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DHI

S&P 500
Neutral · 47/100

D. R. Horton

Consumer Discretionary
Homebuilding

$155.94

1.2%

Updated Today 7:15 PM ET

Price — Past Year

▲ Up 30.1% over the last 12 months

Price 50-day average 200-day averageSource: Yahoo Finance · refreshed daily
Key Metrics

Market Cap

$44.75B

P/E

13.99x

Forward P/E (est.)

17.32x

ROE

13.2%

Revenue Growth

-5.6%

EPS Growth

-19.2%

Profit Margin

9.5%

FCF Yield

9.1%

Debt / Equity

0.25x

ROIC

Interest Coverage

Current Ratio

Dividend Yield

1.2%

Implied Growth (rev. DCF)

1.5%

Rating Score

47/100

Technical Analysis (Educational)
Research

Technical analysis reads price and volume to judge momentum and timing. It complements the fundamentals above — it does not replace them. Here is what DHI's chart says today, with each tool explained.

Trend — moving averages. A moving average is the average closing price over a window, which smooths out daily noise. DHI trades near $155.94, above its 50-day average ($147.99) and 200-day average ($152.67). Price above both averages, with the shorter one above the longer, is the textbook definition of an uptrend — momentum favours buyers.

Momentum — RSI. The Relative Strength Index runs 0–100 and measures how strong recent gains are versus losses. Above 70 is "overbought", below 30 "oversold". At 58 it is in neutral territory — neither stretched nor washed out.

MACD. MACD compares two moving averages to flag shifts in momentum. Its histogram is currently positive — short-term momentum is improving.

Volatility — ATR. Average True Range is the typical daily move. DHI's is $4.64 (~3.0% of price), so swings of about that size each day are normal — handy for setting a stop that isn't too tight.

Support & resistance. Over the last month DHI found buyers near $134.32 (support) and sellers near $161.56 (resistance); its 52-week range is $119.54–$184.55. A decisive break beyond either edge often marks the next move.

Volume. The latest session traded 1.4× the 20-day average — heavier than usual, which adds conviction to the move. Rising volume on up-days suggests real buying; on down-days, real selling.

Educational information to help you read a chart — not a recommendation or a forecast. It updates daily as the price and indicators change.

Business Overview
Research

D. R. Horton (DHI) is a large-cap company in the Homebuilding industry, part of the Consumer Discretionary sector of the S&P 500, with a market value around $44.75B.

In its latest reported year it generated about $34.25B in revenue and $3.59B in net profit.

Our model rates DHI Neutral (47/100) on growth, profitability, financial health, and valuation. The summary below is built from its filed financials and current ratios and refreshes automatically.

Revenue Growth
Research

4Y CAGR

5.4%

Revenue moved from $27.77B in 2021 to $34.25B in 2025, a 5.4% compound annual growth rate. The most recent year declined 5.6% year over year. Shrinking revenue is worth a closer look — is it cyclical or structural?

Profitability
Research

Gross Margin

23.1%

Operating Margin

12.7%

Net Margin

10.5%

ROE

13.2%

D. R. Horton keeps about 9.5% of each sales dollar as net profit, with a 23.1% gross margin and 12.7% operating margin. Return on equity is 13.2%. Margins are moderate — typical of a competitive but profitable business.

Debt Analysis
Research

Total Debt

Net Debt

Net Debt / EBITDA

Debt / Equity

0.25x

Leverage: debt-to-equity is 0.2x. That is a conservative balance sheet — a cushion in downturns.

Cash Flow Analysis
Research

Operating CF

$3.42B

Free Cash Flow

$3.28B

FCF Margin

9.6%

In the latest year D. R. Horton produced about $3.42B of operating cash flow and $3.28B of free cash flow after capital spending. That is a free-cash-flow yield of about 9.1% on today's price. Strong cash generation funds dividends, buybacks, and reinvestment.

Valuation Analysis
Research

P/E

13.99x

P/S

1.28x

P/B

2.08x

EV / EBITDA

DHI trades at 14.0x trailing earnings (about 17.3x on estimated forward earnings), 1.3x sales, and 2.1x book value. Reverse-engineering today's price implies the market expects roughly 1.5% long-term free-cash-flow growth. That is an undemanding multiple — potentially cheap if the business is stable.

Metrics vs. Typical Range

Where this stock sits versus what most companies trade at.

TTM P/E
14.0xCheap
Forward P/E
17.3xFair
P/S ratio
1.3xCheap
Revenue growth
-5.6%Weak
EPS growth
-19.2%Weak
Gross margin
23.1%Weak
Net margin
9.5%Average
ROE
13.2%Average

Typical ranges are general references (e.g., many stocks trade at ~18–26x earnings), not hard rules. Context only — not investment advice.

Sector Peer Comparison

How DHI stacks up against its Consumer Discretionary peers — valuation, profitability, and growth versus the sector median.

In the Consumer Discretionary sector (48 S&P 500 companies), DHI ranks #31 of 48 by our overall rating. It trades at a discount versus the sector on earnings (14x P/E vs. 23.7x median) with a lower return on equity (13.2% vs. 39.2%) and slower revenue growth (-5.6% vs. 6.2%).

P/E vs sector

14x

median 23.7x

ROE vs sector

13.2%

median 39.2%

Growth vs sector

-5.6%

median 6.2%

Sector rank

#31

of 48 by rating

CompanyP/ERev Gr.Rating
DHIThis stock14x-5.6%Neutral· 47
PHM11.8x-5.9%Neutral· 50
LEN12.4x-7.2%Neutral· 42
NVR14.3x-7.7%Neutral· 55
GRMN26.1x15.7%Favorable· 68
YUM23.6x9.7%Favorable· 63
CCL13.5x6.1%Neutral· 54
CMG29.4x5.7%Neutral· 55
Consumer Discretionary median23.7x6.2%54/100

Valuation vs. quality map

sector medianPHMLENNVRGRMNYUMCCLCMGDHIP/E — cheaper ←→ pricierROE — more profitable ↑

The sweet spot is upper-left: more profitable (higher ROE) for a lower P/E. Dashed lines mark the sector median.

Compare side by side

Peers are the closest Consumer Discretionary companies by sub-industry and size. Sector median is across all 48 S&P 500 names in the sector. Educational, not a recommendation.

5-Year Projection Model

Project revenue → earnings → price. Edit the assumptions to build your own case.

2030 price target (Base Case)

$112.01$196.02

vs. $155.94 today · expected CAGR -6%5%

Metric20262027202820292030
Revenue$35.28B$36.34B$37.43B$38.55B$39.71B
Net income$3.53B$3.63B$3.74B$3.85B$3.97B
EPS$12.44$12.81$13.20$13.59$14.00
Share price (low)$99.52$102.51$105.58$108.75$112.01
Share price (high)$174.16$179.39$184.77$190.31$196.02
CAGR (low–high)-36% / 12%-19% / 7%-12% / 6%-9% / 5%-6% / 5%

Educational model on sample fundamentals — not a forecast or investment advice. Outputs are only as good as your assumptions.

Bull Case

The case for DHI:

  • Healthy free-cash-flow yield (~9.1%) funds buybacks and dividends.
  • A conservative balance sheet (debt/equity 0.2x) lowers risk.
Bear Case

The case against DHI:

  • Revenue growth is slow/negative (-5.6%), limiting the upside engine.
  • Like any single stock, it is exposed to competition, the economic cycle, and shifts in its end markets.
Key Risks
Research

Growth risk — sluggish revenue (-5.6%) leaves little margin for execution missteps.

Market risk — sector rotation, the economic cycle, and broad sentiment move the stock regardless of fundamentals.

Investment Thesis
Research

On balance, the picture is mixed: D. R. Horton is a large-cap consumer discretionary business with shrinking revenue, with modest profitability, and a sound balance sheet. It trades at 14.0x earnings, which our model scores Neutral (47/100). Weigh this against your own goals and time horizon — this is educational information, not a recommendation.

Data notice. Fundamentals and financial statements are sourced from company filings (SEC EDGAR) and market-data providers; prices and market caps refresh on trading days and may be delayed. Ratings, projections, technical signals, and written summaries are model- or rule-generated for education and may simplify or lag the latest filings.

Not advice. Nothing on this page is investment advice or a recommendation to buy, hold, or sell any security. Do your own research and consult a licensed financial professional before investing.