DR HORTON INC (DHI) Stock Fundamental Analysis
NYSE:DHI - New York Stock Exchange, Inc. - US23331A1097 - Common Stock - Currency: USD
DHI gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 63 industry peers in the Household Durables industry. DHI scores excellent points on both the profitability and health parts. This is a solid base for a good stock. 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
The Return On Assets of DHI (12.03%) is better than 87.50% of its industry peers.
Looking at the Return On Equity, with a value of 17.64%, DHI is in the better half of the industry, outperforming 78.13% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 14.00%, DHI is in the better half of the industry, outperforming 79.69% 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 10.55%.
The last Return On Invested Capital (14.00%) for DHI is well below the 3 year average (18.65%), which needs to be investigated, but indicates that DHI had better years and this may not be a problem.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.03% | ||
| ROE | 17.64% | ||
| ROIC | 14% |
ROA(3y)15.68%
ROA(5y)15.4%
ROE(3y)23.3%
ROE(5y)23.6%
ROIC(3y)18.65%
ROIC(5y)18.07%
1.3 Margins
DHI's Profit Margin of 12.15% is amongst the best of the industry. DHI outperforms 90.63% of its industry peers.
DHI's Profit Margin has improved in the last couple of years.
DHI's Operating Margin of 16.33% is amongst the best of the industry. DHI outperforms 89.06% of its industry peers.
In the last couple of years the Operating Margin of DHI has grown nicely.
DHI has a Gross Margin of 25.72%. This is comparable to the rest of the industry: DHI outperforms 48.44% of its industry peers.
In the last couple of years the Gross Margin of DHI has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 16.33% | ||
| PM (TTM) | 12.15% | ||
| GM | 25.72% |
OM growth 3Y-3.96%
OM growth 5Y7.21%
PM growth 3Y-4.92%
PM growth 5Y7.03%
GM growth 3Y-2.88%
GM growth 5Y3.16%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), DHI is creating value.
Compared to 1 year ago, DHI has less shares outstanding
DHI has less shares outstanding than it did 5 years ago.
DHI has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 5.61 indicates that DHI is not in any danger for bankruptcy at the moment.
With an excellent Altman-Z score value of 5.61, DHI belongs to the best of the industry, outperforming 84.38% of the companies in the same industry.
The Debt to FCF ratio of DHI is 2.39, which is a good value as it means it would take DHI, 2.39 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of DHI (2.39) is better than 71.88% of its industry peers.
A Debt/Equity ratio of 0.26 indicates that DHI is not too dependend on debt financing.
DHI has a Debt to Equity ratio (0.26) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.26 | ||
| Debt/FCF | 2.39 | ||
| Altman-Z | 5.61 |
ROIC/WACC1.64
WACC8.55%
2.3 Liquidity
A Current Ratio of 5.12 indicates that DHI has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 5.12, DHI is in the better half of the industry, outperforming 78.13% of the companies in the same industry.
A Quick Ratio of 0.51 indicates that DHI may have some problems paying its short term obligations.
DHI has a Quick ratio of 0.51. This is in the lower half of the industry: DHI underperforms 67.19% of its industry peers.
DHI does not score too well on the current and quick ratio evaluation. However, as it has excellent solvency and profitability, these ratios do not necessarly indicate liquidity issues and need to be evaluated against the specifics of the business.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 5.12 | ||
| Quick Ratio | 0.51 |
3. Growth
3.1 Past
The earnings per share for DHI have decreased strongly by -10.07% in the last year.
The Earnings Per Share has been growing by 27.63% on average over the past years. This is a very strong growth
DHI shows a decrease in Revenue. In the last year, the revenue decreased by -4.71%.
The Revenue has been growing by 15.91% on average over the past years. This is quite good.
EPS 1Y (TTM)-10.07%
EPS 3Y7.75%
EPS 5Y27.63%
EPS Q2Q%-26.7%
Revenue 1Y (TTM)-4.71%
Revenue growth 3Y9.84%
Revenue growth 5Y15.91%
Sales Q2Q%-15.08%
3.2 Future
The Earnings Per Share is expected to grow by 9.99% on average over the next years. This is quite good.
The Revenue is expected to grow by 4.46% on average over the next years.
EPS Next Y-19.31%
EPS Next 2Y-6.01%
EPS Next 3Y2.54%
EPS Next 5Y9.99%
Revenue Next Year-8.47%
Revenue Next 2Y-2.64%
Revenue Next 3Y1.18%
Revenue Next 5Y4.46%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less 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 9.98.
Compared to the rest of the industry, the Price/Earnings ratio of DHI indicates a somewhat cheap valuation: DHI is cheaper than 60.94% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of DHI to the average of the S&P500 Index (27.45), we can say DHI is valued rather cheaply.
With a Price/Forward Earnings ratio of 10.40, the valuation of DHI can be described as very reasonable.
DHI's Price/Forward Earnings ratio is in line with the industry average.
DHI is valuated cheaply when we compare the Price/Forward Earnings ratio to 21.89, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.98 | ||
| Fwd PE | 10.4 |
4.2 Price Multiples
DHI's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. DHI is cheaper than 62.50% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of DHI indicates a somewhat cheap valuation: DHI is cheaper than 73.44% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.85 | ||
| EV/EBITDA | 7.35 |
4.3 Compensation for Growth
DHI has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.36
EPS Next 2Y-6.01%
EPS Next 3Y2.54%
5. Dividend
5.1 Amount
DHI has a Yearly Dividend Yield of 1.21%.
DHI's Dividend Yield is a higher than the industry average which is at 3.27.
Compared to an average S&P500 Dividend Yield of 2.37, DHI's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.21% |
5.2 History
The dividend of DHI is nicely growing with an annual growth rate of 14.84%!
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)14.84%
Div Incr Years10
Div Non Decr Years10
5.3 Sustainability
10.49% of the earnings are spent on dividend by DHI. This is a low number and sustainable payout ratio.
The dividend of DHI is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP10.49%
EPS Next 2Y-6.01%
EPS Next 3Y2.54%
131.9
-3.71 (-2.74%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryHousehold Durables
Earnings (Last)
Earnings (Next)
Inst Owners84.99%
Inst Owner Change-51.05%
Ins Owners0.57%
Ins Owner Change2.99%
Market Cap40.52B
Analysts69.23
Price Target155.11 (17.6%)
Short Float %2.71%
Short Ratio2.24
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.21% |
Yearly Dividend1.2
Dividend Growth(5Y)14.84%
DP10.49%
Div Incr Years10
Div Non Decr Years10
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)3.34%
Min EPS beat(2)-2.98%
Max EPS beat(2)9.66%
EPS beat(4)2
Avg EPS beat(4)2.01%
Min EPS beat(4)-6.87%
Max EPS beat(4)9.66%
EPS beat(8)5
Avg EPS beat(8)8.64%
EPS beat(12)8
Avg EPS beat(12)10.32%
EPS beat(16)12
Avg EPS beat(16)10.76%
Revenue beat(2)1
Avg Revenue beat(2)0.89%
Min Revenue beat(2)-4.66%
Max Revenue beat(2)6.43%
Revenue beat(4)2
Avg Revenue beat(4)0.02%
Min Revenue beat(4)-4.66%
Max Revenue beat(4)6.43%
Revenue beat(8)6
Avg Revenue beat(8)3.57%
Revenue beat(12)8
Avg Revenue beat(12)4.57%
Revenue beat(16)12
Avg Revenue beat(16)4.03%
PT rev (1m)-0.13%
PT rev (3m)-9.96%
EPS NQ rev (1m)-0.62%
EPS NQ rev (3m)-20.14%
EPS NY rev (1m)-0.02%
EPS NY rev (3m)-11.81%
Revenue NQ rev (1m)-0.16%
Revenue NQ rev (3m)-13.72%
Revenue NY rev (1m)-0.05%
Revenue NY rev (3m)-7.96%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.98 | ||
| Fwd PE | 10.4 | ||
| P/S | 1.15 | ||
| P/FCF | 14.85 | ||
| P/OCF | 14.12 | ||
| P/B | 1.67 | ||
| P/tB | 1.68 | ||
| EV/EBITDA | 7.35 |
EPS(TTM)13.21
EY10.02%
EPS(NY)12.68
Fwd EY9.62%
FCF(TTM)8.88
FCFY6.73%
OCF(TTM)9.34
OCFY7.08%
SpS114.97
BVpS79.19
TBVpS78.66
PEG (NY)N/A
PEG (5Y)0.36
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.03% | ||
| ROE | 17.64% | ||
| ROCE | 19.26% | ||
| ROIC | 14% | ||
| ROICexc | 15.2% | ||
| ROICexgc | 16.95% | ||
| OM | 16.33% | ||
| PM (TTM) | 12.15% | ||
| GM | 25.72% | ||
| FCFM | 7.73% |
ROA(3y)15.68%
ROA(5y)15.4%
ROE(3y)23.3%
ROE(5y)23.6%
ROIC(3y)18.65%
ROIC(5y)18.07%
ROICexc(3y)21.3%
ROICexc(5y)21.07%
ROICexgc(3y)23.91%
ROICexgc(5y)23.3%
ROCE(3y)25.99%
ROCE(5y)25.32%
ROICexcg growth 3Y-8.14%
ROICexcg growth 5Y5.96%
ROICexc growth 3Y-9.18%
ROICexc growth 5Y5.08%
OM growth 3Y-3.96%
OM growth 5Y7.21%
PM growth 3Y-4.92%
PM growth 5Y7.03%
GM growth 3Y-2.88%
GM growth 5Y3.16%
F-Score4
Asset Turnover0.99
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.26 | ||
| Debt/FCF | 2.39 | ||
| Debt/EBITDA | 1.09 | ||
| Cap/Depr | 149.53% | ||
| Cap/Sales | 0.4% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 48.96% | ||
| Profit Quality | 63.57% | ||
| Current Ratio | 5.12 | ||
| Quick Ratio | 0.51 | ||
| Altman-Z | 5.61 |
F-Score4
WACC8.55%
ROIC/WACC1.64
Cap/Depr(3y)178.02%
Cap/Depr(5y)250.53%
Cap/Sales(3y)0.44%
Cap/Sales(5y)0.74%
Profit Quality(3y)45.73%
Profit Quality(5y)38.28%
High Growth Momentum
Growth
EPS 1Y (TTM)-10.07%
EPS 3Y7.75%
EPS 5Y27.63%
EPS Q2Q%-26.7%
EPS Next Y-19.31%
EPS Next 2Y-6.01%
EPS Next 3Y2.54%
EPS Next 5Y9.99%
Revenue 1Y (TTM)-4.71%
Revenue growth 3Y9.84%
Revenue growth 5Y15.91%
Sales Q2Q%-15.08%
Revenue Next Year-8.47%
Revenue Next 2Y-2.64%
Revenue Next 3Y1.18%
Revenue Next 5Y4.46%
EBIT growth 1Y-13.91%
EBIT growth 3Y5.48%
EBIT growth 5Y24.26%
EBIT Next Year-24.69%
EBIT Next 3Y-2.94%
EBIT Next 5Y3.36%
FCF growth 1Y0.5%
FCF growth 3Y96.46%
FCF growth 5Y24.83%
OCF growth 1Y0.01%
OCF growth 3Y60.02%
OCF growth 5Y19.67%