D.R. Horton shares moved -15.3% over the last 52 weeks, with a high of $108.64 and a low of $59.25. During this time, the stock underperformed the S&P 500 index by 4.6%. As of January 2022, the company's 50-day average price is $82.0. D.R. Horton, Inc. is a home construction company incorporated in Delaware and headquartered in Arlington, Texas. Since 2002, the company has been the largest homebuilder by volume in the United States. The large-cap Consumer Cyclical company has 13,237 full time employees. D.R. Horton has returned a 1.0% dividend yield over the last 12 months.
The Business Has GrowingRate:
2019-09-30 | 2020-09-30 | 2021-09-30 | 2022-09-30 | |
---|---|---|---|---|
Revenue (MM) | $17,593 | $20,311 | $27,774 | $33,480 |
Revenue Growth | n/a | 15.45% | 36.74% | 20.54% |
Gross Margins | 22.0% | 24.3% | 28.4% | 31.4% |
Gross Margins Growth | n/a | 10.45% | 16.87% | 10.56% |
Operating Margins | 11.6% | 14.2% | 19.2% | 22.6% |
Operating Margins Growth | n/a | 22.41% | 35.21% | 17.71% |
Earnings Per Share | $4.29 | $6.41 | $11.41 | $16.51 |
EPS Growth | n/a | 49.42% | 78.0% | 45% |
Free Cash Flow (MM) | $668 | $1,135 | $267 | $414 |
FCF Growth | n/a | 69.88% | -76.47% | 54.91% |
Capital Expenditures (MM) | -$224 | -$287 | -$267 | -$148 |
Net Debt / EBITDA | 0.93 | 0.45 | 0.41 | 0.47 |
D.R. Horton has Attractive P/E and P/B Ratios and Trades Below Its Graham Number:
Compared to the Consumer Cyclical sector's average of 24.11, D.R. Horton has a trailing twelve month price to earnings (P/E) ratio of 5.4 and, based on its EPS guidance of 9.97, an expected P/E ratio of 8.9.
The firm's price to earnings growth (PEG) is -0.89, which tells us that the company is expected to have negative growth in the future.
D.R. Horton is undervalued in terms of its assets because its price to book (P/B) ratio is 1.6 compared to its sector average of 3.11. As of the date of publication, the company's shares are trading -38.4% below their Graham number, implying there is a margin of safety for the stock. The Graham number is calculated according to the forumla:
√(22.5 * TTM earnings per share * book value per share) = √(22.5 * 16.51 * 56.392) = $144.73
D.R. Horton Has an Average Rating of Buy and an Analyst Consensus of Some Upside Potential:
18 analysts are following D.R. Horton and have set target prices ranging from $68 to $115 per share. On average, they have given the company a rating of buy. At the current price of $89.14, DHI is trading -5.67% away from its average analyst target price of $94.5 per share, implying an analyst consensus of some upside potential for the stock.
The company has an average amount of shares sold short since 6.9% of the company's shares are tied to short positions. Institutions own 87.3% of D.R. Horton's shares, while the insider ownership rate stands at 12.24%. The biggest shareholder is Capital World Investors with a 11% stake in the company worth approximately $3,408,072,838.