DHI Stock Analysis: DR Horton | NYSE
Residential Construction | NYSE, USA | Market Cap: 37.279m USD | 12M Return: -10.9% | US23331A1097 | Charts, Fundamentals & Technical Analysis
Avg Turnover: 434M
EPS Trend: -89.4%
Qual. Beats: 0
Rev. Trend: -81.0%
Qual. Beats: 0
Warnings
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: 3.05b TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.09 > 0.02 and ΔFCF/TA 1.06 > 1.0 |
| NWC/Revenue: 94.67% < 20% (prev 95.24%; Δ -0.57% < -1%) |
| CFO/TA 0.09 > 3% & CFO 3.35b > Net Income 3.05b |
| Net Debt (5.18b) to EBITDA (4.11b): 1.26 < 3 |
| Current Ratio: 9.84 > 1.5 & < 3 |
| Outstanding Shares: last quarter (288.4m) vs 12m ago -3.03% < -2% |
| Gross Margin: 22.61% > 18% (prev 24.80%; Δ -2.19% > 0.5%) |
| Asset Turnover: 91.49% > 50% (prev 95.00%; Δ -3.51% > 0%) |
| Interest Coverage Ratio: error (cannot be calculated; needs correct EBIT TTM and Interest Expense TTM) |
| A: 0.86 (Total Current Assets 35.1b - Total Current Liabilities 3.57b) / Total Assets 36.5b |
| B: 0.90 (Retained Earnings 32.8b / Total Assets 36.5b) |
| C: 0.11 (EBIT TTM 3.99b / Avg Total Assets 36.5b) |
| D: 1.97 (Book Value of Equity 23.8b / Total Liabilities 12.1b) |
| Altman-Z'' = 11.40 = AAA |
| DSRI: 1.04 (Receivables 421.2m/418.4m, Revenue 33.3b/34.6b) |
| GMI: 1.10 (GM 24.80% / 22.61%) |
| AQI: 1.01 (AQ_t 0.04 / AQ_t-1 0.04) |
| SGI: 0.96 (Revenue 33.3b / 34.6b) |
| TATA: -0.01 (NI 3.05b - CFO 3.35b) / TA 36.5b) |
| Beneish M = -2.92 (Cap -4..+1) = A |
As of October 13, 2026, the stock is trading at USD 134.29 with a total of 2,304,279 shares traded. Over the past week, the price has changed by +0.80%, over one month by -3.67%, over three months by -9.51% and over the past year by -10.94%.
Current recommended Stop Loss: 129.20 (which is 3.8% or 1.3 ATR below the current price).
DR Horton has received a consensus analysts rating of 3.39. Therefore, it is recommended to hold DHI.
- StrongBuy: 4
- Buy: 0
- Hold: 13
- Sell: 1
- StrongSell: 0
| Analysts Target Price | 155 | 15.4% |
P/E Trailing = 12.3751
P/E Forward = 11.9474
P/S = 1.1178
P/B = 1.6484
P/EG = 1.1788
Revenue TTM = 33.3b USD
EBIT TTM = 3.99b USD
EBITDA TTM = 4.11b USD
Long Term Debt = 5.79b USD (from longTermDebt, last quarter)
Short Term Debt = 1.32b USD (from shortTermDebt, last quarter)
Debt = 7.25b USD (from shortLongTermDebtTotal, last quarter) + Leases 71.3m
Net Debt = 5.18b USD (calculated: Debt 7.25b - CCE 2.08b)
Enterprise Value = 42.5b USD (37.3b + Debt 7.25b - CCE 2.08b)
Interest Coverage Ratio = unknown (Ebit TTM 3.99b / Interest Expense TTM 0.0)
EV/FCF = 13.35x (Enterprise Value 42.5b / FCF TTM 3.18b)
FCF Yield = 7.49% (FCF TTM 3.18b / Enterprise Value 42.5b)
FCF Margin = 9.53% (FCF TTM 3.18b / Revenue TTM 33.3b)
Net Margin = 9.15% (Net Income TTM 3.05b / Revenue TTM 33.3b)
Gross Margin = 22.61% ((Revenue TTM 33.3b - Cost of Revenue TTM 25.8b) / Revenue TTM)
Gross Margin QoQ = 23.26% (prev 22.54%)
Tobins Q-Ratio = 1.16 (Enterprise Value 42.5b / Total Assets 36.5b)
Interest Expense / Debt = 0.0% (Interest Expense 0.0 / Debt 7.25b)
Taxrate = 24.61% (1.01b / 4.10b)
NOPAT = 3.01b (EBIT 3.99b * (1 - 24.61%))
Current Ratio = 9.84 (Total Current Assets 35.1b / Total Current Liabilities 3.57b)
Debt / Equity = 0.30 (Debt 7.25b / totalStockholderEquity, last quarter 23.8b)
Debt / EBITDA = 1.26 (Net Debt 5.18b / EBITDA 4.11b)
Debt / FCF = 1.63 (Net Debt 5.18b / FCF TTM 3.18b)
Total Stockholder Equity = 23.9b (last 4 quarters mean from totalStockholderEquity)
RoA = 8.37% (Net Income 3.05b / Total Assets 36.5b)
RoE = 12.77% (Net Income TTM 3.05b / Total Stockholder Equity 23.9b)
RoCE = 13.44% (EBIT 3.99b / Capital Employed (Equity 23.9b + L.T.Debt 5.79b))
RoIC = 9.24% (NOPAT 3.01b / Invested Capital 32.6b)
WACC = 6.80% (E(37.3b)/V(44.5b) * Re(8.12%) + D(7.25b)/V(44.5b) * Rd(0.0%) * (1-Tc(0.25)))
Discount Rate = 8.12% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: -97.02 | Cagr: -6.23%
[DCF] Terminal Value 77.84% ; FCFF base≈3.02b ; Y1≈3.44b ; Y5≈4.97b
[DCF] Fair Price = 249.4 (EV 74.9b - Net Debt 5.18b = Equity 69.7b / Shares 279.7m; r=8.35% [WACC [floored]]; 5y FCF grow 14.16% → 2.50% )
EPS Correlation: -89.37 | EPS CAGR: -12.04% | SUE: 0.81 | # QB: 0
Revenue Correlation: -80.98 | Revenue CAGR: -3.71% | SUE: 0.20 | # QB: 0
EPS current Quarter (2026-12-31): EPS=2.17 | Chg30d=-2.71% | Revisions=-57% | Analysts=9
EPS current Year (2026-09-30): EPS=10.43 | Chg30d=-0.09% | Revisions=-38% | GrowthEPS=-9.9% | GrowthRev=-4.3%
EPS next Year (2027-09-30): EPS=11.42 | Chg30d=-2.31% | Revisions=-62% | GrowthEPS=+9.5% | GrowthRev=+4.3%
[Analyst] Revisions Ratio: -71% (up=1, down=13)