DR HORTON INC (DHI) Fundamental Analysis & Valuation

NYSE:DHI • US23331A1097

Current stock price

146.405 USD
+9.34 (+6.81%)
Last:

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

  • In the past year DHI was profitable.
  • In the past year DHI had a positive cash flow from operations.
  • DHI had positive earnings in each of the past 5 years.
  • Each year in the past 5 years DHI had a positive operating cash flow.
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's Return On Assets of 9.63% is amongst the best of the industry. DHI outperforms 85.00% of its industry peers.
  • With a decent Return On Equity value of 13.90%, DHI is doing good in the industry, outperforming 76.67% of the companies in the same industry.
  • DHI's Return On Invested Capital of 11.56% is amongst the best of the industry. DHI outperforms 83.33% of its industry peers.
  • Measured over the past 3 years, the Average Return On Invested Capital for DHI is significantly above the industry average of 9.16%.
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

  • Looking at the Profit Margin, with a value of 9.95%, DHI belongs to the top of the industry, outperforming 86.67% 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 13.57%, DHI belongs to the best of the industry, outperforming 81.67% of the companies in the same industry.
  • DHI's Operating Margin has been stable in the last couple of years.
  • With a Gross Margin value of 23.61%, DHI perfoms like the industry average, outperforming 43.33% of the companies in the same 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

  • 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.
  • DHI has less shares outstanding than it did 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 5.72 indicates that DHI is not in any danger for bankruptcy at the moment.
  • DHI's Altman-Z score of 5.72 is amongst the best of 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.
  • DHI's Debt to FCF ratio of 1.60 is fine compared to the rest of the industry. DHI outperforms 71.67% of its industry peers.
  • A Debt/Equity ratio of 0.22 indicates that DHI is not too dependend on debt financing.
  • With a decent Debt to Equity ratio value of 0.22, DHI is doing good in 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 5.72
ROIC/WACC1.21
WACC9.57%
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

  • DHI has a Current Ratio of 5.29. This indicates that DHI is financially healthy and has no problem in meeting 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.
  • The Quick ratio of DHI (0.55) is worse than 83.33% 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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4

3. DHI Growth Analysis

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.
  • Looking at the last year, DHI shows a decrease in Revenue. The Revenue has decreased by -8.62% in the last year.
  • Measured over the past years, DHI shows a quite strong growth in Revenue. The Revenue has been growing by 11.02% on average per year.
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

  • 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.
  • Based on estimates for the next years, DHI will show a small growth in Revenue. The Revenue will grow by 6.98% on average per year.
EPS Next Y-6.88%
EPS Next 2Y4.38%
EPS Next 3Y11.31%
EPS Next 5Y19.04%
Revenue Next Year0.16%
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 13.30 indicates a correct valuation of DHI.
  • Compared to the rest of the industry, the Price/Earnings ratio of DHI is on the same level as its industry peers.
  • DHI's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 26.21.
  • DHI is valuated reasonably with a Price/Forward Earnings ratio of 11.59.
  • Compared to the rest of the industry, the Price/Forward Earnings ratio of DHI indicates a somewhat cheap valuation: DHI is cheaper than 63.33% of the companies listed in the same industry.
  • Compared to an average S&P500 Price/Forward Earnings ratio of 23.10, DHI is valued a bit cheaper.
Industry RankSector Rank
PE 13.3
Fwd PE 11.59
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

  • DHI's Enterprise Value to EBITDA is on the same level as the industry average.
  • Based on the Price/Free Cash Flow ratio, DHI is valued a bit cheaper than the industry average as 76.67% of the companies are valued more expensively.
Industry RankSector Rank
P/FCF 12.2
EV/EBITDA 9.01
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

  • The decent profitability rating of DHI may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1.03
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 1.34%.
  • Compared to an average industry Dividend Yield of 1.41, DHI pays a bit more dividend than its industry peers.
  • DHI's Dividend Yield is slightly below the S&P500 average, which is at 1.89.
Industry RankSector Rank
Dividend Yield 1.34%

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 Years11
Div Non Decr Years11
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

  • 14.93% of the earnings are spent on dividend by DHI. This is a low number and 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 (4/8/2026, 10:19:09 AM)

146.405

+9.34 (+6.81%)

Chartmill FA Rating
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryHousehold Durables
Earnings (Last)01-20
Earnings (Next)04-21
Inst Owners88.39%
Inst Owner Change0%
Ins Owners0.66%
Ins Owner Change15.08%
Market Cap42.41B
Revenue(TTM)33.52B
Net Income(TTM)3.34B
Analysts68.89
Price Target165.26 (12.88%)
Short Float %6.44%
Short Ratio5.53
Dividend
Industry RankSector Rank
Dividend Yield 1.34%
Yearly Dividend1.6
Dividend Growth(5Y)18%
DP14.93%
Div Incr Years11
Div Non Decr Years11
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)-0.29%
PT rev (3m)-1.47%
EPS NQ rev (1m)-1.08%
EPS NQ rev (3m)-13.6%
EPS NY rev (1m)0%
EPS NY rev (3m)-6.66%
Revenue NQ rev (1m)0.01%
Revenue NQ rev (3m)-1.92%
Revenue NY rev (1m)0.14%
Revenue NY rev (3m)0.04%
Valuation
Industry RankSector Rank
PE 13.3
Fwd PE 11.59
P/S 1.27
P/FCF 12.2
P/OCF 11.69
P/B 1.77
P/tB 1.78
EV/EBITDA 9.01
EPS(TTM)11.01
EY7.52%
EPS(NY)12.63
Fwd EY8.63%
FCF(TTM)12
FCFY8.2%
OCF(TTM)12.52
OCFY8.55%
SpS115.72
BVpS82.83
TBVpS82.26
PEG (NY)N/A
PEG (5Y)1.03
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 5.72
F-Score4
WACC9.57%
ROIC/WACC1.21
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 Year0.16%
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.


What is the profitability of DHI stock?

DR HORTON INC (DHI) has a profitability rating of 7 / 10.


What is the financial health of DR HORTON INC (DHI) stock?

The financial health rating of DR HORTON INC (DHI) is 7 / 10.


Is the dividend of DR HORTON INC sustainable?

The dividend rating of DR HORTON INC (DHI) is 6 / 10 and the dividend payout ratio is 14.93%.