(DHI) DR Horton - Ratings and Ratios
Homes, Land, Mortgages, Title, Rentals
DHI EPS (Earnings per Share)
DHI Revenue
Description: DHI DR Horton September 26, 2025
D.R. Horton (NYSE:DHI) is the largest U.S. homebuilder, operating in 125 markets across 36 states and covering six geographic regions (East, North, Southeast, South Central, Southwest, Northwest). The firm acquires and develops land, constructs and sells single-family detached homes as well as attached units (townhomes, duplexes, triplexes), and offers ancillary services such as mortgage financing, title insurance, and closing services. It also participates in residential lot development and owns/leases both multifamily and single-family rental properties, plus non-residential assets like ranch land.
Key performance indicators from the most recent FY 2023 filing show revenue of roughly $26.5 billion, net income of $2.9 billion and diluted EPS of $7.68. The company reported a backlog of about $30 billion, indicating strong forward order flow, while the average selling price (ASP) of homes rose to approximately $400 k, driven by a shift toward higher-priced “move-up” buyers. D.R. Horton’s land-bank grew to ~5,200 acres, giving it flexibility to sustain build-out despite recent price volatility.
Primary economic drivers for D.R. Horton include mortgage-rate movements, housing-starts data, and labor-cost pressures. A 1-percentage-point increase in the 30-year fixed rate historically depresses home-buyer demand and can shave 2–3 percentage points off the company’s annual revenue growth rate. Conversely, a tightening of new-home inventory (the “housing shortage” narrative) supports pricing power and can boost ASPs by 2-4 % YoY. Construction-labor shortages and material-cost inflation remain material cost-headwinds, with the U.S. Bureau of Labor Statistics reporting construction-worker wages up ~5 % YoY in Q2 2024.
Sector-level trends such as the “Millennial-first-time-buyer” wave and the ongoing migration toward Sun Belt metros (e.g., Texas, Florida, Arizona) underpin D.R. Horton’s geographic diversification strategy, while the company’s vertical integration of financing and title services helps capture ancillary margin that peers often miss.
For a deeper, data-driven assessment of D.R. Horton’s valuation relative to these fundamentals, you may find the analytical dashboards on ValueRay worth exploring.
DHI Stock Overview
| Market Cap in USD | 43,962m |
| Sub-Industry | Homebuilding |
| IPO / Inception | 1992-06-05 |
DHI Stock Ratings
| Growth Rating | 48.3% |
| Fundamental | 64.8% |
| Dividend Rating | 64.8% |
| Return 12m vs S&P 500 | -27.1% |
| Analyst Rating | 3.62 of 5 |
DHI Dividends
| Dividend Yield 12m | 1.07% |
| Yield on Cost 5y | 2.43% |
| Annual Growth 5y | 15.72% |
| Payout Consistency | 83.1% |
| Payout Ratio | 14.2% |
DHI Growth Ratios
| Growth Correlation 3m | -32.3% |
| Growth Correlation 12m | 17.2% |
| Growth Correlation 5y | 82.5% |
| CAGR 5y | 27.14% |
| CAGR/Max DD 3y (Calmar Ratio) | 0.66 |
| CAGR/Mean DD 3y (Pain Ratio) | 2.12 |
| Sharpe Ratio 12m | -0.79 |
| Alpha | -34.32 |
| Beta | 1.397 |
| Volatility | 33.17% |
| Current Volume | 2991.8k |
| Average Volume 20d | 3155k |
| Stop Loss | 144 (-3.4%) |
| Signal | 0.24 |
Piotroski VR‑10 (Strict, 0-10) 5.5
| Net Income (3.59b TTM) > 0 and > 6% of Revenue (6% = 2.06b TTM) |
| FCFTA 0.08 (>2.0%) and ΔFCFTA 1.95pp (YES ≥ +1.0pp, WARN ≥ +0.5pp) |
| NWC/Revenue 61.56% (prev 88.88%; Δ -27.32pp) (YES ≤20% & Δ≤-1pp; WARN ≤25% & Δ≤0 oder ≤40% & Δ≤-3pp) |
| CFO/TA 0.08 (>3.0%) and CFO 2.91b <= Net Income 3.59b (YES >=105%, WARN >=100%) |
| Net Debt (2.98b) to EBITDA (4.84b) ratio: 0.62 <= 3.0 (WARN <= 3.5) |
| Current Ratio 3.93 (target 1.5–3.0; WARN 1.2–<1.5 or >3.0–5.0; CFO/TA gate active) |
| Outstanding Shares last Quarter (297.4m) change vs 12m ago -9.14% (target <= -2.0% for YES) |
| Gross Margin 23.70% (prev 25.91%; Δ -2.21pp) >=18% & Δ>=+0.5pp (WARN >=15% & Δ>=0) |
| Asset Turnover 95.70% (prev 101.9%; Δ -6.23pp) >=50% & Δ>=+2pp (WARN >=35% & Δ>=0) |
| Interest Coverage Ratio 156.4 (EBITDA TTM 4.84b / Interest Expense TTM 30.3m) >= 6 (WARN >= 3) |
Altman Z'' 10.68
| (A) 0.59 = (Total Current Assets 28.27b - Total Current Liabilities 7.19b) / Total Assets 35.47b |
| (B) 0.88 = Retained Earnings (Balance) 31.04b / Total Assets 35.47b |
| warn (B) unusual magnitude: 0.88 — check mapping/units |
| (C) 0.13 = EBIT TTM 4.74b / Avg Total Assets 35.79b |
| (D) 2.89 = Book Value of Equity 31.05b / Total Liabilities 10.73b |
| Total Rating: 10.68 = (6.56 * A) + (3.26 * B) + (6.72 * C) + (1.05 * D) |
ValueRay F-Score (Strict, 0-100) 64.82
| 1. Piotroski 5.50pt = 0.50 |
| 2. FCF Yield 5.96% = 2.98 |
| 3. FCF Margin 8.17% = 2.04 |
| 4. Debt/Equity 0.24 = 2.47 |
| 5. Debt/Ebitda 0.62 = 2.21 |
| 6. ROIC - WACC (= 1.86)% = 2.33 |
| 7. RoE 14.62% = 1.22 |
| 8. Rev. Trend 20.59% = 1.54 |
| 9. EPS Trend -9.70% = -0.48 |
What is the price of DHI shares?
Over the past week, the price has changed by -6.16%, over one month by -13.06%, over three months by -2.49% and over the past year by -11.71%.
Is DR Horton a good stock to buy?
Based on momentum, paid dividends and discounted-cash-flow analyses, the fair value of DHI is around 156.77 USD . This means that DHI is currently overvalued and has a potential downside of 5.16%.
Is DHI a buy, sell or hold?
- Strong Buy: 6
- Buy: 3
- Hold: 10
- Sell: 2
- Strong Sell: 0
What are the forecasts/targets for the DHI price?
| Issuer | Target | Up/Down from current |
|---|---|---|
| Wallstreet Target Price | 162.1 | 8.7% |
| Analysts Target Price | 162.1 | 8.7% |
| ValueRay Target Price | 177 | 18.7% |
DHI Fundamental Data Overview November 02, 2025
P/E Trailing = 12.885
P/E Forward = 13.6054
P/S = 1.2836
P/B = 2.1253
P/EG = 1.8235
Beta = 1.397
Revenue TTM = 34.25b USD
EBIT TTM = 4.74b USD
EBITDA TTM = 4.84b USD
Long Term Debt = 7.25b USD (from longTermDebt, two quarters ago)
Short Term Debt = 5.97b USD (from shortTermDebt, last quarter)
Debt = 5.97b USD (from shortLongTermDebtTotal, last quarter)
Net Debt = 2.98b USD (from netDebt column, last quarter)
Enterprise Value = 46.94b USD (43.96b + Debt 5.97b - CCE 2.99b)
Interest Coverage Ratio = 156.4 (Ebit TTM 4.74b / Interest Expense TTM 30.3m)
FCF Yield = 5.96% (FCF TTM 2.80b / Enterprise Value 46.94b)
FCF Margin = 8.17% (FCF TTM 2.80b / Revenue TTM 34.25b)
Net Margin = 10.47% (Net Income TTM 3.59b / Revenue TTM 34.25b)
Gross Margin = 23.70% ((Revenue TTM 34.25b - Cost of Revenue TTM 26.13b) / Revenue TTM)
Gross Margin QoQ = 21.67% (prev 23.95%)
Tobins Q-Ratio = 1.32 (Enterprise Value 46.94b / Total Assets 35.47b)
Interest Expense / Debt = 0.51% (Interest Expense 30.3m / Debt 5.97b)
Taxrate = 23.90% (288.0m / 1.20b)
NOPAT = 3.61b (EBIT 4.74b * (1 - 23.90%))
Current Ratio = 3.93 (Total Current Assets 28.27b / Total Current Liabilities 7.19b)
Debt / Equity = 0.24 (Debt 5.97b / totalStockholderEquity, last quarter 24.74b)
Debt / EBITDA = 0.62 (Net Debt 2.98b / EBITDA 4.84b)
Debt / FCF = 1.06 (Net Debt 2.98b / FCF TTM 2.80b)
Total Stockholder Equity = 24.52b (last 4 quarters mean from totalStockholderEquity)
RoA = 10.11% (Net Income 3.59b / Total Assets 35.47b)
RoE = 14.62% (Net Income TTM 3.59b / Total Stockholder Equity 24.52b)
RoCE = 14.92% (EBIT 4.74b / Capital Employed (Equity 24.52b + L.T.Debt 7.25b))
RoIC = 11.74% (NOPAT 3.61b / Invested Capital 30.73b)
WACC = 9.87% (E(43.96b)/V(49.93b) * Re(11.16%) + D(5.97b)/V(49.93b) * Rd(0.51%) * (1-Tc(0.24)))
Discount Rate = 11.16% (= CAPM, Blume Beta Adj.)
Shares Correlation 3-Years: -100.0 | Cagr: -5.88%
[DCF Debug] Terminal Value 68.61% ; FCFE base≈2.54b ; Y1≈2.66b ; Y5≈3.09b
Fair Price DCF = 113.8 (DCF Value 33.50b / Shares Outstanding 294.5m; 5y FCF grow 5.06% → 3.0% )
EPS Correlation: -9.70 | EPS CAGR: 3.58% | SUE: -0.85 | # QB: 0
Revenue Correlation: 20.59 | Revenue CAGR: 11.03% | SUE: 0.62 | # QB: 0
Additional Sources for DHI Stock
Tweets: X | Stocktwits
Fund Manager Positions: Dataroma | Stockcircle