DR HORTON INC (DHI) Stock Fundamental Analysis
USA - NYSE:DHI - US23331A1097 - Common Stock
137.705 USD
-0.74 (-0.54%)
Overall DHI gets a fundamental rating of 6 out of 10. We evaluated DHI against 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 has a correct valuation and a medium 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.
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's Return On Assets of 10.11% is amongst the best of the industry. DHI outperforms 85.25% of its industry peers.
DHI has a better Return On Equity (14.82%) than 72.13% of its industry peers.
DHI has a better Return On Invested Capital (11.98%) than 83.61% of its industry peers.
The Average Return On Invested Capital over the past 3 years for DHI is significantly above the industry average of 9.78%.
| 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
Looking at the Profit Margin, with a value of 10.47%, DHI belongs to the top of the industry, outperforming 85.25% of the companies in the same industry.
In the last couple of years the Profit Margin of DHI has declined.
DHI has a better Operating Margin (14.06%) than 86.89% of its industry peers.
DHI's Operating Margin has been stable in the last couple of years.
DHI has a Gross Margin of 23.90%. This is comparable to the rest of the industry: DHI outperforms 40.98% 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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), DHI is creating some value.
DHI has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, DHI has less shares outstanding
The debt/assets ratio for DHI is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 5.63 indicates that DHI is not in any danger for bankruptcy at the moment.
DHI has a better Altman-Z score (5.63) than 85.25% of its industry peers.
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.
The Debt to FCF ratio of DHI (1.82) is better 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 57.38% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.25 | ||
| Debt/FCF | 1.82 | ||
| Altman-Z | 5.63 |
ROIC/WACC1.43
WACC8.4%
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.
With a decent Current ratio value of 5.94, DHI is doing good in the industry, outperforming 77.05% of the companies in the same industry.
A Quick Ratio of 0.63 indicates that DHI may have some problems paying its short term obligations.
DHI has a worse Quick ratio (0.63) than 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.
DHI shows a decrease in Revenue. In the last year, the revenue decreased by -6.93%.
Measured over the past years, DHI shows a quite strong growth in Revenue. The Revenue has been growing by 11.02% on average per year.
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
DHI is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 19.04% yearly.
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
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
DHI is valuated reasonably with a Price/Earnings ratio of 11.88.
The rest of the industry has a similar Price/Earnings ratio as DHI.
When comparing the Price/Earnings ratio of DHI to the average of the S&P500 Index (25.51), we can say DHI is valued rather cheaply.
DHI is valuated reasonably with a Price/Forward Earnings ratio of 11.58.
The rest of the industry has a similar Price/Forward Earnings ratio as DHI.
The average S&P500 Price/Forward Earnings ratio is at 34.98. DHI is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.88 | ||
| Fwd PE | 11.58 |
4.2 Price Multiples
DHI's Enterprise Value to EBITDA is on the same level as the industry average.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of DHI indicates a somewhat cheap valuation: DHI is cheaper than 72.13% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.5 | ||
| EV/EBITDA | 9 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
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)4.6
PEG (5Y)0.92
EPS Next 2Y8.91%
EPS Next 3Y13.08%
5. Dividend
5.1 Amount
DHI has a Yearly Dividend Yield of 1.26%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 3.26, DHI pays a bit more dividend than its industry peers.
With a Dividend Yield of 1.26, DHI pays less dividend than the S&P500 average, which is at 2.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.26% |
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 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 2Y8.91%
EPS Next 3Y13.08%
NYSE:DHI (11/19/2025, 9:40:08 AM)
137.705
-0.74 (-0.54%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryHousehold Durables
Earnings (Last)
Earnings (Next)
Inst Owners85.77%
Inst Owner Change1.67%
Ins Owners0.56%
Ins Owner Change9.64%
Market Cap41.05B
Revenue(TTM)34.25B
Net Income(TTM)3.59B
Analysts67.69
Price Target168.6 (22.44%)
Short Float %4.15%
Short Ratio3.38
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.26% |
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)-12.61%
EPS NQ rev (3m)-11.66%
EPS NY rev (1m)-5.34%
EPS NY rev (3m)-6.03%
Revenue NQ rev (1m)-7.15%
Revenue NQ rev (3m)-4.89%
Revenue NY rev (1m)-0.71%
Revenue NY rev (3m)0%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.88 | ||
| Fwd PE | 11.58 | ||
| P/S | 1.2 | ||
| P/FCF | 12.5 | ||
| P/OCF | 12 | ||
| P/B | 1.7 | ||
| P/tB | 1.71 | ||
| EV/EBITDA | 9 |
EPS(TTM)11.59
EY8.42%
EPS(NY)11.89
Fwd EY8.63%
FCF(TTM)11.01
FCFY8%
OCF(TTM)11.47
OCFY8.33%
SpS114.89
BVpS81.14
TBVpS80.59
PEG (NY)4.6
PEG (5Y)0.92
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 | 5.63 |
F-Score4
WACC8.4%
ROIC/WACC1.43
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%.