Dream Finders Homes (DFH) AI Stock Analysis

• Market Cap: $1.67B
• Dividend Yield: N/A
• Average Volume (3M): 351.94K
• Price to Earnings (P/E): 7.1
• Beta (1Y): 1.53
• 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: 282,448
• 30 Day Avg. Volume: 351,939
• 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: 2.55
• Enterprise Value/Revenue: 0.91
• Enterprise Value/Gross Profit: 4.83
• Enterprise Value/Ebitda: 10.56
• 1Y Price Target: $26.00
• Price Target Upside: 32.45% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 2
• EPS Forecast (FY): 2.26
• Revenue Forecast (FY): $4.26B

• Rating: 60 Neutral
• Price Target: $19.00 ▼(-3.21% Downside)

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

Share Buyback Program

The expansion of the share buyback program indicates confidence in the company's future and a commitment to enhancing shareholder value, which can positively impact long-term investor perception and stock stability.

Operational Efficiency

Strong operational efficiency with healthy profit margins suggests effective cost management and the ability to sustain profitability, which is crucial for long-term business health.

Improved Leverage

Reduced leverage enhances financial stability and flexibility, allowing the company to better manage economic fluctuations and invest in growth opportunities.

Negative Factors

Revenue Growth Challenges

Declining revenue growth indicates potential market challenges or competitive pressures, which could hinder long-term expansion and profitability if not addressed.

Cash Flow Volatility

Volatility in cash flow metrics poses risks to financial stability, affecting the company's ability to invest in growth and meet financial obligations consistently.

Gross Profit Margin Pressure

Decreasing gross profit margins suggest rising costs or pricing pressures, which could impact the company's ability to maintain profitability over the long term.

Dream Finders Homes Business Overview & Revenue Model

Company Description

Dream Finders Homes (DFH) is a leading homebuilder based in the United States, specializing in the construction of single-family homes and townhomes. The company operates in various markets across the country, focusing on delivering high-quality, customizable homes that cater to a diverse range of buyers. DFH is known for its innovative designs, sustainable building practices, and commitment to customer satisfaction, positioning itself as a key player in the residential construction sector.

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	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	2.38B	1.89B	733.68M
Cash, Cash Equivalents and Short-Term Investments	251.04M	274.38M	494.14M	395.13M	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	1.58B	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: Neutral
• Last Price: 19.63
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• 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 Neutral. The current price of 19.63 is above the 20-day moving average (MA) of 18.93, below the 50-day MA of 21.05, and below the 200-day MA of 23.91, indicating a neutral trend. The MACD of -0.54 indicates Negative momentum. The RSI at 49.21 is Neutral, neither overbought nor oversold. The STOCH value of 27.22 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for DFH.

Dream Finders Homes Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MHO	75 Outperform	$3.52B	7.97	15.76%	―	4.77%	-9.30%
TPH	73 Outperform	$2.81B	9.95	9.47%	―	-16.60%	-29.85%
CCS	69 Neutral	$1.85B	9.17	8.37%	1.83%	-6.28%	-31.55%
GRBK	69 Neutral	$2.90B	8.85	20.37%	―	6.62%	-1.90%
LGIH	65 Neutral	$1.08B	10.72	5.21%	―	-20.62%	-45.74%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
DFH	60 Neutral	$1.67B	7.09	20.66%	―	15.95%	-6.86%

Dream Finders Homes Corporate Events

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.