DR HORTON INC (DHI) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:DHI - US23331A1097 - Common Stock
159.01 USD
+2.25 (+1.44%)
155.95 USD
-3.06 (-1.92%)
We assign a fundamental rating of 6 out of 10 to DHI. DHI was compared to 61 industry peers in the Household Durables industry. DHI scores excellent on profitability, 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
In the past year DHI was profitable.
In the past year DHI had a positive cash flow from operations.
Each year in the past 5 years DHI has been profitable.
In the past 5 years DHI always reported a positive cash flow from operatings.
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 11.98%. This is amongst the best in the industry. DHI outperforms 83.61% of its industry peers.
DHI had an Average Return On Invested Capital over the past 3 years of 14.89%. This is significantly above the industry average of 9.75%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.11% | ||
| ROE | 14.82% | ||
| ROIC | 11.98% |
ROA(3y)12.62%
ROA(5y)14.91%
ROE(3y)18.17%
ROE(5y)22.55%
ROIC(3y)14.89%
ROIC(5y)17.66%
1.3 Margins
With an excellent Profit Margin value of 10.47%, DHI belongs to the best of the industry, outperforming 85.25% of the companies in the same industry.
In the last couple of years the Profit Margin of DHI has declined.
Looking at the Operating Margin, with a value of 14.06%, DHI belongs to the top of the industry, outperforming 85.25% of the companies in the same industry.
DHI's Operating Margin has been stable in the last couple of years.
DHI's Gross Margin of 23.90% is in line compared to the rest of the industry. DHI outperforms 42.62% 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 | 14.06% | ||
| PM (TTM) | 10.47% | ||
| GM | 23.9% |
OM growth 3Y-15.63%
OM growth 5Y-1.09%
PM growth 3Y-15.74%
PM growth 5Y-2.18%
GM growth 3Y-9.11%
GM growth 5Y-0.6%
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
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 5.92 indicates that DHI is not in any danger for bankruptcy at the moment.
DHI has a Altman-Z score of 5.92. This is amongst the best in the industry. DHI outperforms 86.89% of its industry peers.
DHI has a debt to FCF ratio of 1.82. This is a very positive value and a sign of high solvency as it would only need 1.82 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 1.82, DHI is in the better half of the industry, outperforming 73.77% of the companies in the same industry.
A Debt/Equity ratio of 0.25 indicates that DHI is not too dependend on debt financing.
The Debt to Equity ratio of DHI (0.25) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.25 | ||
| Debt/FCF | 1.82 | ||
| Altman-Z | 5.92 |
ROIC/WACC1.43
WACC8.41%
2.3 Liquidity
A Current Ratio of 5.94 indicates that DHI has no problem at all paying its short term obligations.
DHI has a better Current ratio (5.94) than 77.05% of its industry peers.
A Quick Ratio of 0.63 indicates that DHI may have some problems paying its short term obligations.
With a Quick ratio value of 0.63, DHI is not doing good in the industry: 63.93% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 5.94 | ||
| Quick Ratio | 0.63 |
3. Growth
3.1 Past
The earnings per share for DHI have decreased strongly by -19.29% in the last year.
The Earnings Per Share has been growing by 12.86% on average over the past years. This is quite good.
The Revenue has decreased by -6.93% 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)-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
The Earnings Per Share is expected to grow by 19.04% on average over the next years. This is quite good.
The Revenue is expected to grow by 7.20% on average over the next years.
EPS Next Y2.58%
EPS Next 2Y8.91%
EPS Next 3Y13.08%
EPS Next 5Y19.04%
Revenue Next Year1.32%
Revenue Next 2Y3.52%
Revenue Next 3Y4.91%
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
A Price/Earnings ratio of 13.72 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 (26.31), we can say DHI is valued slightly cheaper.
DHI is valuated correctly with a Price/Forward Earnings ratio of 13.37.
DHI's Price/Forward Earnings is on the same level as the industry average.
DHI's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 36.59.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.72 | ||
| Fwd PE | 13.37 |
4.2 Price Multiples
DHI's Enterprise Value to EBITDA is on the same level as the industry average.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of DHI indicates a somewhat cheap valuation: DHI is cheaper than 68.85% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.44 | ||
| EV/EBITDA | 10.11 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
DHI has a very decent profitability rating, which may justify a higher PE ratio.
DHI's earnings are expected to grow with 13.08% in the coming years. This may justify a more expensive valuation.
PEG (NY)5.31
PEG (5Y)1.07
EPS Next 2Y8.91%
EPS Next 3Y13.08%
5. Dividend
5.1 Amount
DHI has a Yearly Dividend Yield of 1.15%.
DHI's Dividend Yield is a higher than the industry average which is at 3.26.
Compared to an average S&P500 Dividend Yield of 2.40, DHI's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.15% |
5.2 History
The dividend of DHI is nicely growing with an annual growth rate of 18.00%!
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 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 2Y8.91%
EPS Next 3Y13.08%
159.01
+2.25 (+1.44%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryHousehold Durables
Earnings (Last)
Earnings (Next)
Inst Owners85.77%
Inst Owner Change1.48%
Ins Owners0.56%
Ins Owner Change7.59%
Market Cap46.44B
Revenue(TTM)34.25B
Net Income(TTM)3.59B
Analysts67.69
Price Target165.2 (3.89%)
Short Float %4.15%
Short Ratio3.38
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.15% |
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)-1.97%
PT rev (3m)1.14%
EPS NQ rev (1m)-12.63%
EPS NQ rev (3m)-11.92%
EPS NY rev (1m)-5.28%
EPS NY rev (3m)-4.41%
Revenue NQ rev (1m)-7.15%
Revenue NQ rev (3m)-4.89%
Revenue NY rev (1m)-0.59%
Revenue NY rev (3m)0.01%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.72 | ||
| Fwd PE | 13.37 | ||
| P/S | 1.38 | ||
| P/FCF | 14.44 | ||
| P/OCF | 13.86 | ||
| P/B | 1.96 | ||
| P/tB | 1.97 | ||
| EV/EBITDA | 10.11 |
EPS(TTM)11.59
EY7.29%
EPS(NY)11.89
Fwd EY7.48%
FCF(TTM)11.01
FCFY6.93%
OCF(TTM)11.47
OCFY7.22%
SpS114.89
BVpS81.14
TBVpS80.59
PEG (NY)5.31
PEG (5Y)1.07
Graham Number145.47
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.11% | ||
| ROE | 14.82% | ||
| ROCE | 15.68% | ||
| ROIC | 11.98% | ||
| ROICexc | 13.28% | ||
| ROICexgc | 15.49% | ||
| OM | 14.06% | ||
| PM (TTM) | 10.47% | ||
| GM | 23.9% | ||
| FCFM | 9.59% |
ROA(3y)12.62%
ROA(5y)14.91%
ROE(3y)18.17%
ROE(5y)22.55%
ROIC(3y)14.89%
ROIC(5y)17.66%
ROICexc(3y)17.11%
ROICexc(5y)20.27%
ROICexgc(3y)19.36%
ROICexgc(5y)22.68%
ROCE(3y)20.31%
ROCE(5y)24.43%
ROICexgc growth 3Y-19.4%
ROICexgc growth 5Y-4.01%
ROICexc growth 3Y-20.32%
ROICexc growth 5Y-5.55%
OM growth 3Y-15.63%
OM growth 5Y-1.09%
PM growth 3Y-15.74%
PM growth 5Y-2.18%
GM growth 3Y-9.11%
GM growth 5Y-0.6%
F-Score4
Asset Turnover0.97
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.25 | ||
| Debt/FCF | 1.82 | ||
| Debt/EBITDA | 1.21 | ||
| Cap/Depr | 135.64% | ||
| Cap/Sales | 0.4% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 69.58% | ||
| Profit Quality | 91.58% | ||
| Current Ratio | 5.94 | ||
| Quick Ratio | 0.63 | ||
| Altman-Z | 5.92 |
F-Score4
WACC8.41%
ROIC/WACC1.43
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 Y2.58%
EPS Next 2Y8.91%
EPS Next 3Y13.08%
EPS Next 5Y19.04%
Revenue 1Y (TTM)-6.93%
Revenue growth 3Y0.76%
Revenue growth 5Y11.02%
Sales Q2Q%-3.25%
Revenue Next Year1.32%
Revenue Next 2Y3.52%
Revenue Next 3Y4.91%
Revenue Next 5Y7.2%
EBIT growth 1Y-24.45%
EBIT growth 3Y-14.98%
EBIT growth 5Y9.81%
EBIT Next Year2.3%
EBIT Next 3Y9.66%
EBIT Next 5Y11.43%
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 grow by 2.58% 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%.