D.R. Horton Inc
Exchange: NYSESector: Consumer CyclicalIndustry: Residential Construction
D.R. Horton, Inc. is the homebuilding companies in the United States. The Company constructs and sells homes through its operating divisions in 26 states and 77 metropolitan markets of the United States, primarily under the name of D.R. Horton, America's Builder. During the fiscal year ended September 30, 2012 (fiscal 2012), the Company closed 18,890 homes. Through its financial services operations, the Company provides mortgages financing and title agency services to homebuyers in many of its homebuilding markets. DHI Mortgage, its 100% owned subsidiary, provides mortgage financing services primarily to the Company's homebuilding customers and generally sells the mortgages it originates and the related servicing rights to third-party purchasers. In August 2012, it acquired the homebuilding operations of Breland Homes.
Did you know?
Price sits at 41% of its 52-week range.
Current Price
$143.53
-4.30%GoodMoat Value
$366.96
155.7% undervaluedProfile
Valuation (TTM)
Market Cap$41.58B
P/E13.11
EV$43.54B
P/B1.72
Shares Out289.70M
P/Sales1.25
Revenue$33.35B
EV/EBITDA10.74
D.R. Horton Inc (DHI) Stock Analysis
GoodMoat Analysis
D.R. Horton is a leading U.S. homebuilder, but its profile presents a mixed picture for a value investor. While it demonstrates some operational strength and trades at a low P/E, it shows minimal durable competitive advantages according to the GoodMoat framework and is currently priced far below the platform's target price.
Read full analysis
D.R. Horton Inc. is the largest homebuilder in the United States by volume, operating in the residential construction sector. Applying the GoodMoat Moat Identification framework reveals a challenging profile. The company likely scores low, potentially meeting only 1-2 of the 14 criteria, such as 'Scale Privilege' due to its market-leading size and possibly 'Niche Dominance' in its core markets. However, it lacks the high switching costs, network effects, or proprietary technology that define a durable moat. The cyclical nature of homebuilding also introduces high 'Macro Sensitivity,' a noted Red Flag. Financially, the company shows operational discipline with a Debt/Equity ratio of 0.25 and a solid ROE of 13.8%, but it faces headwinds with Revenue Growth YoY at -9.5%. The stock trades at a P/E of 12.1, which appears low, and offers a Free Cash Flow Yield of 8.2%. The critical valuation discrepancy is the GoodMoat Target of $366.96, which implies a significant margin of safety relative to the current price of $137.69. According to the Decision Framework, the low Moat Score likely fails the initial 'Moat & Quality Gate,' suggesting the business lacks a durable competitive advantage. Even if one proceeds, the extreme gap between the current price and the target price warrants very close investigation to understand the assumptions behind that target before any conclusion can be drawn. Analysis based on data as of 2024-05-15.
Market Cap$41.58B
Current Price$143.53
P/E Ratio13.11
Forward P/E—
PEG Ratio-1.00
EPS$11.57
Book Value$83.50
P/B Ratio1.72
DHI Financial Charts
FCF vs CAPEX
FCFCAPEX
Forward estimates use 26.4% FCF growth (CAGR)
Cash vs Debt
Net Debt: 2.9B
Revenue
17.6B
FY19
20.3B
FY20
27.8B
FY21
33.5B
FY22
35.5B
FY23
36.8B
FY24
34.3B
FY25
Net Income
1.6B
FY19
2.4B
FY20
4.2B
FY21
5.9B
FY22
4.7B
FY23
4.8B
FY24
3.6B
FY25
DHI 52-Week Range
$115.89
$182.94
50-Day MA: $147.05200-Day MA: $153.68
Did you know?
Trading 156% below its estimated fair value of $366.96.
D.R. Horton Inc (DHI) Financial Summary
D.R. Horton Inc (DHI) is a Consumer Cyclical company in the Residential Construction industry, listed on NYSE. The stock currently trades at $143.53 with a market capitalization of $41.58B.
Key valuation metrics include a P/E ratio of 13.11, price-to-book ratio of 1.72, and EPS of $11.57. The company reports a profit margin of 9.5% and return on equity of 13.1%.
DHI Key Financial Metrics
| Metric | Value |
|---|---|
| Market Cap | $41.58B |
| P/E Ratio | 13.11 |
| EPS | $11.57 |
| P/B Ratio | 1.72 |
| P/S Ratio | 1.25 |
| EV/EBITDA | 10.74 |
| Dividend Yield | 1.19% |
| Profit Margin | 9.5% |
| Return on Equity | 13.1% |
| Debt/Equity | 0.25 |
DHI Revenue & Earnings History
| Year | Revenue | Net Income |
|---|---|---|
| FY19 | $17.59B | $1.62B |
| FY20 | $20.31B | $2.37B |
| FY21 | $27.77B | $4.18B |
| FY22 | $33.48B | $5.86B |
| FY23 | $35.46B | $4.75B |
| FY24 | $36.80B | $4.76B |
| FY25 | $34.25B | $3.59B |
D.R. Horton Inc (DHI) Valuation
Based on GoodMoat's DCF model, D.R. Horton Inc has a fair value estimate of $366.96. At the current price of $143.53, the stock appears 60.9% undervalued relative to our intrinsic value estimate.
DHI Quality Indicators
D.R. Horton Inc maintains a profit margin of 9.5% and an operating margin of 12.9%. Return on equity stands at 13.1%. Debt-to-equity ratio is 0.25.
About D.R. Horton Inc
D.R. Horton, Inc. is the homebuilding companies in the United States. The Company constructs and sells homes through its operating divisions in 26 states and 77 metropolitan markets of the United States, primarily under the name of D.R. Horton, America's Builder. During the fiscal year ended September 30, 2012 (fiscal 2012), the Company closed 18,890 homes. Through its financial services operations, the Company provides mortgages financing and title agency services to homebuyers in many of its homebuilding markets. DHI Mortgage, its 100% owned subsidiary, provides mortgage financing services primarily to the Company's homebuilding customers and generally sells the mortgages it originates and the related servicing rights to third-party purchasers. In August 2012, it acquired the homebuilding operations of Breland Homes.
DHI Free Cash Flow
D.R. Horton Inc generated $3.31B in trailing twelve-month free cash flow, representing an FCF yield of 7.95%. This strong FCF yield suggests the company generates substantial cash relative to its market value.
DHI Shares Outstanding
D.R. Horton Inc has 0.29 billion shares outstanding at a share price of $143.53, giving it a market capitalization of $41.58B.
DHI Recent Insider Trades
Recent insider transactions at D.R. Horton Inc include:
| Insider | Type | Shares | Value |
|---|---|---|---|
| Odom Aron M. (SVP, Controller and PAO) | SELL | 260 | $43563.00 |
| Murray Michael J (EVP and COO) | SELL | 120 | $17876.28 |