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

Comparison

Company

Score

Quality

Valuation

Financial

Technical

M.D.C. Holdings, Inc.

Toll Brothers, Inc.

Skyline Champion Corp.

D.R. Horton, Inc.

Lennar Corp.

PulteGroup, Inc.

NVR, Inc.

KB Home

Taylor Morrison Home 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 -1.15%, 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 14.11% in the last 1 year, the stock has hugely underperformed and has generate negative returns of -1.15% 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.

30.12%

0.24

38.22%

S&P 500

25.41%

0.70

20.15%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality 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

Institutional Holding

97.61%

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

1.85

EV to EBIT

10.81

EV to EBITDA

10.56

EV to Capital Employed

1.76

EV to Sales

1.41

PEG Ratio

Dividend Yield

1.21%

ROCE (Latest)

16.24%

ROE (Latest)

14.87%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Bullish

Dow Theory

Mildly Bullish

No Trend

OBV

No Trend

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

6What is working for the Company

OPERATING CASH FLOW(Y)

Highest at USD 3,651.9 MM

DIVIDEND PER SHARE(HY)

Highest at USD 78.85

DIVIDEND PAYOUT RATIO(Y)

Highest at 20.07%

-10What is not working for the Company

NET PROFIT(HY)

At USD 1,263.57 MM has Grown at -26.96%

ROCE(HY)

Lowest at 13.23%

RAW MATERIAL COST(Y)

Grown by 8.61% (YoY

DEBT-EQUITY RATIO (HY)

Highest at 19.72 %

INVENTORY TURNOVER RATIO(HY)

Lowest at 0.98 times

OPERATING PROFIT MARGIN(Q)

Lowest at 10.96 %

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

Operating Cash Flow

Highest at USD 3,651.9 MM and Grown

In each year in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (USD MM)

Dividend per share

Highest at USD 78.85 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 20.07%

in the last five years

MOJO Watch

Company is distributing higher proportion of profits generated as dividend

DPR (%)

Depreciation

Highest at USD 28.1 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 1,263.57 MM has Grown at -26.96%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is negative

Net Profit (USD MM)

Operating Profit Margin

Lowest at 10.96 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Debt-Equity Ratio

Highest at 19.72 %

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 0.98 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Raw Material Cost

Grown by 8.61% (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