DR HORTON INC (DHI) Fundamental Analysis & Valuation

NYSE:DHI • US23331A1097

Current stock price

151.65 USD
-4.76 (-3.04%)
At close:
150.97 USD
-0.68 (-0.45%)
After Hours:

This DHI fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

7

1. DHI Profitability Analysis

1.1 Basic Checks

  • In the past year DHI was profitable.
  • DHI had a positive operating cash flow in the past year.
  • DHI had positive earnings in each of the past 5 years.
  • In the past 5 years DHI always reported a positive cash flow from operatings.
DHI Yearly Net Income VS EBIT VS OCF VS FCFDHI Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2B 4B 6B

1.2 Ratios

  • DHI's Return On Assets of 8.92% is amongst the best of the industry. DHI outperforms 81.67% of its industry peers.
  • The Return On Equity of DHI (13.43%) is better than 76.67% of its industry peers.
  • Looking at the Return On Invested Capital, with a value of 10.74%, DHI is in the better half of the industry, outperforming 73.33% 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 8.88%.
  • The last Return On Invested Capital (10.74%) for DHI is well below the 3 year average (14.99%), which needs to be investigated, but indicates that DHI had better years and this may not be a problem.
Industry RankSector Rank
ROA 8.92%
ROE 13.43%
ROIC 10.74%
ROA(3y)12.62%
ROA(5y)14.91%
ROE(3y)18.17%
ROE(5y)22.55%
ROIC(3y)14.99%
ROIC(5y)17.72%
DHI Yearly ROA, ROE, ROICDHI Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 10 20 30

1.3 Margins

  • DHI's Profit Margin of 9.51% is amongst the best of the industry. DHI outperforms 85.00% of its industry peers.
  • DHI's Profit Margin has declined in the last couple of years.
  • The Operating Margin of DHI (12.97%) is better than 83.33% of its industry peers.
  • In the last couple of years the Operating Margin of DHI has remained more or less at the same level.
  • The Gross Margin of DHI (23.07%) is worse than 61.67% of its industry peers.
  • DHI's Gross Margin has been stable in the last couple of years.
Industry RankSector Rank
OM 12.97%
PM (TTM) 9.51%
GM 23.07%
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%
DHI Yearly Profit, Operating, Gross MarginsDHI Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 10 20 30

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6

2. DHI Health Analysis

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.
  • 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.
DHI Yearly Shares OutstandingDHI Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 100M 200M 300M
DHI Yearly Total Debt VS Total AssetsDHI Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 10B 20B 30B

2.2 Solvency

  • An Altman-Z score of 5.67 indicates that DHI is not in any danger for bankruptcy at the moment.
  • DHI's Altman-Z score of 5.67 is amongst the best of the industry. DHI outperforms 83.33% of its industry peers.
  • DHI has a debt to FCF ratio of 1.88. This is a very positive value and a sign of high solvency as it would only need 1.88 years to pay back of all of its debts.
  • DHI has a Debt to FCF ratio of 1.88. This is in the better half of the industry: DHI outperforms 68.33% of its industry peers.
  • A Debt/Equity ratio of 0.28 indicates that DHI is not too dependend on debt financing.
  • DHI's Debt to Equity ratio of 0.28 is in line compared to the rest of the industry. DHI outperforms 51.67% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.28
Debt/FCF 1.88
Altman-Z 5.67
ROIC/WACC1.11
WACC9.67%
DHI Yearly LT Debt VS Equity VS FCFDHI Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 5B 10B 15B 20B 25B

2.3 Liquidity

  • DHI has a Current Ratio of 5.88. This indicates that DHI is financially healthy and has no problem in meeting its short term obligations.
  • Looking at the Current ratio, with a value of 5.88, DHI is in the better half of the industry, outperforming 76.67% of the companies in the same industry.
  • A Quick Ratio of 0.40 indicates that DHI may have some problems paying its short term obligations.
  • DHI has a worse Quick ratio (0.40) than 95.00% of its industry peers.
Industry RankSector Rank
Current Ratio 5.88
Quick Ratio 0.4
DHI Yearly Current Assets VS Current LiabilitesDHI Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 5B 10B 15B 20B 25B

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

4

3. DHI Growth Analysis

3.1 Past

  • The earnings per share for DHI have decreased strongly by -19.23% in the last year.
  • DHI shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 12.86% yearly.
  • DHI shows a decrease in Revenue. In the last year, the revenue decreased by -5.57%.
  • The Revenue has been growing by 11.02% on average over the past years. This is quite good.
EPS 1Y (TTM)-19.23%
EPS 3Y-11.18%
EPS 5Y12.86%
EPS Q2Q%-13.18%
Revenue 1Y (TTM)-5.57%
Revenue growth 3Y0.76%
Revenue growth 5Y11.02%
Sales Q2Q%-2.27%

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 19.04% on average per year.
  • Based on estimates for the next years, DHI will show a small growth in Revenue. The Revenue will grow by 6.98% on average per year.
EPS Next Y-7.33%
EPS Next 2Y4.28%
EPS Next 3Y11.12%
EPS Next 5Y19.04%
Revenue Next Year-0.23%
Revenue Next 2Y2.77%
Revenue Next 3Y4.4%
Revenue Next 5Y6.98%

3.3 Evolution

  • When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
  • The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
DHI Yearly Revenue VS EstimatesDHI Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2017 2019 2021 2023 2025 2027 2029 2031 2033 10B 20B 30B 40B
DHI Yearly EPS VS EstimatesDHI Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2017 2019 2021 2023 2025 2027 2029 2031 2033 10 20 30

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4

4. DHI Valuation Analysis

4.1 Price/Earnings Ratio

  • Based on the Price/Earnings ratio of 14.21, the valuation of DHI can be described as correct.
  • Compared to the rest of the industry, the Price/Earnings ratio of DHI is on the same level as its industry peers.
  • DHI's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 26.54.
  • A Price/Forward Earnings ratio of 12.03 indicates a correct valuation of DHI.
  • DHI's Price/Forward Earnings ratio is in line with the industry average.
  • The average S&P500 Price/Forward Earnings ratio is at 21.68. DHI is valued slightly cheaper when compared to this.
Industry RankSector Rank
PE 14.21
Fwd PE 12.03
DHI Price Earnings VS Forward Price EarningsDHI Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20 25

4.2 Price Multiples

  • DHI's Enterprise Value to EBITDA is on the same level as the industry average.
  • Based on the Price/Free Cash Flow ratio, DHI is valued a bit cheaper than 70.00% of the companies in the same industry.
Industry RankSector Rank
P/FCF 12.56
EV/EBITDA 11.27
DHI Per share dataDHI EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 20 40 60 80 100

4.3 Compensation for Growth

  • DHI has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1.11
EPS Next 2Y4.28%
EPS Next 3Y11.12%

More info and screens

Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

6

5. DHI Dividend Analysis

5.1 Amount

  • DHI has a Yearly Dividend Yield of 1.15%.
  • DHI's Dividend Yield is a higher than the industry average which is at 1.29.
  • DHI's Dividend Yield is slightly below the S&P500 average, which is at 1.82.
Industry RankSector 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 its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)18%
Div Incr Years11
Div Non Decr Years11
DHI Yearly Dividends per shareDHI Yearly Dividends per shareYearly Dividends per share 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 0.5 1 1.5

5.3 Sustainability

  • DHI pays out 15.82% of its income as dividend. This is a sustainable payout ratio.
  • DHI's earnings are growing around the same pace than its dividend. As long as the earnings growth is kept the dividend growth is sustainable.
DP15.82%
EPS Next 2Y4.28%
EPS Next 3Y11.12%
DHI Yearly Income VS Free CF VS DividendDHI Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 1B 2B 3B 4B 5B
DHI Dividend Payout.DHI Dividend Payout, showing the Payout Ratio.DHI Dividend Payout.PayoutRetained Earnings

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DHI Fundamentals: All Metrics, Ratios and Statistics

DR HORTON INC

NYSE:DHI (4/29/2026, 8:08:19 PM)

After market: 150.97 -0.68 (-0.45%)

151.65

-4.76 (-3.04%)

Chartmill FA Rating
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryHousehold Durables
Industry Strength37.27
Industry Growth6.21
Earnings (Last)04-21
Earnings (Next)07-21
Inst Owners87.97%
Inst Owner Change0.06%
Ins Owners0.66%
Ins Owner Change15.85%
Market Cap43.93B
Revenue(TTM)33.35B
Net Income(TTM)3.17B
Analysts68.89
Price Target170.74 (12.59%)
Short Float %6%
Short Ratio5.71
Dividend
Industry RankSector Rank
Dividend Yield 1.15%
Yearly Dividend1.6
Dividend Growth(5Y)18%
DP15.82%
Div Incr Years11
Div Non Decr Years11
Ex-Date02-05
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)3.48%
Min EPS beat(2)2.98%
Max EPS beat(2)3.97%
EPS beat(4)3
Avg EPS beat(4)3.53%
Min EPS beat(4)-8.34%
Max EPS beat(4)15.5%
EPS beat(8)5
Avg EPS beat(8)2.77%
EPS beat(12)8
Avg EPS beat(12)6.93%
EPS beat(16)11
Avg EPS beat(16)8.62%
Revenue beat(2)1
Avg Revenue beat(2)0.44%
Min Revenue beat(2)-1.55%
Max Revenue beat(2)2.42%
Revenue beat(4)3
Avg Revenue beat(4)1.73%
Min Revenue beat(4)-1.55%
Max Revenue beat(4)4.26%
Revenue beat(8)5
Avg Revenue beat(8)0.87%
Revenue beat(12)9
Avg Revenue beat(12)2.96%
Revenue beat(16)11
Avg Revenue beat(16)3.86%
PT rev (1m)-0.33%
PT rev (3m)-0.54%
EPS NQ rev (1m)-2.33%
EPS NQ rev (3m)-13.24%
EPS NY rev (1m)-0.48%
EPS NY rev (3m)-6.26%
Revenue NQ rev (1m)-1.2%
Revenue NQ rev (3m)-4.23%
Revenue NY rev (1m)-0.23%
Revenue NY rev (3m)0.45%
Valuation
Industry RankSector Rank
PE 14.21
Fwd PE 12.03
P/S 1.32
P/FCF 12.56
P/OCF 12.03
P/B 1.86
P/tB 1.87
EV/EBITDA 11.27
EPS(TTM)10.67
EY7.04%
EPS(NY)12.6
Fwd EY8.31%
FCF(TTM)12.07
FCFY7.96%
OCF(TTM)12.61
OCFY8.31%
SpS115.11
BVpS81.55
TBVpS80.99
PEG (NY)N/A
PEG (5Y)1.11
Graham Number139.924 (-7.73%)
Profitability
Industry RankSector Rank
ROA 8.92%
ROE 13.43%
ROCE 14.05%
ROIC 10.74%
ROICexc 11.46%
ROICexgc 13.31%
OM 12.97%
PM (TTM) 9.51%
GM 23.07%
FCFM 10.49%
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-Score5
Asset Turnover0.94
Health
Industry RankSector Rank
Debt/Equity 0.28
Debt/FCF 1.88
Debt/EBITDA 1.48
Cap/Depr 142.44%
Cap/Sales 0.46%
Interest Coverage 250
Cash Conversion 82.38%
Profit Quality 110.24%
Current Ratio 5.88
Quick Ratio 0.4
Altman-Z 5.67
F-Score5
WACC9.67%
ROIC/WACC1.11
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)-19.23%
EPS 3Y-11.18%
EPS 5Y12.86%
EPS Q2Q%-13.18%
EPS Next Y-7.33%
EPS Next 2Y4.28%
EPS Next 3Y11.12%
EPS Next 5Y19.04%
Revenue 1Y (TTM)-5.57%
Revenue growth 3Y0.76%
Revenue growth 5Y11.02%
Sales Q2Q%-2.27%
Revenue Next Year-0.23%
Revenue Next 2Y2.77%
Revenue Next 3Y4.4%
Revenue Next 5Y6.98%
EBIT growth 1Y-25.02%
EBIT growth 3Y-14.26%
EBIT growth 5Y10.37%
EBIT Next Year-9.58%
EBIT Next 3Y8.06%
EBIT Next 5Y11.16%
FCF growth 1Y57.57%
FCF growth 3Y99.49%
FCF growth 5Y23.68%
OCF growth 1Y54.72%
OCF growth 3Y82.61%
OCF growth 5Y19.2%

DR HORTON INC / DHI Fundamental Analysis 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 4 / 10 to DR HORTON INC (DHI). This can be considered as Fairly Valued.


What is the profitability of DHI stock?

DR HORTON INC (DHI) has a profitability rating of 7 / 10.


What is the financial health of DR HORTON INC (DHI) stock?

The financial health rating of DR HORTON INC (DHI) is 6 / 10.


Is the dividend of DR HORTON INC sustainable?

The dividend rating of DR HORTON INC (DHI) is 6 / 10 and the dividend payout ratio is 15.82%.