D.R. Horton Inc (DHI)
NYSE:DHI
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DR Horton
(NYSE:DHI)
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Rating:72Outperform
Price Target:
$150.00
▲(0.13% Upside)
Action:Reiterated
Date:04/22/26
The score is driven primarily by solid financial stability (healthy balance sheet and strong free cash flow) despite weaker recent revenue/margin trends. Technicals are supportive with strong momentum, though overbought readings add near-term risk. The earnings call was net positive on orders, margins versus guidance, inventory control, and shareholder returns, while valuation is only moderately supportive given a modest P/E but very low dividend yield.
Positive Factors
Strong balance sheet & liquidity
A conservative leverage profile and $6.0B of liquidity give D.R. Horton durable financial flexibility to fund land buys, weather housing cycles, cover near‑term maturities and sustain capital allocation. This reduces refinancing risk and supports strategic optionality over months.
Negative Factors
Sharp revenue decline & margin compression
Material declines in revenue and gross margins indicate weakening pricing power and operating leverage. Sustained lower topline and compressed margins reduce earnings resilience, pressuring returns, cash flow and the company's ability to absorb cost inflation over the medium term.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong balance sheet & liquidity
A conservative leverage profile and $6.0B of liquidity give D.R. Horton durable financial flexibility to fund land buys, weather housing cycles, cover near‑term maturities and sustain capital allocation. This reduces refinancing risk and supports strategic optionality over months.
Read all positive factors
DR Horton Key Performance Indicators (KPIs)
Any
Income Before Taxes by Segment
Shows the profitability of each business segment before tax, highlighting which areas are driving earnings and which may need strategic adjustments.
Shows the profitability of each business segment before tax, highlighting which areas are driving earnings and which may need strategic adjustments.
Data provided by:
The Fly
The FlyDR Horton (DHI) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$38.99B
Dividend Yield1.14%
Average Volume (3M)2.53M
Price to Earnings (P/E)15.2
Beta (1Y)0.57
Revenue Growth-5.57%
EPS Growth-19.40%
CountryUS
Employees14,766
SectorConsumer Cyclical
Sector Strength84
IndustryResidential Construction
Share Statistics
EPS (TTM)10.71
Shares Outstanding283,579,620
10 Day Avg. Volume2,174,211
30 Day Avg. Volume2,526,567
Financial Highlights & Ratios
PEG Ratio-0.75
Price to Book (P/B)2.16
Price to Sales (P/S)1.53
P/FCF Ratio15.92
Enterprise Value/Market Cap1.10
Enterprise Value/Revenue1.28
Enterprise Value/Gross Profit5.64
Enterprise Value/Ebitda10.37
Forecast
1Y Price Target
$165.62Price Target Upside10.55% Upside
Rating ConsensusHold
Number of Analyst Covering15
EPS Forecast (FY)10.58
Revenue Forecast (FY)$33.39B
DR Horton Business Overview & Revenue Model
Company Description
D.R. Horton, Inc. operates as a homebuilding company in East, North, Southeast, South Central, Southwest, and Northwest regions in the United States. It engages in the acquisition and development of land; and construction and sale of residential h...
How the Company Makes Money
D.R. Horton primarily makes money by selling newly constructed homes to individual buyers. Revenue is recognized from homebuilding when homes are delivered/closed, and the company’s earnings in this core business are driven by (1) the number of ho...
DR Horton Earnings Call Summary
Earnings Call Date:Apr 21, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Jul 21, 2026
Earnings Call Sentiment Positive
The call conveyed a net-positive operational and financial performance: management delivered margins above guidance, strong order growth (+11% YoY), meaningful inventory reductions (completed unsold homes down 35% YoY), shorter cycle times, strong cash generation ($3.7B trailing 12 months) and continued capital returns (repurchases and dividends). Offsetting items include a decline in EPS (-13.2% YoY), ongoing elevated incentives (~10% of revenue) and some pressure from higher lot costs (+4% YoY) and lower ASPs, plus a modest trimming of the top end of revenue/closings guidance. Overall the positives (profitability, orders, inventory control, cash returns, returns metrics) materially outweigh the negatives, though management noted areas to monitor (incentives, land costs, macro uncertainty).Positive Updates
Strong profitability and margins
Consolidated pretax income of $867 million on $7.6 billion of revenue with a consolidated pretax margin of 11.5%, which came in above the high end of guidance. Home sales gross margin was 20.1% in the quarter (19.7% on a normalized basis excluding a 40 bps litigation/warranty benefit) and management expects roughly 19.7% or slightly higher for Q3.
Negative Updates
Lower EPS versus prior year
Diluted earnings per share declined to $2.24 from $2.58 in the prior year quarter, a decrease of approximately 13.2%, reflecting margin/income mix and lower per-unit pricing.
Read all updates
Q2-2026 Updates
Positive
Negative
Strong profitability and margins
Consolidated pretax income of $867 million on $7.6 billion of revenue with a consolidated pretax margin of 11.5%, which came in above the high end of guidance. Home sales gross margin was 20.1% in the quarter (19.7% on a normalized basis excluding a 40 bps litigation/warranty benefit) and management expects roughly 19.7% or slightly higher for Q3.
Read all positive updates
Company Guidance
Management guided third-quarter consolidated revenues of $8.8–$9.3 billion with homebuilding closings of 23,500–24,000 homes, a home‑sales gross margin of 19.7%–20.2% and a consolidated pretax margin of 12.2%–12.7%; they expect starts in Q3 to be lower than Q2 and rental inventory to remain around $3.0 billion. For fiscal 2026 they now forecast full‑year consolidated revenues of approximately $33.5–$34.5 billion, homebuilding closings of 86,000–87,500 homes, an effective tax rate of ~24.5%, operating cash flow of at least $3.0 billion, roughly $2.5 billion of share repurchases and about $500 million of dividend payments.DR Horton Financial Statement Overview
Summary
Income Statement
62
Positive
Balance Sheet
78
Positive
Cash Flow
74
Positive
| Breakdown | TTM | Sep 2025 | Sep 2024 | Sep 2023 | Sep 2022 | Sep 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 33.35B | 34.25B | 36.80B | 35.46B | 33.48B | 27.77B |
| Gross Profit | 7.60B | 8.12B | 9.54B | 9.35B | 10.50B | 7.88B |
| EBITDA | 4.13B | 4.84B | 6.37B | 6.41B | 7.71B | 5.43B |
| Net Income | 3.17B | 3.59B | 4.76B | 4.75B | 5.86B | 4.18B |
Balance Sheet | ||||||
| Total Assets | 35.57B | 35.47B | 36.10B | 32.58B | 30.35B | 24.02B |
| Cash, Cash Equivalents and Short-Term Investments | 1.92B | 2.99B | 4.52B | 3.87B | 2.54B | 3.21B |
| Total Debt | 6.56B | 6.03B | 5.97B | 5.14B | 6.11B | 5.45B |
| Total Liabilities | 11.37B | 10.73B | 10.28B | 9.44B | 10.57B | 8.80B |
| Stockholders Equity | 23.63B | 24.19B | 25.31B | 22.70B | 19.40B | 14.89B |
Cash Flow | ||||||
| Free Cash Flow | 3.50B | 3.28B | 2.02B | 4.16B | 413.60M | 267.00M |
| Operating Cash Flow | 3.65B | 3.42B | 2.19B | 4.30B | 561.80M | 534.40M |
| Investing Cash Flow | -234.60M | -168.70M | -190.60M | -310.20M | -414.90M | -252.20M |
| Financing Cash Flow | -3.96B | -4.76B | -1.36B | -2.67B | -811.20M | -85.10M |
DR Horton Technical Analysis
Negative
149.81
Price Trends
143.81
Negative
148.84
Negative
153.21
Negative
Market Momentum
-2.93
Positive
36.10
Neutral
8.01
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DHI, the sentiment is Negative. The current price of 149.81 is above the 20-day moving average (MA) of 148.01, above the 50-day MA of 143.81, and below the 200-day MA of 153.21, indicating a bearish trend. The MACD of -2.93 indicates Positive momentum. The RSI at 36.10 is Neutral, neither overbought nor oversold. The STOCH value of 8.01 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for DHI.
DR Horton Risk Analysis
DR Horton disclosed 26 risk factors in its most recent earnings report. DR Horton 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
DR Horton Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $5.23B | 13.92 | 10.85% | ― | -8.99% | -22.26% | |
72 Outperform | $38.99B | 15.24 | 13.24% | 1.14% | -5.57% | -19.40% | |
71 Outperform | $21.29B | 16.24 | 15.92% | 0.78% | -5.94% | -27.06% | |
70 Outperform | $12.02B | 16.39 | 15.49% | 0.70% | 4.60% | -3.85% | |
67 Neutral | $15.43B | 23.10 | 32.66% | ― | -7.05% | -16.31% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
56 Neutral | $20.60B | 30.47 | 8.04% | 1.91% | -7.52% | -49.33% |
* Consumer Cyclical Sector Average
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DR Horton
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DR Horton Corporate Events
Private Placements and FinancingRegulatory Filings and Compliance
D.R. Horton Establishes New Direct Financial Obligation
Neutral
May 12, 2026
D.R. Horton disclosed that information previously provided under an item relating to entry into a material definitive agreement is being incorporated by reference into another item concerning the creation of a direct financial obligation or simila...
Business Operations and StrategyPrivate Placements and Financing
DR Horton Expands Credit Facilities to Boost Liquidity
Positive
Apr 1, 2026
Effective March 27, 2026, D.R. Horton amended its primary credit agreement with Mizuho Bank and other lenders, increasing its aggregate revolving credit commitment to $3.295 billion across staggered maturities through 2031 and lifting its overall ...
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.