DR Horton Stock Analysis, Valuation (NYSE:DHI)

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$44.38 $0.06 (0.14%) DHI stock closing price Aug 17, 2018 (Closing)

Investors can watch the Amigobulls DR Horton stock analysis video here. This is our analyst opinion covering the buy and sell arguments for DHI stock.

Note: Amigobulls stock rating is our opinion based on the historical performance of the company's fundamentals. It is not indicative of the future performance of the stock.

D.R. Horton, Inc. Stock Rating 3.9/5

We at Amigobulls use various financial measures including profit margins, revenue growth and dividends for DHI stock analysis. DR Horton valuation forms a crucial part of our stock analysis. DR Horton stock rating is our opinion about the business fundamentals of the company.

Should you buy DHI stock?

  • DR Horton sales grew by 17.4% year on year in 2018-06.
  • Revenue growth has been tremendous with a compounded annual growth of 23.1 over the last 5 years.
  • DR Horton had a healthy average operating margin of 12 over the last 4 quarters.
  • Net margins came in at average 8.3% for DR Horton over the last twelve months.
  • DR Horton has a lower debt burden than its peers in the Construction sector, with a debt/equity ratio of 0.35.
  • DHI stock is trading at an earnings multiple of 12.1 which is better than the sector average of 20.
  • DR Horton has an attractive ROIC (Return on Invested Capital) of 13.3
  • DR Horton has a good Return On Equity (ROE) of 16.2.
  • DR Horton has a healthy FCF (Free Cash Flow) margin of 8.6.

Should you sell DHI stock?

Comments on this video and DR Horton stock

Investors can make use of the Amigobulls DR Horton stock analysis to ascertain how DHI stock fares in fundamental analysis investment criteria. Company's fundamentals remain one of the key driver of DHI stock and helps investors in making good buy and sell decision.

While doing a study of the company financials, DR Horton revenue growth and profit or net income are two main metrics which help in identifying whether DHI stock is overvalued or undervalued. One can also combine technical analysis and fundamental analysis to get a holistic picture about DHI stock.