DR HORTON INC (DHI) Stock Fundamental Analysis
NYSE:DHI • US23331A1097
167.19 USD
+3.34 (+2.04%)
Last: Feb 12, 2026, 10:03 AM
DHI gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 60 industry peers in the Household Durables industry. DHI gets an excellent profitability rating and is at the same time showing great financial health properties. DHI has a correct valuation and a medium 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.
- In the past 5 years DHI always reported a positive cash flow from operatings.
1.2 Ratios
- The Return On Assets of DHI (9.63%) is better than 83.33% of its industry peers.
- Looking at the Return On Equity, with a value of 13.90%, DHI is in the better half of the industry, outperforming 73.33% of the companies in the same industry.
- Looking at the Return On Invested Capital, with a value of 11.56%, DHI is in the better half of the industry, outperforming 80.00% of the companies in the same industry.
- DHI had an Average Return On Invested Capital over the past 3 years of 14.99%. This is significantly above the industry average of 9.31%.
| 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
- DHI has a Profit Margin of 9.95%. This is amongst the best in the industry. DHI outperforms 83.33% of its industry peers.
- In the last couple of years the Profit Margin of DHI has declined.
- DHI has a Operating Margin of 13.57%. This is amongst the best in the industry. DHI outperforms 85.00% of its industry peers.
- DHI's Operating Margin has been stable in the last couple of years.
- With a Gross Margin value of 23.61%, DHI is not doing good in the industry: 60.00% of the companies in the same industry are doing better.
- DHI's Gross Margin has been stable in the last couple of years.
| 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.
- The number of shares outstanding for DHI has been reduced compared to 1 year ago.
- Compared to 5 years ago, DHI has less shares outstanding
- Compared to 1 year ago, DHI has a worse debt to assets ratio.
2.2 Solvency
- An Altman-Z score of 6.17 indicates that DHI is not in any danger for bankruptcy at the moment.
- Looking at the Altman-Z score, with a value of 6.17, DHI belongs to the top of the industry, outperforming 85.00% of the companies in the same industry.
- DHI has a debt to FCF ratio of 1.60. This is a very positive value and a sign of high solvency as it would only need 1.60 years to pay back of all of its debts.
- DHI has a better Debt to FCF ratio (1.60) than 71.67% of its industry peers.
- DHI has a Debt/Equity ratio of 0.22. This is a healthy value indicating a solid balance between debt and equity.
- DHI's Debt to Equity ratio of 0.22 is fine compared to the rest of the industry. DHI outperforms 63.33% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.22 | ||
| Debt/FCF | 1.6 | ||
| Altman-Z | 6.17 |
ROIC/WACC1.24
WACC9.32%
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.
- DHI has a better Current ratio (5.29) 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 76.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 5.29 | ||
| Quick Ratio | 0.55 |
3. Growth
3.1 Past
- DHI shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -22.19%.
- 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.
- 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
- 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 Y-6.56%
EPS Next 2Y4.56%
EPS Next 3Y11.41%
EPS Next 5Y19.04%
Revenue Next Year0.08%
Revenue Next 2Y3.02%
Revenue Next 3Y4.52%
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.
- 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 15.19 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 28.18.
- A Price/Forward Earnings ratio of 13.20 indicates a correct valuation of DHI.
- 75.00% of the companies in the same industry are more expensive than DHI, based on the Price/Forward Earnings ratio.
- Compared to an average S&P500 Price/Forward Earnings ratio of 28.01, DHI is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.19 | ||
| Fwd PE | 13.2 |
4.2 Price Multiples
- DHI's Enterprise Value to EBITDA ratio is in line with 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 73.33% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.04 | ||
| EV/EBITDA | 10.76 |
4.3 Compensation for Growth
- The decent profitability rating of DHI may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1.18
EPS Next 2Y4.56%
EPS Next 3Y11.41%
5. Dividend
5.1 Amount
- DHI has a Yearly Dividend Yield of 1.14%. Purely for dividend investing, there may be better candidates out there.
- DHI's Dividend Yield is a higher than the industry average which is at 1.17.
- DHI's Dividend Yield is slightly below the S&P500 average, which is at 1.80.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.14% |
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 14.93% 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.
DP14.93%
EPS Next 2Y4.56%
EPS Next 3Y11.41%
NYSE:DHI (2/12/2026, 10:03:49 AM)
167.19
+3.34 (+2.04%)
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-2.74%
Ins Owners0.66%
Ins Owner Change10.85%
Market Cap48.83B
Revenue(TTM)33.52B
Net Income(TTM)3.34B
Analysts70
Price Target165.74 (-0.87%)
Short Float %5.75%
Short Ratio4.56
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.14% |
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)2.11%
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)-1.18%
PT rev (3m)-1.69%
EPS NQ rev (1m)-12%
EPS NQ rev (3m)-13.53%
EPS NY rev (1m)-6.34%
EPS NY rev (3m)-8.91%
Revenue NQ rev (1m)-1.59%
Revenue NQ rev (3m)-2.6%
Revenue NY rev (1m)-0.03%
Revenue NY rev (3m)-1.22%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.19 | ||
| Fwd PE | 13.2 | ||
| P/S | 1.46 | ||
| P/FCF | 14.04 | ||
| P/OCF | 13.46 | ||
| P/B | 2.03 | ||
| P/tB | 2.05 | ||
| EV/EBITDA | 10.76 |
EPS(TTM)11.01
EY6.59%
EPS(NY)12.67
Fwd EY7.58%
FCF(TTM)11.9
FCFY7.12%
OCF(TTM)12.42
OCFY7.43%
SpS114.79
BVpS82.16
TBVpS81.6
PEG (NY)N/A
PEG (5Y)1.18
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 | 6.17 |
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-6.56%
EPS Next 2Y4.56%
EPS Next 3Y11.41%
EPS Next 5Y19.04%
Revenue 1Y (TTM)-8.62%
Revenue growth 3Y0.76%
Revenue growth 5Y11.02%
Sales Q2Q%-9.54%
Revenue Next Year0.08%
Revenue Next 2Y3.02%
Revenue Next 3Y4.52%
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 15.19 and the Price/Book (PB) ratio is 2.03.
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 -6.56% in the next year.