DR HORTON INC (DHI)
US23331A1097 - Common Stock
DHI gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 64 industry peers in the Household Durables industry. DHI gets an excellent profitability rating and is at the same time showing great financial health properties. DHI has a decent growth rate and is not valued too expensively. These ratings could make DHI a good candidate for quality investing.
1. Profitability
1.1 Basic Checks
DHI had positive earnings in the past year.
DHI had a positive operating cash flow in the past year.
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.
1.2 Ratios
DHI has a better Return On Assets (13.17%) than 88.71% of its industry peers.
DHI's Return On Equity of 18.79% is fine compared to the rest of the industry. DHI outperforms 75.81% of its industry peers.
Looking at the Return On Invested Capital, with a value of 15.23%, DHI belongs to the top of the industry, outperforming 87.10% 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 10.86%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 13.17% | ||
| ROE | 18.79% | ||
| ROIC | 15.23% |
ROA(3y)15.68%
ROA(5y)15.4%
ROE(3y)23.3%
ROE(5y)23.6%
ROIC(3y)18.53%
ROIC(5y)17.99%
1.3 Margins
With an excellent Profit Margin value of 12.92%, DHI belongs to the best of the industry, outperforming 88.71% of the companies in the same industry.
In the last couple of years the Profit Margin of DHI has grown nicely.
The Operating Margin of DHI (17.23%) is better than 90.32% of its industry peers.
In the last couple of years the Operating Margin of DHI has grown nicely.
DHI has a Gross Margin of 25.98%. This is comparable to the rest of the industry: DHI outperforms 50.00% of its industry peers.
In the last couple of years the Gross Margin of DHI has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 17.23% | ||
| PM (TTM) | 12.92% | ||
| GM | 25.98% |
OM growth 3Y-4.27%
OM growth 5Y7%
PM growth 3Y-4.92%
PM growth 5Y7.03%
GM growth 3Y-3.06%
GM growth 5Y3.04%
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.
Compared to 1 year ago, DHI has a worse debt to assets ratio.
2.2 Solvency
DHI has an Altman-Z score of 6.43. This indicates that DHI is financially healthy and has little risk of bankruptcy at the moment.
With an excellent Altman-Z score value of 6.43, DHI belongs to the best of the industry, outperforming 90.32% of the companies in the same industry.
DHI has a debt to FCF ratio of 2.92. This is a good value and a sign of high solvency as DHI would need 2.92 years to pay back of all of its debts.
The Debt to FCF ratio of DHI (2.92) is better than 69.35% of its industry peers.
DHI has a Debt/Equity ratio of 0.23. This is a healthy value indicating a solid balance between debt and equity.
With a Debt to Equity ratio value of 0.23, DHI perfoms like the industry average, outperforming 59.68% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.23 | ||
| Debt/FCF | 2.92 | ||
| Altman-Z | 6.43 |
ROIC/WACC1.7
WACC8.97%
2.3 Liquidity
A Current Ratio of 6.74 indicates that DHI has no problem at all paying its short term obligations.
The Current ratio of DHI (6.74) is better than 82.26% of its industry peers.
A Quick Ratio of 1.04 indicates that DHI should not have too much problems paying its short term obligations.
DHI's Quick ratio of 1.04 is in line compared to the rest of the industry. DHI outperforms 51.61% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 6.74 | ||
| Quick Ratio | 1.04 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 3.76% over the past year.
Measured over the past years, DHI shows a very strong growth in Earnings Per Share. The EPS has been growing by 27.63% on average per year.
The Revenue has been growing slightly by 3.78% in the past year.
The Revenue has been growing by 15.91% on average over the past years. This is quite good.
EPS 1Y (TTM)3.76%
EPS 3Y7.75%
EPS 5Y27.63%
EPS Q2Q%-11.91%
Revenue 1Y (TTM)3.78%
Revenue growth 3Y9.84%
Revenue growth 5Y15.91%
Sales Q2Q%-4.77%
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 9.72% on average per year.
The Revenue is expected to grow by 5.96% on average over the next years.
EPS Next Y-0.89%
EPS Next 2Y5.86%
EPS Next 3Y8.55%
EPS Next 5Y9.72%
Revenue Next Year0.8%
Revenue Next 2Y3.81%
Revenue Next 3Y4.22%
Revenue Next 5Y5.96%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 11.25 indicates a reasonable valuation of DHI.
Based on the Price/Earnings ratio, DHI is valued a bit cheaper than 64.52% of the companies in the same industry.
DHI is valuated cheaply when we compare the Price/Earnings ratio to 28.53, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 11.36, the valuation of DHI can be described as very reasonable.
DHI's Price/Forward Earnings is on the same level as the industry average.
DHI is valuated cheaply when we compare the Price/Forward Earnings ratio to 23.40, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.25 | ||
| Fwd PE | 11.36 |
4.2 Price Multiples
64.52% of the companies in the same industry are more expensive than DHI, based on the Enterprise Value to EBITDA ratio.
DHI's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 25.87 | ||
| EV/EBITDA | 8.36 |
4.3 Compensation for Growth
The excellent profitability rating of DHI may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.41
EPS Next 2Y5.86%
EPS Next 3Y8.55%
5. Dividend
5.1 Amount
With a yearly dividend of 0.98%, DHI is not a good candidate for dividend investing.
DHI's Dividend Yield is a higher than the industry average which is at 2.46.
Compared to an average S&P500 Dividend Yield of 2.22, DHI's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.98% |
5.2 History
The dividend of DHI is nicely growing with an annual growth rate of 14.84%!
DHI has paid a dividend for at least 10 years, which is a reliable track record.
DHI has not decreased its dividend in the past 5 years, so it has a somewhat stable track record.
Dividend Growth(5Y)14.84%
Div Incr Years9
Div Non Decr Years9
5.3 Sustainability
DHI pays out 8.31% 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.
DP8.31%
EPS Next 2Y5.86%
EPS Next 3Y8.55%
DR HORTON INC
NYSE:DHI (11/15/2024, 8:04:00 PM)
After market: 161.64 +0.03 (+0.02%)161.61
-2.13 (-1.3%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryHousehold Durables
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap52.37B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.98% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
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EPS beat(8)
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EPS beat(12)
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EPS beat(16)
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Revenue beat(2)
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Min Revenue beat(2)
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Revenue beat(8)
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Revenue beat(12)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.25 | ||
| Fwd PE | 11.36 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)0.41
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 13.17% | ||
| ROE | 18.79% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 17.23% | ||
| PM (TTM) | 12.92% | ||
| GM | 25.98% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover1.02
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.23 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 6.74 | ||
| Quick Ratio | 1.04 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)3.76%
EPS 3Y7.75%
EPS 5Y
EPS Q2Q%
EPS Next Y-0.89%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)3.78%
Revenue growth 3Y9.84%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y