DR HORTON INC (DHI)
US23331A1097 - Common Stock
Overall DHI gets a fundamental rating of 7 out of 10. We evaluated DHI against 66 industry peers in the Household Durables industry. DHI has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. DHI is not valued too expensively and it also shows a decent growth rate. This makes DHI very considerable for quality investing!
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.
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.
1.2 Ratios
The Return On Assets of DHI (13.17%) is better than 90.63% of its industry peers.
DHI has a Return On Equity of 18.79%. This is in the better half of the industry: DHI outperforms 76.56% of its industry peers.
DHI has a Return On Invested Capital of 15.52%. This is amongst the best in the industry. DHI outperforms 85.94% of its industry peers.
DHI had an Average Return On Invested Capital over the past 3 years of 18.65%. This is significantly above the industry average of 11.80%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 13.17% | ||
| ROE | 18.79% | ||
| ROIC | 15.52% |
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
With an excellent Profit Margin value of 12.92%, DHI belongs to the best of the industry, outperforming 89.06% of the companies in the same industry.
DHI's Profit Margin has improved in the last couple of years.
DHI's Operating Margin of 17.32% 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.
With a Gross Margin value of 26.06%, DHI perfoms like the industry average, outperforming 48.44% of the companies in the same industry.
DHI's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 17.32% | ||
| PM (TTM) | 12.92% | ||
| GM | 26.06% |
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.
The debt/assets ratio for DHI is higher compared to a year ago.
2.2 Solvency
DHI has an Altman-Z score of 5.92. This indicates that DHI is financially healthy and has little risk of bankruptcy at the moment.
DHI has a Altman-Z score of 5.92. This is amongst the best in the industry. DHI outperforms 87.50% of its industry peers.
The Debt to FCF ratio of DHI is 2.92, which is a good value as it means it would take DHI, 2.92 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 2.92, DHI is in the better half of the industry, outperforming 68.75% of the companies in the same industry.
A Debt/Equity ratio of 0.21 indicates that DHI is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.21, DHI is in the better half of the industry, outperforming 64.06% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.21 | ||
| Debt/FCF | 2.92 | ||
| Altman-Z | 5.92 |
ROIC/WACC1.77
WACC8.79%
2.3 Liquidity
A Current Ratio of 4.70 indicates that DHI has no problem at all paying its short term obligations.
DHI has a Current ratio of 4.70. This is in the better half of the industry: DHI outperforms 76.56% of its industry peers.
A Quick Ratio of 0.78 indicates that DHI may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.78, DHI is doing worse than 60.94% of the companies in the same industry.
The current and quick ratio evaluation for DHI is rather negative, while it does have 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 | 4.7 | ||
| Quick Ratio | 0.78 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 3.76% over the past year.
DHI shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 27.63% yearly.
DHI shows a small growth in Revenue. In the last year, the Revenue has grown by 3.78%.
Measured over the past years, DHI shows a quite strong growth in Revenue. The Revenue has been growing by 15.91% on average per year.
EPS 1Y (TTM)3.76%
EPS 3Y7.75%
EPS 5Y27.63%
EPS Q2Q%-11.91%
Revenue 1Y (TTM)3.78%
Revenue growth 3Y9.84%
Revenue growth 5Y15.91%
Sales Q2Q%-4.77%
3.2 Future
The Earnings Per Share is expected to grow by 9.45% 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 4.70% yearly.
EPS Next Y-1.22%
EPS Next 2Y5.23%
EPS Next 3Y8.55%
EPS Next 5Y9.45%
Revenue Next Year0.72%
Revenue Next 2Y3.55%
Revenue Next 3Y4.22%
Revenue Next 5Y4.7%
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 decreasing.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
DHI is valuated reasonably with a Price/Earnings ratio of 9.72.
Based on the Price/Earnings ratio, DHI is valued a bit cheaper than the industry average as 67.19% of the companies are valued more expensively.
DHI is valuated cheaply when we compare the Price/Earnings ratio to 27.73, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 9.84, the valuation of DHI can be described as very reasonable.
Based on the Price/Forward Earnings ratio, DHI is valued a bit cheaper than 65.63% of the companies in the same industry.
DHI is valuated cheaply when we compare the Price/Forward Earnings ratio to 22.83, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.72 | ||
| Fwd PE | 9.84 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, DHI is valued a bit cheaper than 75.00% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of DHI is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 22.15 | ||
| EV/EBITDA | 6.8 |
4.3 Compensation for Growth
The excellent profitability rating of DHI may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.35
EPS Next 2Y5.23%
EPS Next 3Y8.55%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.17%, DHI has a reasonable but not impressive dividend return.
The stock price of DHI dropped by -27.24% in the last 3 months. With lower prices the dividend yield is higher, but it may be a sign investors do not trust the long term dividend.
DHI's Dividend Yield is a higher than the industry average which is at 2.94.
With a Dividend Yield of 1.17, DHI pays less dividend than the S&P500 average, which is at 2.34.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.17% |
5.2 History
The dividend of DHI is nicely growing with an annual growth rate of 14.84%!
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)14.84%
Div Incr Years10
Div Non Decr Years10
5.3 Sustainability
DHI pays out 8.31% of its income as dividend. This is a sustainable payout ratio.
The dividend of DHI is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP8.31%
EPS Next 2Y5.23%
EPS Next 3Y8.55%
DR HORTON INC
NYSE:DHI (12/20/2024, 8:05:20 PM)
After market: 139.61 0 (0%)139.61
+2.37 (+1.73%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryHousehold Durables
Earnings (Last)
Earnings (Next)
Inst Owners83.84%
Inst Owner Change1.38%
Ins Owners0.38%
Ins Owner Change10.79%
Market Cap44.79B
Analysts73.08
Price Target196.96 (41.08%)
Short Float %2.65%
Short Ratio2.78
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.17% |
Dividend Growth(5Y)14.84%
DP8.31%
Div Incr Years10
Div Non Decr Years10
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)0.69%
Min EPS beat(2)-6.87%
Max EPS beat(2)8.25%
EPS beat(4)2
Avg EPS beat(4)3.03%
Min EPS beat(4)-6.87%
Max EPS beat(4)13.72%
EPS beat(8)6
Avg EPS beat(8)15.42%
EPS beat(12)9
Avg EPS beat(12)12.34%
EPS beat(16)13
Avg EPS beat(16)12.95%
Revenue beat(2)1
Avg Revenue beat(2)-0.85%
Min Revenue beat(2)-3.06%
Max Revenue beat(2)1.35%
Revenue beat(4)3
Avg Revenue beat(4)2.04%
Min Revenue beat(4)-3.06%
Max Revenue beat(4)9.09%
Revenue beat(8)7
Avg Revenue beat(8)7.57%
Revenue beat(12)9
Avg Revenue beat(12)5.1%
Revenue beat(16)13
Avg Revenue beat(16)4.58%
PT rev (1m)0.96%
PT rev (3m)3.51%
EPS NQ rev (1m)-0.11%
EPS NQ rev (3m)-17.02%
EPS NY rev (1m)-0.33%
EPS NY rev (3m)-12.06%
Revenue NQ rev (1m)-0.06%
Revenue NQ rev (3m)-9.52%
Revenue NY rev (1m)-0.09%
Revenue NY rev (3m)-5.56%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.72 | ||
| Fwd PE | 9.84 | ||
| P/S | 1.22 | ||
| P/FCF | 22.15 | ||
| P/OCF | 20.48 | ||
| P/B | 1.77 | ||
| P/tB | 1.78 | ||
| EV/EBITDA | 6.8 |
EPS(TTM)14.36
EY10.29%
EPS(NY)14.19
Fwd EY10.16%
FCF(TTM)6.3
FCFY4.52%
OCF(TTM)6.82
OCFY4.88%
SpS114.59
BVpS78.81
TBVpS78.31
PEG (NY)N/A
PEG (5Y)0.35
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 13.17% | ||
| ROE | 18.79% | ||
| ROCE | 21.42% | ||
| ROIC | 15.52% | ||
| ROICexc | 18.14% | ||
| ROICexgc | 20.33% | ||
| OM | 17.32% | ||
| PM (TTM) | 12.92% | ||
| GM | 26.06% | ||
| FCFM | 5.5% |
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 Turnover1.02
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.21 | ||
| Debt/FCF | 2.92 | ||
| Debt/EBITDA | 0.82 | ||
| Cap/Depr | 189.78% | ||
| Cap/Sales | 0.45% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 33.89% | ||
| Profit Quality | 42.56% | ||
| Current Ratio | 4.7 | ||
| Quick Ratio | 0.78 | ||
| Altman-Z | 5.92 |
F-Score4
WACC8.79%
ROIC/WACC1.77
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)3.76%
EPS 3Y7.75%
EPS 5Y27.63%
EPS Q2Q%-11.91%
EPS Next Y-1.22%
EPS Next 2Y5.23%
EPS Next 3Y8.55%
EPS Next 5Y9.45%
Revenue 1Y (TTM)3.78%
Revenue growth 3Y9.84%
Revenue growth 5Y15.91%
Sales Q2Q%-4.77%
Revenue Next Year0.72%
Revenue Next 2Y3.55%
Revenue Next 3Y4.22%
Revenue Next 5Y4.7%
EBIT growth 1Y-1.1%
EBIT growth 3Y5.48%
EBIT growth 5Y24.26%
EBIT Next Year-3.02%
EBIT Next 3Y3.75%
EBIT Next 5Y4.24%
FCF growth 1Y-51.28%
FCF growth 3Y96.46%
FCF growth 5Y24.83%
OCF growth 1Y-49.12%
OCF growth 3Y60.02%
OCF growth 5Y19.67%