D.R. Horton, Inc. (DHI) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

M.D.C. Holdings, Inc.

Skyline Champion Corp.

Toll Brothers, Inc.

PulteGroup, Inc.

NVR, Inc.

D.R. Horton, Inc.

Taylor Morrison Home Corp.

KB Home

Lennar Corp.

Meritage Homes Corp.

Tri Pointe Homes, Inc.

Why is D.R. Horton, Inc. ?

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

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)

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 -1.16%, its profits have fallen by -12%

Underperformed the market in the last 1 year

Even though the market (S&P 500) has generated returns of 12.94% in the last 1 year, the stock has hugely underperformed and has generate negative returns of -1.16% returns

Real-Time Research Report

Verdict Report

How 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.

-0.38%

0.42

37.87%

S&P 500

13.22%

0.64

20.20%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

12.78%

EBIT Growth (5y)

15.06%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

0.54

Net Debt to Equity (avg)

0.16

Sales to Capital Employed (avg)

1.22

Tax Ratio

23.71%

Dividend Payout Ratio

8.37%

Pledged Shares

Institutional Holding

90.40%

ROCE (avg)

26.22%

ROE (avg)

24.26%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

1.73

EV to EBIT

8.31

EV to EBITDA

8.17

EV to Capital Employed

1.63

EV to Sales

1.30

PEG Ratio

Dividend Yield

88.77%

ROCE (Latest)

19.57%

ROE (Latest)

18.45%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Dow Theory

Mildly Bearish

OBV

No Trend

Mildly Bearish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

3What is working for the Company

DIVIDEND PER SHARE(HY)

Highest at USD 81.41

DIVIDEND PAYOUT RATIO(Y)

Highest at 11.9%

-10What is not working for the Company

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

DEBT-EQUITY RATIO (HY)

Highest at 19.28 %

INVENTORY TURNOVER RATIO(HY)

Lowest at 1 times

DEBTORS TURNOVER RATIO(HY)

Lowest at 81.41 times

Here's what is working for D.R. Horton, Inc.

Dividend per share

Highest at USD 81.41 and Grown

In each year in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (USD)

Dividend Payout Ratio

Highest at 11.9%

in the last five years

MOJO Watch

Company is distributing higher proportion of profits generated as dividend

DPR (%)

Depreciation

Highest at USD 25.2 MM

in the last five periods

MOJO 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 Profit

At USD 1,913.37 MM has Grown at -26.07%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is negative

Net Profit (USD MM)

Debt-Equity Ratio

Highest at 19.28 %

in the last five Semi-Annual periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio

Inventory Turnover Ratio

Lowest at 1 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Debtors Turnover Ratio

Lowest at 81.41 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio

Raw Material Cost

Grown by 10.04% (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