DHI Stock Analysis: DR Horton | NYSE
Residential Construction | NYSE, USA | Market Cap: 41.334m USD | 12M Return: 8.9% | US23331A1097 | Charts, Fundamentals & Technical Analysis
Avg Turnover: 463M
EPS Trend: -94.9%
Qual. Beats: -1
Rev. Trend: -91.8%
Qual. Beats: 1
Warnings
No concerns identified
Tailwinds
No distinct edge detected
Seasonality 11.7 years of data
How good or bad each month usually is (without trend). The score below shows how much you can trust it: 0 = pure chance, >40 gets interesting and >55 is strong.
D.R. Horton, Inc. (DHI) is a U.S. homebuilding company headquartered in Arlington, Texas, and founded in 1978. It is widely recognized as the largest U.S. homebuilder by volume and operates across six regional divisions, acquiring and developing land and constructing and selling residential properties in 126 markets across 36 states under the D.R. Horton brand. Its offerings include single-family detached homes as well as attached homes such as townhomes and duplexes, primarily serving homebuyers.
Beyond home construction, D.R. Horton runs an integrated business model that includes mortgage financing, title agency services, residential lot development, and the development, construction, ownership, leasing, and sale of multi-family and single-family rental properties. The homebuilding sector is highly sensitive to interest rates and broader housing market conditions, and vertical integration with captive mortgage and title operations is a common strategy among major U.S. builders to streamline the home purchase process. D.R. Horton also conducts insurance-related operations and owns water rights, water-related assets, and non-residential real estate, including ranch land and improvements.
- Mortgage rate spike pressures home orders and gross margins
- Rental property segment expands with new multifamily deliveries
- Aggressive share buybacks boost earnings per share growth
| Net Income: 2.89b TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.10 > 0.02 and ΔFCF/TA 0.29 > 1.0 |
| NWC/Revenue: 75.05% < 20% (prev 93.95%; Δ -18.90% < -1%) |
| CFO/TA 0.10 > 3% & CFO 3.51b > Net Income 2.89b |
| Net Debt (4.06b) to EBITDA (3.92b): 1.04 < 3 |
| Current Ratio: 6.01 > 1.5 & < 3 |
| Outstanding Shares: last quarter (277.9m) vs 12m ago -6.56% < -2% |
| Gross Margin: 22.28% > 18% (prev 23.70%; Δ -1.42% > 0.5%) |
| Asset Turnover: 94.02% > 50% (prev 96.56%; Δ -2.54% > 0%) |
| Interest Coverage Ratio: error (cannot be calculated; needs correct EBIT TTM and Interest Expense TTM) |
| A: 0.71 (Total Current Assets 29.8b - Total Current Liabilities 4.95b) / Total Assets 34.8b |
| B: 0.96 (Retained Earnings 33.4b / Total Assets 34.8b) |
| C: 0.11 (EBIT TTM 3.80b / Avg Total Assets 35.1b) |
| D: 2.08 (Book Value of Equity 23.1b / Total Liabilities 11.1b) |
| Altman-Z'' = 10.71 = AAA |
As of November 10, 2026, the stock is trading at USD 155.61 with a total of 3,168,011 shares traded. Over the past week, the price has changed by +1.75%, over one month by +15.37%, over three months by +6.10% and over the past year by +8.93%.
Current recommended Stop Loss: 147.00 (which is 5.5% or 1.5 ATR below the current price).
DR Horton has received a consensus analysts rating of 3.19. Therefore, it is recommended to hold DHI.
- StrongBuy: 4
- Buy: 0
- Hold: 14
- Sell: 2
- StrongSell: 1
| Analysts Target Price | 146.5 | -5.9% |
P/E Trailing = 15.0623
P/E Forward = 19.9203
P/S = 1.2509
P/B = 1.8515
P/EG = 1.9662
Revenue TTM = 33.0b USD
EBIT TTM = 3.80b USD
EBITDA TTM = 3.92b USD
Long Term Debt = 5.79b USD (from longTermDebt, two quarters ago)
Short Term Debt = 6.05b USD (from shortTermDebt, last quarter)
Debt = 6.13b USD (from shortLongTermDebtTotal, last quarter) + Leases 71.3m
Net Debt = 4.06b USD (calculated: Debt 6.13b - CCE 2.06b)
Enterprise Value = 45.4b USD (41.3b + Debt 6.13b - CCE 2.06b)
Interest Coverage Ratio = unknown (Ebit TTM 3.80b / Interest Expense TTM 0.0)
EV/FCF = 13.66x (Enterprise Value 45.4b / FCF TTM 3.32b)
FCF Yield = 7.32% (FCF TTM 3.32b / Enterprise Value 45.4b)
FCF Margin = 10.06% (FCF TTM 3.32b / Revenue TTM 33.0b)
Net Margin = 8.74% (Net Income TTM 2.89b / Revenue TTM 33.0b)
Gross Margin = 22.28% ((Revenue TTM 33.0b - Cost of Revenue TTM 25.7b) / Revenue TTM)
Gross Margin QoQ = 20.45% (prev 23.26%)
Tobins Q-Ratio = 1.30 (Enterprise Value 45.4b / Total Assets 34.8b)
Interest Expense / Debt = 0.0% (Interest Expense 0.0 / Debt 6.13b)
Taxrate = 24.97% (975.5m / 3.91b)
NOPAT = 2.85b (EBIT 3.80b * (1 - 24.97%))
Current Ratio = 6.01 (Total Current Assets 29.8b / Total Current Liabilities 4.95b)
Debt / Equity = 0.27 (Debt 6.13b / totalStockholderEquity, last quarter 23.1b)
Debt / EBITDA = 1.04 (Net Debt 4.06b / EBITDA 3.92b)
Debt / FCF = 1.22 (Net Debt 4.06b / FCF TTM 3.32b)
Total Stockholder Equity = 23.6b (last 4 quarters mean from totalStockholderEquity)
RoA = 8.22% (Net Income 2.89b / Total Assets 34.8b)
RoE = 12.22% (Net Income TTM 2.89b / Total Stockholder Equity 23.6b)
RoCE = 12.92% (EBIT 3.80b / Capital Employed (Equity 23.6b + L.T.Debt 5.79b))
RoIC = 8.33% (NOPAT 2.85b / Invested Capital 34.3b)
WACC = 6.59% (E(41.3b)/V(47.5b) * Re(7.57%) + D(6.13b)/V(47.5b) * Rd(0.0%) * (1-Tc(0.25)))
Discount Rate = 7.57% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: -97.24 | Cagr: -7.37%
[DCF] Terminal Value 75.60% ; FCFF base≈3.31b ; Y1≈3.36b ; Y5≈3.63b
[DCF] Fair Price = 192.5 (EV 56.3b - Net Debt 4.06b = Equity 52.3b / Shares 271.4m; r=8.35% [WACC [floored]]; 5y FCF grow 1.24% → 2.50% )
EPS Correlation: -94.92 | EPS CAGR: -14.02% | SUE: -1.45 | # QB: -1
Revenue Correlation: -91.83 | Revenue CAGR: -4.58% | SUE: 0.91 | # QB: 1
EPS current Quarter (2026-12-31): EPS=1.28 | Chg30d=-41.77% | Revisions=-67% | Analysts=14
EPS next Quarter (2027-03-31): EPS=1.83 | Chg30d=-24.82% | Revisions=+0% | Analysts=14
EPS current Year (2027-09-30): EPS=8.80 | Chg30d=-23.16% | Revisions=-73% | GrowthEPS=-12.9% | GrowthRev=-5.2%
EPS next Year (2028-09-30): EPS=11.01 | Chg30d=-20.22% | Revisions=-50% | GrowthEPS=+25.0% | GrowthRev=+5.9%
[Analyst] Revisions Ratio: -85% (up=0, down=17)