DR HORTON INC (DHI) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:DHI - US23331A1097 - Common Stock
145.37 USD
-0.59 (-0.4%)
Taking everything into account, DHI scores 6 out of 10 in our fundamental rating. DHI was compared to 60 industry peers in the Household Durables industry. DHI has an excellent profitability rating, but there are some minor concerns on its financial health. DHI has a correct valuation and a medium 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.
DHI had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
DHI has a Return On Assets of 10.11%. This is amongst the best in the industry. DHI outperforms 85.00% of its industry peers.
The Return On Equity of DHI (14.82%) is better than 71.67% of its industry peers.
DHI has a better Return On Invested Capital (12.10%) than 83.33% of its industry peers.
DHI had an Average Return On Invested Capital over the past 3 years of 14.99%. This is significantly above the industry average of 9.70%.
| 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 better Profit Margin (10.47%) than 85.00% of its industry peers.
DHI's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 14.19%, DHI belongs to the top of the industry, outperforming 85.00% of the companies in the same industry.
DHI's Operating Margin has been stable in the last couple of years.
DHI has a Gross Margin of 24.03%. This is comparable to the rest of the industry: DHI outperforms 43.33% of its industry peers.
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
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.
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 5.67 indicates that DHI is not in any danger for bankruptcy at the moment.
The Altman-Z score of DHI (5.67) is better than 83.33% 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.
DHI has a better Debt to FCF ratio (1.82) than 71.67% of its industry peers.
DHI has a Debt/Equity ratio of 0.24. This is a healthy value indicating a solid balance between debt and equity.
DHI has a Debt to Equity ratio (0.24) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.24 | ||
| Debt/FCF | 1.82 | ||
| Altman-Z | 5.67 |
ROIC/WACC1.35
WACC8.95%
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 70.00% of the companies in the same industry.
A Quick Ratio of 0.56 indicates that DHI may have some problems paying its short term obligations.
DHI's Quick ratio of 0.56 is on the low side compared to the rest of the industry. DHI is outperformed by 71.67% 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%.
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 -6.93% 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)-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.
DHI is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.20% yearly.
EPS Next Y-0.23%
EPS Next 2Y8.2%
EPS Next 3Y13.3%
EPS Next 5Y19.04%
Revenue Next Year0.12%
Revenue Next 2Y2.85%
Revenue Next 3Y4.92%
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 12.54 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.
When comparing the Price/Earnings ratio of DHI to the average of the S&P500 Index (26.84), we can say DHI is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 12.57, the valuation of DHI can be described as correct.
Based on the Price/Forward Earnings ratio, DHI is valued a bit cheaper than the industry average as 61.67% of the companies are valued more expensively.
DHI's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 23.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.54 | ||
| Fwd PE | 12.57 |
4.2 Price Multiples
DHI's Enterprise Value to EBITDA is on the same level as the industry average.
68.33% of the companies in the same industry are more expensive than DHI, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.93 | ||
| EV/EBITDA | 8.91 |
4.3 Compensation for Growth
DHI has a very decent profitability rating, which may justify a higher PE ratio.
DHI's earnings are expected to grow with 13.30% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)0.98
EPS Next 2Y8.2%
EPS Next 3Y13.3%
5. Dividend
5.1 Amount
DHI has a Yearly Dividend Yield of 1.23%. 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 1.23.
Compared to the average S&P500 Dividend Yield of 2.00, DHI is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.23% |
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 Years10
Div Non Decr Years10
5.3 Sustainability
13.80% 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.
DP13.8%
EPS Next 2Y8.2%
EPS Next 3Y13.3%
NYSE:DHI (12/30/2025, 3:28:07 PM)
145.37
-0.59 (-0.4%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryHousehold Durables
Earnings (Last)
Earnings (Next)
Inst Owners89.27%
Inst Owner Change1.52%
Ins Owners0.66%
Ins Owner Change7.17%
Market Cap42.46B
Revenue(TTM)34.25B
Net Income(TTM)3.59B
Analysts68.8
Price Target167.72 (15.37%)
Short Float %5.48%
Short Ratio4.67
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.23% |
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)1.53%
PT rev (3m)0.33%
EPS NQ rev (1m)-0.63%
EPS NQ rev (3m)-15.02%
EPS NY rev (1m)-2.75%
EPS NY rev (3m)-7.94%
Revenue NQ rev (1m)-0.43%
Revenue NQ rev (3m)-7.22%
Revenue NY rev (1m)-1.19%
Revenue NY rev (3m)-1.89%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.54 | ||
| Fwd PE | 12.57 | ||
| P/S | 1.24 | ||
| P/FCF | 12.93 | ||
| P/OCF | 12.41 | ||
| P/B | 1.76 | ||
| P/tB | 1.77 | ||
| EV/EBITDA | 8.91 |
EPS(TTM)11.59
EY7.97%
EPS(NY)11.56
Fwd EY7.95%
FCF(TTM)11.24
FCFY7.73%
OCF(TTM)11.71
OCFY8.06%
SpS117.27
BVpS82.83
TBVpS82.27
PEG (NY)N/A
PEG (5Y)0.98
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 | 5.67 |
F-Score3
WACC8.95%
ROIC/WACC1.35
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-0.23%
EPS Next 2Y8.2%
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 Year0.12%
Revenue Next 2Y2.85%
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 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 decline by -0.23% 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%.