DR HORTON INC (DHI) Stock Fundamental Analysis
NYSE:DHI - New York Stock Exchange, Inc. - US23331A1097 - Common Stock
We assign a fundamental rating of 7 out of 10 to DHI. DHI was compared to 67 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. With these ratings, DHI could be worth investigating further for quality investing!.
1. Profitability
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.
1.2 Ratios
Looking at the Return On Assets, with a value of 13.17%, DHI belongs to the top of the industry, outperforming 90.77% of the companies in the same industry.
With a decent Return On Equity value of 18.79%, DHI is doing good in the industry, outperforming 76.92% of the companies in the same industry.
DHI has a better Return On Invested Capital (15.52%) than 86.15% of its industry peers.
The Average Return On Invested Capital over the past 3 years for DHI is significantly above the industry average of 11.99%.
| 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
The Profit Margin of DHI (12.92%) is better than 89.23% of its industry peers.
In the last couple of years the Profit Margin of DHI has grown nicely.
DHI's Operating Margin of 17.32% is amongst the best of the industry. DHI outperforms 89.23% of its industry peers.
In the last couple of years the Operating Margin of DHI has grown nicely.
DHI has a Gross Margin (26.06%) which is in line with its industry peers.
In the last couple of years the Gross Margin of DHI has grown nicely.
| 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
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so DHI is creating value.
DHI has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, DHI has less shares outstanding
The debt/assets ratio for DHI is higher compared to a year ago.
2.2 Solvency
DHI has an Altman-Z score of 6.03. This indicates that DHI is financially healthy and has little risk of bankruptcy at the moment.
DHI has a Altman-Z score of 6.03. This is amongst the best in the industry. DHI outperforms 87.69% of its industry peers.
DHI has a debt to FCF ratio of 2.92. This is a good value and a sign of high solvency as DHI would need 2.92 years to pay back of all of its debts.
DHI has a Debt to FCF ratio of 2.92. This is in the better half of the industry: DHI outperforms 67.69% of its industry peers.
DHI has a Debt/Equity ratio of 0.21. This is a healthy value indicating a solid balance between debt and equity.
The Debt to Equity ratio of DHI (0.21) is better than 63.08% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.21 | ||
| Debt/FCF | 2.92 | ||
| Altman-Z | 6.03 |
ROIC/WACC1.76
WACC8.8%
2.3 Liquidity
DHI has a Current Ratio of 4.70. This indicates that DHI is financially healthy and has no problem in meeting its short term obligations.
Looking at the Current ratio, with a value of 4.70, DHI is in the better half of the industry, outperforming 76.92% of the companies in the same industry.
DHI has a Quick Ratio of 4.70. This is a bad value and indicates that DHI is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Quick ratio value of 0.78, DHI is not doing good in the industry: 61.54% of the companies in the same industry are doing better.
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
DHI shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 1.80%.
The Earnings Per Share has been growing by 27.63% on average over the past years. This is a very strong growth
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)1.8%
EPS 3Y7.75%
EPS 5Y27.63%
EPS Q2Q%-7.45%
Revenue 1Y (TTM)3.78%
Revenue growth 3Y9.84%
Revenue growth 5Y15.91%
Sales Q2Q%-1.46%
3.2 Future
Based on estimates for the next years, DHI will show a quite strong growth in Earnings Per Share. The EPS will grow by 9.45% on average per year.
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-1.63%
EPS Next 2Y5.09%
EPS Next 3Y7.32%
EPS Next 5Y9.45%
Revenue Next Year0.54%
Revenue Next 2Y3.38%
Revenue Next 3Y4.04%
Revenue Next 5Y4.7%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less 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
Based on the Price/Earnings ratio of 10.16, the valuation of DHI can be described as reasonable.
Compared to the rest of the industry, the Price/Earnings ratio of DHI indicates a somewhat cheap valuation: DHI is cheaper than 66.15% of the companies listed in the same industry.
DHI is valuated cheaply when we compare the Price/Earnings ratio to 28.29, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 9.06, the valuation of DHI can be described as very reasonable.
Based on the Price/Forward Earnings ratio, DHI is valued a bit cheaper than the industry average as 67.69% of the companies are valued more expensively.
DHI's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 24.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.16 | ||
| Fwd PE | 9.06 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, DHI is valued a bit cheaper than the industry average as 73.85% of the companies are valued more expensively.
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 | 22.77 | ||
| EV/EBITDA | 7.12 |
4.3 Compensation for Growth
DHI has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.37
EPS Next 2Y5.09%
EPS Next 3Y7.32%
5. Dividend
5.1 Amount
DHI has a Yearly Dividend Yield of 1.08%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 2.90, DHI pays a bit more dividend than its industry peers.
With a Dividend Yield of 1.08, DHI pays less dividend than the S&P500 average, which is at 2.28.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.08% |
5.2 History
The dividend of DHI is nicely growing with an annual growth rate of 14.84%!
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)14.84%
Div Incr Years10
Div Non Decr Years10
5.3 Sustainability
8.31% of the earnings are spent on dividend by DHI. This is a low number and sustainable payout ratio.
DHI's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP8.31%
EPS Next 2Y5.09%
EPS Next 3Y7.32%
DR HORTON INC
NYSE:DHI (1/21/2025, 8:04:00 PM)
After market: 144 +0.3 (+0.21%)143.7
-3.95 (-2.68%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryHousehold Durables
Earnings (Last)
Earnings (Next)
Inst Owners83.84%
Inst Owner Change-0.03%
Ins Owners0.38%
Ins Owner Change9.73%
Market Cap46.10B
Analysts71.54
Price Target187.11 (30.21%)
Short Float %2.27%
Short Ratio2.23
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.08% |
Yearly Dividend1.2
Dividend Growth(5Y)14.84%
DP8.31%
Div Incr Years10
Div Non Decr Years10
Ex-DateN/A
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)-5%
PT rev (3m)-3.05%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-17.02%
EPS NY rev (1m)0%
EPS NY rev (3m)-12.43%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-9.52%
Revenue NY rev (1m)-0.07%
Revenue NY rev (3m)-5.68%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.16 | ||
| Fwd PE | 9.06 | ||
| P/S | 1.25 | ||
| P/FCF | 22.77 | ||
| P/OCF | 21.05 | ||
| P/B | 1.82 | ||
| P/tB | 1.83 | ||
| EV/EBITDA | 7.12 |
EPS(TTM)14.15
EY9.85%
EPS(NY)15.86
Fwd EY11.04%
FCF(TTM)6.31
FCFY4.39%
OCF(TTM)6.83
OCFY4.75%
SpS114.71
BVpS78.9
TBVpS78.39
PEG (NY)N/A
PEG (5Y)0.37
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 | 6.03 |
F-Score4
WACC8.8%
ROIC/WACC1.76
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)1.8%
EPS 3Y7.75%
EPS 5Y27.63%
EPS Q2Q%-7.45%
EPS Next Y-1.63%
EPS Next 2Y5.09%
EPS Next 3Y7.32%
EPS Next 5Y9.45%
Revenue 1Y (TTM)3.78%
Revenue growth 3Y9.84%
Revenue growth 5Y15.91%
Sales Q2Q%-1.46%
Revenue Next Year0.54%
Revenue Next 2Y3.38%
Revenue Next 3Y4.04%
Revenue Next 5Y4.7%
EBIT growth 1Y-1.1%
EBIT growth 3Y5.48%
EBIT growth 5Y24.26%
EBIT Next Year-4.66%
EBIT Next 3Y2.67%
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%