D.R. Horton Inc (DHI, Financial) has recently been in the spotlight, drawing interest from investors and financial analysts due to its robust financial stance. With shares currently priced at $138.21, D.R. Horton Inc has witnessed a daily loss of 0.18%, marked against a three-month change of 18.31%. A thorough analysis, underlined by the GF Score, suggests that D.R. Horton Inc is well-positioned for substantial growth in the near future.
What Is the GF Score?
The GF Score is a stock performance ranking system developed by GuruFocus using five aspects of valuation, which has been found to be closely correlated to the long-term performances of stocks by backtesting from 2006 to 2021. The stocks with a higher GF Score generally generate higher returns than those with a lower GF Score. Therefore, when picking stocks, investors should invest in companies with high GF Scores. The GF Score ranges from 0 to 100, with 100 as the highest rank.
- Financial strength rank: 7/10
- Profitability rank: 10/10
- Growth rank: 10/10
- GF Value rank: 3/10
- Momentum rank: 6/10
With a high GF Score of 92 out of 100, D.R. Horton Inc demonstrates a strong potential for outperformance, driven by its exceptional profitability and growth ranks. While the GF Value rank is lower, indicating the stock might be overvalued, the company's overall financial strength and momentum suggest a positive outlook for investors.
Understanding D.R. Horton Inc's Business
D.R. Horton Inc is a leading homebuilder in the United States with operations in 118 markets across 33 states. With a market cap of $46.05 billion and sales of $35.46 billion, the company has established a significant presence in the industry. D.R. Horton Inc mainly builds single-family detached homes, catering to entry-level, move-up, luxury buyers, and active adults. The company also offers 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 United States, showcasing an operating margin of 17.21%.
Financial Strength Breakdown
D.R. Horton Inc's Financial Strength rating reflects a resilient balance sheet capable of withstanding financial volatility. The company's Altman Z-Score of 6.72 indicates a strong defense against financial distress, while a Debt-to-Revenue ratio of 0.15 showcases strategic debt management, further solidifying its financial health.
Profitability Rank Breakdown
The Profitability Rank of D.R. Horton Inc is impressive, with an Operating Margin that has increased to 17.21% in 2023 from 11.59% in 2019. The company's Gross Margin has also seen a consistent rise, indicating an increasing ability to convert revenue into profit. Additionally, a Predictability Rank of 5 stars out of five highlights D.R. Horton Inc's consistent operational performance, instilling investor confidence.
Growth Rank Breakdown
D.R. Horton Inc's high Growth Rank underscores its commitment to business expansion. The company's 3-Year Revenue Growth Rate of 23.5% outperforms 87.13% of its industry peers. Moreover, the EBITDA growth rates over the past three and five years highlight D.R. Horton Inc's capability to drive growth and profitability.
Conclusion: D.R. Horton Inc's Position for Outperformance
Considering D.R. Horton Inc's financial strength, profitability, and growth metrics, the GF Score highlights the firm's unparalleled position for potential outperformance. Investors seeking companies with strong GF Scores can explore more options using the GF Score Screen. With its robust financials and strategic market positioning, D.R. Horton Inc stands as a compelling investment opportunity for those looking to capitalize on the growth potential within the homebuilding sector.
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.
