DR Horton Stock Analysis, Valuation (NYSE:DHI)

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$42.84 $0.24 (0.56%) DHI stock closing price Jun 15, 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 3.4/5

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?

  • The Year Over Year (YoY) revenue growth for DR Horton was 16.7% in 2018-03.
  • Long term revenue growth has been strong with a 5 year compounded annual growth of 24.5.
  • The TTM operating margin was good at 11.44 for DR Horton.
  • Net margins stood at a healthy 7.6% (average) for DR Horton in the Trailing Twelve Months.
  • With its debt/equity ratio of 0.39, DR Horton has a lower debt burden when compared to the -sectordesc- average.
  • The DR Horton stock currently trades at a price to earnings ratio of 13.1, compared to the sector average of 19.1. We rate this as a positive.
  • DR Horton's return on invested capital of 11.9 is good.
  • The company has a healthy free cash flow margin of 4.5.

Should you sell DHI stock?

  • The company's operations consume more cash than it generates. This is not a healthy sign.

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.