D.R. Horton Inc (DHI, Financial) has recently captured the attention of investors and financial analysts with its strong financial performance. Currently trading at $152.54 per share, D.R. Horton Inc has experienced a daily increase of 0.84% and a notable three-month growth of 5.88%. A detailed analysis, supported by the GF Score, indicates that D.R. Horton Inc is poised for significant future growth.
What Is the GF Score?
The GF Score is a proprietary stock performance ranking system developed by GuruFocus. It evaluates stocks based on five key aspects: financial strength, profitability, growth, GF Value, and momentum. These aspects have been backtested from 2006 to 2021, showing a strong correlation with long-term stock performance. Stocks with higher GF Scores typically yield higher returns. D.R. Horton Inc boasts a GF Score of 93 out of 100, indicating a high potential for outperformance.
Understanding D.R. Horton Inc's Business
D.R. Horton Inc, with a market cap of $50.23 billion and annual sales of $37.06 billion, is a premier homebuilder in the United States, operating across 118 markets in 33 states. Primarily focused on single-family detached homes, which constitute over 90% of its sales revenue, D.R. Horton Inc caters to a diverse range of buyers including entry-level, move-up, luxury, and active adults. The company also provides mortgage financing and title agency services through its financial services segment. Headquartered in Arlington, Texas, D.R. Horton Inc manages six regional segments across the country.
Financial Strength Breakdown
D.R. Horton Inc's financial strength is evident in its robust balance sheet and strategic debt management. With an Altman Z-Score of 6.77, the company demonstrates a strong buffer against financial distress. Additionally, its Debt-to-Revenue ratio of 0.16 reflects prudent financial management, further solidifying its financial health.
Profitability Rank Breakdown
The company's profitability is impressive, with an Operating Margin that has consistently increased over the past five years, reaching 17.21% in 2023. This trend highlights D.R. Horton Inc's growing efficiency in converting revenue into profit. The Gross Margin has also seen a steady rise, underscoring the company's operational effectiveness.
Growth Rank Breakdown
D.R. Horton Inc is distinguished by its strong growth metrics. The company's 3-Year Revenue Growth Rate of 23.5% outperforms 88.78% of its industry peers. The robust increase in EBITDA over the past few years further emphasizes its capacity for sustained growth.
Conclusion
Considering D.R. Horton Inc's strong financial strength, impressive profitability, and consistent growth metrics, the GF Score highlights the company's exceptional position for potential market outperformance. Investors looking for similar opportunities can explore other high-performing companies using the GF Score Screen available to GuruFocus Premium members.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
