(DFH) Dream Finders Homes - Overview
Sector: Consumer Cyclical | Industry: Residential Construction | Exchange: NYSE (USA) | Market Cap: 1.336m USD | Total Return: -25.9% in 12m
Avg Turnover: 10.9M
EPS Trend: -35.4%
Qual. Beats: -1
Rev. Trend: 82.5%
Qual. Beats: 0
Warnings
High Debt/EBITDA (5.5) with thin interest coverage (1.5)
High Debt while negative Cash Flow
Tailwinds
No distinct edge detected
Dream Finders Homes Inc. (DFH) is a residential construction company headquartered in Jacksonville, Florida, operating across the Southeast, Mid-Atlantic, and Midwest regions. The company designs and builds a diverse range of single-family properties, targeting entry-level buyers, move-up purchasers, and active adult communities through brands such as DF Luxury and Coventry Homes. Beyond construction, the firm integrates financial services into its business model, providing mortgage banking, title insurance, and escrow services to streamline the closing process.
The company utilizes an asset-light business model, which typically involves securing land through option contracts rather than direct ownership to minimize capital risk and improve return on inventory. This strategy is common among high-growth homebuilders seeking to maintain liquidity while scaling operations across geographically diverse markets. Examining the historical land acquisition strategy on ValueRay can provide deeper insights into their capital efficiency.
- Asset-light land acquisition strategy minimizes capital risk and optimizes return on equity
- Mortgage interest rate fluctuations directly impact home affordability and backlog conversion rates
- Strategic expansion in high-growth Southeast markets drives core residential revenue growth
- Ancillary financial services and title insurance segments provide high-margin revenue diversification
- Rising construction material and labor costs pressure gross homebuilding profit margins
| Net Income: 175.6m TTM > 0 and > 6% of Revenue |
| FCF/TA: -0.03 > 0.02 and ΔFCF/TA -1.05 > 1.0 |
| NWC/Revenue: 51.26% < 20% (prev 17.15%; Δ 34.11% < -1%) |
| CFO/TA -0.03 > 3% & CFO -105.4m > Net Income 175.6m |
| Net Debt (1.43b) to EBITDA (262.5m): 5.46 < 3 |
| Current Ratio: 5.42 > 1.5 & < 3 |
| Outstanding Shares: last quarter (92.4m) vs 12m ago -8.81% < -2% |
| Gross Margin: 16.37% > 18% (prev 0.19%; Δ 1.62k% > 0.5%) |
| Asset Turnover: 113.1% > 50% (prev 132.3%; Δ -19.12% > 0%) |
| Interest Coverage Ratio: 1.51 > 6 (EBITDA TTM 262.5m / Interest Expense TTM 153.8m) |
| A: 0.54 (Total Current Assets 2.65b - Total Current Liabilities 489.1m) / Total Assets 3.97b |
| B: 0.30 (Retained Earnings 1.18b / Total Assets 3.97b) |
| C: 0.06 (EBIT TTM 232.3m / Avg Total Assets 3.73b) |
| D: 0.50 (Book Value of Equity 1.18b / Total Liabilities 2.38b) |
| Altman-Z'' = 5.49 = AAA |
| DSRI: 1.16 (Receivables 32.8m/31.0m, Revenue 4.22b/4.61b) |
| GMI: 1.16 (GM 16.37% / 19.00%) |
| AQI: 1.38 (AQ_t 0.20 / AQ_t-1 0.14) |
| SGI: 0.91 (Revenue 4.22b / 4.61b) |
| TATA: 0.07 (NI 175.6m - CFO -105.4m) / TA 3.97b) |
| Beneish M = -2.51 (Cap -4..+1) = A |
As of May 30, 2026, the stock is trading at USD 15.46 with a total of 609,882 shares traded.
Over the past week, the price has changed by +5.67%,
over one month by +9.26%,
over three months by -14.44% and
over the past year by -25.85%.
Dream Finders Homes has received a consensus analysts rating of 3.00. Therefore, it is recommended to hold DFH.
- StrongBuy: 0
- Buy: 0
- Hold: 3
- Sell: 0
- StrongSell: 0
| Analysts Target Price | 18 | 16.4% |
P/E Trailing = 8.5322
P/E Forward = 4.7281
P/S = 0.3164
P/B = 0.9438
Revenue TTM = 4.22b USD
EBIT TTM = 232.3m USD
EBITDA TTM = 262.5m USD
Long Term Debt = 591.7m USD (from longTermDebt, last quarter)
Short Term Debt = 591.7m USD (from shortTermDebt, last quarter)
Debt = 1.91b USD (from shortLongTermDebtTotal, last quarter) + Leases 22.1m
Net Debt = 1.43b USD (calculated: Debt 1.91b - CCE 479.0m)
Enterprise Value = 2.77b USD (1.34b + Debt 1.91b - CCE 479.0m)
Interest Coverage Ratio = 1.51 (Ebit TTM 232.3m / Interest Expense TTM 153.8m)
EV/FCF = -20.76x (Enterprise Value 2.77b / FCF TTM -133.3m)
FCF Yield = -4.82% (FCF TTM -133.3m / Enterprise Value 2.77b)
FCF Margin = -3.16% (FCF TTM -133.3m / Revenue TTM 4.22b)
Net Margin = 4.16% (Net Income TTM 175.6m / Revenue TTM 4.22b)
Gross Margin = 16.37% ((Revenue TTM 4.22b - Cost of Revenue TTM 3.53b) / Revenue TTM)
Gross Margin QoQ = 14.58% (prev 12.77%)
Tobins Q-Ratio = 0.70 (Enterprise Value 2.77b / Total Assets 3.97b)
Interest Expense / Debt = 8.05% (Interest Expense 153.8m / Debt 1.91b)
Taxrate = 27.90% (5.25m / 18.8m)
NOPAT = 167.5m (EBIT 232.3m * (1 - 27.90%))
Current Ratio = 5.42 (Total Current Assets 2.65b / Total Current Liabilities 489.1m)
Debt / Equity = 1.22 (Debt 1.91b / totalStockholderEquity, last quarter 1.56b)
Debt / EBITDA = 5.46 (Net Debt 1.43b / EBITDA 262.5m)
Debt / FCF = -10.74 (negative FCF - burning cash) (Net Debt 1.43b / FCF TTM -133.3m)
Total Stockholder Equity = 1.54b (last 4 quarters mean from totalStockholderEquity)
RoA = 4.71% (Net Income 175.6m / Total Assets 3.97b)
RoE = 11.44% (Net Income TTM 175.6m / Total Stockholder Equity 1.54b)
RoCE = 10.92% (EBIT 232.3m / Capital Employed (Equity 1.54b + L.T.Debt 591.7m))
RoIC = 4.11% (NOPAT 167.5m / Invested Capital 4.08b)
WACC = 7.91% (E(1.34b)/V(3.25b) * Re(10.93%) + D(1.91b)/V(3.25b) * Rd(8.05%) * (1-Tc(0.28)))
Discount Rate = 10.93% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: -9.94 | Cagr: -6.10%
[DCF] Fair Price = unknown (Cash Flow -133.3m)
EPS Correlation: -35.40 | EPS CAGR: -7.34% | SUE: -2.10 | # QB: -1
Revenue Correlation: 82.51 | Revenue CAGR: 9.24% | SUE: 0.55 | # QB: 0
EPS current Quarter (2026-06-30): EPS=0.29 | Chg30d=-17.41% | Revisions=-14% | Analysts=2
EPS next Quarter (2026-09-30): EPS=0.33 | Chg30d=-20.98% | Revisions=+20% | Analysts=2
EPS current Year (2026-12-31): EPS=1.34 | Chg30d=-19.38% | Revisions=-43% | GrowthEPS=-37.4% | GrowthRev=-0.9%
EPS next Year (2027-12-31): EPS=1.54 | Chg30d=-21.31% | Revisions=-43% | GrowthEPS=+15.3% | GrowthRev=+5.2%
[Analyst] Revisions Ratio: -43%