ScoreWhy is D.R. Horton, Inc. ?
1
Strong Long Term Fundamental Strength with an average Return on Capital Employed (ROCE) of 26.22%
- Healthy long term growth as Net Sales has grown by an annual rate of 12.78% and Operating profit at 15.06%
- Strong ability to service debt as the company has a low Debt to EBITDA ratio of 0.54 times
2
Negative results in Jun 25
- NET PROFIT(HY) At USD 1,913.37 MM has Grown at -26.07%
- ROCE(HY) Lowest at 16.27%
- RAW MATERIAL COST(Y) Grown by 10.04% (YoY)
3
With ROCE of 19.57%, it has a fair valuation with a 1.63 Enterprise value to Capital Employed
- The stock is trading at a fair value compared to its peers' average historical valuations
- Over the past year, while the stock has generated a return of -1.15%, its profits have fallen by -12%
4
Underperformed the market in the last 1 year
- Even though the market (S&P 500) has generated returns of 14.11% in the last 1 year, the stock has hugely underperformed and has generate negative returns of -1.15% returns
Real-Time Research ReportHow much should you hold?
- Overall Portfolio exposure to D.R. Horton, Inc. should be less than 10%
- Overall Portfolio exposure to Furniture, Home Furnishing should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Furniture, Home Furnishing)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is D.R. Horton, Inc. for you?
Medium Risk, Medium Return
Absolute
Risk Adjusted
Volatility
D.R. Horton, Inc.
4.12%
0.24
38.22%
S&P 500
14.9%
0.70
20.15%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
8.57%
EBIT Growth (5y)
4.66%
EBIT to Interest (avg)
100.00
Debt to EBITDA (avg)
0.54
Net Debt to Equity (avg)
0.16
Sales to Capital Employed (avg)
1.19
Tax Ratio
23.71%
Dividend Payout Ratio
13.83%
Pledged Shares
0
Institutional Holding
97.33%
ROCE (avg)
26.22%
ROE (avg)
24.26%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
13
Industry P/E
Price to Book Value
1.96
EV to EBIT
11.41
EV to EBITDA
11.14
EV to Capital Employed
1.85
EV to Sales
1.49
PEG Ratio
NA
Dividend Yield
1.14%
ROCE (Latest)
16.24%
ROE (Latest)
14.87%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Bearish
Mildly Bearish
RSI
No Signal
No Signal
Bollinger Bands
Bearish
Bearish
Moving Averages
Mildly Bullish (Daily)
KST
Bullish
Bullish
Dow Theory
Mildly Bearish
Mildly Bearish
OBV
No Trend
No Trend
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend6What is working for the Company
OPERATING CASH FLOW(Y)
Highest at USD 3,628.2 MM
DIVIDEND PAYOUT RATIO(Y)
Highest at 22.19%
DIVIDEND PER SHARE(HY)
Highest at USD 82.18
-15What is not working for the Company
ROCE(HY)
Lowest at 13.63%
RAW MATERIAL COST(Y)
Grown by 8.01% (YoY
NET SALES(Q)
Lowest at USD 6,886.9 MM
OPERATING PROFIT(Q)
Lowest at USD 785 MM
OPERATING PROFIT MARGIN(Q)
Lowest at 11.4 %
PRE-TAX PROFIT(Q)
Lowest at USD 825.8 MM
NET PROFIT(Q)
Lowest at USD 615.67 MM
EPS(Q)
Lowest at USD 2.03
Here's what is working for D.R. Horton, Inc.
Dividend per share
Highest at USD 82.18 and Grown
In each year in the last five yearsMOJO Watch
Company is distributing higher dividend from profits generated
DPS (USD)
Operating Cash Flow
Highest at USD 3,628.2 MM
in the last three yearsMOJO Watch
The company has generated higher cash revenues from business operations
Operating Cash Flows (USD MM)
Dividend Payout Ratio
Highest at 22.19% and Grown
In each year in the last five yearsMOJO Watch
Company is distributing higher proportion of profits generated as dividend
DPR (%)
Depreciation
Highest at USD 27.7 MM
in the last five periodsMOJO Watch
The expenditure on assets done by the company may have gone into operation
Depreciation (USD MM)
Here's what is not working for D.R. Horton, Inc.
Net Sales
Lowest at USD 6,886.9 MM
in the last five periodsMOJO Watch
Near term sales trend is negative
Net Sales (USD MM)
Operating Profit
Lowest at USD 785 MM
in the last five periodsMOJO Watch
Near term Operating Profit trend is negative
Operating Profit (USD MM)
Operating Profit Margin
Lowest at 11.4 %
in the last five periodsMOJO Watch
Company's profit margin has deteriorated
Operating Profit to Sales
Pre-Tax Profit
Lowest at USD 825.8 MM
in the last five periodsMOJO Watch
Near term Pre-Tax Profit trend is negative
Pre-Tax Profit (USD MM)
Pre-Tax Profit
Fallen at -28.19%
Year on Year (YoY)MOJO Watch
Near term Pre-Tax Profit trend is negative
Pre-Tax Profit (USD MM)
Net Profit
Lowest at USD 615.67 MM
in the last five periodsMOJO Watch
Near term Net Profit trend is negative
Net Profit (USD MM)
Net Profit
Fallen at -29.69%
Year on Year (YoY)MOJO Watch
Near term Net Profit trend is negative
Net Profit (USD MM)
EPS
Lowest at USD 2.03
in the last five periodsMOJO Watch
Declining profitability; company has created lower earnings for shareholders
EPS (USD)
Raw Material Cost
Grown by 8.01% (YoY)
MOJO Watch
The company's ability to pass on the cost of raw materials to customers has deteriorated; this may lead to a fall in profit margin
Raw Material Cost as a percentage of Sales
Non Operating Income
Highest at USD 0.09 MM
in the last five periodsMOJO Watch
Increased income from non business activities may not be sustainable
Non Operating income
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