Dream Finders Homes (DFH) AI Stock Analysis

• Market Cap: $2.65B
• Dividend Yield: N/A
• Average Volume (3M): 502.14K
• Price to Earnings (P/E): 8.8
• Beta (1Y): 1.68
• Revenue Growth: 21.18%
• EPS Growth: 11.40%
• Country: US
• Employees: 1,686
• Sector: Consumer Cyclical
• Sector Strength: 68
• Industry: Residential Construction
• EPS (TTM): 0.54
• Shares Outstanding: 35,827,866
• 10 Day Avg. Volume: 402,892
• 30 Day Avg. Volume: 502,142
• PEG Ratio: N/A
• Price to Book (P/B): 1.72
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -30.89
• Enterprise Value/Market Cap: 1.40
• Enterprise Value/Revenue: 0.22
• Enterprise Value/Gross Profit: 4.21
• Enterprise Value/Ebitda: 2.08
• 1Y Price Target: $28.00
• Price Target Upside: 5.07% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 83 Outperform
• Price Target: $32.00 ▲(20.08%Upside)

The overall stock score is driven by a strong valuation and positive technical indicators, bolstered by strategic corporate events like the stock buyback and acquisition. However, cash flow challenges temper the outlook.

Positive Factors

Financial Performance

Gross margin was up 19.2%, which was an improvement due to product mix and direct cost reductions.

Market Expansion

DFH acquired Green River Builders and further expanded into the Atlanta market, expecting to control over 520 additional lots.

Orders

Orders increase on incentives and higher spec inventory, with net orders up 17.9% driven by higher incentives and additional communities.

Negative Factors

Compensation Costs

SG&A was above expectations due to costs of the forward mortgage commitment as well as higher compensation costs, including a one-time stock comp acceleration expense.

Debt Levels

DFH has the highest net debt-to-capital in the coverage group at 36% and already trades at a premium.

SG&A Costs

SG&A will likely stay elevated as DFH invests in headcount to support new market expansion.

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 residential properties, including single-family homes, townhomes, and condominiums. The company's business model involves acquiring land, developing it into residential communities, and selling the completed homes to consumers. DFH's revenue streams are influenced by factors such as market demand, housing prices, and the company's ability to efficiently manage construction costs and timelines. Additionally, strategic partnerships with suppliers and contractors play a role in optimizing costs and enhancing profitability. The company's earnings are also driven by its geographic diversification, allowing it to tap into various regional housing markets and mitigate risks associated with economic fluctuations in any single market.

Dream Finders Homes Financial Statement Overview

Summary

Dream Finders Homes has shown strong revenue growth and improved financial stability, with increased equity and reduced leverage. However, negative cash flows in 2024 highlight liquidity challenges.

Income Statement

Dream Finders Homes has demonstrated robust revenue growth, with a significant increase from $744 million in 2019 to $4.45 billion in 2024. The company's gross profit margin is exceptionally high at 100% in 2024, which is atypical and suggests potential data anomalies. Despite the impressive revenue growth, net profit margin decreased from 7.0% in 2023 to 7.5% in 2024, indicating some pressure on profitability. EBIT margin is strong at 91.1%, showcasing efficiency in operations. However, EBITDA is reported as zero in 2024, which may raise concerns about cash flow generation abilities.

Balance Sheet

The balance sheet shows improvement in equity, with stockholders' equity increasing from $37.7 million in 2021 to $1.24 billion in 2024. The debt-to-equity ratio has decreased significantly from 7.55 in 2019 to 0.25 in 2024, reflecting reduced leverage and enhanced financial stability. Return on Equity (ROE) is solid at 26.9% for 2024, indicating effective use of equity to generate profits. However, the equity ratio stands at a moderate 37.4%, suggesting room for improvement in asset utilization.

Cash Flow

Operating cash flow turned negative in 2024 at -$256.6 million, down from $374.2 million in 2023, raising concerns about liquidity management. Free cash flow also declined to -$282 million in 2024, from a positive $369.5 million in 2023. The free cash flow to net income ratio is negative, indicating challenges in converting profits into cash. The operating cash flow to net income ratio is also negative, further highlighting cash flow issues despite profitability.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	4.45B	3.75B	3.34B	1.92B	1.13B
Gross Profit	828.58M	736.77M	620.20M	313.58M	170.88M
EBITDA	450.05M	445.87M	367.24M	163.66M	98.15M
Net Income	335.34M	295.90M	262.31M	122.38M	79.09M
Balance Sheet
Total Assets	3.33B	2.56B	2.37B	1.89B	733.68M
Cash, Cash Equivalents and Short-Term Investments	274.38M	548.46M	364.53M	227.23M	35.50M
Total Debt	1.30B	845.42M	990.91M	783.26M	334.29M
Total Liabilities	1.91B	1.48B	1.73B	1.49B	597.89M
Stockholders Equity	1.39B	1.07B	631.68M	377.08M	103.85M
Cash Flow
Free Cash Flow	-281.99M	369.45M	-33.17M	62.33M	92.42M
Operating Cash Flow	-256.65M	374.23M	-27.62M	65.11M	95.34M
Investing Cash Flow	-221.67M	-4.48M	-5.52M	-523.04M	-13.03M
Financing Cash Flow	269.69M	-216.42M	146.96M	645.88M	-65.83M

Dream Finders Homes Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 26.65
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DFH, the sentiment is Positive. The current price of 26.65 is above the 20-day moving average (MA) of 25.45, above the 50-day MA of 23.59, and above the 200-day MA of 25.83, indicating a bullish trend. The MACD of 1.30 indicates Negative momentum. The RSI at 57.93 is Neutral, neither overbought nor oversold. The STOCH value of 58.86 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for DFH.

Dream Finders Homes Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
DFH	83 Outperform	$2.65B	8.79	26.25%	―	21.18%	11.40%
TPH	80 Outperform	$3.09B	7.60	13.28%	―	10.82%	19.34%
GRBK	79 Outperform	$2.93B	7.70	24.29%	―	21.22%	24.90%
MHO	77 Outperform	$3.20B	6.04	19.02%	―	8.68%	8.39%
Sector *	67 Neutral	¥252.89B	13.23	6.45%	2.71%	5.22%	-11.89%
CCS	66 Neutral	$1.88B	6.38	12.36%	1.89%	10.75%	8.31%
LGIH	62 Neutral	$1.27B	6.55	9.36%	―	-4.37%	-3.17%

Dream Finders Homes Corporate Events

Dream Finders Homes Expands Stock Buyback Program

On June 26, 2025, Dream Finders Homes, Inc. announced an increase in the limit of its Class A common stock repurchase program to $50 million, doubling the previous limit set in June 2023. This expansion of the buyback program, which will continue through June 30, 2026, reflects the company’s strategic focus on enhancing shareholder value and may impact its financial strategies and market perception.

The most recent analyst rating on (DFH) stock is a Hold with a $38.00 price target. To see the full list of analyst forecasts on Dream Finders Homes stock, see the DFH Stock Forecast page.

Dream Finders Homes Holds Annual Stockholders Meeting

On June 9, 2025, Dream Finders Homes, Inc. held its Annual Meeting of Stockholders, where key decisions were made. The stockholders elected directors for one-year terms, ratified PricewaterhouseCoopers LLP as the independent auditor for 2025, and approved a non-binding resolution on executive compensation for 2024, reflecting continued shareholder support for the company’s governance and strategic direction.

The most recent analyst rating on (DFH) stock is a Hold with a $38.00 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 Board Member Retirement

On May 8, 2025, Dream Finders Homes, Inc. announced that W. Radford Lovett II, a long-serving director, investor, and advisor, will retire from the Board of Directors effective June 9, 2025, due to personal and business commitments. Mr. Lovett has been instrumental in the company’s governance and has a notable background in founding and leading successful companies in the communications and venture capital sectors, which has significantly contributed to the company’s strategic direction.

The most recent analyst rating on (DFH) stock is a Hold with a $38.00 price target. To see the full list of analyst forecasts on Dream Finders Homes stock, see the DFH Stock Forecast page.

Dream Finders Homes Completes Acquisition of Alliant National

On April 21, 2025, Dream Finders Homes announced the completion of its acquisition of Alliant National Title Insurance Company, expanding its financial services capabilities. This acquisition, initially announced on October 23, 2024, enhances Dream Finders’ vertical integration and service offerings, potentially increasing value for stakeholders and strengthening its industry presence.