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DHI

D.R. HortonNYSE:DHI Stock Report

Market Cap

US$31.7b

7D

1.8%

1Y

21.3%

Updated

22 Oct, 2021

Data

Company Financials +
DHI fundamental analysis
Snowflake Score
Valuation4/6
Future Growth2/6
Past Performance4/6
Financial Health4/6
Dividends4/6

DHI Overview

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

Summary of all time highs, changes and price drops for D.R. Horton
Historical stock prices
Current Share PriceUS$88.59
52 Week HighUS$64.32
52 Week LowUS$106.89
Beta1.66
1 Month Change0.14%
3 Month Change-5.30%
1 Year Change21.26%
3 Year Change145.74%
5 Year Change209.32%
Change since IPO5,262.10%

Recent News & Updates

Oct 15
Investors Should Be Encouraged By D.R. Horton's (NYSE:DHI) Returns On Capital

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...

Oct 07

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.

Sep 25

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.

Sep 21
D.R. Horton (NYSE:DHI) Has A Pretty Healthy Balance Sheet

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...

Shareholder Returns

DHIUS Consumer DurablesUS Market
7D1.8%3.1%1.7%
1Y21.3%29.9%30.3%

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.

Price Volatility

Is DHI's price volatile compared to industry and market?
DHI volatility
DHI Beta1.66
Industry Beta1.47
Market Beta1

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

FoundedEmployeesCEOWebsite
19789,716David Auldhttps://www.drhorton.com

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

How do D.R. Horton's earnings and revenue compare to its market cap?
DHI fundamental statistics
Market CapUS$31.73b
Earnings (TTM)US$3.67b
Revenue (TTM)US$26.07b

8.7x

P/E Ratio

1.2x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
DHI income statement (TTM)
RevenueUS$26.07b
Cost of RevenueUS$18.93b
Gross ProfitUS$6.70b
ExpensesUS$3.03b
EarningsUS$3.67b

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

Nov 09, 2021

Earnings per share (EPS)10.23
Gross Margin25.71%
Net Profit Margin14.06%
Debt/Equity Ratio31.4%

How did DHI perform over the long term?

See historical performance and comparison

Dividends

0.9%

Current Dividend Yield

8%

Payout Ratio

Valuation

Is D.R. Horton undervalued compared to its fair value and its price relative to the market?

25.3%

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).


Future Growth

How is D.R. Horton forecast to perform in the next 1 to 3 years based on estimates from 13 analysts?

2.7%

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%)


Past Performance

How has D.R. Horton performed over the past 5 years?

28.0%

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.


Financial Health

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.


Balance Sheet


Dividend

What is D.R. Horton current dividend yield, its reliability and sustainability?

0.90%

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).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

6.5yrs

Average management tenure


CEO

David Auld (65 yo)

7yrs

Tenure

US$19,197,322

Compensation

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.


Leadership Team

Experienced Management: DHI's management team is seasoned and experienced (6.5 years average tenure).


Board Members

Experienced Board: DHI's board of directors are seasoned and experienced ( 16.2 years average tenure).


Ownership

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

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

D.R. Horton, Inc.'s employee growth, exchange listings and data sources


Key Information

  • 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


Location

  • D.R. Horton, Inc.
  • 1341 Horton Circle
  • Arlington
  • Texas
  • 76011
  • United States

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/10/22 22:54
End of Day Share Price2021/10/22 00:00
Earnings2021/06/30
Annual Earnings2020/09/30


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.