D.R. Horton, Inc. (DHI) Stock Analysis

Why this analysis is different

• A sector-relative MoonshotScore — five pillars (business quality, financial safety, valuation, growth durability, momentum) re-ranked nightly against the full universe of US-listed common stocks.
• An AI Council read across up to eight perspectives — value, macro, quantitative, and momentum lenses — that shows where they disagree instead of averaging the tension away.
• Figures come straight from FMP and Yahoo Finance filings data. The AI writes the narrative around the numbers — it never edits the numbers.

D.R. Horton, Inc. (DHI) Consumer Business Overview

D.R. Horton, Inc. is a dominant homebuilder in the U.S., constructing and selling single-family and attached homes under various brands. With a strong geographic presence and diverse product offerings, DHI serves a broad spectrum of homebuyers, supported by mortgage financing and title services. The company's scale and brand recognition provide a competitive edge.

What Is the Investment Thesis for DHI?

D.R. Horton presents a compelling investment case due to its leading market position in the U.S. homebuilding industry. With a market capitalization of $42.5B and a P/E ratio of 14.8, the company demonstrates financial stability. A gross margin of 22.8% and a profit margin of 9.5% highlight operational efficiency. Key growth catalysts include the ongoing demand for new homes, driven by demographic trends and low interest rates. The company's diverse brand portfolio and geographic reach enable it to capture a broad range of homebuyers. However, potential risks include fluctuations in interest rates, supply chain disruptions, and economic downturns that could impact housing demand. The company's beta of 1.45 indicates higher volatility compared to the market.

Based on FMP financials and quantitative analysis

DHI Key Highlights

Market capitalization of $42.5B reflects D.R. Horton's significant presence in the homebuilding industry.

• P/E ratio of 14.8 suggests a reasonable valuation compared to earnings.
• Gross margin of 22.8% indicates efficient cost management in home construction.
• Profit margin of 9.5% demonstrates profitability in a competitive market.
• Dividend yield of 1.19% provides a modest income stream for investors.

Who Are DHI's Competitors?

DHI is benchmarked below against 8 industry peers on price, market cap, and our AI MoonshotScore.

AI Score by Stock Expert AI · Price data: FMP / Yahoo Finance

What Are DHI's Key Strengths?

Leading market position in the U.S. homebuilding industry.

• Strong brand recognition and reputation.
• Extensive geographic diversification across 31 states.
• Integrated mortgage financing and title services.

What Are DHI's Weaknesses?

Exposure to cyclical fluctuations in the housing market.

• Dependence on macroeconomic factors such as interest rates and employment levels.
• Potential for supply chain disruptions and rising input costs.
• Sensitivity to changes in consumer confidence and spending.

What Could Drive DHI Stock Higher?

Strong demand for new homes driven by demographic trends and low interest rates.

• Expansion into new geographic markets to diversify revenue streams.
• Development of multi-family rental properties to provide stable income.
• Potential for government policies to support affordable housing initiatives.
• Introduction of new home designs and technologies to attract homebuyers.

What Are the Key Risks for DHI?

Insider selling — insiders were net sellers of roughly $3.7M recently.

• Rising interest rates could dampen housing demand and affordability.
• Economic downturns could lead to decreased home sales and profitability.
• Supply chain disruptions and rising input costs could impact construction costs.
• Increased competition from other homebuilders could erode market share.
• Changes in government regulations and policies could impact the housing market.

What Are the Growth Opportunities for DHI?

• Expansion into New Markets: D.R. Horton has the opportunity to expand its operations into new geographic markets, particularly in regions with strong population growth and housing demand. By entering new markets, the company can diversify its revenue streams and reduce its reliance on existing markets. The timeline for this expansion could be within the next 3-5 years, with a potential market size of several billion dollars. Competitive advantage lies in D.R. Horton's established brand and operational expertise.
• Increased Focus on Affordable Housing: With rising home prices, there is a growing demand for affordable housing options. D.R. Horton can capitalize on this trend by increasing its focus on developing and selling affordable homes under its Express Homes brand. This strategy can attract first-time homebuyers and those with limited budgets. The market size for affordable housing is substantial, with a potential timeline of ongoing growth over the next decade. D.R. Horton's competitive advantage lies in its efficient construction processes and cost management.
• Development of Multi-Family Rental Properties: D.R. Horton can further diversify its revenue streams by developing and owning multi-family rental properties. This strategy can provide a stable source of income and reduce the company's exposure to fluctuations in the for-sale housing market. The market for multi-family rental properties is growing, driven by demographic trends and urbanization. The timeline for this development could be within the next 2-4 years, with a potential market size of several billion dollars. D.R. Horton's competitive advantage lies in its land acquisition and development expertise.
• Enhancement of Mortgage Financing Services: D.R. Horton can enhance its mortgage financing services to attract more homebuyers and increase its revenue. This can involve offering competitive interest rates, flexible loan terms, and streamlined application processes. The market for mortgage financing is large and competitive, with a potential timeline of ongoing growth. D.R. Horton's competitive advantage lies in its ability to offer integrated homebuying and financing solutions.
• Investment in Technology and Innovation: D.R. Horton can invest in technology and innovation to improve its construction processes, enhance its customer experience, and reduce its costs. This can involve using advanced building materials, implementing digital marketing strategies, and developing online tools for homebuyers. The market for construction technology is growing rapidly, with a potential timeline of ongoing innovation. D.R. Horton's competitive advantage lies in its scale and resources to invest in these technologies.

What Are DHI's Competitive Advantages?

• Scale: D.R. Horton is one of the largest homebuilders in the United States, providing economies of scale in purchasing and construction.
• Brand Recognition: The D.R. Horton brand is well-known and respected in the homebuilding industry, attracting a wide range of homebuyers.
• Geographic Diversification: The company operates in 31 states and 98 markets, reducing its reliance on any single geographic region.
• Integrated Services: D.R. Horton offers mortgage financing and title insurance services, providing a comprehensive solution for homebuyers.
• Diverse Product Offerings: The company offers a variety of homes under different brand names, catering to diverse buyer preferences and price points.

What Does DHI Do?

Founded in 1978 and headquartered in Arlington, Texas, D.R. Horton, Inc. has grown to become one of the largest homebuilding companies in the United States. The company's core business involves the acquisition and development of land, followed by the construction and sale of residential homes. D.R. Horton operates in 31 states and 98 markets across the East, North, Southeast, South Central, Southwest, and Northwest regions. The company offers a variety of homes under different brand names, including D.R. Horton, America's Builder, Express Homes, Emerald Homes, and Freedom Homes, catering to diverse buyer preferences and price points. These include single-family detached homes, townhomes, duplexes, and triplexes. Beyond home construction, D.R. Horton provides mortgage financing services and title insurance policies, offering a comprehensive suite of services to homebuyers. The company also engages in residential lot development and owns/operates multi-family and single-family rental properties, non-residential real estate, and energy-related assets. This diversification strategy allows D.R. Horton to capture additional revenue streams and mitigate risks associated with fluctuations in the housing market.

What Products and Services Does DHI Offer?

• Acquires and develops land for residential construction.
• Constructs and sells single-family detached homes.
• Builds and sells attached homes like townhomes and duplexes.
• Provides mortgage financing services to homebuyers.
• Offers title insurance policies and closing services.
• Develops and sells multi-family and single-family rental properties.
• Owns and operates energy-related assets.
• Sells homes under the D.R. Horton, America's Builder, Express Homes, Emerald Homes, and Freedom Homes brands.

How Does DHI Make Money?

• Generates revenue from the sale of residential homes.
• Earns income from mortgage financing services.
• Receives fees from title insurance policies and closing services.
• Derives revenue from the rental of multi-family and single-family properties.
• Generates income from energy-related assets.

What Industry Does DHI Operate In?

The residential construction industry is influenced by macroeconomic factors such as interest rates, employment levels, and consumer confidence. D.R. Horton operates in a competitive landscape, facing competition from other national and regional homebuilders. The industry is currently experiencing strong demand, driven by low interest rates and demographic trends. D.R. Horton's scale and brand recognition provide a competitive advantage, allowing it to capture a significant share of the market. Competitors include companies like Lennar and PulteGroup, each vying for market share in key geographic regions. The industry is also subject to cyclical fluctuations, with periods of strong growth followed by periods of slower growth or decline.

Who Are DHI's Key Customers?

• First-time homebuyers seeking affordable housing.
• Move-up buyers looking for larger or more luxurious homes.
• Retirees seeking smaller or more manageable homes.
• Investors purchasing rental properties.
• Families seeking homes in specific geographic locations.

D.R. Horton, Inc. Financial Trajectory

D.R. Horton, Inc. (DHI) reported $9.23B in revenue for Q2 2026, reflecting 22.1% growth compared to the prior quarter. The company recorded net income of $904.9M, with diluted EPS of $3.18. Revenue has increased across the last three reported quarters, suggesting sustained momentum for this large-cap Consumer Cyclical company. Across the four most recent quarters, DHI averaged $2.62 in diluted EPS.

Company Profile

D.R. Horton, Inc. operates in the Residential Construction industry within the Consumer Cyclical sector. It is headquartered in Arlington, US. The company is led by CEO Paul J. Romanowski. DHI has traded publicly since 1992.

How D.R. Horton, Inc. Is Valued

D.R. Horton, Inc. carries a market capitalization of $42.5B, placing it in the large-cap category. Relative to its peer group, DHI's quantitative score of 76/100 is above the peer average of 59/100.

Return on equity for D.R. Horton, Inc. stands at 13.2%, a gauge of how efficiently it converts shareholder capital into profit. Return on assets is 8.9%, showing how much profit it generates from its asset base. DHI trades at a trailing price-to-earnings ratio of 14.78, below the Consumer Cyclical sector average of ~34x. Its free cash flow yield is 7.6%, a gauge of the cash the business throws off relative to its market value. A current ratio of 6.86 indicates the company holds enough short-term assets to cover its near-term obligations. Its earnings yield is 6.8%, the inverse of the P/E and a quick read on earnings relative to price.

D.R. Horton, Inc.'s Piotroski F-Score is 6/9, a 9-point checklist of profitability, leverage and efficiency — a middling fundamental profile. Its Altman Z-Score of 5.59 places it in the safe zone, indicating low near-term bankruptcy risk.

D.R. Horton, Inc. has beaten Wall Street's EPS estimate in 5 of its last 8 reported quarters — more hits than misses. Reported results have landed about 3.1% above estimates on average.

Wall Street analysts project D.R. Horton, Inc. revenue of about $32.77B for fiscal 2026, with EPS near $10.48. The estimate reflects 13 contributing analysts.

Over the past six months, D.R. Horton, Inc. insiders filed 30 SEC Form 4 transactions — 17 sales and 13 purchases. On net that is roughly 1K shares acquired (about $3.7M) — insiders putting money in tends to read as conviction.

DHI Financials

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DHI Analyst Consensus

DHI MoonshotScore

Latest D.R. Horton, Inc. Analysis

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Disclaimer: This content is for informational purposes only and does not constitute investment advice. Always do your own research and consult a financial advisor.

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