DR Horton Stock Analysis, Valuation (NYSE:DHI)

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$45.57 $0.46 (1.02%) DHI stock closing price Feb 16, 2018 (Closing)
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DR Horton
Updated on : Feb 16, 2018
previous close
DHI 45.6 (0%)
S&P 500 2732.2 (0%)
Closing Price On: Feb 16, 2018
stock rating
RATING: ★★★★★★★★★★ (0/5)
Industry :
Building-Residential-Commercial
Sector :
Construction
5 Quarter Revenue
Revenue Growth
2018-Q1
$billion
%
YOY GROWTH
Compared to the industry
Operating Profit
Operating Margin:
11.3%
Sector Average:
7.8%
5 Quarter Net Profit
Net Margins
2018-Q1
%
LTM Margin
Compared to the industry
Debt/Equity Ratio
Debt:
3.26B
Debt/Equity Ratio:
 0.41
Compared to the industry
Cash Flow
Operating cash flow:
-$75M
Net Income:
$189.3M
Dividend Yield
DHI dividend yield:
0.94%
PROS      CONS
Recent Growth
Operating Margins
Net Margins
Low Debt Burden
ROIC
ROE
Cash Flow
FCF Margin
Rating: ★★★★★★★★★★ (0/5)
Relative Valuation
DHI PS :
1.2
Industry PS :
1
Sector:   Construction.   *PE adjusted for one time items.
Other Metrics
Return on Invested Capital:
11%
Return on Equity:
13.6%
Free Cash Flow Margin:
-2.8%
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DR Horton Stock Analysis

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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%.

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.