DR HORTON INC (DHI) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:DHI - US23331A1097 - Common Stock
152.13 USD
-2.99 (-1.93%)
Taking everything into account, DHI scores 6 out of 10 in our fundamental rating. DHI was compared to 61 industry peers in the Household Durables industry. DHI has an excellent profitability rating, but there are some minor concerns on its financial health. DHI is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
DHI had positive earnings in the past year.
DHI had a positive operating cash flow in the past year.
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
The Return On Assets of DHI (10.11%) is better than 85.25% of its industry peers.
DHI has a better Return On Equity (14.82%) than 72.13% of its industry peers.
DHI has a Return On Invested Capital of 12.10%. This is amongst the best in the industry. DHI outperforms 83.61% of its industry peers.
The Average Return On Invested Capital over the past 3 years for DHI is significantly above the industry average of 9.73%.
| 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
DHI has a Profit Margin of 10.47%. This is amongst the best in the industry. DHI outperforms 85.25% of its industry peers.
DHI's Profit Margin has declined in the last couple of years.
DHI has a better Operating Margin (14.19%) than 85.25% of its industry peers.
DHI's Operating Margin has been stable in the last couple of years.
The Gross Margin of DHI (24.03%) is comparable to the rest of the industry.
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.
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.
DHI has a worse debt/assets ratio than last year.
2.2 Solvency
DHI has an Altman-Z score of 5.82. This indicates that DHI is financially healthy and has little risk of bankruptcy at the moment.
DHI has a Altman-Z score of 5.82. This is amongst the best in the industry. DHI outperforms 85.25% 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.
DHI has a Debt to FCF ratio of 1.82. This is in the better half of the industry: DHI outperforms 73.77% of its industry peers.
A Debt/Equity ratio of 0.24 indicates that DHI is not too dependend on debt financing.
DHI's Debt to Equity ratio of 0.24 is in line compared to the rest of the industry. DHI outperforms 59.02% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.24 | ||
| Debt/FCF | 1.82 | ||
| Altman-Z | 5.82 |
ROIC/WACC1.33
WACC9.08%
2.3 Liquidity
A Current Ratio of 4.66 indicates that DHI has no problem at all paying its short term obligations.
With a decent Current ratio value of 4.66, DHI is doing good in the industry, outperforming 70.49% of the companies in the same industry.
DHI has a Quick Ratio of 4.66. 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 0.56. This is in the lower half of the industry: DHI underperforms 70.49% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 4.66 | ||
| Quick Ratio | 0.56 |
3. Growth
3.1 Past
DHI shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -19.29%.
Measured over the past years, DHI shows a quite strong growth in Earnings Per Share. The EPS has been growing by 12.86% on average per year.
DHI shows a decrease in Revenue. In the last year, the revenue decreased by -6.93%.
The Revenue has been growing by 11.02% on average over the past years. This is quite good.
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.
Based on estimates for the next years, DHI will show a small growth in Revenue. The Revenue will grow by 7.20% on average per year.
EPS Next Y-0.21%
EPS Next 2Y8.12%
EPS Next 3Y13.3%
EPS Next 5Y19.04%
Revenue Next Year0.59%
Revenue Next 2Y3.08%
Revenue Next 3Y4.92%
Revenue Next 5Y7.2%
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 accelerating.
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
A Price/Earnings ratio of 13.13 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 is valuated cheaply when we compare the Price/Earnings ratio to 26.43, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 13.15 indicates a correct valuation of DHI.
The rest of the industry has a similar Price/Forward Earnings ratio as DHI.
When comparing the Price/Forward Earnings ratio of DHI to the average of the S&P500 Index (23.66), we can say DHI is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.13 | ||
| Fwd PE | 13.15 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as DHI.
Based on the Price/Free Cash Flow ratio, DHI is valued a bit cheaper than the industry average as 70.49% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.53 | ||
| EV/EBITDA | 9.45 |
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 13.30% in the coming years.
PEG (NY)N/A
PEG (5Y)1.02
EPS Next 2Y8.12%
EPS Next 3Y13.3%
5. Dividend
5.1 Amount
DHI has a Yearly Dividend Yield of 1.16%.
DHI's Dividend Yield is a higher than the industry average which is at 1.16.
Compared to the average S&P500 Dividend Yield of 1.87, DHI is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.16% |
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 its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
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 2Y8.12%
EPS Next 3Y13.3%
NYSE:DHI (12/17/2025, 10:37:54 AM)
152.13
-2.99 (-1.93%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryHousehold Durables
Earnings (Last)
Earnings (Next)
Inst Owners89.27%
Inst Owner Change1.51%
Ins Owners0.66%
Ins Owner Change7.48%
Market Cap44.43B
Revenue(TTM)34.25B
Net Income(TTM)3.59B
Analysts68.8
Price Target167 (9.77%)
Short Float %4.64%
Short Ratio3.74
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.16% |
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)-0.94%
PT rev (3m)-0.1%
EPS NQ rev (1m)-1.81%
EPS NQ rev (3m)-14.67%
EPS NY rev (1m)-2.72%
EPS NY rev (3m)-7.01%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-6.82%
Revenue NY rev (1m)-0.72%
Revenue NY rev (3m)-1.43%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.13 | ||
| Fwd PE | 13.15 | ||
| P/S | 1.3 | ||
| P/FCF | 13.53 | ||
| P/OCF | 12.99 | ||
| P/B | 1.84 | ||
| P/tB | 1.85 | ||
| EV/EBITDA | 9.45 |
EPS(TTM)11.59
EY7.62%
EPS(NY)11.57
Fwd EY7.6%
FCF(TTM)11.24
FCFY7.39%
OCF(TTM)11.71
OCFY7.7%
SpS117.27
BVpS82.83
TBVpS82.27
PEG (NY)N/A
PEG (5Y)1.02
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 | 5.82 |
F-Score3
WACC9.08%
ROIC/WACC1.33
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-0.21%
EPS Next 2Y8.12%
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 Year0.59%
Revenue Next 2Y3.08%
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 4 / 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 -0.21% 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%.