Présentation de l'entreprise
D.R. Horton, Inc. operates as a leading homebuilding entity, executing the acquisition and development of land alongside the construction and sale of residential homes across a vast network of 126 markets spanning 36 states in the United States. The company functions within the Consumer Cyclical sector and specifically serves the Residential Construction industry, positioning itself as a key provider of housing solutions in East, North, Southeast, South Central, Southwest, and Northwest regions. Its scale is substantial, reflected by a market capitalization of $41.53B, annual revenue of $33.52B, and an employed workforce of 14,341 individuals. These financial magnitudes indicate that D.R. Horton holds a dominant position in its sector, possessing the operational capacity to influence market supply and maintain significant liquidity reserves relative to its peers. The breadth of its geographic footprint suggests a diversified revenue stream that aims to mitigate localized economic shocks inherent to the construction and housing markets.
Santé financière
The company reported a trailing twelve-month revenue of $33.52B with a corresponding net income of $3.34B and an EBITDA of $4.47B. The substantial gap between the total revenue of $33.52B and the net income of $3.34B reveals a cost structure where operating expenses, including cost of goods sold and administrative costs, consume approximately 90% of generated revenue before arriving at the bottom line. While the EBITDA stands at $4.47B, the free cash flow recorded for the trailing twelve months was -$546,750,016, indicating a period where capital expenditures exceeded operating cash generation, which temporarily constrains immediate financial flexibility for large-scale acquisitions. Profitability is further detailed by a gross margin of 22.1%, an operating margin of 11.0%, and a profit margin of 9.9%, each figure highlighting the efficiency of the company in converting sales into gross profit, covering operating expenses, and delivering net earnings respectively. On the balance sheet, the company holds $2.51B in cash against $5.62B in total debt, resulting in a debt-to-equity ratio of 22.87, which characterizes a leveraged capital structure typical for capital-intensive construction firms. Despite the leverage, the current ratio of 6.33 suggests a robust short-term liquidity position, indicating the company possesses ample current assets to cover its short-term liabilities multiple times over. Management effectiveness is evidenced by a return on equity of 13.5% and a return on assets of 7.8%, metrics that demonstrate the company's ability to generate substantial returns on the shareholders' invested capital and its total asset base.
Évaluation de la valorisation
Valuation metrics for D.R. Horton, Inc. include a trailing twelve-month P/E ratio of 12.98 and a forward P/E ratio of 11.65. The difference between the trailing P/E of 12.98 and the forward P/E of 11.65 implies that the market expects earnings growth in the future, as the lower multiple suggests investors anticipate higher profitability relative to current levels. The price-to-book ratio stands at 1.73, indicating that the market values the company at a premium of roughly 73% over its net asset book value, reflecting confidence in its intangible assets and brand value beyond tangible holdings. Alternative valuation perspectives are provided by a price-to-sales ratio of 1.24 and an EV/EBITDA of 10.08, which suggest that the stock is priced at slightly more than its annual sales and generates significant earnings relative to its enterprise value. Regarding trading range, the 52-week high is recorded at $184.55 and the 52-week low at $110.44, providing a context for current volatility and investor sentiment within the recent fiscal year. The stock exhibits a beta of 1.45, meaning its price volatility is significantly higher than the broader market, rising and falling more sharply than the S&P 500 in response to economic indicators.
Growth & Income
Recent performance data shows a revenue growth rate of -9.5% year-over-year and an earnings growth rate of -22.2% year-over-year. The earnings growth rate of -22.2% is declining at a faster pace than the revenue contraction of -9.5%, which implies that cost pressures or margin compression are disproportionately affecting profitability compared to top-line sales volume. As a dividend payer, the company offers a dividend yield of 1.3% with a payout ratio of 15.0%. This low payout ratio of 15.0% suggests that the company retains the majority of its earnings, potentially allowing for future dividend growth or capital investment, though the sustainability depends on the recovery of the negative earnings growth trajectory. The overall growth and income profile presents a challenging environment characterized by double-digit negative earnings growth and a modest dividend yield that does not currently compensate for the contraction in operational scale.