D.R. Horton, Inc. operates as a homebuilding company in East, Midwest, Southeast, South Central, Southwest, and West regions in the United States.
D.R. Horton Competitors
Price History & Performance
|Historical stock prices|
|Current Share Price||US$88.59|
|52 Week High||US$64.32|
|52 Week Low||US$106.89|
|1 Month Change||0.14%|
|3 Month Change||-5.30%|
|1 Year Change||21.26%|
|3 Year Change||145.74%|
|5 Year Change||209.32%|
|Change since IPO||5,262.10%|
Recent News & Updates
Investors Should Be Encouraged By D.R. Horton's (NYSE:DHI) Returns On Capital
If we want to find a potential multi-bagger, often there are underlying trends that can provide clues. Amongst other...
D.R. Horton - Enormous Cash Flow Should Propel Shares Higher
D.R. Horton is the largest U.S. Homebuilder and is thus poised to be a significant beneficiary of secular tailwinds that will continue to outsized earnings in the sector. The stock is down ~15% over the last 60 days, underperforming the S&P 500 which is down only about 5%. Negative news around supply chain disruption is simply delaying home closings while having no impact on demand for new homes. Margins will expand with falling lumber prices. Horton has lagged larger peers like Pulte and Toll Brothers in buying back stock. As Horton is now beginning to aggressively buy back stock and will generate significant cash flow in the near future, expect the company to opportunistically and materially increase its stock repurchases given the outsized level of cash that should be generated. Horton could generate $6B in FCF from its homebuilding operations in FY 2022, with a housing market that just stays flat at current levels, presenting an opportunity for investors before the company gives FY 2022 guidance in November.
D.R. Horton: Buy, Sell, Or Hold? The Ins And Outs Of The Housing Market
New home demand is booming and inventory of existing homes is tight. However, supply constraints, labor shortages, and sticker shock have major homebuilders lowering guidance. While some claim the housing market is in a bubble, others note marked differences in the current climate and the last crash.
D.R. Horton (NYSE:DHI) Has A Pretty Healthy Balance Sheet
Howard Marks put it nicely when he said that, rather than worrying about share price volatility, 'The possibility of...
|DHI||US Consumer Durables||US Market|
Return vs Industry: DHI underperformed the US Consumer Durables industry which returned 33.3% over the past year.
Return vs Market: DHI underperformed the US Market which returned 31.1% over the past year.
Stable Share Price: DHI is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 3% a week.
Volatility Over Time: DHI's weekly volatility (3%) has been stable over the past year.
About the Company
D.R. Horton, Inc. operates as a homebuilding company in East, Midwest, Southeast, South Central, Southwest, and West regions in the United States. It engages in the acquisition and development of land; and construction and sale of homes in 29 states and 88 markets under the names of D.R. Horton, America’s Builder, Express Homes, Emerald Homes, and Freedom Homes.
D.R. Horton Fundamentals Summary
|DHI fundamental statistics|
Is DHI overvalued?See Fair Value and valuation analysis
Earnings & Revenue
|DHI income statement (TTM)|
|Cost of Revenue||US$18.93b|
Last Reported Earnings
Jun 30, 2021
Next Earnings Date
Nov 09, 2021
|Earnings per share (EPS)||10.23|
|Net Profit Margin||14.06%|
How did DHI perform over the long term?See historical performance and comparison
0.9%Current Dividend Yield
Is D.R. Horton undervalued compared to its fair value and its price relative to the market?
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: DHI ($88.59) is trading below our estimate of fair value ($118.61)
Significantly Below Fair Value: DHI is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: DHI is good value based on its PE Ratio (8.7x) compared to the US Consumer Durables industry average (10.5x).
PE vs Market: DHI is good value based on its PE Ratio (8.7x) compared to the US market (18.3x).
Price to Earnings Growth Ratio
PEG Ratio: DHI is poor value based on its PEG Ratio (3.2x)
Price to Book Ratio
PB vs Industry: DHI is overvalued based on its PB Ratio (2.3x) compared to the US Consumer Durables industry average (2x).
How is D.R. Horton forecast to perform in the next 1 to 3 years based on estimates from 13 analysts?
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: DHI's forecast earnings growth (2.7% per year) is above the savings rate (2%).
Earnings vs Market: DHI's earnings (2.7% per year) are forecast to grow slower than the US market (15.1% per year).
High Growth Earnings: DHI's earnings are forecast to grow, but not significantly.
Revenue vs Market: DHI's revenue (6.8% per year) is forecast to grow slower than the US market (9.9% per year).
High Growth Revenue: DHI's revenue (6.8% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: DHI's Return on Equity is forecast to be high in 3 years time (21.3%)
How has D.R. Horton performed over the past 5 years?
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: DHI has a high level of non-cash earnings.
Growing Profit Margin: DHI's current net profit margins (14.1%) are higher than last year (10.8%).
Past Earnings Growth Analysis
Earnings Trend: DHI's earnings have grown significantly by 28% per year over the past 5 years.
Accelerating Growth: DHI's earnings growth over the past year (78.8%) exceeds its 5-year average (28% per year).
Earnings vs Industry: DHI earnings growth over the past year (78.8%) underperformed the Consumer Durables industry 78.8%.
Return on Equity
High ROE: DHI's Return on Equity (26%) is considered high.
How is D.R. Horton's financial position?
Financial Position Analysis
Short Term Liabilities: DHI's short term assets ($21.0B) exceed its short term liabilities ($3.5B).
Long Term Liabilities: DHI's short term assets ($21.0B) exceed its long term liabilities ($4.2B).
Debt to Equity History and Analysis
Debt Level: DHI's debt to equity ratio (31.4%) is considered satisfactory.
Reducing Debt: DHI's debt to equity ratio has reduced from 50.7% to 31.4% over the past 5 years.
Debt Coverage: DHI's debt is not well covered by operating cash flow (18%).
Interest Coverage: Insufficient data to determine if DHI's interest payments on its debt are well covered by EBIT.
What is D.R. Horton current dividend yield, its reliability and sustainability?
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: DHI's dividend (0.9%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.27%).
High Dividend: DHI's dividend (0.9%) is low compared to the top 25% of dividend payers in the US market (3.49%).
Stability and Growth of Payments
Stable Dividend: DHI's dividends per share have been stable in the past 10 years.
Growing Dividend: DHI's dividend payments have increased over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: With its low payout ratio (7.7%), DHI's dividend payments are thoroughly covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: DHI's dividends in 3 years are forecast to be thoroughly covered by earnings (7.9% payout ratio).
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
David Auld (65 yo)
Mr. David V. Auld is President and Chief Executive Officer of D.R. Horton, Inc. since October 2014. Mr. Auld was Executive Vice President and Chief Operating Officer from November 2013 until October 2014....
CEO Compensation Analysis
Compensation vs Market: David's total compensation ($USD19.20M) is above average for companies of similar size in the US market ($USD11.15M).
Compensation vs Earnings: David's compensation has increased by more than 20% in the past year.
Experienced Management: DHI's management team is seasoned and experienced (6.5 years average tenure).
Experienced Board: DHI's board of directors are seasoned and experienced ( 16.2 years average tenure).
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: DHI insiders have only sold shares in the past 3 months.
Recent Insider Transactions
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
D.R. Horton, Inc.'s employee growth, exchange listings and data sources
- Name: D.R. Horton, Inc.
- Ticker: DHI
- Exchange: NYSE
- Founded: 1978
- Industry: Homebuilding
- Sector: Consumer Durables
- Market Cap: US$31.732b
- Shares outstanding: 358.19m
- Website: https://www.drhorton.com
Number of Employees
- D.R. Horton, Inc.
- 1341 Horton Circle
- United States
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2021/10/22 22:54|
|End of Day Share Price||2021/10/22 00:00|
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.