Dream Finders Homes (DFH) AI Stock Analysis

• Market Cap: $1.71B
• Dividend Yield: N/A
• Average Volume (3M): 396.95K
• Price to Earnings (P/E): 6.8
• Beta (1Y): 1.51
• 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: 335,038
• 30 Day Avg. Volume: 396,955
• 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: 1.88
• Enterprise Value/Revenue: 0.69
• Enterprise Value/Gross Profit: 3.65
• Enterprise Value/Ebitda: 7.98
• 1Y Price Target: $22.00
• Price Target Upside: 18.22% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 3
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 60 Neutral
• Price Target: $21.00 ▲(12.84% Upside)

Dream Finders Homes' overall score is primarily influenced by its mixed financial performance and bearish technical indicators. The company's valuation suggests potential undervaluation, but technical analysis indicates caution. The positive corporate event of a share buyback expansion is noted but does not significantly alter the overall score.

Positive Factors

Improved Leverage & ROE

Lower leverage and a 20.23% ROE provide durable financial flexibility. Reduced debt burden lowers interest expense and increases capacity to fund land deals, inventory or buybacks without refinancing stress. Strong ROE signals effective capital deployment across cycles.

Sustainable Operating Margins

Mid-single-digit EBIT and net margins indicate operational efficiency that supports profitability per home even if volumes soften. Sustainable margins help absorb intermittent input cost spikes and enable continued investment in communities and customer services over the medium term.

Share Buyback Expansion

A sizable buyback program reflects management confidence and disciplined capital allocation. It permanently reduces outstanding shares, can boost long-term EPS, and signals willingness to return capital when operational cash allows, strengthening shareholder value over multiple quarters.

Negative Factors

Weak Cash Conversion

Severely negative FCF growth and weak cash conversion from earnings constrain reinvestment in land, community development, and working capital. Persistent cash volatility raises reliance on external financing, limiting strategic flexibility and increasing refinancing or liquidity risk over coming quarters.

Declining Revenue & Margin Pressure

Falling top-line growth alongside shrinking gross margins suggests pricing pressure or rising input costs. If sustained, this erodes unit economics, forces greater use of incentives, and reduces retained earnings to fund land or operations, weakening long-term profitability resilience.

Exposure to Land Options & Mortgage Cyclicality

Dependence on option-based lot strategies reduces upfront capital needs but ties margins to finished-lot pricing and option terms. Coupled with sensitivity to mortgage rates and financing availability, this increases cyclicality and can amplify margin and volume volatility across housing cycles.

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 operational efficiency with decent profit margins but faces challenges in revenue growth and cash flow generation. The balance sheet indicates improved leverage, but volatility in cash flow metrics and declining revenue growth highlight concerns.

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	882.48M	828.58M	736.77M	620.20M	313.58M	170.88M
EBITDA	403.79M	450.05M	422.32M	373.28M	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	494.14M	364.53M	227.23M	43.66M
Total Debt	1.77B	1.30B	845.42M	990.91M	786.41M	334.29M
Total Liabilities	2.28B	1.91B	1.48B	1.57B	1.34B	521.66M
Stockholders Equity	1.52B	1.39B	1.07B	787.72M	532.30M	180.08M
Cash Flow
Free Cash Flow	40.16M	-281.99M	369.45M	-33.17M	62.20M	92.42M
Operating Cash Flow	62.27M	-256.65M	374.23M	-27.62M	64.97M	95.34M
Investing Cash Flow	-226.05M	-221.67M	-4.48M	-5.52M	-523.04M	-16.98M
Financing Cash Flow	221.11M	269.69M	-216.42M	146.96M	646.02M	-61.88M

Dream Finders Homes Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 18.61
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• 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 18.61 is below the 20-day moving average (MA) of 18.71, below the 50-day MA of 18.68, and below the 200-day MA of 23.10, indicating a bearish trend. The MACD of 0.03 indicates Positive momentum. The RSI at 47.71 is Neutral, neither overbought nor oversold. The STOCH value of 18.17 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
GRBK	73 Outperform	$3.02B	9.21	20.37%	―	6.62%	-1.90%
TPH	73 Outperform	$2.86B	9.96	9.47%	―	-16.60%	-29.85%
MHO	71 Outperform	$3.46B	9.27	13.20%	―	4.77%	-9.30%
LGIH	65 Neutral	$1.15B	11.07	5.21%	―	-20.62%	-45.74%
CCS	63 Neutral	$1.88B	13.17	8.37%	1.99%	-6.28%	-31.55%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
DFH	60 Neutral	$1.71B	6.76	20.66%	―	15.95%	-6.86%

Dream Finders Homes Corporate Events

Dream Finders Homes Releases 2024 Annual Shareholder Letter

On December 29, 2025, Dream Finders Homes released its 2024 Annual Shareholder Letter, authored by President, CEO and Chairman Patrick Zalupski, and made it available on the company’s investor relations website. The letter’s publication signals the company’s annual communication to shareholders on its performance and strategic direction, though its contents are not detailed in the announcement.

The most recent analyst rating on (DFH) stock is a Hold with a $19.00 price target. To see the full list of analyst forecasts on Dream Finders Homes stock, see the DFH Stock Forecast page.

Dream Finders Homes Expands Share Buyback Program

On November 12, 2025, Dream Finders Homes announced an increase in its share buyback program, authorizing the repurchase of an additional $50 million of Class A common stock, raising the total authorization to $100 million through June 30, 2027. By November 11, 2025, the company had already repurchased over 1.6 million shares for $41.2 million, indicating a strategic move to enhance shareholder value and potentially strengthen its market position.

The most recent analyst rating on (DFH) stock is a Hold with a $21.00 price target. To see the full list of analyst forecasts on Dream Finders Homes stock, see the DFH Stock Forecast page.