DR HORTON INC (DHI) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:DHI - US23331A1097 - Common Stock
157.37 USD
-1.64 (-1.03%)
157.7 USD
+0.33 (+0.21%)
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 has an excellent profitability rating, but 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.
In the past year DHI had a positive cash flow from operations.
Each year in the past 5 years DHI has 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 has a better Return On Equity (14.82%) than 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.
DHI had an Average Return On Invested Capital over the past 3 years of 14.89%. This is significantly above the industry average of 9.75%.
| 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
DHI has a better Profit Margin (10.47%) than 85.25% of its industry peers.
In the last couple of years the Profit Margin of DHI has declined.
DHI has a Operating Margin of 14.06%. This is amongst the best in the industry. DHI outperforms 85.25% of its industry peers.
In the last couple of years the Operating Margin of DHI has remained more or less at the same level.
DHI's Gross Margin of 23.90% is in line compared to the rest of the industry. DHI outperforms 42.62% of its industry peers.
DHI's Gross Margin has been stable in the last couple of years.
| 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.
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
Compared to 1 year ago, DHI has a worse debt to assets ratio.
2.2 Solvency
DHI has an Altman-Z score of 5.88. This indicates that DHI is financially healthy and has little risk of bankruptcy at the moment.
DHI's Altman-Z score of 5.88 is amongst the best of the industry. DHI outperforms 86.89% 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 73.77% of its industry peers.
DHI has a Debt/Equity ratio of 0.25. This is a healthy value indicating a solid balance between debt and equity.
Looking at the Debt to Equity ratio, with a value of 0.25, DHI is in line with its industry, outperforming 59.02% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.25 | ||
| Debt/FCF | 1.82 | ||
| Altman-Z | 5.88 |
ROIC/WACC1.42
WACC8.44%
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.
DHI has a Current ratio of 5.94. This is in the better half of the industry: DHI outperforms 77.05% of its industry peers.
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.
The Quick ratio of DHI (0.63) is worse than 63.93% 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%.
DHI shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 12.86% yearly.
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
The Earnings Per Share is expected to grow by 19.04% on average over the next years. This is quite good.
The Revenue is expected to grow by 7.20% on average over the next years.
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
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
Based on the Price/Earnings ratio of 13.58, the valuation of DHI can be described as correct.
DHI's Price/Earnings is on the same level as the industry average.
DHI is valuated rather cheaply when we compare the Price/Earnings ratio to 26.11, which is the current average of the S&P500 Index.
DHI is valuated correctly with a Price/Forward Earnings ratio of 13.24.
The rest of the industry has a similar Price/Forward Earnings ratio as DHI.
When comparing the Price/Forward Earnings ratio of DHI to the average of the S&P500 Index (36.21), we can say DHI is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.58 | ||
| Fwd PE | 13.24 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as DHI.
Based on the Price/Free Cash Flow ratio, DHI is valued a bit cheaper than the industry average as 68.85% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14 | ||
| EV/EBITDA | 9.95 |
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.
A more expensive valuation may be justified as DHI's earnings are expected to grow with 13.08% in the coming years.
PEG (NY)5.26
PEG (5Y)1.06
EPS Next 2Y8.91%
EPS Next 3Y13.08%
5. Dividend
5.1 Amount
DHI has a Yearly Dividend Yield of 1.15%. 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 3.10.
Compared to an average S&P500 Dividend Yield of 2.32, DHI's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.15% |
5.2 History
The dividend of DHI is nicely growing with an annual growth rate of 18.00%!
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.
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 2Y8.91%
EPS Next 3Y13.08%
157.37
-1.64 (-1.03%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryHousehold Durables
Earnings (Last)
Earnings (Next)
Inst Owners85.77%
Inst Owner Change1.48%
Ins Owners0.56%
Ins Owner Change7.59%
Market Cap45.96B
Revenue(TTM)34.25B
Net Income(TTM)3.59B
Analysts67.69
Price Target165.2 (4.98%)
Short Float %4.66%
Short Ratio3.87
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.15% |
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)-2.01%
PT rev (3m)1.14%
EPS NQ rev (1m)-13.73%
EPS NQ rev (3m)-13.66%
EPS NY rev (1m)-5.28%
EPS NY rev (3m)-4.41%
Revenue NQ rev (1m)-7.15%
Revenue NQ rev (3m)-4.89%
Revenue NY rev (1m)-0.59%
Revenue NY rev (3m)0.01%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.58 | ||
| Fwd PE | 13.24 | ||
| P/S | 1.34 | ||
| P/FCF | 14 | ||
| P/OCF | 13.44 | ||
| P/B | 1.9 | ||
| P/tB | 1.91 | ||
| EV/EBITDA | 9.95 |
EPS(TTM)11.59
EY7.36%
EPS(NY)11.89
Fwd EY7.56%
FCF(TTM)11.24
FCFY7.14%
OCF(TTM)11.71
OCFY7.44%
SpS117.27
BVpS82.83
TBVpS82.27
PEG (NY)5.26
PEG (5Y)1.06
Graham Number146.97
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 | 5.88 |
F-Score4
WACC8.44%
ROIC/WACC1.42
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%.