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1. Company Snapshot

1.a. Company Description

D.R. Horton, Inc.operates as a homebuilding company in East, North, Southeast, South Central, Southwest, and Northwest regions in the United States.It engages in the acquisition and development of land; and construction and sale of residential homes in 31 states and 98 markets under the names of D.R. Horton, America's Builder, Express Homes, Emerald Homes, and Freedom Homes.


The company constructs and sells single-family detached homes; and attached homes, such as town homes, duplexes, and triplexes.It also provides mortgage financing services; and title insurance policies, and examination and closing services, as well as engages in the residential lot development business.In addition, the company develops, constructs, owns, leases, and sells multi-family and single-family rental properties; owns non-residential real estate, including ranch land and improvements; and owns and operates energy related assets.


It primarily serves homebuyers.D.R. Horton, Inc.was founded in 1978 and is headquartered in Arlington, Texas.

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1.b. Last Insights on DHI

Breaking News: D R Horton Inc recently had its stock position adjusted by Applied Finance Capital Management LLC which cut its stake by 5% to 164956 shares valued at $2796 million The adjustment was made during the last quarter according to the firms Form 13F filing with the SEC No recent earnings release information is available for D R Horton Inc Some analysts view related companies as attractive investments due to their essential components and growing demand No direct recommendation is given for D R Horton Inc by the provided data

1.c. Company Highlights

2. D.R. Horton's Q1 2026 Earnings: A Strong Start to the Year

Publication Date: Jan -21

📋 Highlights
  • Strong Pretax Profit Margin:: D.R. Horton achieved an 11.6% pretax profit margin ($798M on $6.9B revenue) in Q1 2026.
  • Net Sales Orders Growth:: Net sales orders rose 3% to 18,300 homes, with order value steady at $6.7 billion.
  • High Return on Inventory:: Homebuilding pretax return on inventory reached 18.6%, outpacing consolidated returns on equity (13.7%) and assets (9.4%).
  • Shareholder Returns:: Generated $4.4B returned to shareholders via $670M in share repurchases (4.4M shares) and $132M in dividends.
  • Guidance for Q2 2026:: Expects $7.3B–$7.8B in revenue and 19,700–20,200 homes closed, with home sales gross margin of 19–19.5%.

Revenue and Margin Analysis

The company's revenues were driven by a 3% increase in net sales orders, which rose to 18,300 homes, while the order value remained flat at $6.7 billion. The average sales price of homes closed was $365,500, down 3% year over year. The home sales gross margin was impacted by increased incentives, which rose to the high single digits as a percentage of sales.

Operational Performance

D.R. Horton's operational performance was characterized by a disciplined capital allocation strategy, with $3.6 billion generated from operations over the past twelve months. The company returned $4.4 billion to shareholders through repurchases and dividends. The company expects to continue growing this year, outpacing the market, with an increase in communities served and communities count up 12% year over year.

Guidance and Outlook

The company guided for consolidated revenues of $7.3 billion to $7.8 billion and homes closed of 19,700 to 20,200 homes in the second quarter, with a home sales gross margin of 19% to 19.5%. For the full year, D.R. Horton expects to generate consolidated revenues of approximately $33.5 billion to $35 billion and homes closed of 86,000 to 88,000 homes. Analysts estimate next year's revenue growth at 5.6%.

Valuation

With a current P/E ratio of 13.43, P/B ratio of 1.82, and an ROE of 13.74%, the company's valuation appears reasonable. The dividend yield stands at 1.08%, indicating a relatively stable return for shareholders. The company's focus on affordability and its efforts to address the needs of first-time homebuyers are expected to drive growth and profitability.

3. NewsRoom

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Harbor SMID Cap Value ETF Q4 2025 Performance Review

Feb -10

Source: seekingalpha.com

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Applied Finance Capital Management LLC Has $27.96 Million Stock Position in D.R. Horton, Inc. $DHI

Feb -10

Source: defenseworld.net

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First Look: Amazon's $200B Capex, Coinbase's SB Ad, Kroger CEO

Feb -09

Source: gurufocus.com

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D.R. Horton, Inc. $DHI Shares Sold by Twin Capital Management Inc.

Feb -07

Source: defenseworld.net

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Harbor SMID Cap Core ETF Q4 2025 Contributors And Detractors

Feb -05

Source: seekingalpha.com

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Market Today: Disney picks D'Amaro; PepsiCo trims prices

Feb -03

Source: gurufocus.com

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Harbor Mid Cap Value ETF Q4 2025 Performance Drivers And Trading Highlights

Jan -30

Source: seekingalpha.com

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D.R. Horton, Inc. $DHI Shares Sold by Bank of New York Mellon Corp

Jan -30

Source: defenseworld.net

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (11.66%)

6. Segments

Homebuilding - Southeast

Expected Growth: 12.6%

- The Southeast region, comprising Florida, Georgia, Alabama, and South Carolina, is expected to drive growth, fueled by a strong economy, low unemployment, and increasing demand for housing, particularly in the affordable and first-time homebuyer segments.

Homebuilding - South Central

Expected Growth: 11.4%

Estimated CAGR, driven by increasing demand for affordable housing in Texas, Oklahoma, and Arkansas, coupled with a focus on quality and customer service, which is expected to drive sales and revenue growth in the single-family homes, townhomes, and condominiums segment.

Homebuilding - East

Expected Growth: 11.2%

- The eastern United States’ single-family homes, townhomes, and condominiums market is driven by growing demand from first-time and move-up buyers, supported by low interest rates, increasing employment rates, and a shortage of existing homes for sale.

Homebuilding - Southwest

Expected Growth: 12.6%

estimated CAGR, driven by increasing demand for single-family detached houses, growing popularity of golf course communities, and expanding presence in Nevada and Texas.

Homebuilding - North

Expected Growth: 7.5%

CAGR, driven by the segment’s diverse geographic presence in the northern United States, offering a range of floor plans and price points, catering to the growing demand for single-family homes in the Midwest, Northeast, and Pacific Northwest regions.

Homebuilding - Northwest

Expected Growth: 14.1%

- The Pacific Northwest segment is poised for growth, driven by robust demand from first-time and move-up buyers in markets such as Seattle, Portland, and Boise, where housing prices are relatively affordable compared to other West Coast markets.

Rental

Expected Growth: 13.5%

CAGR, driven by increasing demand for single-family home rentals, expansion of revenue streams, and provision of an attractive alternative to traditional multifamily rentals.

Forestar

Expected Growth: 12.1%

- Forestar’s growth is driven by increasing demand for residential and commercial properties, strategic lot supply solutions to leading builders and developers, and expansion into new markets, positioning the company as a leading national land developer and manager.

Financial Services

Expected Growth: 4.5%

The financial services segment, offering mortgage banking and title services, is expected to drive growth, driven by an increasing demand for housing, low interest rates, and an expanding product portfolio, facilitating the homebuying process and providing a range of financing options.

Eliminations and Other

Expected Growth: 9.4%

- This segment, comprising intercompany transaction eliminations, unconsolidated subsidiary activities, and miscellaneous corporate expenses, is driven by the company’s growing scale, increasing operational efficiency, and strategic investments in technology and process improvements.

7. Detailed Products

Single-Family Homes

D.R. Horton offers a wide range of single-family homes, from starter homes to luxury estates, designed to meet the needs of various lifestyles and budgets.

Townhomes

The company builds townhomes, which offer a low-maintenance lifestyle and shared community amenities, perfect for first-time buyers, empty nesters, and retirees.

Condominiums

D.R. Horton develops condominium communities, offering a carefree lifestyle with amenities like pools, fitness centers, and clubhouses.

Active Adult Communities

The company designs and builds active adult communities, catering to adults 55+, with amenities like clubhouses, fitness centers, and outdoor recreation areas.

Luxury Homes

D.R. Horton offers luxury homes with high-end finishes, custom designs, and premium amenities, catering to discerning buyers.

8. D.R. Horton, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes is moderate for D.R. Horton, Inc. as there are alternative options available for homebuyers, but the company's brand reputation and quality of homes help to mitigate this threat.

Bargaining Power Of Customers

The bargaining power of customers is low for D.R. Horton, Inc. as the company operates in a highly competitive market, but its strong brand reputation and quality of homes give it an advantage in negotiating prices.

Bargaining Power Of Suppliers

The bargaining power of suppliers is moderate for D.R. Horton, Inc. as the company relies on a few large suppliers for materials, but its large scale of operations gives it some negotiating power.

Threat Of New Entrants

The threat of new entrants is low for D.R. Horton, Inc. as the company has a strong brand reputation and a large market share, making it difficult for new entrants to gain traction.

Intensity Of Rivalry

The intensity of rivalry is high for D.R. Horton, Inc. as the company operates in a highly competitive market with many established players, leading to intense competition for market share.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 30.98%
Debt Cost 3.99%
Equity Weight 69.02%
Equity Cost 12.29%
WACC 9.72%
Leverage 44.89%

11. Quality Control: D.R. Horton, Inc. passed 7 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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PulteGroup

A-Score: 5.8/10

Value: 6.0

Growth: 8.8

Quality: 7.7

Yield: 2.0

Momentum: 4.0

Volatility: 6.3

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D.R. Horton

A-Score: 5.5/10

Value: 6.3

Growth: 7.6

Quality: 7.1

Yield: 2.0

Momentum: 4.0

Volatility: 6.0

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Toll Brothers

A-Score: 5.4/10

Value: 6.9

Growth: 7.3

Quality: 6.6

Yield: 2.0

Momentum: 3.5

Volatility: 6.3

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NVR

A-Score: 5.2/10

Value: 4.5

Growth: 7.6

Quality: 7.7

Yield: 0.0

Momentum: 3.0

Volatility: 8.3

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KB Home

A-Score: 4.9/10

Value: 7.8

Growth: 4.6

Quality: 5.3

Yield: 3.0

Momentum: 2.5

Volatility: 6.0

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Lennar

A-Score: 4.8/10

Value: 6.8

Growth: 4.3

Quality: 5.9

Yield: 3.0

Momentum: 2.5

Volatility: 6.3

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

162.28$

Current Price

162.28$

Potential

-0.00%

Expected Cash-Flows