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Dream Finders Homes (DFH)
NYSE:DFH
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Dream Finders Homes (DFH) AI Stock Analysis

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DFH

Dream Finders Homes

(NYSE:DFH)

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Neutral 64 (OpenAI - 4o)
Rating:64Neutral
Price Target:
$29.00
▲(10.81% Upside)
Dream Finders Homes scores moderately due to a combination of financial stability and valuation attractiveness, offset by technical analysis concerns. The company's strong balance sheet and low P/E ratio highlight its potential, but cash flow challenges and mixed technical signals present risks. The absence of earnings call and corporate events data limits additional insights.
Positive Factors
Revenue Growth
Consistent revenue growth indicates strong market demand and effective sales strategies, supporting long-term business expansion.
Improved Leverage
Reduced leverage enhances financial stability, providing more flexibility for future investments and reducing risk.
Strong Equity Returns
High ROE reflects efficient use of equity capital, indicating effective management and potential for sustained profitability.
Negative Factors
Cash Flow Challenges
Negative cash flow can hinder operational flexibility and growth, requiring careful management to avoid liquidity issues.
Margin Compression
Declining margins may pressure profitability, necessitating cost control and efficiency improvements to maintain earnings.
Decreased Net Profit Margin
Lower net profit margins can impact overall profitability, requiring strategic adjustments to sustain financial health.

Dream Finders Homes (DFH) vs. SPDR S&P 500 ETF (SPY)

Dream Finders Homes Business Overview & Revenue Model

Company DescriptionDream 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 MoneyDream 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 Key Performance Indicators (KPIs)

Any
Any
Revenue by Geography
Revenue by Geography
Chart Insights
Data provided by:Main Street Data

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
72
Positive
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
65
Positive
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
58
Neutral
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.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue4.71B4.45B3.75B3.34B1.92B1.13B
Gross Profit480.17M828.58M736.77M620.20M313.58M170.88M
EBITDA436.08M450.05M445.87M367.24M172.57M98.15M
Net Income311.39M335.34M295.90M262.31M122.38M79.09M
Balance Sheet
Total Assets3.65B3.33B2.56B2.37B1.89B733.68M
Cash, Cash Equivalents and Short-Term Investments210.32M274.38M548.46M364.53M227.23M35.50M
Total Debt295.71M1.30B845.42M990.91M783.26M334.29M
Total Liabilities2.14B1.91B1.48B1.73B1.49B597.89M
Stockholders Equity1.48B1.39B1.07B787.72M532.30M103.85M
Cash Flow
Free Cash Flow-46.64M-281.99M369.45M-33.17M62.33M92.42M
Operating Cash Flow-11.72M-256.65M374.23M-27.62M65.11M95.34M
Investing Cash Flow-229.22M-221.67M-4.48M-5.52M-523.04M-13.03M
Financing Cash Flow202.71M269.69M-216.42M146.96M645.88M-65.83M

Dream Finders Homes Technical Analysis

Technical Analysis Sentiment
Negative
Last Price26.17
Price Trends
50DMA
27.61
Negative
100DMA
25.69
Positive
200DMA
24.60
Positive
Market Momentum
MACD
-0.39
Positive
RSI
40.11
Neutral
STOCH
8.79
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 26.17 is below the 20-day moving average (MA) of 28.27, below the 50-day MA of 27.61, and above the 200-day MA of 24.60, indicating a neutral trend. The MACD of -0.39 indicates Positive momentum. The RSI at 40.11 is Neutral, neither overbought nor oversold. The STOCH value of 8.79 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for DFH.

Dream Finders Homes Risk Analysis

Dream Finders Homes disclosed 64 risk factors in its most recent earnings report. Dream Finders Homes reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

Dream Finders Homes Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
80
Outperform
3.85B8.0016.59%7.39%-1.37%
77
Outperform
3.15B9.2420.28%13.87%6.54%
75
Outperform
2.95B8.5913.73%-3.59%-10.82%
69
Neutral
1.87B7.5510.14%1.79%3.76%-17.55%
68
Neutral
1.20B7.847.58%-7.89%-19.53%
64
Neutral
$2.43B8.8623.25%20.18%-1.04%
61
Neutral
$18.38B12.79-2.54%3.03%1.52%-15.83%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
DFH
Dream Finders Homes
26.17
-10.49
-28.61%
MHO
M/I Homes
145.72
-24.37
-14.33%
TPH
Tri Pointe
33.73
-11.28
-25.06%
LGIH
LGI Homes
52.01
-65.73
-55.83%
CCS
Century Communities
63.05
-38.43
-37.87%
GRBK
Green Brick Partners
72.25
-10.76
-12.96%

Dream Finders Homes Corporate Events

Private Placements and FinancingBusiness Operations and Strategy
Dream Finders Homes Enters $300M Indenture Agreement
Neutral
Sep 5, 2025

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.

Private Placements and Financing
Dream Finders Homes Announces $300M Notes Offering
Neutral
Sep 2, 2025

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.

Private Placements and Financing
Dream Finders Homes Announces $300M Senior Notes Offering
Neutral
Sep 2, 2025

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.

Private Placements and FinancingBusiness Operations and Strategy
Dream Finders Homes Amends Credit Facility Agreement
Positive
Aug 26, 2025

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.

Stock BuybackBusiness Operations and Strategy
Dream Finders Homes Expands Stock Buyback Program
Positive
Jun 26, 2025

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.

Executive/Board ChangesShareholder Meetings
Dream Finders Homes Holds Annual Stockholders Meeting
Neutral
Jun 12, 2025

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.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Sep 20, 2025