NYSE:DHI

Stock Analysis Report

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Executive Summary

D.R. Horton, Inc. operates as a homebuilding company in East, Midwest, Southeast, South Central, Southwest, and West regions in the United States. More Details


Snowflake Analysis

Solid track record with excellent balance sheet and pays a dividend.


Similar Companies

Share Price & News

How has D.R. Horton's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: DHI has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-3.6%

DHI

-3.1%

US Consumer Durables

0.4%

US Market


1 Year Return

41.0%

DHI

17.8%

US Consumer Durables

17.8%

US Market

Return vs Industry: DHI exceeded the US Consumer Durables industry which returned 17.8% over the past year.

Return vs Market: DHI exceeded the US Market which returned 17.8% over the past year.


Shareholder returns

DHIIndustryMarket
7 Day-3.6%-3.1%0.4%
30 Day1.7%6.0%6.1%
90 Day13.1%12.4%8.9%
1 Year42.7%41.0%19.3%17.8%20.5%17.8%
3 Year71.3%64.9%18.6%13.8%42.3%32.9%
5 Year160.2%144.8%49.8%40.3%84.2%63.4%

Price Volatility Vs. Market

How volatile is D.R. Horton's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

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

39.8%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: DHI ($73.06) is trading below our estimate of fair value ($121.39)

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 (13.1x) compared to the US Consumer Durables industry average (14.1x).

PE vs Market: DHI is good value based on its PE Ratio (13.1x) compared to the US market (19.1x).


Price to Earnings Growth Ratio

PEG Ratio: DHI is poor value based on its PEG Ratio (1.1x)


Price to Book Ratio

PB vs Industry: DHI is overvalued based on its PB Ratio (2.4x) compared to the US Consumer Durables industry average (1.6x).


Next Steps

Future Growth

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

12.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: DHI's forecast earnings growth (12% per year) is above the savings rate (2.2%).

Earnings vs Market: DHI's earnings (12% per year) are forecast to grow slower than the US market (22.1% per year).

High Growth Earnings: DHI's earnings are forecast to grow, but not significantly.

Revenue vs Market: DHI's revenue (12.2% per year) is forecast to grow faster than the US market (9.9% per year).

High Growth Revenue: DHI's revenue (12.2% 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 (22.8%)


Next Steps

Past Performance

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

21.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: DHI has high quality earnings.

Growing Profit Margin: DHI's current net profit margins (10.8%) are higher than last year (9.3%).


Past Earnings Growth Analysis

Earnings Trend: DHI's earnings have grown significantly by 21.3% per year over the past 5 years.

Accelerating Growth: DHI's earnings growth over the past year (29.8%) exceeds its 5-year average (21.3% per year).

Earnings vs Industry: DHI earnings growth over the past year (29.8%) exceeded the Consumer Durables industry 20.9%.


Return on Equity

High ROE: DHI's Return on Equity (18.1%) is considered low.


Next Steps

Financial Health

How is D.R. Horton's financial position?


Financial Position Analysis

Short Term Liabilities: DHI's short term assets ($16.9B) exceed its short term liabilities ($3.2B).

Long Term Liabilities: DHI's short term assets ($16.9B) exceed its long term liabilities ($3.4B).


Debt to Equity History and Analysis

Debt Level: DHI's debt to equity ratio (38.3%) is considered satisfactory.

Reducing Debt: DHI's debt to equity ratio has reduced from 67.8% to 38.3% over the past 5 years.

Debt Coverage: DHI's debt is well covered by operating cash flow (32.3%).

Interest Coverage: Insufficient data to determine if DHI's interest payments on its debt are well covered by EBIT.


Balance Sheet


Next Steps

Dividend

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

0.96%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: DHI's dividend (0.96%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.63%).

High Dividend: DHI's dividend (0.96%) is low compared to the top 25% of dividend payers in the US market (4.56%).


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 (12.1%), 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 (10.2% payout ratio).


Next Steps

Management

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

6.0yrs

Average management tenure


CEO

David Auld (64 yo)

6yrs

Tenure

US$14,351,631

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 ($USD14.35M) is about average for companies of similar size in the US market ($USD11.16M).

Compensation vs Earnings: David's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Donald Horton
Chairman of the Board29.25yrsUS$24.61m9.27%
$ 2.5b
David Auld
President & CEO6yrsUS$14.35m0.083%
$ 22.1m
Bill Wheat
Executive VP & CFO17yrsUS$4.51m0.042%
$ 11.1m
Michael Murray
Executive VP & COO6yrsUS$5.92m0.041%
$ 10.9m
Aron Odom
VP, Corporate Controller & Principal Accounting Officer0.92yrno data0.00083%
$ 220.5k
Collin Dawson
Vice President of Corporate Finance & Treasurerno datano datano data
Jessica Hansen
Vice President of Investor Relationsno datano datano data
Thomas Montano
VP, Corporate Compliance Officer & Secretaryno datano datano data
Matt Farris
President of West Regionno datano datano data
Tom Hill
President of East Regionno datano datano data
Paul Romanowski
President of Florida Regionno datano datano data
Doug Brown
President of North Region4.92yrsno datano data

6.0yrs

Average Tenure

54yo

Average Age

Experienced Management: DHI's management team is seasoned and experienced (6 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Donald Horton
Chairman of the Board29.25yrsUS$24.61m9.27%
$ 2.5b
Michael Buchanan
Independent Director17.75yrsUS$584.95k0.0092%
$ 2.4m
Bradley Anderson
Independent Director22.5yrsUS$584.95k0.012%
$ 3.2m
Michael Hewatt
Independent Director15.17yrsUS$584.95k0%
$ 0
Maribess Miller
Independent Presiding Director0.92yrno datano data
Barbara Allen
Independent Director6.75yrsUS$582.45k0.0015%
$ 411.9k

16.5yrs

Average Tenure

70.5yo

Average Age

Experienced Board: DHI's board of directors are seasoned and experienced ( 16.5 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 company bio, 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$26.572b
  • Shares outstanding: 363.70m
  • Website: https://www.drhorton.com

Number of Employees


Location

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

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
DHINYSE (New York Stock Exchange)YesCommon StockUSUSDJun 1992
HO2DB (Deutsche Boerse AG)YesCommon StockDEEURJun 1992
0I6KLSE (London Stock Exchange)YesCommon StockGBUSDJun 1992
DHI *BMV (Bolsa Mexicana de Valores)YesCommon StockMXMXNJun 1992
D1HI34BOVESPA (Bolsa de Valores de Sao Paulo)BDR EACH REPR 1 COMBRBRLDec 2019

Biography

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 ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/26 05:16
End of Day Share Price2020/10/23 00:00
Earnings2020/06/30
Annual Earnings2019/09/30


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.