Is DR Horton Stock a Good Investment?
DR Horton Investment Advice | DHI |
- Examine DR Horton's financial health by looking at its balance sheet, income statement, and cash flow statement. Analyze key financial ratios, such as Price-to-Earnings (P/E), Price-to-Sales (P/S), and Price-to-Book (P/B), to determine whether the stock is fairly valued or over/undervalued.
- Research DR Horton's leadership team and their track record. Good management can help DR Horton navigate difficult times and make strategic decisions that benefit shareholders and increases its net worth.
- Consider the overall health of the Household Durables space and any emerging trends that could impact DR Horton's business and its evolving consumer preferences.
- Compare DR Horton's performance and market position to its competitors. Analyze how DR Horton is positioned in terms of product offerings, innovation, and market share.
- Check if DR Horton pays a dividend and its dividend yield and payout ratio.
- Review what financial analysts are saying about DR Horton's stock and their price targets. However, remember that analysts' opinions can vary, and their predictions may not always be accurate.
It's important to note that investing in DR Horton stock, carries risks, and you should carefully consider your investment goals and risk tolerance before making any investment decisions. Also, remember that it's important for investors to have a long-term perspective and a well-diversified portfolio to manage the impact of stock market volatility on their investments. Below is a detailed guide on how to decide if DR Horton is a good investment.
Sell | Buy |
Hold
Market Performance | Very Weak | Details | |
Volatility | Very steady | Details | |
Hype Condition | Low key | Details | |
Current Valuation | Overvalued | Details | |
Odds Of Distress | Low | Details | |
Economic Sensitivity | Slowly supersedes the market | Details | |
Investor Sentiment | Impartial | Details | |
Analyst Consensus | Buy | Details | |
Financial Strenth (F Score) | Healthy | Details | |
Financial Leverage | Not Rated | Details | |
Reporting Quality (M-Score) | Unlikely Manipulator | Details |
Examine DR Horton Stock
Researching DR Horton's stock involves analyzing various aspects of the company and its industry to make an informed investment decision. The key areas to focus on are fundamentals, business model and competitive advantage. It is also important to analyze trends in revenue, net income, and cash flow, as well as key financial ratios, such as price-to-earnings (P/E), price-to-sales (P/S), and debt-to-equity (D/E). About 83.0% of the company shares are held by institutions such as insurance companies. The book value of DR Horton was currently reported as 78.12. The company has Price/Earnings To Growth (PEG) ratio of 0.62. DR Horton recorded earning per share (EPS) of 14.34. The entity last dividend was issued on the 12th of November 2024. The firm had 4:3 split on the 17th of March 2005.
To determine if DR Horton is a good investment, evaluating the company's potential for future growth is also very important. This may include expanding into new markets, launching new products or services, or improving operational efficiency. Companies with strong growth prospects can be more attractive investments. This aspect of the research should be conducted in the context of the overall market and industry in which the company operates and should include an analysis of growth potential, competitive landscape, and any regulatory or economic factors that could impact the business. Some of the essential points regarding DR Horton's research are outlined below:
| DR Horton generated a negative expected return over the last 90 days | |
| Over 83.0% of the company shares are held by institutions such as insurance companies | |
| On 19th of November 2024 DR Horton paid $ 0.4 per share dividend to its current shareholders | |
| Latest headline from insidermonkey.com: Heres Why D.R. Horton Rose In Q3 |
DR Horton Quarterly Cost Of Revenue |
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DR Horton uses earnings reports to provide investors with an update of all three financial statements, including the income statement, the balance sheet, and the cash flow statement. Therefore, it is also crucial when considering investing in DR Horton. Every quarterly earnings report provides investors with an overview of sales, expenses, and net income for the most recent period. It also may provide a comparison to DR Horton's previous reporting period. The quarterly earnings reports are usually disseminated to the public via Form 10-Q, which is a legal document filed with the Securities and Exchange Commission every quarter.
| 18th of April 2024 Upcoming Quarterly Report | View | |
| 18th of July 2024 Next Financial Report | View | |
| 31st of March 2024 Next Fiscal Quarter End | View | |
| 5th of November 2024 Next Fiscal Year End | View | |
| 31st of December 2023 Last Quarter Report | View | |
| 30th of September 2023 Last Financial Announcement | View |
Earnings surprises can significantly impact DR Horton's stock price both in the short term and over time. Negative earnings surprises usually result in a price decline. However, it has been seen that positive earnings surprises lead to an immediate rise in a stock's price and a gradual increase over time. This is why we often hear news about some companies beating earning projections. Financial analysts spend a large amount of time predicting earnings per share (EPS) along with other important future indicators. Many analysts use forecasting models, management guidance, and additional fundamental information to derive an EPS estimate. Below are the table of largest EPS Surprises DR Horton's investors have experienced.
| Reported | Fiscal Date | Estimated EPS | Reported EPS | Surprise | |||
|---|---|---|---|---|---|---|---|
2010-11-12 | 2010-09-30 | -0.04 | -0.03 | 0.01 | 25 | ||
1998-04-21 | 1998-03-31 | 0.08 | 0.09 | 0.01 | 12 | ||
1998-01-20 | 1997-12-31 | 0.07 | 0.08 | 0.01 | 14 | ||
1999-01-19 | 1998-12-31 | 0.12 | 0.14 | 0.02 | 16 | ||
1998-07-21 | 1998-06-30 | 0.12 | 0.14 | 0.02 | 16 | ||
2012-07-27 | 2012-06-30 | 0.2 | 0.23 | 0.03 | 15 | ||
2011-11-11 | 2011-09-30 | 0.14 | 0.11 | -0.03 | 21 | ||
2011-01-27 | 2010-12-31 | -0.03 | -0.06 | -0.03 | 100 |
Know DR Horton's Top Institutional Investors
Have you ever been surprised when a price of an equity instrument such as DR Horton is soaring high without any particular reason? This is usually happening because many institutional investors are aggressively trading DR Horton backward and forwards among themselves. DR Horton's institutional investor refers to the entity that pools money to purchase DR Horton's securities or originate loans. Institutional investors include commercial and private banks, credit unions, insurance companies, pension funds, hedge funds, endowments, and mutual funds. Operating companies that invest excess capital in these types of assets may also be included in the term and may influence corporate governance by exercising voting rights in their investments.
| Shares | Parnassus Investments Llc | 2024-09-30 | 4.3 M | Norges Bank | 2024-06-30 | 3.8 M | Greenhaven Associates Inc | 2024-09-30 | 3.7 M | Dimensional Fund Advisors, Inc. | 2024-09-30 | 3.4 M | Northern Trust Corp | 2024-09-30 | 2.9 M | Legal & General Group Plc | 2024-06-30 | 2.6 M | Smead Capital Management Inc | 2024-09-30 | 2.5 M | Arrowstreet Capital Limited Partnership | 2024-06-30 | 2.5 M | Amvescap Plc. | 2024-06-30 | 2.5 M | Vanguard Group Inc | 2024-09-30 | 34.4 M | Blackrock Inc | 2024-06-30 | 34.1 M |
DR Horton's market capitalization trends
The company currently falls under 'Large-Cap' category with a total capitalization of 54.18 B.Market Cap |
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DR Horton's profitablity analysis
| Last Reported | Projected for Next Year | ||
| Return On Tangible Assets | 0.13 | 0.10 | |
| Return On Capital Employed | 0.19 | 0.52 | |
| Return On Assets | 0.13 | 0.10 | |
| Return On Equity | 0.19 | 0.35 |
Determining DR Horton's profitability involves analyzing its financial statements and using various financial metrics to determine if DR Horton is a good buy. For example, gross profit margin measures DR Horton's profitability after accounting for the cost of goods sold, while net profit margin measures profitability after accounting for all expenses. Other important metrics include return on assets, return on equity, and free cash flow. By reviewing multiple sources and metrics, you can gain a complete picture of DR Horton's profitability and make more informed investment decisions.
Evaluate DR Horton's management efficiency
DR Horton has Return on Asset of 0.1113 % which means that on every $100 spent on assets, it made $0.1113 of profit. This is way below average. In the same way, it shows a return on shareholders' equity (ROE) of 0.1963 %, implying that it generated $0.1963 on every 100 dollars invested. DR Horton's management efficiency ratios could be used to measure how well DR Horton manages its routine affairs as well as how well it operates its assets and liabilities. As of now, DR Horton's Return On Capital Employed is increasing as compared to previous years. The DR Horton's current Return On Equity is estimated to increase to 0.35, while Return On Tangible Assets are projected to decrease to 0.1. As of now, DR Horton's Total Current Assets are increasing as compared to previous years. The DR Horton's current Other Assets is estimated to increase to about 6.3 B, while Non Currrent Assets Other are forecasted to increase to (159.1 M).| Last Reported | Projected for Next Year | ||
| Book Value Per Share | 78.37 | 0.03 | |
| Tangible Book Value Per Share | 77.88 | 0.03 | |
| Enterprise Value Over EBITDA | 10.09 | 54.10 | |
| Price Book Value Ratio | 2.48 | 46.36 | |
| Enterprise Value Multiple | 10.09 | 54.10 | |
| Price Fair Value | 2.48 | 46.36 | |
| Enterprise Value | 706 M | 670.7 M |
Examining the leadership quality of DR Horton offers valuable insights into its operational efficiency and financial health. This analysis assists investors in making informed decisions regarding the stock.
Dividend Yield 0.0095 | Forward Dividend Yield 0.0095 | Forward Dividend Rate 1.6 | Beta 1.744 |
Basic technical analysis of DHI Stock
As of the 27th of November, DR Horton owns the Market Risk Adjusted Performance of (0.54), information ratio of (0.15), and Standard Deviation of 1.9. DR Horton technical analysis allows you to utilize past data patterns in order to determine a pattern that computes the direction of the firm's future prices.DR Horton's insider trading activities
Some recent studies suggest that insider trading raises the cost of capital for securities issuers and decreases overall economic growth. Trading by specific DR Horton insiders, such as employees or executives, is commonly permitted as long as it does not rely on DR Horton's material information that is not in the public domain. Local jurisdictions usually require such trading to be reported in order to monitor insider transactions. In many U.S. states, trading conducted by corporate officers, key employees, directors, or significant shareholders must be reported to the regulator or publicly disclosed, usually within a few business days of the trade. In these cases DR Horton insiders are required to file a Form 4 with the U.S. Securities and Exchange Commission (SEC) when buying or selling shares of their own companies.
DR Horton's Outstanding Corporate Bonds
DR Horton issues bonds to finance its operations. Corporate bonds make up one of the largest components of the U.S. bond market, which is considered the world's largest securities market. DR Horton uses the proceeds from bond sales for a wide variety of purposes, including financing ongoing mergers and acquisitions, buying new equipment, investing in research and development, buying back their own stock, paying dividends to shareholders, and even refinancing existing debt. Most DHI bonds can be classified according to their maturity, which is the date when DR Horton has to pay back the principal to investors. Maturities can be short-term, medium-term, or long-term (more than ten years). Longer-term bonds usually offer higher interest rates but may entail additional risks.
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Understand DR Horton's technical and predictive indicators
Using predictive indicators to make investment decisions involves analyzing DR Horton's various financial and market-based factors to help forecast future trends and identify investment opportunities. Select the indicators that are most relevant to your investment strategy. Each indicator has its own strengths and weaknesses, so it's essential to combine multiple indicators to get a more comprehensive view of the market and reduce the risk of making poor decisions based on limited data.
| Risk Adjusted Performance | (0.05) | |||
| Market Risk Adjusted Performance | (0.54) | |||
| Mean Deviation | 1.33 | |||
| Coefficient Of Variation | (1,259) | |||
| Standard Deviation | 1.9 | |||
| Variance | 3.61 | |||
| Information Ratio | (0.15) | |||
| Jensen Alpha | (0.20) | |||
| Total Risk Alpha | (0.46) | |||
| Treynor Ratio | (0.55) | |||
| Maximum Drawdown | 10.42 | |||
| Value At Risk | (3.16) | |||
| Potential Upside | 1.97 | |||
| Skewness | (0.66) | |||
| Kurtosis | 3.14 |
| Risk Adjusted Performance | (0.05) | |||
| Market Risk Adjusted Performance | (0.54) | |||
| Mean Deviation | 1.33 | |||
| Coefficient Of Variation | (1,259) | |||
| Standard Deviation | 1.9 | |||
| Variance | 3.61 | |||
| Information Ratio | (0.15) | |||
| Jensen Alpha | (0.20) | |||
| Total Risk Alpha | (0.46) | |||
| Treynor Ratio | (0.55) | |||
| Maximum Drawdown | 10.42 | |||
| Value At Risk | (3.16) | |||
| Potential Upside | 1.97 | |||
| Skewness | (0.66) | |||
| Kurtosis | 3.14 |
Consider DR Horton's intraday indicators
DR Horton intraday indicators are useful technical analysis tools used by many experienced traders. Just like the conventional technical analysis, daily indicators help intraday investors to analyze the price movement with the timing of DR Horton stock daily movement. By combining multiple daily indicators into a single trading strategy, you can limit your risk while still earning strong returns on your managed positions.
DR Horton Corporate Filings
F4 | 21st of November 2024 The report filed by a party regarding the acquisition or disposition of a company's common stock, as well as derivative securities such as options, warrants, and convertible securities | ViewVerify |
10K | 19th of November 2024 Annual report required by the U.S. Securities and Exchange Commission (SEC) of a company financial performance | ViewVerify |
| 30th of October 2024 Other Reports | ViewVerify | |
8K | 29th of October 2024 Report filed with the SEC to announce major events that shareholders should know about | ViewVerify |
DHI Stock media impact
Far too much social signal, news, headlines, and media speculation about DR Horton that are available to investors today. That information is available publicly through DHI media outlets and privately through word of mouth or via DHI internal channels. However, regardless of the origin, that massive amount of DHI data is challenging to quantify into actionable patterns, especially for investors that are not very sophisticated with ever-evolving tools and techniques used in the investment management field.
A primary focus of DR Horton news analysis is to determine if its current price reflects all relevant headlines and social signals impacting the current market conditions. A news analyst typically looks at the history of DR Horton relative headlines and hype rather than examining external drivers such as technical or fundamental data. It is believed that price action tends to repeat itself due to investors' collective, patterned thinking related to DR Horton's headlines and news coverage data. This data is often completely overlooked or insufficiently analyzed for actionable insights to drive DR Horton alpha.
DR Horton Sentiment by Major News Outlets
Investor sentiment, mood or attitude towards DR Horton can have a significant impact on its stock price or the market as a whole. This sentiment can be positive or negative, and various factors, such as economic indicators, news events, or market trends, can influence it. When investor sentiment is positive, investors are more likely to buy stocks, increasing demand and increasing the stock price. Positive investor sentiment can be driven by good news about the company or the broader market, such as solid earnings reports or positive economic data.
Note that negative investor sentiment can cause investors to sell stocks, leading to a decrease in demand and a drop in the stock price. Negative sentiment can be driven by factors such as poor earnings reports, negative news about the company or industry, or broader economic concerns. It's important to note that investor sentiment is just one of many factors that can affect stock prices. Other factors, such as company performance, industry trends, and global economic conditions, can also play a significant role in determining the value of a stock.
DR Horton Historical Investor Sentiment
Investor biases related to DR Horton's public news can be used to forecast risks associated with an investment in DHI. The trend in average sentiment can be used to explain how an investor holding DHI can time the market purely based on public headlines and social activities around DR Horton. Please note that most equities that are difficult to arbitrage are affected by market sentiment the most.
DR Horton's market sentiment shows the aggregated news analyzed to detect positive and negative mentions from the text and comments. The data is normalized to provide daily scores for DR Horton and other traded tickers. The bigger the bubble, the more accurate the estimated score. Higher bars for a given day show more participation in the average DR Horton news discussions. The higher the estimate score, the more favorable the investor's outlook on DR Horton.
DR Horton Corporate Directors
| Michael Buchanan | Independent Director | Profile | |
| Michael Hewatt | Independent Director | Profile | |
| Barbara Allen | Independent Director | Profile | |
| Bradley Anderson | Independent Director | Profile |
Check out Investing Opportunities to better understand how to build diversified portfolios, which includes a position in DR Horton. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in rate. For more detail on how to invest in DHI Stock please use our How to Invest in DR Horton guide.You can also try the Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
Is Household Durables space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of DR Horton. If investors know DHI will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about DR Horton listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth (0.12) | Dividend Share 1.2 | Earnings Share 14.34 | Revenue Per Share 111.689 | Quarterly Revenue Growth (0.05) |
The market value of DR Horton is measured differently than its book value, which is the value of DHI that is recorded on the company's balance sheet. Investors also form their own opinion of DR Horton's value that differs from its market value or its book value, called intrinsic value, which is DR Horton's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because DR Horton's market value can be influenced by many factors that don't directly affect DR Horton's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
In summary, please note that there is a difference between DR Horton's value and its price, as these two are different measures arrived at by various means. Investors typically determine if DR Horton is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, DR Horton's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.