DR Horton Stock Analysis, Valuation (NYSE:DHI)
DR Horton Stock Analysis
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?
- DR Horton sales grew by 14.8% year on year in 2018 Q1.
- DR Horton had a healthy average operating margin of 11.3% over the last 4 quarters.
- Net margins came in at average 7% for DR Horton over the last twelve months.
- With a debt/equity ratio of 0.41, DR Horton is comparatively less leveraged than its peers in the Construction sector.
- The DR Horton stock currently trades at a price to earnings ratio of 15.4. We rate this as a positive, compared to the industry average of 21.1.
- DR Horton has an attractive ROIC (Return on Invested Capital) of 11%
- DR Horton has a good Return On Equity (ROE) of 13.6%.
Should you sell DHI stock?
- DR Horton has a negative FCF (Free Cash Flow) margin of -2.8%.
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.