Dream Finders Homes (DFH) AI Stock Analysis

• Market Cap: $2.67B
• Dividend Yield: N/A
• Average Volume (3M): 355.46K
• Price to Earnings (P/E): 9.7
• Beta (1Y): 1.75
• Revenue Growth: 20.18%
• EPS Growth: -1.04%
• Country: US
• Employees: 1,686
• Sector: Consumer Cyclical
• Sector Strength: 83
• Industry: Residential Construction
• EPS (TTM): 0.56
• Shares Outstanding: 35,155,533
• 10 Day Avg. Volume: 269,993
• 30 Day Avg. Volume: 355,460
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.52
• Enterprise Value/Revenue: 0.86
• Enterprise Value/Gross Profit: 8.46
• Enterprise Value/Ebitda: 9.32
• 1Y Price Target: $33.00
• Price Target Upside: 6.66% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 74 Outperform
• Price Target: $33.00 ▲(6.66% Upside)

Dream Finders Homes scores a 74, driven by strong technical analysis and valuation metrics. The company's financial performance is moderate, with stable growth but cash flow challenges. Positive corporate events further support the stock's potential, though they are not included in the weighted score due to the absence of earnings call data.

Positive Factors

Earnings

Orders increase on incentives and higher spec inventory, with net orders up 17.9% to 2,032.

Financial Performance

Gross margin improved by 19.2% due to a better product mix and direct cost reductions.

Market Expansion

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

Negative Factors

Debt Levels

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

Operational Costs

SG&A is expected to remain elevated as DFH invests in headcount to support new market expansion.

Unexpected Costs

SG&A costs were above expectations due to forward mortgage commitment costs and higher compensation expenses, including a one-time stock compensation acceleration.

Dream Finders Homes Business Overview & Revenue Model

Company Description

Dream Finders Homes (DFH) is a homebuilding company that operates primarily in the residential real estate sector. The company is engaged in the design, construction, and sale of single-family homes, townhomes, and condominiums across several key markets in the United States. DFH focuses on providing high-quality, customizable homes that cater to a diverse range of homebuyers, from first-time buyers to luxury clientele.

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 exhibits moderate financial health with stable revenue growth and profitability, though margins have compressed. The balance sheet shows improved leverage and strong equity returns, while cash flow challenges persist. The company demonstrates potential for growth but faces risks related to cash flow management.

Income Statement

Dream Finders Homes shows a stable revenue growth rate of 2.05% TTM, with a consistent gross profit margin of 10.20%. However, there is a noticeable decline from previous years' higher margins. The net profit margin is at 6.61% TTM, indicating profitability, but it has decreased from previous periods. The EBIT and EBITDA margins are healthy at 8.76% and 9.26% TTM, respectively, though they have also seen a decline. Overall, the income statement reflects moderate growth and profitability, but with some margin compression.

Balance Sheet

The company's debt-to-equity ratio has improved significantly to 0.20 TTM from higher levels in previous years, indicating reduced leverage and improved financial stability. Return on equity is strong at 22.32% TTM, though slightly lower than previous periods, suggesting effective use of equity. The equity ratio stands at 40.61% TTM, showing a solid capital structure. Overall, the balance sheet reflects improved leverage and strong equity returns, but with a slight decrease in ROE.

Cash Flow

Dream Finders Homes faces challenges in cash flow, with negative operating cash flow of -$11.72 million TTM and free cash flow of -$46.64 million TTM. The free cash flow growth rate is negative, indicating cash flow difficulties. The operating cash flow to net income ratio is negative, reflecting cash flow issues relative to profitability. However, the free cash flow to net income ratio is high at 3.98, suggesting that despite negative cash flows, the company is generating significant cash relative to net income. Overall, the cash flow statement indicates cash flow challenges, despite some positive aspects.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	4.71B	4.45B	3.75B	3.34B	1.92B	1.13B
Gross Profit	480.17M	828.58M	736.77M	620.20M	313.58M	170.88M
EBITDA	436.08M	450.05M	445.87M	367.24M	172.57M	98.15M
Net Income	311.39M	335.34M	295.90M	262.31M	122.38M	79.09M
Balance Sheet
Total Assets	3.65B	3.33B	2.56B	2.37B	1.89B	733.68M
Cash, Cash Equivalents and Short-Term Investments	210.32M	274.38M	548.46M	364.53M	227.23M	35.50M
Total Debt	295.71M	1.30B	845.42M	990.91M	783.26M	334.29M
Total Liabilities	2.14B	1.91B	1.48B	1.73B	1.49B	597.89M
Stockholders Equity	1.48B	1.39B	1.07B	787.72M	532.30M	103.85M
Cash Flow
Free Cash Flow	-46.64M	-281.99M	369.45M	-33.17M	62.33M	92.42M
Operating Cash Flow	-11.72M	-256.65M	374.23M	-27.62M	65.11M	95.34M
Investing Cash Flow	-229.22M	-221.67M	-4.48M	-5.52M	-523.04M	-13.03M
Financing Cash Flow	202.71M	269.69M	-216.42M	146.96M	645.88M	-65.83M

Dream Finders Homes Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 30.94
• 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 30.94 is above the 20-day moving average (MA) of 28.02, above the 50-day MA of 27.16, and above the 200-day MA of 24.82, indicating a bullish trend. The MACD of 0.64 indicates Negative momentum. The RSI at 65.96 is Neutral, neither overbought nor oversold. The STOCH value of 59.53 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
MHO	80 Outperform	$4.06B	8.61	17.56%	―	7.39%	-1.37%
TPH	79 Outperform	$3.18B	9.46	11.38%	―	-3.59%	-10.82%
GRBK	77 Outperform	$3.14B	9.21	22.12%	―	13.87%	6.54%
DFH	74 Outperform	$2.67B	9.72	23.25%	―	20.18%	-1.04%
CCS	73 Outperform	$2.03B	8.34	10.34%	1.62%	3.76%	-17.55%
LGIH	68 Neutral	$1.51B	10.11	7.84%	―	-7.89%	-19.53%
Sector *	61 Neutral	$17.97B	12.87	-5.30%	2.97%	1.26%	-14.45%

Dream Finders Homes Corporate Events

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.

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.

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.

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.

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.

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.