DR HORTON INC (DHI) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:DHI - US23331A1097 - Common Stock
144.895 USD
-0.63 (-0.44%)
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. While DHI belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. 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.
In the past year DHI had a positive cash flow from operations.
In the past 5 years DHI has always been profitable.
DHI had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
DHI has a better Return On Assets (10.11%) than 85.00% of its industry peers.
With a decent Return On Equity value of 14.82%, DHI is doing good in the industry, outperforming 71.67% of the companies in the same industry.
With an excellent Return On Invested Capital value of 12.10%, 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 9.70%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.11% | ||
| ROE | 14.82% | ||
| ROIC | 12.1% |
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
With an excellent Profit Margin value of 10.47%, DHI belongs to the best of the industry, outperforming 85.00% of the companies in the same industry.
In the last couple of years the Profit Margin of DHI has declined.
With an excellent Operating Margin value of 14.19%, DHI belongs to the best of the industry, outperforming 85.00% of the companies in the same industry.
DHI's Operating Margin has been stable in the last couple of years.
DHI has a Gross Margin of 24.03%. This is comparable to the rest of the industry: DHI outperforms 43.33% of its industry peers.
DHI's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 14.19% | ||
| PM (TTM) | 10.47% | ||
| GM | 24.03% |
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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), DHI is creating some value.
The number of shares outstanding for DHI has been reduced compared to 1 year ago.
DHI has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, DHI has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 5.67 indicates that DHI is not in any danger for bankruptcy at the moment.
DHI has a Altman-Z score of 5.67. This is amongst the best in the industry. DHI outperforms 83.33% of its industry peers.
The Debt to FCF ratio of DHI is 1.82, which is an excellent value as it means it would take DHI, only 1.82 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of DHI (1.82) is better than 71.67% of its industry peers.
A Debt/Equity ratio of 0.24 indicates that DHI is not too dependend on debt financing.
DHI has a Debt to Equity ratio of 0.24. This is comparable to the rest of the industry: DHI outperforms 58.33% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.24 | ||
| Debt/FCF | 1.82 | ||
| Altman-Z | 5.67 |
ROIC/WACC1.36
WACC8.91%
2.3 Liquidity
DHI has a Current Ratio of 4.66. This indicates that DHI is financially healthy and has no problem in meeting its short term obligations.
DHI has a Current ratio of 4.66. This is in the better half of the industry: DHI outperforms 70.00% of its industry peers.
A Quick Ratio of 0.56 indicates that DHI may have some problems paying its short term obligations.
DHI's Quick ratio of 0.56 is on the low side compared to the rest of the industry. DHI is outperformed by 71.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 4.66 | ||
| Quick Ratio | 0.56 |
3. Growth
3.1 Past
The earnings per share for DHI have decreased strongly by -19.29% 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.
Looking at the last year, DHI shows a decrease in Revenue. The Revenue has decreased by -6.93% in the last 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)-19.29%
EPS 3Y-11.18%
EPS 5Y12.86%
EPS Q2Q%-22.45%
Revenue 1Y (TTM)-6.93%
Revenue growth 3Y0.76%
Revenue growth 5Y11.02%
Sales Q2Q%-3.25%
3.2 Future
DHI is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 19.04% yearly.
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-0.23%
EPS Next 2Y8.2%
EPS Next 3Y13.3%
EPS Next 5Y19.04%
Revenue Next Year0.12%
Revenue Next 2Y2.85%
Revenue Next 3Y4.92%
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
Based on the Price/Earnings ratio of 12.50, the valuation of DHI can be described as correct.
The rest of the industry has a similar Price/Earnings ratio as DHI.
DHI's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 26.77.
With a Price/Forward Earnings ratio of 12.53, DHI is valued correctly.
Compared to the rest of the industry, the Price/Forward Earnings ratio of DHI is on the same level as its industry peers.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.35, DHI is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.5 | ||
| Fwd PE | 12.53 |
4.2 Price Multiples
DHI's Enterprise Value to EBITDA ratio is in line with the industry average.
68.33% 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 | 12.89 | ||
| EV/EBITDA | 8.88 |
4.3 Compensation for Growth
The decent profitability rating of DHI may justify a higher PE ratio.
DHI's earnings are expected to grow with 13.30% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)0.97
EPS Next 2Y8.2%
EPS Next 3Y13.3%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.23%, DHI has a reasonable but not impressive dividend return.
DHI's Dividend Yield is a higher than the industry average which is at 1.23.
Compared to the average S&P500 Dividend Yield of 2.00, DHI is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.23% |
5.2 History
On average, the dividend of DHI grows each year by 18.00%, which is quite nice.
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)18%
Div Incr Years10
Div Non Decr Years10
5.3 Sustainability
DHI pays out 13.80% 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.
DP13.8%
EPS Next 2Y8.2%
EPS Next 3Y13.3%
NYSE:DHI (12/31/2025, 10:10:59 AM)
144.895
-0.63 (-0.44%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryHousehold Durables
Earnings (Last)
Earnings (Next)
Inst Owners89.27%
Inst Owner Change1.52%
Ins Owners0.66%
Ins Owner Change7.17%
Market Cap42.32B
Revenue(TTM)34.25B
Net Income(TTM)3.59B
Analysts68.8
Price Target167.72 (15.75%)
Short Float %5.48%
Short Ratio4.67
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.23% |
Yearly Dividend1.6
Dividend Growth(5Y)18%
DP13.8%
Div Incr Years10
Div Non Decr Years10
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)3.58%
Min EPS beat(2)-8.34%
Max EPS beat(2)15.5%
EPS beat(4)2
Avg EPS beat(4)3.46%
Min EPS beat(4)-8.34%
Max EPS beat(4)15.5%
EPS beat(8)4
Avg EPS beat(8)3.24%
EPS beat(12)8
Avg EPS beat(12)11.43%
EPS beat(16)11
Avg EPS beat(16)10.12%
Revenue beat(2)2
Avg Revenue beat(2)3.03%
Min Revenue beat(2)1.8%
Max Revenue beat(2)4.26%
Revenue beat(4)3
Avg Revenue beat(4)1.96%
Min Revenue beat(4)-4.66%
Max Revenue beat(4)6.43%
Revenue beat(8)6
Avg Revenue beat(8)2%
Revenue beat(12)10
Avg Revenue beat(12)5.7%
Revenue beat(16)12
Avg Revenue beat(16)4.31%
PT rev (1m)1.53%
PT rev (3m)0.33%
EPS NQ rev (1m)-0.63%
EPS NQ rev (3m)-15.02%
EPS NY rev (1m)-2.75%
EPS NY rev (3m)-7.94%
Revenue NQ rev (1m)-0.43%
Revenue NQ rev (3m)-7.22%
Revenue NY rev (1m)-1.19%
Revenue NY rev (3m)-1.89%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.5 | ||
| Fwd PE | 12.53 | ||
| P/S | 1.24 | ||
| P/FCF | 12.89 | ||
| P/OCF | 12.37 | ||
| P/B | 1.75 | ||
| P/tB | 1.76 | ||
| EV/EBITDA | 8.88 |
EPS(TTM)11.59
EY8%
EPS(NY)11.56
Fwd EY7.98%
FCF(TTM)11.24
FCFY7.76%
OCF(TTM)11.71
OCFY8.08%
SpS117.27
BVpS82.83
TBVpS82.27
PEG (NY)N/A
PEG (5Y)0.97
Graham Number146.97
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.11% | ||
| ROE | 14.82% | ||
| ROCE | 16.59% | ||
| ROIC | 12.1% | ||
| ROICexc | 13.4% | ||
| ROICexgc | 15.21% | ||
| OM | 14.19% | ||
| PM (TTM) | 10.47% | ||
| GM | 24.03% | ||
| FCFM | 9.59% |
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-Score3
Asset Turnover0.97
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.24 | ||
| Debt/FCF | 1.82 | ||
| Debt/EBITDA | 1.17 | ||
| Cap/Depr | 135.64% | ||
| Cap/Sales | 0.4% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 68.93% | ||
| Profit Quality | 91.58% | ||
| Current Ratio | 4.66 | ||
| Quick Ratio | 0.56 | ||
| Altman-Z | 5.67 |
F-Score3
WACC8.91%
ROIC/WACC1.36
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)-19.29%
EPS 3Y-11.18%
EPS 5Y12.86%
EPS Q2Q%-22.45%
EPS Next Y-0.23%
EPS Next 2Y8.2%
EPS Next 3Y13.3%
EPS Next 5Y19.04%
Revenue 1Y (TTM)-6.93%
Revenue growth 3Y0.76%
Revenue growth 5Y11.02%
Sales Q2Q%-3.25%
Revenue Next Year0.12%
Revenue Next 2Y2.85%
Revenue Next 3Y4.92%
Revenue Next 5Y7.2%
EBIT growth 1Y-23.72%
EBIT growth 3Y-14.26%
EBIT growth 5Y10.37%
EBIT Next Year-3.37%
EBIT Next 3Y10.26%
EBIT Next 5Y11.39%
FCF growth 1Y62.19%
FCF growth 3Y99.49%
FCF growth 5Y23.68%
OCF growth 1Y56.22%
OCF growth 3Y82.61%
OCF growth 5Y19.2%
DR HORTON INC / DHI FAQ
What is the ChartMill fundamental rating of DR HORTON INC (DHI) stock?
ChartMill assigns a fundamental rating of 6 / 10 to DHI.
What is the valuation status of DR HORTON INC (DHI) stock?
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 expected EPS growth for DR HORTON INC (DHI) stock?
The Earnings per Share (EPS) of DR HORTON INC (DHI) is expected to decline by -0.23% in the next year.
How sustainable is the dividend of DR HORTON INC (DHI) stock?
The dividend rating of DR HORTON INC (DHI) is 6 / 10 and the dividend payout ratio is 13.8%.