DR HORTON INC (DHI) Stock Fundamental Analysis
USA - NYSE:DHI - US23331A1097 - Common Stock
146.99 USD
+2.42 (+1.67%)
146.62 USD
-0.37 (-0.25%)
We assign a fundamental rating of 6 out of 10 to DHI. DHI was compared to 61 industry peers in the Household Durables industry. DHI scores excellent on profitability, but 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
In the past year DHI was profitable.
In the past year DHI had a positive cash flow from operations.
In the past 5 years DHI has always been profitable.
Each year in the past 5 years DHI had a positive operating cash flow.
1.2 Ratios
With an excellent Return On Assets value of 10.11%, DHI belongs to the best of the industry, outperforming 85.25% of the companies in the same industry.
DHI's Return On Equity of 14.82% is fine compared to the rest of the industry. DHI outperforms 72.13% of its industry peers.
With an excellent Return On Invested Capital value of 11.98%, DHI belongs to the best of the industry, outperforming 83.61% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for DHI is significantly above the industry average of 9.86%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.11% | ||
| ROE | 14.82% | ||
| ROIC | 11.98% |
ROA(3y)12.62%
ROA(5y)14.91%
ROE(3y)18.17%
ROE(5y)22.55%
ROIC(3y)14.89%
ROIC(5y)17.66%
1.3 Margins
The Profit Margin of DHI (10.47%) is better than 85.25% of its industry peers.
DHI's Profit Margin has declined in the last couple of years.
DHI has a better Operating Margin (14.06%) than 86.89% of its industry peers.
In the last couple of years the Operating Margin of DHI has remained more or less at the same level.
With a Gross Margin value of 23.90%, DHI perfoms like the industry average, outperforming 40.98% of the companies in the same 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 | 14.06% | ||
| PM (TTM) | 10.47% | ||
| GM | 23.9% |
OM growth 3Y-15.63%
OM growth 5Y-1.09%
PM growth 3Y-15.74%
PM growth 5Y-2.18%
GM growth 3Y-9.11%
GM growth 5Y-0.6%
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.
DHI has less shares outstanding than it did 1 year ago.
The number of shares outstanding for DHI has been reduced compared to 5 years ago.
DHI has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 5.73 indicates that DHI is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 5.73, DHI belongs to the top of the industry, outperforming 85.25% 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.
Looking at the Debt to FCF ratio, with a value of 1.82, DHI is in the better half of the industry, outperforming 73.77% of the companies in the same industry.
DHI has a Debt/Equity ratio of 0.25. This is a healthy value indicating a solid balance between debt and equity.
With a Debt to Equity ratio value of 0.25, DHI perfoms like the industry average, outperforming 57.38% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.25 | ||
| Debt/FCF | 1.82 | ||
| Altman-Z | 5.73 |
ROIC/WACC1.41
WACC8.53%
2.3 Liquidity
DHI has a Current Ratio of 5.94. 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 5.94, DHI is in the better half of the industry, outperforming 77.05% of the companies in the same industry.
DHI has a Quick Ratio of 5.94. 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 has a Quick ratio of 0.63. This is in the lower half of the industry: DHI underperforms 62.30% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 5.94 | ||
| Quick Ratio | 0.63 |
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%.
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 -6.93% in the last year.
The Revenue has been growing by 11.02% on average over the past years. This is quite good.
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
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.
DHI is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.20% yearly.
EPS Next Y2.58%
EPS Next 2Y8.91%
EPS Next 3Y13.08%
EPS Next 5Y19.04%
Revenue Next Year1.32%
Revenue Next 2Y3.52%
Revenue Next 3Y4.91%
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.
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 12.68, the valuation of DHI can be described as correct.
DHI's Price/Earnings is on the same level as the industry average.
When comparing the Price/Earnings ratio of DHI to the average of the S&P500 Index (26.35), we can say DHI is valued rather cheaply.
With a Price/Forward Earnings ratio of 12.36, DHI is valued correctly.
Compared to the rest of the industry, the Price/Forward Earnings ratio of DHI is on the same level as its industry peers.
The average S&P500 Price/Forward Earnings ratio is at 33.72. DHI is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.68 | ||
| Fwd PE | 12.36 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as DHI.
70.49% of the companies in the same industry are more expensive than DHI, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.35 | ||
| EV/EBITDA | 9.37 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates DHI does not grow enough to justify the current Price/Earnings ratio.
The decent profitability rating of DHI may justify a higher PE ratio.
DHI's earnings are expected to grow with 13.08% in the coming years. This may justify a more expensive valuation.
PEG (NY)4.91
PEG (5Y)0.99
EPS Next 2Y8.91%
EPS Next 3Y13.08%
5. Dividend
5.1 Amount
DHI has a Yearly Dividend Yield of 1.24%. 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 3.32.
With a Dividend Yield of 1.24, DHI pays less dividend than the S&P500 average, which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.24% |
5.2 History
On average, the dividend of DHI grows each year by 18.00%, which is quite nice.
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)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 2Y8.91%
EPS Next 3Y13.08%
146.99
+2.42 (+1.67%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryHousehold Durables
Earnings (Last)
Earnings (Next)
Inst Owners85.77%
Inst Owner Change-1.04%
Ins Owners0.56%
Ins Owner Change6.75%
Market Cap43.82B
Revenue(TTM)34.25B
Net Income(TTM)3.59B
Analysts67.69
Price Target168.6 (14.7%)
Short Float %4.26%
Short Ratio3.22
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.24% |
Yearly Dividend1.6
Dividend Growth(5Y)18%
DP13.8%
Div Incr Years10
Div Non Decr Years10
Ex-Date
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)0.04%
PT rev (3m)4%
EPS NQ rev (1m)-12.26%
EPS NQ rev (3m)-12.82%
EPS NY rev (1m)-5.34%
EPS NY rev (3m)-6.03%
Revenue NQ rev (1m)-6.82%
Revenue NQ rev (3m)-4.33%
Revenue NY rev (1m)-0.71%
Revenue NY rev (3m)0%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.68 | ||
| Fwd PE | 12.36 | ||
| P/S | 1.28 | ||
| P/FCF | 13.35 | ||
| P/OCF | 12.81 | ||
| P/B | 1.81 | ||
| P/tB | 1.82 | ||
| EV/EBITDA | 9.37 |
EPS(TTM)11.59
EY7.88%
EPS(NY)11.89
Fwd EY8.09%
FCF(TTM)11.01
FCFY7.49%
OCF(TTM)11.47
OCFY7.81%
SpS114.89
BVpS81.14
TBVpS80.59
PEG (NY)4.91
PEG (5Y)0.99
Graham Number145.47
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.11% | ||
| ROE | 14.82% | ||
| ROCE | 15.68% | ||
| ROIC | 11.98% | ||
| ROICexc | 13.28% | ||
| ROICexgc | 15.49% | ||
| OM | 14.06% | ||
| PM (TTM) | 10.47% | ||
| GM | 23.9% | ||
| FCFM | 9.59% |
ROA(3y)12.62%
ROA(5y)14.91%
ROE(3y)18.17%
ROE(5y)22.55%
ROIC(3y)14.89%
ROIC(5y)17.66%
ROICexc(3y)17.11%
ROICexc(5y)20.27%
ROICexgc(3y)19.36%
ROICexgc(5y)22.68%
ROCE(3y)20.31%
ROCE(5y)24.43%
ROICexgc growth 3Y-19.4%
ROICexgc growth 5Y-4.01%
ROICexc growth 3Y-20.32%
ROICexc growth 5Y-5.55%
OM growth 3Y-15.63%
OM growth 5Y-1.09%
PM growth 3Y-15.74%
PM growth 5Y-2.18%
GM growth 3Y-9.11%
GM growth 5Y-0.6%
F-Score4
Asset Turnover0.97
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.25 | ||
| Debt/FCF | 1.82 | ||
| Debt/EBITDA | 1.21 | ||
| Cap/Depr | 135.64% | ||
| Cap/Sales | 0.4% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 69.58% | ||
| Profit Quality | 91.58% | ||
| Current Ratio | 5.94 | ||
| Quick Ratio | 0.63 | ||
| Altman-Z | 5.73 |
F-Score4
WACC8.53%
ROIC/WACC1.41
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 Y2.58%
EPS Next 2Y8.91%
EPS Next 3Y13.08%
EPS Next 5Y19.04%
Revenue 1Y (TTM)-6.93%
Revenue growth 3Y0.76%
Revenue growth 5Y11.02%
Sales Q2Q%-3.25%
Revenue Next Year1.32%
Revenue Next 2Y3.52%
Revenue Next 3Y4.91%
Revenue Next 5Y7.2%
EBIT growth 1Y-24.45%
EBIT growth 3Y-14.98%
EBIT growth 5Y9.81%
EBIT Next Year2.3%
EBIT Next 3Y9.66%
EBIT Next 5Y11.43%
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 ChartMill fundamental rating of DR HORTON INC (DHI) stock?
ChartMill assigns a fundamental rating of 6 / 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 7 / 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 grow by 2.58% 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 13.8%.