DR HORTON INC (DHI) Stock Fundamental Analysis
USA • New York Stock Exchange • NYSE:DHI • US23331A1097
158.52 USD
+4.69 (+3.05%)
Last: Feb 4, 2026, 03:51 PM
Overall DHI gets a fundamental rating of 6 out of 10. We evaluated DHI against 60 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.
1. Profitability
1.1 Basic Checks
- In the past year DHI was profitable.
- DHI had a positive operating cash flow in the past year.
- In the past 5 years DHI has always been profitable.
- In the past 5 years DHI always reported a positive cash flow from operatings.
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 has a better Return On Equity (13.90%) than 70.00% of its industry peers.
- With a decent Return On Invested Capital value of 11.56%, DHI is doing good in the industry, outperforming 78.33% 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 9.41%.
| 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
- The Profit Margin of DHI (9.95%) is better than 83.33% of its industry peers.
- DHI's Profit Margin has declined in the last couple of years.
- DHI has a Operating Margin of 13.57%. This is amongst the best in the industry. DHI outperforms 85.00% 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 worse than 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
- DHI has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
- DHI has less shares outstanding than it did 1 year ago.
- The number of shares outstanding for DHI has been reduced compared to 5 years ago.
- DHI has a worse debt/assets ratio than last year.
2.2 Solvency
- An Altman-Z score of 6.01 indicates that DHI is not in any danger for bankruptcy at the moment.
- DHI has a Altman-Z score of 6.01. This is amongst the best in the industry. DHI outperforms 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.
- With a decent Debt to FCF ratio value of 1.60, DHI is doing good in the industry, outperforming 71.67% of the companies in the same industry.
- DHI has a Debt/Equity ratio of 0.22. This is a healthy value indicating a solid balance between debt and equity.
- Looking at the Debt to Equity ratio, with a value of 0.22, DHI is in the better half of the industry, outperforming 63.33% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.22 | ||
| Debt/FCF | 1.6 | ||
| Altman-Z | 6.01 |
ROIC/WACC1.24
WACC9.32%
2.3 Liquidity
- A Current Ratio of 5.29 indicates that DHI has no problem at all paying its short term obligations.
- The Current ratio of DHI (5.29) is better than 75.00% of its industry peers.
- A Quick Ratio of 0.55 indicates that DHI may have some problems paying its short term obligations.
- DHI has a worse Quick ratio (0.55) than 76.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 5.29 | ||
| Quick Ratio | 0.55 |
3. Growth
3.1 Past
- The earnings per share for DHI have decreased strongly by -22.19% 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.
- The Revenue has decreased by -8.62% in the past year.
- The Revenue has been growing by 11.02% on average over the past years. This is quite good.
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-1.14%
EPS Next 2Y7.54%
EPS Next 3Y12.1%
EPS Next 5Y19.04%
Revenue Next Year-0.68%
Revenue Next 2Y2.36%
Revenue Next 3Y4.61%
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.
- 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
- The Price/Earnings ratio is 14.40, which indicates a correct valuation of DHI.
- The rest of the industry has a similar Price/Earnings ratio as DHI.
- When comparing the Price/Earnings ratio of DHI to the average of the S&P500 Index (28.18), we can say DHI is valued slightly cheaper.
- DHI is valuated reasonably with a Price/Forward Earnings ratio of 11.83.
- Based on the Price/Forward Earnings ratio, DHI is valued a bit cheaper than 75.00% of the companies in the same industry.
- DHI is valuated cheaply when we compare the Price/Forward Earnings ratio to 25.51, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.4 | ||
| Fwd PE | 11.83 |
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.
- Based on the Price/Free Cash Flow ratio, DHI is valued a bit cheaper than the industry average as 73.33% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.32 | ||
| EV/EBITDA | 10.13 |
4.3 Compensation for Growth
- DHI has a very decent profitability rating, which may justify a higher PE ratio.
- A more expensive valuation may be justified as DHI's earnings are expected to grow with 12.10% in the coming years.
PEG (NY)N/A
PEG (5Y)1.12
EPS Next 2Y7.54%
EPS Next 3Y12.1%
5. Dividend
5.1 Amount
- DHI has a Yearly Dividend Yield of 1.20%. Purely for dividend investing, there may be better candidates out there.
- Compared to an average industry Dividend Yield of 1.21, DHI pays a bit more dividend than its industry peers.
- DHI's Dividend Yield is slightly below the S&P500 average, which is at 1.83.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.2% |
5.2 History
- On average, the dividend of DHI grows each year by 18.00%, which is quite nice.
- 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 2Y7.54%
EPS Next 3Y12.1%
NYSE:DHI (2/4/2026, 3:51:09 PM)
158.52
+4.69 (+3.05%)
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-1.92%
Ins Owners0.66%
Ins Owner Change9.35%
Market Cap46.30B
Revenue(TTM)33.52B
Net Income(TTM)3.34B
Analysts70
Price Target166.09 (4.78%)
Short Float %5.75%
Short Ratio4.56
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.2% |
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)2.53%
Min Revenue beat(2)1.8%
Max Revenue beat(2)3.27%
Revenue beat(4)3
Avg Revenue beat(4)1.17%
Min Revenue beat(4)-4.66%
Max Revenue beat(4)4.26%
Revenue beat(8)6
Avg Revenue beat(8)2.31%
Revenue beat(12)10
Avg Revenue beat(12)4.99%
Revenue beat(16)12
Avg Revenue beat(16)4.26%
PT rev (1m)-0.97%
PT rev (3m)-1.48%
EPS NQ rev (1m)-12%
EPS NQ rev (3m)-20.22%
EPS NY rev (1m)-0.91%
EPS NY rev (3m)-8.71%
Revenue NQ rev (1m)-1.99%
Revenue NQ rev (3m)-6.78%
Revenue NY rev (1m)-0.79%
Revenue NY rev (3m)-2.55%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.4 | ||
| Fwd PE | 11.83 | ||
| P/S | 1.38 | ||
| P/FCF | 13.32 | ||
| P/OCF | 12.76 | ||
| P/B | 1.93 | ||
| P/tB | 1.94 | ||
| EV/EBITDA | 10.13 |
EPS(TTM)11.01
EY6.95%
EPS(NY)13.4
Fwd EY8.46%
FCF(TTM)11.9
FCFY7.51%
OCF(TTM)12.42
OCFY7.84%
SpS114.79
BVpS82.16
TBVpS81.6
PEG (NY)N/A
PEG (5Y)1.12
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 | 6.01 |
F-Score4
WACC9.32%
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-1.14%
EPS Next 2Y7.54%
EPS Next 3Y12.1%
EPS Next 5Y19.04%
Revenue 1Y (TTM)-8.62%
Revenue growth 3Y0.76%
Revenue growth 5Y11.02%
Sales Q2Q%-9.54%
Revenue Next Year-0.68%
Revenue Next 2Y2.36%
Revenue Next 3Y4.61%
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 14.4 and the Price/Book (PB) ratio is 1.93.
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 -1.14% in the next year.