D.R. Horton (DHI)

Consumer Discretionary · $40.7B market cap · SEC CIK 0000882184

Next reports on Jan 18, 2027, with analysts expecting $1.45 in earnings per share.

52-week range $130.40 to $170.79. 12% below its 52-week high and 15% above its low.

The case for DHI

• Free cash flow of 8.1% of its market value a year: a lot of cash for the price.
• Barely leveraged. Debt is 0.26× equity.
• Current assets cover the near-term bills 5.5 times over.

The case against

• Pricey for its growth: 14.1× earnings, where 0% a year of growth plus a 0.9% dividend would justify about 9×.
• Revenue slipped 3.5% on the year.
• Earnings per share fell 12.6%.
• Profitability is weak (38/100): return on equity 12%, net margin 8.7%, gross margin 22%, 92% of profit turned to cash.

What the score is made of

Each factor is half a curve over reported figures and half a rank among the other Consumer Discretionary companies (momentum is judged against fixed thresholds only), and the five are blended by weight. The score is where that blend places it in the S&P 500. It describes the last filing and the current price. It is not a forecast.

• Each factor except momentum is half fixed thresholds, half rank among the 48 Consumer Discretionary companies.

The financials

The financials, five years deep

Pulled from D.R. Horton's XBRL filings on SEC EDGAR. Italic rows are worked out from the others.

What D.R. Horton says it does

D.R. Horton, Inc. is the largest homebuilding company in the United States as measured by number of homes closed. We construct and sell homes through our operating divisions in 126 markets across 36 states. Our common stock is included in the S&P 500 Index and listed on the New York Stock Exchange (NYSE) and NYSE Texas under the ticker symbol “DHI.” Our listing on NYSE Texas became effective in June 2025. Unless the context otherwise requires, the terms “D.R. Horton,” the “Company,” “we” and “our” used herein refer to D.R. Horton, Inc., a Delaware corporation, and its predecessors and subsidiaries. Our homebuilding business began in 1978 in Fort Worth, Texas, and our common stock has been publicly traded since 1992. We have expanded and diversified our homebuilding operations geographically over the years by investing capital and building teams of people in our existing markets, starting new operations in additional markets and…

Risk factors DHI lists in its 10-K

• Our homebuilding, rental and land development operations are cyclical and significantly affected by changes in economic, real estate or other conditions that could adversely affect our business and financial results
• Adverse developments affecting the capital markets and financial institutions could limit our ability to access capital, increase our cost of capital and impact our liquidity and capital resources
• The risks associated with our land, lot and rental inventory could adversely affect our business and financial results
• We cannot make any assurances that our growth strategies, acquisitions, investments or other strategic initiatives will be successful or will not expose us to additional risks or other negative consequences
• Our business and financial results could be adversely affected by significant inflation, higher interest rates or deflation
• Supply shortages and other risks related to acquiring land, building materials and skilled labor and obtaining regulatory approvals could increase our costs and delay deliveries
• Public health issues such as a major epidemic or pandemic could adversely affect our business and financial results
• Our business is subject to home warranty and construction defect claims and other litigation that can be significant
• A health and safety incident relating to our operations could be costly in terms of potential liability and reputational damage
• We are required to obtain performance bonds, the unavailability of which could adversely affect our results of operations and cash flows
• Increases in the costs of owning a home could prevent potential customers from buying our homes and adversely affect our business and financial results
• Information technology failures, cybersecurity incidents, and the failure to satisfy privacy and data protection laws and regulations could harm our business
• Governmental regulations and environmental matters could increase the cost and limit the availability of our land development and housing projects and adversely affect our business and financial results
• Changes in income tax and securities laws could adversely affect our business and financial results
• Governmental regulation of our financial services operations could adversely affect our business and financial results
• We operate in competitive industries, and competitive conditions could adversely affect our business and financial results
• We have significant amounts of debt and may incur additional debt, which could affect our financial health and our ability to raise additional capital to fund our operations or potential acquisitions
• Servicing our debt requires a significant amount of cash, and we or our subsidiaries may not have sufficient cash flow from our respective businesses to pay our substantial debt
• Homebuilding revolving credit facility
• Rental and Forestar revolving credit facilities
• Mortgage repurchase facilities and other restrictions
• Our access to capital and our ability to obtain additional financing could be affected by any downgrade of our debt ratings
• The instruments governing our indebtedness contain change of control provisions which could affect the timing of repayment
• Change of control purchase options under our homebuilding senior notes and change of control default under our homebuilding revolving credit facility
• Change of control purchase option under Forestar’s notes and change of control default under the Forestar revolving credit facility
• Change of control default under the rental revolving credit facility
• Change of control default under mortgage repurchase facilities
• Damage to our corporate reputation or brands from negative publicity could adversely affect our business, financial results and/or stock price
• Our business could be adversely affected by the loss of key personnel
• Our business could be negatively impacted as a result of actions by activist stockholders or others

Filings

Other Consumer Discretionary companies