DR HORTON INC (DHI) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:DHI - US23331A1097 - Common Stock
155.74 USD
-2.37 (-1.5%)
155.74 USD
0 (0%)
DHI gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 60 industry peers in the Household Durables industry. While DHI belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. DHI is not valued too expensively and it also shows a decent growth rate.
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.
- 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
- The Return On Assets of DHI (10.11%) is better than 85.00% of its industry peers.
- DHI has a Return On Equity of 14.82%. This is in the better half of the industry: DHI outperforms 68.33% of its industry peers.
- DHI's Return On Invested Capital of 12.10% is amongst the best of the industry. DHI outperforms 83.33% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for DHI is significantly above the industry average of 9.71%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.11% | ||
| ROE | 14.82% | ||
| ROIC | 12.1% |
ROA(3y)12.62%
ROA(5y)14.91%
ROE(3y)18.17%
ROE(5y)22.55%
ROIC(3y)14.99%
ROIC(5y)17.72%
1.3 Margins
- Looking at the Profit Margin, with a value of 10.47%, DHI belongs to the top of the industry, outperforming 85.00% of the companies in the same industry.
- DHI's Profit Margin has declined in the last couple of years.
- DHI has a Operating Margin of 14.19%. This is amongst the best in the industry. DHI outperforms 85.00% 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 24.03%, DHI perfoms like the industry average, outperforming 43.33% of the companies in the same industry.
- DHI's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 14.19% | ||
| PM (TTM) | 10.47% | ||
| GM | 24.03% |
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%
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.
- Compared to 1 year ago, DHI has less shares outstanding
- The number of shares outstanding for DHI has been reduced compared to 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 5.86. This indicates that DHI is financially healthy and has little risk of bankruptcy at the moment.
- DHI's Altman-Z score of 5.86 is amongst the best of the industry. DHI outperforms 83.33% of its industry peers.
- DHI has a debt to FCF ratio of 1.82. This is a very positive value and a sign of high solvency as it would only need 1.82 years to pay back of all of its debts.
- DHI has a better Debt to FCF ratio (1.82) than 71.67% of its industry peers.
- DHI has a Debt/Equity ratio of 0.24. This is a healthy value indicating a solid balance between debt and equity.
- DHI has a Debt to Equity ratio (0.24) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.24 | ||
| Debt/FCF | 1.82 | ||
| Altman-Z | 5.86 |
ROIC/WACC1.3
WACC9.34%
2.3 Liquidity
- DHI has a Current Ratio of 4.66. This indicates that DHI is financially healthy and has no problem in meeting its short term obligations.
- With a decent Current ratio value of 4.66, DHI is doing good in the industry, outperforming 70.00% of the companies in the same industry.
- A Quick Ratio of 0.56 indicates that DHI may have some problems paying its short term obligations.
- DHI's Quick ratio of 0.56 is on the low side compared to the rest of the industry. DHI is outperformed by 71.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 4.66 | ||
| Quick Ratio | 0.56 |
3. Growth
3.1 Past
- DHI shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -22.19%.
- 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.
- DHI shows a decrease in Revenue. In the last year, the revenue decreased by -6.93%.
- DHI shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 11.02% yearly.
EPS 1Y (TTM)-22.19%
EPS 3Y-11.18%
EPS 5Y12.86%
EPS Q2Q%-22.22%
Revenue 1Y (TTM)-6.93%
Revenue growth 3Y0.76%
Revenue growth 5Y11.02%
Sales Q2Q%-9.54%
3.2 Future
- The Earnings Per Share is expected to grow by 19.04% on average over the next years. This is quite good.
- Based on estimates for the next years, DHI will show a small growth in Revenue. The Revenue will grow by 7.20% on average per year.
EPS Next Y-1.14%
EPS Next 2Y7.54%
EPS Next 3Y12.1%
EPS Next 5Y19.04%
Revenue Next Year-0.1%
Revenue Next 2Y2.77%
Revenue Next 3Y4.72%
Revenue Next 5Y7.2%
3.3 Evolution
- The EPS growth rate is accelerating: in the next years the growth will be better 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
- With a Price/Earnings ratio of 14.15, DHI is valued correctly.
- 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 (27.32), we can say DHI is valued slightly cheaper.
- A Price/Forward Earnings ratio of 11.62 indicates a reasonable valuation of DHI.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of DHI indicates a somewhat cheap valuation: DHI is cheaper than 71.67% of the companies listed in the same industry.
- Compared to an average S&P500 Price/Forward Earnings ratio of 24.32, DHI is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.15 | ||
| Fwd PE | 11.62 |
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.
- 68.33% 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 | 13.85 | ||
| EV/EBITDA | 9.62 |
4.3 Compensation for Growth
- DHI has a very decent profitability rating, which may justify a higher PE ratio.
- DHI's earnings are expected to grow with 12.10% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)1.1
EPS Next 2Y7.54%
EPS Next 3Y12.1%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 1.18%, DHI has a reasonable but not impressive dividend return.
- Compared to an average industry Dividend Yield of 1.16, DHI pays a bit more dividend than its industry peers.
- Compared to the average S&P500 Dividend Yield of 1.83, DHI is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.18% |
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 its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)18%
Div Incr Years10
Div Non Decr Years10
5.3 Sustainability
- 13.80% of the earnings are spent on dividend by DHI. This is a low number and sustainable payout ratio.
- The dividend of DHI is growing around the same rate as the earnings are growing. If this keeps up the dividend growth is sustainable.
DP13.8%
EPS Next 2Y7.54%
EPS Next 3Y12.1%
155.74
-2.37 (-1.5%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryHousehold Durables
Earnings (Last)01-20 2026-01-20/bmo
Earnings (Next)04-21 2026-04-21/bmo
Inst Owners89.61%
Inst Owner Change0.14%
Ins Owners0.66%
Ins Owner Change9.74%
Market Cap45.49B
Revenue(TTM)34.25B
Net Income(TTM)3.59B
Analysts70
Price Target166.09 (6.65%)
Short Float %5.9%
Short Ratio4.92
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.18% |
Yearly Dividend1.6
Dividend Growth(5Y)18%
DP13.8%
Div Incr Years10
Div Non Decr Years10
Ex-DateN/A
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)-0.54%
PT rev (3m)-1.44%
EPS NQ rev (1m)-0.68%
EPS NQ rev (3m)-15.13%
EPS NY rev (1m)-0.03%
EPS NY rev (3m)-7.94%
Revenue NQ rev (1m)-0.57%
Revenue NQ rev (3m)-8.08%
Revenue NY rev (1m)-0.69%
Revenue NY rev (3m)-2.1%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.15 | ||
| Fwd PE | 11.62 | ||
| P/S | 1.33 | ||
| P/FCF | 13.85 | ||
| P/OCF | 13.3 | ||
| P/B | 1.88 | ||
| P/tB | 1.89 | ||
| EV/EBITDA | 9.62 |
EPS(TTM)11.01
EY7.07%
EPS(NY)13.4
Fwd EY8.61%
FCF(TTM)11.24
FCFY7.22%
OCF(TTM)11.71
OCFY7.52%
SpS117.27
BVpS82.83
TBVpS82.27
PEG (NY)N/A
PEG (5Y)1.1
Graham Number143.24
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.11% | ||
| ROE | 14.82% | ||
| ROCE | 16.59% | ||
| ROIC | 12.1% | ||
| ROICexc | 13.4% | ||
| ROICexgc | 15.21% | ||
| OM | 14.19% | ||
| PM (TTM) | 10.47% | ||
| GM | 24.03% | ||
| FCFM | 9.59% |
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-Score3
Asset Turnover0.97
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.24 | ||
| Debt/FCF | 1.82 | ||
| Debt/EBITDA | 1.17 | ||
| Cap/Depr | 135.64% | ||
| Cap/Sales | 0.4% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 68.93% | ||
| Profit Quality | 91.58% | ||
| Current Ratio | 4.66 | ||
| Quick Ratio | 0.56 | ||
| Altman-Z | 5.86 |
F-Score3
WACC9.34%
ROIC/WACC1.3
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-1.14%
EPS Next 2Y7.54%
EPS Next 3Y12.1%
EPS Next 5Y19.04%
Revenue 1Y (TTM)-6.93%
Revenue growth 3Y0.76%
Revenue growth 5Y11.02%
Sales Q2Q%-9.54%
Revenue Next Year-0.1%
Revenue Next 2Y2.77%
Revenue Next 3Y4.72%
Revenue Next 5Y7.2%
EBIT growth 1Y-23.72%
EBIT growth 3Y-14.26%
EBIT growth 5Y10.37%
EBIT Next Year-3.37%
EBIT Next 3Y10.26%
EBIT Next 5Y11.39%
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 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 14.15 and the Price/Book (PB) ratio is 1.88.
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 -1.14% in the next year.