DR HORTON INC (DHI) Stock Fundamental Analysis
USA • New York Stock Exchange • NYSE:DHI • US23331A1097
163.85 USD
+1.57 (+0.97%)
At close: Feb 11, 2026
163.84 USD
-0.01 (-0.01%)
After Hours: 2/11/2026, 8:17:34 PM
Taking everything into account, DHI scores 6 out of 10 in our fundamental rating. DHI was compared to 60 industry peers in the Household Durables industry. Both the health and profitability get an excellent rating, making DHI a very profitable company, without any liquidiy or solvency issues. DHI has a decent growth rate and is not valued too expensively.
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.
- 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 9.63%, DHI belongs to the best of the industry, outperforming 83.33% of the companies in the same industry.
- DHI's Return On Equity of 13.90% is fine compared to the rest of the industry. DHI outperforms 73.33% of its industry peers.
- DHI's Return On Invested Capital of 11.56% is fine compared to the rest of the industry. DHI outperforms 80.00% of its industry peers.
- DHI had an Average Return On Invested Capital over the past 3 years of 14.99%. This is significantly above the industry average of 9.31%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.63% | ||
| ROE | 13.9% | ||
| ROIC | 11.56% |
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 9.95%, DHI belongs to the top of the industry, outperforming 83.33% of the companies in the same industry.
- In the last couple of years the Profit Margin of DHI has declined.
- DHI has a Operating Margin of 13.57%. This is amongst the best in the industry. DHI outperforms 85.00% of its industry peers.
- DHI's Operating Margin has been stable in the last couple of years.
- DHI's Gross Margin of 23.61% is on the low side compared to the rest of the industry. DHI is outperformed by 60.00% of its industry peers.
- In the last couple of years the Gross Margin of DHI has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 13.57% | ||
| PM (TTM) | 9.95% | ||
| GM | 23.61% |
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 6.15. This indicates that DHI is financially healthy and has little risk of bankruptcy at the moment.
- The Altman-Z score of DHI (6.15) is better than 85.00% of its industry peers.
- The Debt to FCF ratio of DHI is 1.60, which is an excellent value as it means it would take DHI, only 1.60 years of fcf income to pay off all of its debts.
- DHI has a Debt to FCF ratio of 1.60. This is in the better half of the industry: DHI outperforms 71.67% of its industry peers.
- A Debt/Equity ratio of 0.22 indicates that DHI is not too dependend on debt financing.
- The Debt to Equity ratio of DHI (0.22) is better than 63.33% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.22 | ||
| Debt/FCF | 1.6 | ||
| Altman-Z | 6.15 |
ROIC/WACC1.24
WACC9.3%
2.3 Liquidity
- DHI has a Current Ratio of 5.29. This indicates that DHI is financially healthy and has no problem in meeting its short term obligations.
- DHI has a better Current ratio (5.29) than 75.00% of its industry peers.
- DHI has a Quick Ratio of 5.29. This is a bad value and indicates that DHI is not financially healthy enough and could expect problems in meeting its short term obligations.
- Looking at the Quick ratio, with a value of 0.55, DHI is doing worse than 76.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 5.29 | ||
| Quick Ratio | 0.55 |
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%.
- The Earnings Per Share has been growing by 12.86% on average over the past years. This is quite good.
- DHI shows a decrease in Revenue. In the last year, the revenue decreased by -8.62%.
- 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)-8.62%
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.
- DHI is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.20% yearly.
EPS Next Y-6.56%
EPS Next 2Y4.56%
EPS Next 3Y11.41%
EPS Next 5Y19.04%
Revenue Next Year0.08%
Revenue Next 2Y3.02%
Revenue Next 3Y4.52%
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
- A Price/Earnings ratio of 14.88 indicates a correct valuation of DHI.
- Compared to the rest of the industry, the Price/Earnings ratio of DHI is on the same level as its industry peers.
- The average S&P500 Price/Earnings ratio is at 28.23. DHI is valued slightly cheaper when compared to this.
- With a Price/Forward Earnings ratio of 12.93, DHI is valued correctly.
- Based on the Price/Forward Earnings ratio, DHI is valued a bit cheaper than the industry average as 75.00% of the companies are valued more expensively.
- DHI is valuated cheaply when we compare the Price/Forward Earnings ratio to 28.01, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.88 | ||
| Fwd PE | 12.93 |
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.
- 73.33% 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 | 13.76 | ||
| EV/EBITDA | 10.66 |
4.3 Compensation for Growth
- The decent profitability rating of DHI may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1.16
EPS Next 2Y4.56%
EPS Next 3Y11.41%
5. Dividend
5.1 Amount
- DHI has a Yearly Dividend Yield of 1.14%.
- Compared to an average industry Dividend Yield of 1.17, DHI pays a bit more dividend than its industry peers.
- Compared to the average S&P500 Dividend Yield of 1.79, DHI is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.14% |
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 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 14.93% 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.
DP14.93%
EPS Next 2Y4.56%
EPS Next 3Y11.41%
163.85
+1.57 (+0.97%)
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 Change-2.74%
Ins Owners0.66%
Ins Owner Change10.85%
Market Cap47.85B
Revenue(TTM)33.52B
Net Income(TTM)3.34B
Analysts70
Price Target165.74 (1.15%)
Short Float %5.75%
Short Ratio4.56
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.14% |
Yearly Dividend1.6
Dividend Growth(5Y)18%
DP14.93%
Div Incr Years10
Div Non Decr Years10
Ex-Date02-05 2026-02-05 (0.45)
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-2.19%
Min EPS beat(2)-8.34%
Max EPS beat(2)3.97%
EPS beat(4)2
Avg EPS beat(4)2.04%
Min EPS beat(4)-8.34%
Max EPS beat(4)15.5%
EPS beat(8)5
Avg EPS beat(8)4.11%
EPS beat(12)8
Avg EPS beat(12)10.01%
EPS beat(16)11
Avg EPS beat(16)9.59%
Revenue beat(2)2
Avg Revenue beat(2)2.11%
Min Revenue beat(2)1.8%
Max Revenue beat(2)2.42%
Revenue beat(4)3
Avg Revenue beat(4)0.95%
Min Revenue beat(4)-4.66%
Max Revenue beat(4)4.26%
Revenue beat(8)6
Avg Revenue beat(8)2.2%
Revenue beat(12)10
Avg Revenue beat(12)4.92%
Revenue beat(16)12
Avg Revenue beat(16)4.21%
PT rev (1m)-1.18%
PT rev (3m)-1.69%
EPS NQ rev (1m)-12%
EPS NQ rev (3m)-13.53%
EPS NY rev (1m)-6.34%
EPS NY rev (3m)-8.91%
Revenue NQ rev (1m)-1.59%
Revenue NQ rev (3m)-2.6%
Revenue NY rev (1m)-0.03%
Revenue NY rev (3m)-1.22%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.88 | ||
| Fwd PE | 12.93 | ||
| P/S | 1.43 | ||
| P/FCF | 13.76 | ||
| P/OCF | 13.19 | ||
| P/B | 1.99 | ||
| P/tB | 2.01 | ||
| EV/EBITDA | 10.66 |
EPS(TTM)11.01
EY6.72%
EPS(NY)12.67
Fwd EY7.73%
FCF(TTM)11.9
FCFY7.27%
OCF(TTM)12.42
OCFY7.58%
SpS114.79
BVpS82.16
TBVpS81.6
PEG (NY)N/A
PEG (5Y)1.16
Graham Number142.66
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.63% | ||
| ROE | 13.9% | ||
| ROCE | 15.56% | ||
| ROIC | 11.56% | ||
| ROICexc | 12.61% | ||
| ROICexgc | 14.34% | ||
| OM | 13.57% | ||
| PM (TTM) | 9.95% | ||
| GM | 23.61% | ||
| FCFM | 10.37% |
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-Score4
Asset Turnover0.97
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.22 | ||
| Debt/FCF | 1.6 | ||
| Debt/EBITDA | 1.16 | ||
| Cap/Depr | 144.42% | ||
| Cap/Sales | 0.45% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 77.94% | ||
| Profit Quality | 104.25% | ||
| Current Ratio | 5.29 | ||
| Quick Ratio | 0.55 | ||
| Altman-Z | 6.15 |
F-Score4
WACC9.3%
ROIC/WACC1.24
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-6.56%
EPS Next 2Y4.56%
EPS Next 3Y11.41%
EPS Next 5Y19.04%
Revenue 1Y (TTM)-8.62%
Revenue growth 3Y0.76%
Revenue growth 5Y11.02%
Sales Q2Q%-9.54%
Revenue Next Year0.08%
Revenue Next 2Y3.02%
Revenue Next 3Y4.52%
Revenue Next 5Y7.2%
EBIT growth 1Y-26.92%
EBIT growth 3Y-14.26%
EBIT growth 5Y10.37%
EBIT Next Year-8.63%
EBIT Next 3Y8.48%
EBIT Next 5Y11.39%
FCF growth 1Y9.57%
FCF growth 3Y99.49%
FCF growth 5Y23.68%
OCF growth 1Y9.23%
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 14.88 and the Price/Book (PB) ratio is 1.99.
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 -6.56% in the next year.