DR HORTON INC (DHI) Stock Fundamental Analysis
USA - NYSE:DHI - US23331A1097 - Common Stock
169.98 USD
-1.71 (-1%)
170.5 USD
+0.52 (+0.31%)
Taking everything into account, DHI scores 6 out of 10 in our fundamental rating. DHI was compared to 63 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 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.
DHI had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
DHI has a Return On Assets of 10.89%. This is amongst the best in the industry. DHI outperforms 87.30% of its industry peers.
With a decent Return On Equity value of 16.48%, DHI is doing good in the industry, outperforming 71.43% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 12.73%, DHI is in the better half of the industry, outperforming 77.78% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for DHI is significantly above the industry average of 10.51%.
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 better Profit Margin (11.46%) than 90.48% of its industry peers.
In the last couple of years the Profit Margin of DHI has grown nicely.
With an excellent Operating Margin value of 15.48%, DHI belongs to the best of the industry, outperforming 88.89% of the companies in the same industry.
In the last couple of years the Operating Margin of DHI has grown nicely.
DHI has a Gross Margin (25.08%) which is in line with 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
DHI has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating 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 5.87. This indicates that DHI is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of DHI (5.87) is better than 82.54% of its industry peers.
DHI has a debt to FCF ratio of 2.60. This is a good value and a sign of high solvency as DHI would need 2.60 years to pay back of all of its debts.
DHI has a Debt to FCF ratio of 2.60. This is in the better half of the industry: DHI outperforms 73.02% of its industry peers.
A Debt/Equity ratio of 0.30 indicates that DHI is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.30, DHI is in line with its industry, outperforming 55.56% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.3 | ||
| Debt/FCF | 2.6 | ||
| Altman-Z | 5.87 |
ROIC/WACC1.45
WACC8.79%
2.3 Liquidity
A Current Ratio of 4.91 indicates that DHI has no problem at all paying its short term obligations.
DHI has a better Current ratio (4.91) than 76.19% of its industry peers.
DHI has a Quick Ratio of 4.91. This is a bad value and indicates that DHI is not financially healthy enough and could expect problems in meeting its short term obligations.
The Quick ratio of DHI (0.50) is worse than 74.60% of its industry peers.
DHI does not score too well on the current and quick ratio evaluation. However, as it has 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
The earnings per share for DHI have decreased strongly by -16.25% in the last year.
The Earnings Per Share has been growing by 27.63% on average over the past years. This is a very strong growth
DHI shows a decrease in Revenue. In the last year, the revenue decreased by -7.31%.
Measured over the past years, DHI shows a quite strong growth in Revenue. The Revenue has been growing by 15.91% on average per year.
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
Based on estimates for the next years, DHI will show a quite strong growth in Earnings Per Share. The EPS will grow by 11.11% on average per year.
Based on estimates for the next years, DHI will show a small growth in Revenue. The Revenue will grow by 4.49% on average per year.
EPS Next Y-16.64%
EPS Next 2Y-6.93%
EPS Next 3Y-0.28%
EPS Next 5Y11.11%
Revenue Next Year-7.96%
Revenue Next 2Y-3.1%
Revenue Next 3Y0.34%
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 13.63, the valuation of DHI can be described as correct.
The rest of the industry has a similar Price/Earnings ratio as DHI.
The average S&P500 Price/Earnings ratio is at 27.20. DHI is valued slightly cheaper when compared to this.
The Price/Forward Earnings ratio is 13.67, which indicates a correct valuation of DHI.
The rest of the industry has a similar Price/Forward Earnings ratio as DHI.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.70, DHI is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.63 | ||
| Fwd PE | 13.67 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as DHI.
DHI's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. DHI is cheaper than 71.43% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.19 | ||
| EV/EBITDA | 9.93 |
4.3 Compensation for Growth
The excellent profitability rating of DHI may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.49
EPS Next 2Y-6.93%
EPS Next 3Y-0.28%
5. Dividend
5.1 Amount
DHI has a yearly dividend return of 0.88%, which is pretty low.
Compared to an average industry Dividend Yield of 3.03, DHI pays a bit more dividend than its industry peers.
With a Dividend Yield of 0.88, DHI pays less dividend than the S&P500 average, which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.88% |
5.2 History
On average, the dividend of DHI grows each year by 14.84%, which is quite nice.
DHI has paid a dividend for at least 10 years, which is 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)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.
DHI's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP11.96%
EPS Next 2Y-6.93%
EPS Next 3Y-0.28%
169.98
-1.71 (-1%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryHousehold Durables
Earnings (Last)
Earnings (Next)
Inst Owners87.84%
Inst Owner Change-2.01%
Ins Owners0.59%
Ins Owner Change-1.93%
Market Cap50.67B
Analysts68
Price Target167.17 (-1.65%)
Short Float %4.09%
Short Ratio2.55
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.88% |
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)3.12%
PT rev (3m)7.78%
EPS NQ rev (1m)0.27%
EPS NQ rev (3m)-3.62%
EPS NY rev (1m)3.31%
EPS NY rev (3m)3.29%
Revenue NQ rev (1m)0.03%
Revenue NQ rev (3m)-4.1%
Revenue NY rev (1m)0.14%
Revenue NY rev (3m)0.51%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.63 | ||
| Fwd PE | 13.67 | ||
| P/S | 1.47 | ||
| P/FCF | 18.19 | ||
| P/OCF | 17.41 | ||
| P/B | 2.11 | ||
| P/tB | 2.12 | ||
| EV/EBITDA | 9.93 |
EPS(TTM)12.47
EY7.34%
EPS(NY)12.44
Fwd EY7.32%
FCF(TTM)9.34
FCFY5.5%
OCF(TTM)9.76
OCFY5.74%
SpS115.98
BVpS80.68
TBVpS80.13
PEG (NY)N/A
PEG (5Y)0.49
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%
ROICexcg growth 3Y-8.14%
ROICexcg 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 | 5.87 |
F-Score3
WACC8.79%
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-16.64%
EPS Next 2Y-6.93%
EPS Next 3Y-0.28%
EPS Next 5Y11.11%
Revenue 1Y (TTM)-7.31%
Revenue growth 3Y9.84%
Revenue growth 5Y15.91%
Sales Q2Q%-7.43%
Revenue Next Year-7.96%
Revenue Next 2Y-3.1%
Revenue Next 3Y0.34%
Revenue Next 5Y4.49%
EBIT growth 1Y-20.21%
EBIT growth 3Y5.48%
EBIT growth 5Y24.26%
EBIT Next Year-22.35%
EBIT Next 3Y-5.38%
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%