DR HORTON INC (DHI) Fundamental Analysis & Valuation

NYSE:DHI • US23331A1097

Current stock price

142.14 USD
+0.05 (+0.04%)
At close:
142.49 USD
+0.35 (+0.25%)
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

  • 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.
  • DHI had a positive operating cash flow in each of the past 5 years.
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 has a Return On Assets of 9.63%. This is amongst the best in the industry. DHI outperforms 85.00% of its industry peers.
  • DHI has a Return On Equity of 13.90%. This is in the better half of the industry: DHI outperforms 76.67% of its industry peers.
  • With an excellent Return On Invested Capital value of 11.56%, DHI belongs to the best of the industry, outperforming 83.33% 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 9.06%.
Industry RankSector 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%
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 has a Profit Margin of 9.95%. This is amongst the best in the industry. DHI outperforms 88.33% of its industry peers.
  • In the last couple of years the Profit Margin of DHI has declined.
  • The Operating Margin of DHI (13.57%) 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 (23.61%) is comparable to the rest of the industry.
  • In the last couple of years the Gross Margin of DHI has remained more or less at the same level.
Industry RankSector 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%
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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7

2. DHI Health Analysis

2.1 Basic Checks

  • With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), DHI is 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.
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 5.80 indicates that DHI is not in any danger for bankruptcy at the moment.
  • Looking at the Altman-Z score, with a value of 5.80, DHI belongs to the top of the industry, outperforming 85.00% of the companies in the same industry.
  • DHI has a debt to FCF ratio of 1.60. This is a very positive value and a sign of high solvency as it would only need 1.60 years to pay back of all of its debts.
  • Looking at the Debt to FCF ratio, with a value of 1.60, DHI is in the better half of the industry, outperforming 73.33% of the companies in the same industry.
  • A Debt/Equity ratio of 0.22 indicates that DHI is not too dependend on debt financing.
  • Looking at the Debt to Equity ratio, with a value of 0.22, DHI is in the better half of the industry, outperforming 61.67% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 0.22
Debt/FCF 1.6
Altman-Z 5.8
ROIC/WACC1.23
WACC9.37%
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

  • A Current Ratio of 5.29 indicates that DHI has no problem at all paying its short term obligations.
  • With a decent Current ratio value of 5.29, DHI is doing good in the industry, outperforming 73.33% of the companies in the same industry.
  • 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.
  • DHI has a Quick ratio of 0.55. This is amonst the worse of the industry: DHI underperforms 80.00% of its industry peers.
Industry RankSector Rank
Current Ratio 5.29
Quick Ratio 0.55
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

  • 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.
  • The Revenue has decreased by -8.62% in the past year.
  • 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

  • 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.
  • DHI is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.98% yearly.
EPS Next Y-6.88%
EPS Next 2Y4.38%
EPS Next 3Y11.31%
EPS Next 5Y19.04%
Revenue Next Year0.02%
Revenue Next 2Y2.98%
Revenue Next 3Y4.45%
Revenue Next 5Y6.98%

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.
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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5

4. DHI Valuation Analysis

4.1 Price/Earnings Ratio

  • A Price/Earnings ratio of 12.91 indicates a correct valuation of DHI.
  • DHI's Price/Earnings ratio is in line with the industry average.
  • When comparing the Price/Earnings ratio of DHI to the average of the S&P500 Index (26.11), we can say DHI is valued rather cheaply.
  • DHI is valuated reasonably with a Price/Forward Earnings ratio of 11.26.
  • Based on the Price/Forward Earnings ratio, DHI is valued a bit cheaper than the industry average as 68.33% of the companies are valued more expensively.
  • DHI is valuated cheaply when we compare the Price/Forward Earnings ratio to 24.12, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 12.91
Fwd PE 11.26
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

  • The rest of the industry has a similar Enterprise Value to EBITDA ratio as DHI.
  • 76.67% of the companies in the same industry are more expensive than DHI, based on the Price/Free Cash Flow ratio.
Industry RankSector Rank
P/FCF 11.84
EV/EBITDA 9.32
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
EPS Next 2Y4.38%
EPS Next 3Y11.31%

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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 1.29%. 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 1.27.
  • DHI's Dividend Yield is slightly below the S&P500 average, which is at 1.91.
Industry RankSector Rank
Dividend Yield 1.29%

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
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 14.93% 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.
DP14.93%
EPS Next 2Y4.38%
EPS Next 3Y11.31%
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 (3/17/2026, 8:10:10 PM)

After market: 142.49 +0.35 (+0.25%)

142.14

+0.05 (+0.04%)

Chartmill FA Rating
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryHousehold Durables
Earnings (Last)01-20
Earnings (Next)04-21
Inst Owners88.39%
Inst Owner Change-1.25%
Ins Owners0.66%
Ins Owner Change14.44%
Market Cap41.18B
Revenue(TTM)33.52B
Net Income(TTM)3.34B
Analysts69.23
Price Target165.74 (16.6%)
Short Float %6.68%
Short Ratio5.46
Dividend
Industry RankSector Rank
Dividend Yield 1.29%
Yearly Dividend1.6
Dividend Growth(5Y)18%
DP14.93%
Div Incr Years10
Div Non Decr Years10
Ex-Date02-05
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)0%
PT rev (3m)-0.76%
EPS NQ rev (1m)-1.16%
EPS NQ rev (3m)-14.36%
EPS NY rev (1m)-0.34%
EPS NY rev (3m)-6.69%
Revenue NQ rev (1m)-0.01%
Revenue NQ rev (3m)-2.92%
Revenue NY rev (1m)-0.06%
Revenue NY rev (3m)-0.57%
Valuation
Industry RankSector Rank
PE 12.91
Fwd PE 11.26
P/S 1.23
P/FCF 11.84
P/OCF 11.35
P/B 1.72
P/tB 1.73
EV/EBITDA 9.32
EPS(TTM)11.01
EY7.75%
EPS(NY)12.63
Fwd EY8.88%
FCF(TTM)12
FCFY8.44%
OCF(TTM)12.52
OCFY8.81%
SpS115.72
BVpS82.83
TBVpS82.26
PEG (NY)N/A
PEG (5Y)1
Graham Number143.24
Profitability
Industry RankSector 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 RankSector 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 5.8
F-Score4
WACC9.37%
ROIC/WACC1.23
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-6.88%
EPS Next 2Y4.38%
EPS Next 3Y11.31%
EPS Next 5Y19.04%
Revenue 1Y (TTM)-8.62%
Revenue growth 3Y0.76%
Revenue growth 5Y11.02%
Sales Q2Q%-9.54%
Revenue Next Year0.02%
Revenue Next 2Y2.98%
Revenue Next 3Y4.45%
Revenue Next 5Y6.98%
EBIT growth 1Y-26.92%
EBIT growth 3Y-14.26%
EBIT growth 5Y10.37%
EBIT Next Year-9.58%
EBIT Next 3Y8.06%
EBIT Next 5Y11.16%
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 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 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 12.91 and the Price/Book (PB) ratio is 1.72.


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 -6.88% in the next year.