NYSE:DHI

Stock Analysis Report

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.

Snowflake

Fundamentals

Good value with proven track record 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


Market Performance


7 Day Return

1.7%

DHI

2.7%

US Consumer Durables

0.5%

US Market


1 Year Return

52.0%

DHI

45.4%

US Consumer Durables

6.8%

US Market

Return vs Industry: DHI exceeded the US Consumer Durables industry which returned 45.4% over the past year.

Return vs Market: DHI exceeded the US Market which returned 6.8% over the past year.


Shareholder returns

DHIIndustryMarket
7 Day1.7%2.7%0.5%
30 Day3.1%4.3%-0.8%
90 Day21.9%8.5%-0.9%
1 Year54.3%52.0%47.4%45.4%9.2%6.8%
3 Year88.6%81.5%53.8%49.0%45.6%36.2%
5 Year145.9%131.9%43.2%34.1%63.2%45.4%

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?

44.9%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: DHI ($53.17) is trading below our estimate of fair value ($96.51)

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 (12.6x) compared to the Consumer Durables industry average (13.8x).

PE vs Market: DHI is good value based on its PE Ratio (12.6x) compared to the US market (17.7x).


Price to Earnings Growth Ratio

PEG Ratio: DHI is poor value based on its PEG Ratio (2x)


Price to Book Ratio

PB vs Industry: DHI is overvalued based on its PB Ratio (2x) 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 15 analysts?

6.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: DHI's forecast earnings growth (6.4% per year) is above the savings rate (2.7%).

Earnings vs Market: DHI's earnings (6.4% per year) are forecast to grow slower than the US market (14.6% per year).

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

Revenue vs Market: DHI's revenue (8.2% per year) is forecast to grow faster than the US market (7.2% per year).

High Growth Revenue: DHI's revenue (8.2% 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 low in 3 years time (14.7%).


Next Steps

Past Performance

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

22.4%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: DHI's earnings have grown significantly by 22.4% per year over the past 5 years.

Accelerating Growth: DHI's earnings growth over the past year (20.8%) is below its 5-year average (22.4% per year).

Earnings vs Industry: DHI earnings growth over the past year (20.8%) exceeded the Consumer Durables industry 13.5%.


Return on Equity

High ROE: DHI's Return on Equity (16.1%) is considered low.


Return on Assets

ROA vs Industry: DHI has a higher Return on Assets than the Consumer Durables industry average last year.


Return on Capital Employed

ROCE Improving: DHI has improved its Return on Capital Employed over the past 3 years.


Next Steps

Financial Health

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


Financial Position Analysis

Short Term Liabilities: DHI's short term assets ($14.3B) exceeds its short term liabilities ($2.1B)

Long Term Liabilities: DHI's short term assets (14.3B) exceeds its long term liabilities (3.3B)


Debt to Equity History and Analysis

Debt Level: DHI's debt to equity ratio (35.2%) is considered satisfactory

Reducing Debt: DHI's debt to equity ratio has reduced from 69.3% to 35.2% over the past 5 years.

Debt Coverage: DHI's debt is not well covered by operating cash flow (9.3%).

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


Balance Sheet

Inventory Level: DHI has a high level of physical assets or inventory.

Debt Coverage by Assets: DHI's debt is covered by short term assets (assets are 4.147880x debt).


Next Steps

Dividend

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

1.13%

Current Dividend Yield


Dividend Yield vs Market

company1.1%marketbottom25%1.4%markettop25%3.7%industryaverage1.9%forecastin3Years1.2%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: DHI's dividend (1.13%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.45%).

High Dividend: DHI's dividend (1.13%) is low compared to the top 25% of dividend payers in the US market (3.73%).

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 (13.6%), 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 (12.9% payout ratio).


Next Steps

Management

What is the CEO of D.R. Horton's salary, the management and board of directors tenure and is there insider trading?

5.0yrs

Average management tenure


CEO

David Auld (63yo)

5yrs

Tenure

US$14,860,487

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 ($USD14.86M) is about average for companies of similar size in the US market ($USD11.18M).

Compensation vs Earnings: David's compensation has increased by more than 20% in the past year.


Management Age and Tenure

5.0yrs

Average Tenure

58yo

Average Age

Experienced Management: DHI's management team is seasoned and experienced (5 years average tenure).


Board Age and Tenure

17.8yrs

Average Tenure

70yo

Average Age

Experienced Board: DHI's board of directors are seasoned and experienced ( 17.8 years average tenure).


Insider Trading

Insider Buying: DHI insiders have only sold shares in the past 3 months.


Recent Insider Transactions

SellUS$346,14921 Aug 19
Michael Hewatt
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares7,000
Max PriceUS$49.45
SellUS$156,00025 Mar 19
Michael Hewatt
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares3,833
Max PriceUS$41.28
SellUS$38,04611 Mar 19
Barbara Allen
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares940
Max PriceUS$40.47
SellUS$120,58914 Feb 19
Michael Hewatt
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares3,000
Max PriceUS$40.20
SellUS$147,16428 Jan 19
Barbara Allen
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares4,000
Max PriceUS$36.79

Ownership Breakdown


Management Team

  • Donald Horton (69yo)

    Chairman of the Board

    • Tenure: 28.3yrs
    • Compensation: US$25.75m
  • Bill Wheat (53yo)

    Executive VP & CFO

    • Tenure: 16yrs
    • Compensation: US$4.83m
  • David Auld (63yo)

    President & CEO

    • Tenure: 5yrs
    • Compensation: US$14.86m
  • Thomas Montano

    VP, Corporate Compliance Officer & Secretary

    • Tenure: 0yrs
  • Matt Farris

    President of West Region

    • Tenure: 0yrs
  • Jessica Hansen

    Vice President

    • Tenure: 0yrs
  • Tom Hill

    President of East Region

    • Tenure: 0yrs
  • Paul Romanowski

    President of Florida Region

    • Tenure: 0yrs
  • Michael Murray (53yo)

    Executive VP & COO

    • Tenure: 5yrs
    • Compensation: US$6.03m
  • Doug Brown

    President of North Region

    • Tenure: 3.9yrs

Board Members

  • Donald Horton (69yo)

    Chairman of the Board

    • Tenure: 28.3yrs
    • Compensation: US$25.75m
  • Mike Buchanan (72yo)

    Presiding Director

    • Tenure: 0yrs
    • Compensation: US$175.61k
  • Brad Anderson (58yo)

    Independent Director

    • Tenure: 21.5yrs
    • Compensation: US$175.61k
  • Michael Hewatt (70yo)

    Independent Director

    • Tenure: 14.2yrs
    • Compensation: US$175.61k
  • Barbara Allen (73yo)

    Independent Director

    • Tenure: 5.8yrs
    • Compensation: US$173.11k

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$19.663b
  • Shares outstanding: 369.82m
  • 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

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 Analysis2019/10/21 23:34
End of Day Share Price2019/10/21 00:00
Earnings2019/06/30
Annual Earnings2018/09/30


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.