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1. Company Snapshot

1.a. Company Description

Dream Finders Homes, Inc.operates as a holding company for Dream Finders Holdings LLC that engages in homebuilding business in the United States.It designs, constructs, and sells single-family entry-level, and first-time and second time move-up homes in Charlotte, Raleigh, Jacksonville, Orlando, Denver, the Washington D.C. metropolitan area, Austin, Dallas, and Houston.


The company also operates as a licensed home mortgage broker that underwrites, originates, and sells mortgages to Prime Lending; and provides insurance agency services, including closing, escrow, and title insurance, as well as mortgage banking solutions.It sells its homes through its sales representatives and independent real estate brokers.The company was founded in 2008 and is headquartered in Jacksonville, Florida.

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1.b. Last Insights on DFH

Dream Finders Homes' recent performance has been influenced by strategic acquisitions and organic expansion. Despite short-term headwinds, the company remains attractively valued, with a "Hold" rating from analysts, and a target price of $26.00. The company's growth strategy and industry recognition, including being named 2025 National Builder of the Year, are positives. Additionally, insider activity, such as a 10% owner's sale of shares, may indicate confidence in the company's prospects. According to Marketbeat Ratings, five analysts have rated the stock with a hold rating and one has given a buy rating.

1.c. Company Highlights

2. Transcript Summary

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3. NewsRoom

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Dream Finders Homes Inc. (DFH) Stock Slides as Market Rises: Facts to Know Before You Trade

Feb -03

Source: zacks.com

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A 10% Owner of Dream Finders Homes Sells Over 70k Shares for $14 Million

Jan -31

Source: fool.com

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Dream Finders Homes Inc. (DFH) Stock Falls Amid Market Uptick: What Investors Need to Know

Jan -27

Source: zacks.com

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Dream Finders Homes: Short-Term Pain Should Not Distract From Long-Term Gain

Jan -17

Source: seekingalpha.com

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Dream Finders Homes Inc. (DFH) Registers a Bigger Fall Than the Market: Important Facts to Note

Jan -15

Source: zacks.com

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New Home Sales & Permits Down: What's Next for the Housing Market?

Jan -14

Source: zacks.com

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DFH Stock Jumps On White House Bond Purchase Announcement, Justified?

Jan -12

Source: forbes.com

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Dream Finders Homes, Inc. (NASDAQ:DFH) Receives $26.00 Average Target Price from Analysts

Jan -10

Source: defenseworld.net

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (6.74%)

6. Segments

Midwest

Expected Growth: 6.5%

Midwest segment's 6.5% growth is driven by increasing demand for affordable housing, favorable demographics, and strategic land acquisitions. Dream Finders Homes' focus on first-time homebuyers and expansion into adjacent markets also contribute to growth. Additionally, the region's strong job market and relatively low cost of living support housing demand, further fueling growth.

Southeast

Expected Growth: 6.8%

Southeast region's growth of 6.8% is driven by Dream Finders Homes' strategic expansion into high-demand markets, such as Florida and the Carolinas, where job growth, migration, and limited housing supply create opportunities for new home sales. Additionally, the company's focus on affordable pricing and quality construction resonates with first-time homebuyers and families, fueling demand and driving growth.

Mid-Alantic

Expected Growth: 7.2%

Mid-Atlantic segment's 7.2% growth is driven by strong demand in Washington D.C. and Maryland, fueled by government and private sector job growth. Additionally, Dream Finders Homes' strategic land acquisition and development in this region, coupled with its focus on affordable luxury homes, has enabled the company to capitalize on the area's growing population and limited housing supply.

Financial Services

Expected Growth: 7.5%

Dream Finders Homes, Inc.'s 7.5% growth in Financial Services is driven by increasing mortgage originations, expansion of title and insurance services, and strategic partnerships. Additionally, the company's focus on digital transformation, process efficiencies, and customer experience enhancements have contributed to the growth. Furthermore, the rising demand for housing and favorable interest rates have also supported the segment's growth.

Reconciling Items

Expected Growth: 6.2%

Dream Finders Homes, Inc.'s 6.2% growth is driven by increasing demand for affordable housing, strategic expansion into new markets, and a focus on operational efficiency. Additionally, the company's ability to navigate supply chain disruptions and maintain a strong balance sheet has contributed to its growth. Furthermore, Dream Finders' commitment to quality construction and customer satisfaction has led to positive word-of-mouth and repeat business.

7. Detailed Products

Single-Family Homes

Dream Finders Homes, Inc. offers a wide range of single-family homes designed to meet the needs of various families and individuals, from first-time homebuyers to growing families and empty nesters.

Townhomes

The company's townhome offerings provide a low-maintenance lifestyle with shared walls, perfect for those who want to own a home without the burden of yard work and exterior maintenance.

Active Adult Communities

Dream Finders Homes, Inc. offers age-restricted communities designed specifically for active adults, providing a maintenance-free lifestyle and amenities tailored to this demographic.

Custom Homes

The company's custom home division allows buyers to design and build their dream home from the ground up, offering flexibility and personalization.

8. Dream Finders Homes, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Dream Finders Homes, Inc. operates in the homebuilding industry, which has a low threat of substitutes due to the unique nature of its products and services.

Bargaining Power Of Customers

Dream Finders Homes, Inc. has a diverse customer base, which reduces the bargaining power of individual customers. However, the company still needs to be responsive to customer needs and preferences.

Bargaining Power Of Suppliers

Dream Finders Homes, Inc. has a diverse supplier base, which reduces the bargaining power of individual suppliers. The company also has a strong negotiating position due to its scale and purchasing power.

Threat Of New Entrants

The homebuilding industry has moderate barriers to entry, including regulatory hurdles and capital requirements. However, new entrants can still pose a threat to Dream Finders Homes, Inc. if they are able to differentiate themselves through innovative products or services.

Intensity Of Rivalry

The homebuilding industry is highly competitive, with many established players competing for market share. Dream Finders Homes, Inc. needs to differentiate itself through its products, services, and brand reputation to maintain its market position.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 55.80%
Debt Cost 4.24%
Equity Weight 44.20%
Equity Cost 14.21%
WACC 8.65%
Leverage 126.24%

11. Quality Control: Dream Finders Homes, Inc. passed 6 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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Green Brick Partners

A-Score: 5.5/10

Value: 6.8

Growth: 8.3

Quality: 7.9

Yield: 0.0

Momentum: 4.5

Volatility: 5.7

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Tri Pointe Homes

A-Score: 5.2/10

Value: 8.0

Growth: 8.2

Quality: 6.0

Yield: 0.0

Momentum: 2.5

Volatility: 6.3

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Taylor Morrison

A-Score: 5.1/10

Value: 8.0

Growth: 5.7

Quality: 6.4

Yield: 0.0

Momentum: 3.5

Volatility: 7.0

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Century Communities

A-Score: 5.1/10

Value: 8.0

Growth: 7.6

Quality: 4.7

Yield: 3.0

Momentum: 2.0

Volatility: 5.3

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Skyline Champion

A-Score: 4.0/10

Value: 3.8

Growth: 6.8

Quality: 7.0

Yield: 0.0

Momentum: 2.5

Volatility: 4.0

1-Year Total Return ->

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Dream Finders Homes

A-Score: 3.8/10

Value: 6.6

Growth: 6.4

Quality: 4.5

Yield: 0.0

Momentum: 2.0

Volatility: 3.3

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

21.05$

Current Price

21.05$

Potential

-0.00%

Expected Cash-Flows