next 2Y-6.51%
EPS Next 3Y0.73%
153.75
-5.11 (-3.22%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryHousehold Durables
Earnings (Last)
Earnings (Next)
Inst Owners85.77%
Inst Owner Change-1.03%
Ins Owners0.56%
Ins Owner Change-4.29%
Market Cap45.84B
Revenue(TTM)34.58B
Net Income(TTM)3.96B
Analysts68.46
Price Target168.53 (9.61%)
Short Float %4.26%
Short Ratio3.22
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.01% |
Yearly Dividend1.2
Dividend Growth(5Y)14.84%
DP11.96%
Div Incr Years10
Div Non Decr Years10
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)6.26%
Min EPS beat(2)-2.98%
Max EPS beat(2)15.5%
EPS beat(4)2
Avg EPS beat(4)3.83%
Min EPS beat(4)-6.87%
Max EPS beat(4)15.5%
EPS beat(8)5
Avg EPS beat(8)5.8%
EPS beat(12)8
Avg EPS beat(12)11.36%
EPS beat(16)12
Avg EPS beat(16)11.14%
Revenue beat(2)1
Avg Revenue beat(2)-0.2%
Min Revenue beat(2)-4.66%
Max Revenue beat(2)4.26%
Revenue beat(4)2
Avg Revenue beat(4)0.74%
Min Revenue beat(4)-4.66%
Max Revenue beat(4)6.43%
Revenue beat(8)6
Avg Revenue beat(8)2.25%
Revenue beat(12)9
Avg Revenue beat(12)5.2%
Revenue beat(16)12
Avg Revenue beat(16)4.27%
PT rev (1m)0.81%
PT rev (3m)12.7%
EPS NQ rev (1m)0.44%
EPS NQ rev (3m)-0.8%
EPS NY rev (1m)0.1%
EPS NY rev (3m)3.44%
Revenue NQ rev (1m)-0.17%
Revenue NQ rev (3m)-1.22%
Revenue NY rev (1m)-0.03%
Revenue NY rev (3m)0.54%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.33 | ||
| Fwd PE | 12.25 | ||
| P/S | 1.33 | ||
| P/FCF | 16.46 | ||
| P/OCF | 15.75 | ||
| P/B | 1.91 | ||
| P/tB | 1.92 | ||
| EV/EBITDA | 9.23 |
EPS(TTM)12.47
EY8.11%
EPS(NY)12.55
Fwd EY8.16%
FCF(TTM)9.34
FCFY6.08%
OCF(TTM)9.76
OCFY6.35%
SpS115.98
BVpS80.68
TBVpS80.13
PEG (NY)N/A
PEG (5Y)0.45
Graham Number150.46
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.89% | ||
| ROE | 16.48% | ||
| ROCE | 17.64% | ||
| ROIC | 12.73% | ||
| ROICexc | 13.86% | ||
| ROICexgc | 15.45% | ||
| OM | 15.48% | ||
| PM (TTM) | 11.46% | ||
| GM | 25.08% | ||
| FCFM | 8.06% |
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%
ROICexgc growth 3Y-8.14%
ROICexgc 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-Score3
Asset Turnover0.95
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.3 | ||
| Debt/FCF | 2.6 | ||
| Debt/EBITDA | 1.33 | ||
| Cap/Depr | 128.82% | ||
| Cap/Sales | 0.36% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 53.42% | ||
| Profit Quality | 70.27% | ||
| Current Ratio | 4.91 | ||
| Quick Ratio | 0.5 | ||
| Altman-Z | 5.68 |
F-Score3
WACC8.77%
ROIC/WACC1.45
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)-16.25%
EPS 3Y7.75%
EPS 5Y27.63%
EPS Q2Q%-18.05%
EPS Next Y-16.54%
EPS Next 2Y-6.51%
EPS Next 3Y0.73%
EPS Next 5Y11.11%
Revenue 1Y (TTM)-7.31%
Revenue growth 3Y9.84%
Revenue growth 5Y15.91%
Sales Q2Q%-7.43%
Revenue Next Year-7.99%
Revenue Next 2Y-3.16%
Revenue Next 3Y0.3%
Revenue Next 5Y4.49%
EBIT growth 1Y-20.21%
EBIT growth 3Y5.48%
EBIT growth 5Y24.26%
EBIT Next Year-22.98%
EBIT Next 3Y-4.18%
EBIT Next 5Y3.58%
FCF growth 1Y-13.97%
FCF growth 3Y96.46%
FCF growth 5Y24.83%
OCF growth 1Y-14.03%
OCF growth 3Y60.02%
OCF growth 5Y19.67%
DR HORTON INC / DHI FAQ
What is the ChartMill fundamental rating of DR HORTON INC (DHI) stock?
ChartMill assigns a fundamental rating of 7 / 10 to DHI.
What is the valuation status of DR HORTON INC (DHI) stock?
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 9 / 10.
What is the expected EPS growth for DR HORTON INC (DHI) stock?
The Earnings per Share (EPS) of DR HORTON INC (DHI) is expected to decline by -16.54% in the next year.
How sustainable is the dividend of DR HORTON INC (DHI) stock?
The dividend rating of DR HORTON INC (DHI) is 6 / 10 and the dividend payout ratio is 11.96%.