D.R. Horton logged a -2.0% change during today's afternoon session, and is now trading at a price of $142.3 per share.
D.R. Horton returned gains of 46.0% last year, with its stock price reaching a high of $157.93 and a low of $89.05. Over the same period, the stock outperformed the S&P 500 index by 27.3%. More recently, the company's 50-day average price was $144.11. D.R. Horton, Inc. operates as a homebuilding company in East, North, Southeast, South Central, Southwest, and Northwest regions in the United States. Based in Arlington, TX, the large-cap Consumer Discretionary company has 13,450 full time employees. D.R. Horton has offered a 0.7% dividend yield over the last 12 months.
Strong Revenue Growth With Increasing Reinvestment in the Business:
| 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | |
|---|---|---|---|---|---|---|
| Revenue (MM) | $16,068 | $17,593 | $20,311 | $27,774 | $33,480 | $35,460 |
| Revenue Growth | n/a | 9.49% | 15.45% | 36.74% | 20.54% | 5.92% |
| Net Margins | 9% | 9% | 12% | 15% | 17% | 14% |
| Net Income (MM) | $1,460 | $1,618 | $2,374 | $4,176 | $5,858 | $4,795 |
| Earnings Per Share | $3.81 | $4.29 | $6.41 | $11.41 | $16.51 | $13.82 |
| EPS Growth | n/a | 12.6% | 49.42% | 78.0% | 44.7% | -16.29% |
| Diluted Shares (MM) | 380 | 373 | 370 | 360 | 347 | 343 |
| Free Cash Flow (MM) | $477 | $765 | $1,325 | $441 | $414 | $4,156 |
| Capital Expenditures (MM) | $68 | $127 | $96 | $94 | $148 | $149 |
D.R. Horton has rapidly growing revenues and increasing reinvestment in the business and exceptional EPS growth. Additionally, the company's financial statements display generally positive cash flows and decent net margins with a positive growth rate.
D.R. Horton Has Attractive Multiples and Trades Around Its Graham Number:
D.R. Horton has a trailing twelve month P/E ratio of 10.4, compared to an average of 22.96 for the Consumer Discretionary sector. Based on its EPS guidance of $15.51, the company has a forward P/E ratio of 9.3. According to the 22.2% compound average growth rate of D.R. Horton's historical and projected earnings per share, the company's PEG ratio is 0.47. Taking the weighted average of the company's EPS CAGR and the broader market's 5-year projected EPS growth rate, we obtain a normalized growth rate of 10.4%. On this basis, the company's PEG ratio is 1.0. This suggests that its shares are undervalued. Additionally, the market is possibly undervaluing D.R. Horton in terms of its equity because its P/B ratio is 2.04 whereas the sector average is 4.24. The company's shares are currently trading 0.8% below their Graham number.
D.R. Horton Has an Analyst Consensus of Some Upside Potential:
The 19 analysts following D.R. Horton have set target prices ranging from $104.0 to $192.0 per share, for an average of $159.83 with a buy rating. The company is trading -11.0% away from its average target price, indicating that there is an analyst consensus of some upside potential.
D.R. Horton has an average amount of shares sold short because 2.0% of the company's shares are sold short. Institutions own 84.7% of the company's shares, and the insider ownership rate stands at 11.2%, suggesting a large amount of insider shareholders. The largest shareholder is Vanguard Group Inc, whose 10% stake in the company is worth $4,851,868,019.
