Dream Finders Homes, Inc. () 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.

Cavco Industries, Inc.

Green Brick Partners, Inc.

Patrick Industries, Inc.

Frontdoor, Inc.

Century Communities, Inc.

Dream Finders Homes, Inc.

M/I Homes, Inc.

Tri Pointe Homes, Inc.

Beazer Homes USA, Inc.

LGI Homes, Inc.

Why is Dream Finders Homes, Inc. ?

Strong Long Term Fundamental Strength with an average Return on Capital Employed (ROCE) of 20.42%

Healthy long term growth as Net Sales has grown by an annual rate of 32.67% and Operating profit at 32.27%
Company has very low debt and has enough cash to service the debt requirements

Negative results in Jun 25

ROCE(HY) Lowest at 23.25%
RAW MATERIAL COST(Y) Grown by 13.61% (YoY)
DEBT-EQUITY RATIO (HY) Highest at 89.16 %

With ROCE of 17.21%, it has a very attractive valuation with a 1.25 Enterprise value to Capital Employed

The stock is trading at a discount compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of -34.57%, its profits have risen by 1%

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 -34.57% returns

Real-Time Research Report

Verdict Report

How much should you sell?

All quantity irrespective of whether you are making profits or losses

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Furniture, Home Furnishing)

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is Dream Finders Homes, Inc. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Dream Finders Homes, Inc.

-42.54%

-0.49

54.89%

S&P 500

14.9%

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)

32.12%

EBIT Growth (5y)

30.72%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

2.12

Net Debt to Equity (avg)

0.78

Sales to Capital Employed (avg)

1.72

Tax Ratio

22.43%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

100.00%

ROCE (avg)

20.42%

ROE (avg)

30.16%

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

0.97

EV to EBIT

8.22

EV to EBITDA

7.66

EV to Capital Employed

0.99

EV to Sales

0.63

PEG Ratio

Dividend Yield

ROCE (Latest)

12.00%

ROE (Latest)

18.51%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Mildly Bullish

Bearish

Dow Theory

Mildly Bearish

OBV

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

1What is working for the Company

NO KEY POSITIVE TRIGGERS

-13What is not working for the Company

ROCE(HY)

Lowest at 20.66%

RAW MATERIAL COST(Y)

Grown by 11.92% (YoY

INVENTORY TURNOVER RATIO(HY)

Lowest at 1.82 times

NET SALES(Q)

Lowest at USD 969.8 MM

PRE-TAX PROFIT(Q)

Fallen at -36.43%

NET PROFIT(Q)

Fallen at -35.72%

EPS(Q)

Lowest at USD 0.47

Here's what is not working for Dream Finders Homes, Inc.

Net Sales

Lowest at USD 969.8 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (USD MM)

Pre-Tax Profit

Fallen at -36.43%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (USD MM)

Net Profit

Fallen at -35.72%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is negative

Net Profit (USD MM)

EPS

Lowest at USD 0.47

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (USD)

Inventory Turnover Ratio

Lowest at 1.82 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 11.92% (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