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DR Horton
(NYSE:DHI)
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Rating:68Neutral
Price Target:
$160.00
▲(6.10% Upside)
Action:Reiterated
Date:10/30/26
The score is driven primarily by solid financial resilience (modest leverage and generally strong free cash flow) and a reasonable valuation (14.4x P/E). Offsetting these positives, the latest earnings outlook is cautious with guidance implying lower fiscal 2027 revenue/volume and continued margin pressure from incentives and high mortgage rates, while technicals are only moderately positive.
Positive Factors
Conservative Balance Sheet
Modest leverage and substantial liquidity give D.R. Horton financial flexibility through housing-cycle volatility. This supports continued land investment, inventory management and shareholder returns while reducing the risk that weaker demand forces overly defensive capital decisions.
Negative Factors
Demand and Volume Pressure
Lower expected revenue and closings indicate that elevated mortgage rates and affordability constraints are affecting the near-term demand foundation. If these conditions persist, reduced absorption could limit revenue growth and keep inventory and community productivity under pressure.
Read all positive and negative factors
Positive Factors
Negative Factors
Conservative Balance Sheet
Modest leverage and substantial liquidity give D.R. Horton financial flexibility through housing-cycle volatility. This supports continued land investment, inventory management and shareholder returns while reducing the risk that weaker demand forces overly defensive capital decisions.
Read all positive factors
DR Horton Key Performance Indicators (KPIs)
Any
Income Before Taxes by Segment
Shows the profitability of each business segment before tax, highlighting which areas are driving earnings and which may need strategic adjustments.
Shows the profitability of each business segment before tax, highlighting which areas are driving earnings and which may need strategic adjustments.
Data provided by:
The Fly
The FlyDR Horton (DHI) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$40.98B
Dividend Yield1.23%
Average Volume (3M)3.12M
Price to Earnings (P/E)14.4
Beta (1Y)0.58
Revenue Growth-3.52%
EPS Growth-12.68%
CountryUS
Employees14,341
SectorConsumer Cyclical
Sector Strength84
IndustryResidential Construction
Share Statistics
EPS (TTM)10.53
Shares Outstanding279,701,260
10 Day Avg. Volume2,737,024
30 Day Avg. Volume3,116,586
Financial Highlights & Ratios
PEG Ratio-1.06
Price to Book (P/B)1.64
Price to Sales (P/S)1.18
P/FCF Ratio11.10
Enterprise Value/Market Cap1.04
Enterprise Value/Revenue1.27
Enterprise Value/Gross Profit5.64
Enterprise Value/Ebitda10.36
Forecast
1Y Price Target
$147.45Price Target Upside-2.22% Downside
Rating ConsensusHold
Number of Analyst Covering13
EPS Forecast (FY)10.4
Revenue Forecast (FY)$33.78B
DR Horton Business Overview & Revenue Model
Company Description
Established in Arlington, Texas, in 1978, D.R. Horton, Inc. operates as a prominent residential construction enterprise. The company's core business involves acquiring and preparing land, then constructing and marketing homes across a substantial ...
How the Company Makes Money
D.R. Horton makes money primarily by building and selling homes to homebuyers, and secondarily by generating fees and other income from services attached to the home purchase and from ancillary real estate activities.
1) Home sales (primary reven...
DR Horton Earnings Call Summary
Earnings Call Date:Oct 29, 2026
(Q4-2026)
| % Change Since: |
Next Earnings Date:Jan 19, 2027
Earnings Call Sentiment Positive
The call reflected strong execution, cash generation, liquidity, shareholder returns, market share positioning, and operational flexibility. However, management emphasized that higher mortgage rates, cautious consumer sentiment, weaker orders, elevated incentives, lower margins, construction-cost pressures, and rental impairments are creating significant near-term challenges. Highlights outweigh the lowlights because the company remains profitable, highly liquid, cash-generative, and positioned to gain share, although the outlook is cautious and fiscal 2027 guidance reflects lower revenue and volume ranges.Positive Updates
25th Consecutive Year as Largest Builder
D.R. Horton completed its 25th consecutive year as America's largest builder by volume and provided homeownership to more than 84 thousand individuals and families, including approximately 43.5 thousand first-time homebuyers. Homebuilding and rental operations provided more than 89 thousand families a place to call home during fiscal 2026.
Negative Updates
Lower New Home Demand
New home demand came under increased pressure in the fourth quarter as mortgage rates rose sharply, further constraining affordability while consumer sentiment remained cautious. Net sales orders decreased 7% year over year to 18.6 thousand homes.
Read all updates
Q4-2026 Updates
Positive
Negative
25th Consecutive Year as Largest Builder
D.R. Horton completed its 25th consecutive year as America's largest builder by volume and provided homeownership to more than 84 thousand individuals and families, including approximately 43.5 thousand first-time homebuyers. Homebuilding and rental operations provided more than 89 thousand families a place to call home during fiscal 2026.
Read all positive updates
Company Guidance
For fiscal 2027, D.R. Horton expects consolidated revenues of approximately 30 to $32 billion, homebuilding closings of 79 thousand to 84 thousand homes, an income tax rate of 25.5%, approximately $3.5 billion of cash flow from operations, approximately $3 billion of common-stock repurchases and dividends of around $500 million; for the first quarter, it expects consolidated revenues of $5.9 to $6.4 billion, homebuilding closings of 15.5 thousand to 16.5 thousand homes, home sales gross margin of 18% to 18.5%, consolidated pre tax profit margin of 7% to 8%, and an income tax rate of approximately 25.5%. Incentive levels are expected to remain elevated in fiscal 2027, interest rates are expected to remain high with no much reduction in rates in the near term, stick-and-brick costs are expected to be flat to slightly up, lot costs flat to slightly up sequentially and up on a year over year basis for the next couple of quarters, rental inventory is expected to remain at or below its current level during fiscal 2027, and leverage is targeted at around 20% over the long term.DR Horton Financial Statement Overview
Summary
Income Statement
63
Positive
Balance Sheet
78
Positive
Cash Flow
70
Positive
| Breakdown | TTM | Sep 2026 | Sep 2025 | Sep 2024 | Sep 2023 | Sep 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 33.35B | 33.04B | 34.25B | 36.80B | 35.46B | 33.48B |
| Gross Profit | 7.54B | 0.00 | 8.12B | 9.54B | 9.35B | 10.50B |
| EBITDA | 4.11B | 4.16B | 4.84B | 6.37B | 6.41B | 7.71B |
| Net Income | 3.05B | 2.89B | 3.59B | 4.76B | 4.75B | 5.86B |
Balance Sheet | ||||||
| Total Assets | 36.51B | 34.82B | 35.47B | 36.10B | 32.58B | 30.35B |
| Cash, Cash Equivalents and Short-Term Investments | 2.08B | 2.06B | 2.99B | 4.52B | 3.87B | 2.54B |
| Total Debt | 7.18B | 6.05B | 6.03B | 5.97B | 5.14B | 6.11B |
| Total Liabilities | 12.10B | 11.10B | 10.73B | 10.28B | 9.44B | 10.57B |
| Stockholders Equity | 23.82B | 23.71B | 24.19B | 25.31B | 22.70B | 19.40B |
Cash Flow | ||||||
| Free Cash Flow | 3.31B | 3.51B | 3.28B | 2.02B | 4.16B | 413.60M |
| Operating Cash Flow | 3.35B | 3.51B | 3.42B | 2.19B | 4.30B | 561.80M |
| Investing Cash Flow | -258.70M | -311.80M | -168.70M | -190.60M | -310.20M | -414.90M |
| Financing Cash Flow | -3.62B | -4.11B | -4.76B | -1.36B | -2.67B | -811.20M |
DR Horton Technical Analysis
Positive
150.80
Price Trends
140.84
Positive
146.10
Positive
147.13
Negative
Market Momentum
1.78
Negative
58.20
Neutral
73.24
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DHI, the sentiment is Positive. The current price of 150.8 is above the 20-day moving average (MA) of 139.20, above the 50-day MA of 140.84, and above the 200-day MA of 147.13, indicating a neutral trend. The MACD of 1.78 indicates Negative momentum. The RSI at 58.20 is Neutral, neither overbought nor oversold. The STOCH value of 73.24 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for DHI.
DR Horton Risk Analysis
DR Horton disclosed 26 risk factors in its most recent earnings report. DR Horton reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
DR Horton Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | $13.29B | 11.52 | 14.23% | 0.71% | -1.08% | -8.57% | |
72 Outperform | $16.04B | 15.81 | 29.53% | ― | -10.43% | -21.29% | |
69 Neutral | $22.89B | 13.23 | 13.80% | 0.84% | -9.35% | -27.96% | |
68 Neutral | $40.98B | 14.44 | 12.15% | 1.26% | -3.52% | -12.68% | |
65 Neutral | $20.30B | 16.16 | 6.03% | 2.34% | -8.01% | -47.77% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
52 Neutral | $2.90B | 13.13 | 5.93% | 2.10% | -20.80% | -50.30% |
* Consumer Cyclical Sector Average
DHI
DR Horton
146.53
-0.99
-0.67%
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DR Horton Corporate Events
Executive/Board ChangesShareholder Meetings
D.R. Horton Adds Independent Director to Board
Positive
Oct 26, 2026
On October 22, 2026, D.R. Horton’s board appointed Carl E. Reichardt, Jr. as an independent director, expanding the board to nine members, seven of whom are independent. His potential committee assignments will be considered after the compan...
Business Operations and StrategyStock Buyback
D.R. Horton Announces Major New Share Repurchase Program
Positive
Sep 15, 2026
On September 15, 2026, D.R. Horton’s board authorized an additional $5.0 billion share repurchase program for its common stock, with no set expiration, supplementing the roughly $53 million that remained under its previous authorization. The...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.