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

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

M.D.C. Holdings, Inc.

Cavco Industries, Inc.

Green Brick Partners, Inc.

Patrick Industries, Inc.

Dream Finders Homes, Inc.

Frontdoor, Inc.

M/I Homes, Inc.

Century Communities, Inc.

Beazer Homes USA, Inc.

Tri Pointe Homes, 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 -40.79%, 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 12.94% in the last 1 year, the stock has hugely underperformed and has generate negative returns of -40.79% returns

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Dream Finders Homes, 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 Dream Finders Homes, Inc. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Dream Finders Homes, Inc.

-40.58%

-0.49

54.32%

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)

32.67%

EBIT Growth (5y)

32.27%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

2.12

Net Debt to Equity (avg)

0.78

Sales to Capital Employed (avg)

1.77

Tax Ratio

22.43%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

99.60%

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

1.44

EV to EBIT

7.24

EV to EBITDA

6.92

EV to Capital Employed

1.25

EV to Sales

0.69

PEG Ratio

Dividend Yield

ROCE (Latest)

17.21%

ROE (Latest)

24.23%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Sideways

Moving Averages

Bearish (Daily)

KST

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

0What is working for the Company

NO KEY POSITIVE TRIGGERS

-14What is not working for the Company

ROCE(HY)

Lowest at 23.25%

RAW MATERIAL COST(Y)

Grown by 13.61% (YoY

DEBT-EQUITY RATIO (HY)

Highest at 89.16 %

OPERATING PROFIT(Q)

Lowest at USD 65.51 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 5.69 %

PRE-TAX PROFIT(Q)

Lowest at USD 61.36 MM

NET PROFIT(Q)

Lowest at USD 46.88 MM

Here's what is working for Dream Finders Homes, Inc.

Depreciation

Highest at USD 7.63 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 Dream Finders Homes, Inc.

Pre-Tax Profit

At USD 61.36 MM has Fallen at -44.55%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (USD MM)

Net Profit

At USD 46.88 MM has Fallen at -44.56%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (USD MM)

Operating Profit

Lowest at USD 65.51 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (USD MM)

Operating Profit Margin

Lowest at 5.69 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at USD 61.36 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (USD MM)

Net Profit

Lowest at USD 46.88 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (USD MM)

Debt-Equity Ratio

Highest at 89.16 %

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

Raw Material Cost

Grown by 13.61% (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