Dream Finders Homes (DFH) AI Stock Analysis

• Market Cap: $1.79B
• Dividend Yield: N/A
• Average Volume (3M): 338.75K
• Price to Earnings (P/E): 6.8
• Beta (1Y): 1.59
• Revenue Growth: 15.95%
• EPS Growth: -6.86%
• Country: US
• Employees: 1,686
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Residential Construction
• EPS (TTM): 0.47
• Shares Outstanding: 35,028,564
• 10 Day Avg. Volume: 422,216
• 30 Day Avg. Volume: 338,750
• PEG Ratio: 0.48
• Price to Book (P/B): 1.56
• Price to Sales (P/S): 0.49
• P/FCF Ratio: -7.72
• Enterprise Value/Market Cap: 2.38
• Enterprise Value/Revenue: 0.91
• Enterprise Value/Gross Profit: 8.59
• Enterprise Value/Ebitda: 10.73
• 1Y Price Target: $26.00
• Price Target Upside: 37.42% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 60 Neutral
• Price Target: $21.00 ▲(10.99% Upside)

Dream Finders Homes' overall stock score reflects a combination of mixed financial performance and bearish technical indicators, offset by an attractive valuation. The company's operational efficiency and improved leverage are positive, but challenges in revenue growth and cash flow, along with bearish market momentum, weigh on the score. The undervaluation presents a potential opportunity, but investors should be cautious of the current market conditions.

Positive Factors

Operational Efficiency

Strong operational efficiency allows Dream Finders Homes to sustain profitability despite revenue challenges, enhancing long-term competitiveness.

Improved Leverage

Reduced leverage improves financial stability and flexibility, allowing Dream Finders Homes to better navigate economic fluctuations and invest in growth.

Market Expansion

Expanding market presence through strategic partnerships and effective marketing enhances revenue potential and strengthens competitive positioning.

Negative Factors

Revenue Decline

Declining revenue growth poses a risk to long-term financial health, potentially impacting investment capacity and market competitiveness.

Cash Flow Challenges

Significant cash flow challenges can hinder Dream Finders Homes' ability to invest in growth opportunities and manage financial obligations effectively.

Guidance Revision

Lowered guidance reflects market challenges, indicating potential difficulties in achieving growth targets and affecting investor confidence.

Dream Finders Homes Business Overview & Revenue Model

Company Description

Dream Finders Homes, Inc. operates as a holding company for Dream Finders Holdings LLC that engages in homebuilding business in the United States. It designs, constructs, and sells single-family entry-level, and first-time and second time move-up homes in Charlotte, Raleigh, Jacksonville, Orlando, Denver, the Washington D.C. metropolitan area, Austin, Dallas, and Houston. The company also operates as a licensed home mortgage broker that underwrites, originates, and sells mortgages to Prime Lending; and provides insurance agency services, including closing, escrow, and title insurance, as well as mortgage banking solutions. It sells its homes through its sales representatives and independent real estate brokers. The company was founded in 2008 and is headquartered in Jacksonville, Florida.

How the Company Makes Money

Dream Finders Homes generates revenue primarily through the sale of newly constructed homes. The company builds and sells homes directly to consumers, typically targeting first-time homebuyers and move-up buyers in suburban and urban markets. Key revenue streams include the sale of homes, which may involve land acquisition, construction costs, and various upgrades and options chosen by buyers. Additionally, DFH may earn revenue from ancillary services such as financing and mortgage options, offering customers a one-stop solution for home purchasing. Partnerships with local real estate agents, mortgage lenders, and suppliers also play a significant role in driving sales and enhancing profitability. By leveraging economies of scale in home construction and effective marketing strategies, DFH continues to expand its market presence and increase revenue.

Dream Finders Homes Financial Statement Overview

Summary

Dream Finders Homes shows a mixed financial performance. While the company maintains decent profit margins and improved leverage, it faces challenges in revenue growth and cash flow generation. The volatility in cash flow metrics and declining revenue growth highlight areas of concern, despite operational efficiency.

Income Statement

Dream Finders Homes shows a mixed performance in its income statement. The TTM data indicates a decline in revenue growth, with a negative growth rate of -0.787%, which is concerning. However, the company maintains a decent net profit margin of 6.16% and an EBIT margin of 6.78%, reflecting operational efficiency. Historical data shows fluctuating revenue growth, with strong growth in earlier years. The gross profit margin has decreased significantly in the TTM period, indicating potential cost pressures.

Balance Sheet

The balance sheet of Dream Finders Homes indicates a relatively stable financial position. The debt-to-equity ratio has improved to 0.43 in the TTM period, showing reduced leverage compared to previous years. Return on equity remains strong at 20.23%, indicating effective use of equity to generate profits. The equity ratio is not explicitly calculated but seems reasonable given the total assets and stockholders' equity figures.

Cash Flow

Cash flow analysis reveals challenges, with negative free cash flow growth of -186.09% in the TTM period. The operating cash flow to net income ratio is low at 0.07, indicating potential issues in converting income to cash. However, the free cash flow to net income ratio is relatively healthy at 0.64, suggesting some ability to generate cash relative to net income. Historical data shows volatility in cash flow metrics, which could pose risks.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	4.67B	4.45B	3.75B	3.34B	1.92B	1.13B
Gross Profit	496.44M	828.58M	736.77M	620.20M	313.58M	170.88M
EBITDA	397.27M	450.05M	445.87M	367.24M	172.57M	98.15M
Net Income	287.73M	335.34M	295.90M	262.31M	122.38M	79.09M
Balance Sheet
Total Assets	3.84B	3.33B	2.56B	2.37B	1.89B	733.68M
Cash, Cash Equivalents and Short-Term Investments	251.04M	274.38M	548.46M	364.53M	227.23M	35.50M
Total Debt	1.66B	1.30B	845.42M	990.91M	783.26M	334.29M
Total Liabilities	2.28B	1.91B	1.48B	1.73B	1.49B	597.89M
Stockholders Equity	1.52B	1.39B	1.07B	787.72M	532.30M	103.85M
Cash Flow
Free Cash Flow	40.16M	-281.99M	369.45M	-33.17M	62.33M	92.42M
Operating Cash Flow	62.27M	-256.65M	374.23M	-27.62M	65.11M	95.34M
Investing Cash Flow	-226.05M	-221.67M	-4.48M	-5.52M	-523.04M	-13.03M
Financing Cash Flow	221.11M	269.69M	-216.42M	146.96M	645.88M	-65.83M

Dream Finders Homes Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 18.92
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DFH, the sentiment is Negative. The current price of 18.92 is below the 20-day moving average (MA) of 21.80, below the 50-day MA of 25.07, and below the 200-day MA of 24.31, indicating a bearish trend. The MACD of -1.74 indicates Positive momentum. The RSI at 22.39 is Positive, neither overbought nor oversold. The STOCH value of 6.05 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for DFH.

Dream Finders Homes Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TPH	75 Outperform	$2.70B	9.33	9.47%	―	-16.60%	-29.85%
GRBK	70 Outperform	$2.71B	8.25	20.37%	―	6.62%	-1.90%
CCS	69 Neutral	$1.78B	8.86	8.37%	1.86%	-6.28%	-31.55%
MHO	68 Neutral	$3.32B	7.52	15.76%	―	4.77%	-9.30%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
DFH	60 Neutral	$1.79B	6.81	20.66%	―	15.95%	-6.86%
LGIH	54 Neutral	$1.12B	10.19	5.21%	―	-20.62%	-45.74%

Dream Finders Homes Corporate Events

Dream Finders Homes Reports Q3 2025 Financial Results

Dream Finders Homes, Inc., headquartered in Jacksonville, Florida, is a prominent builder of single-family homes across various U.S. regions, including the Southeast, Mid-Atlantic, and Midwest. The company is known for its asset-light homebuilding model and its involvement in mortgage financing and title services.

Dream Finders Homes Enters $300M Indenture Agreement

On September 5, 2025, Dream Finders Homes, Inc. entered into an Indenture with U.S. Bank Trust Company to govern the terms of its $300 million senior unsecured notes due in 2030. This financial move includes specific terms for interest payments, redemption options, and covenants that restrict certain corporate actions, potentially impacting the company’s financial strategies and stakeholder interests.

The most recent analyst rating on (DFH) stock is a Buy with a $33.00 price target. To see the full list of analyst forecasts on Dream Finders Homes stock, see the DFH Stock Forecast page.

Dream Finders Homes Announces $300M Notes Offering

On September 2, 2025, Dream Finders Homes announced the pricing of its $300 million offering of 6.875% senior unsecured notes due 2030. The company plans to use the net proceeds of approximately $295 million to repay part of its existing revolving credit facility and for general corporate purposes. The offering is expected to close on September 5, 2025, and will be sold to qualified institutional buyers and non-U.S. persons under specific exemptions from registration requirements.

The most recent analyst rating on (DFH) stock is a Buy with a $33.00 price target. To see the full list of analyst forecasts on Dream Finders Homes stock, see the DFH Stock Forecast page.

Dream Finders Homes Announces $300M Senior Notes Offering

On September 2, 2025, Dream Finders Homes announced its plan to offer up to $300 million in unsecured senior notes due 2030, subject to market conditions. The proceeds from this offering are intended to repay part of the company’s existing revolving credit facility and cover related expenses, with the notes guaranteed by the company’s subsidiaries. The offering will be conducted privately under Rule 144A and Regulation S, without registration under the Securities Act, and is aimed at qualified institutional buyers and non-U.S. persons.

The most recent analyst rating on (DFH) stock is a Buy with a $33.00 price target. To see the full list of analyst forecasts on Dream Finders Homes stock, see the DFH Stock Forecast page.

Dream Finders Homes Amends Credit Facility Agreement

On August 21, 2025, Dream Finders Homes, Inc. amended its revolving credit facility, increasing the aggregate commitments to $1.475 billion and extending the maturity date to August 21, 2028 for a significant portion of the commitments. This amendment also raised the company’s minimum tangible net worth covenant, indicating a strengthened financial position and potentially enhancing its operational flexibility.

The most recent analyst rating on (DFH) stock is a Buy with a $31.00 price target. To see the full list of analyst forecasts on Dream Finders Homes stock, see the DFH Stock Forecast page.