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DR Horton
(NYSE:DHI)
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Rating:69Neutral
Price Target:
$154.00
▲(2.12% Upside)
Action:Reiterated
Date:09/16/26
The score is driven primarily by solid financial strength and disciplined capital allocation, supported by reasonable valuation. Offsetting these positives are weakening cycle dynamics (margin normalization, choppier cash flow momentum) and a negative technical trend, while earnings-call commentary points to near-term demand and cost pressures despite good execution.
Positive Factors
Liquidity and leverage
Strong liquidity and moderate leverage give D.R. Horton financial flexibility through housing-cycle volatility. Cash and available credit can support land investment, construction activity, dividends, and repurchases while reducing reliance on stressed capital markets.
Negative Factors
Demand and cancellations
Higher cancellations and a delivery-guidance reduction indicate that affordability and buyer qualification pressures are affecting demand. Persistent cancellations can lower closing volumes, increase inventory exposure, and require continued incentives, making near-term earnings less predictable.
Read all positive and negative factors
Positive Factors
Negative Factors
Liquidity and leverage
Strong liquidity and moderate leverage give D.R. Horton financial flexibility through housing-cycle volatility. Cash and available credit can support land investment, construction activity, dividends, and repurchases while reducing reliance on stressed capital markets.
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
$38.87B
Dividend Yield1.3%
Average Volume (3M)3.12M
Price to Earnings (P/E)13.2
Beta (1Y)0.61
Revenue Growth-3.54%
EPS Growth-15.86%
CountryUS
Employees14,341
SectorConsumer Cyclical
Sector Strength84
IndustryResidential Construction
Share Statistics
EPS (TTM)10.53
Shares Outstanding279,701,260
10 Day Avg. Volume2,831,619
30 Day Avg. Volume3,119,202
Financial Highlights & Ratios
PEG Ratio-0.75
Price to Book (P/B)2.16
Price to Sales (P/S)1.53
P/FCF Ratio15.92
Enterprise Value/Market Cap1.33
Enterprise Value/Revenue1.55
Enterprise Value/Gross Profit6.86
Enterprise Value/Ebitda12.60
Forecast
1Y Price Target
$148.36Price Target Upside-1.62% Downside
Rating ConsensusHold
Number of Analyst Covering13
EPS Forecast (FY)11.25
Revenue Forecast (FY)$33.79B
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:Jul 21, 2026
(Q3-2026)
| % Change Since: |
Next Earnings Date:Oct 29, 2026
Earnings Call Sentiment Positive
The call conveyed operational strength—notably margin outperformance, strong cash generation, disciplined capital returns, and cost reductions—while also acknowledging demand softness, a higher cancellation rate, elevated incentives, rising SG&A from footprint expansion, and some lot-cost inflation. Management emphasized nimble, returns-focused operating decisions (trimming full-year deliveries, holding margin) and maintained robust liquidity and buyback/dividend plans. Overall, positive execution on profitability and capital allocation is tempered by near-term demand and cost pressures.Positive Updates
Strong Profitability and Margins
Consolidated pre-tax income of $1.2 billion on $9.2 billion of revenues, delivering a pre-tax profit margin of 13.3%. Home sales gross margin of 20.7%, above the high end of guidance.
Negative Updates
EPS and Revenue Pressure Year-over-Year
EPS declined to $3.20 from $3.36 in the prior-year quarter (down ~4.8%). Home sales revenue down ~3% year-over-year; average closing price down 2% YoY to $362,000.
Read all updates
Q3-2026 Updates
Positive
Negative
Strong Profitability and Margins
Consolidated pre-tax income of $1.2 billion on $9.2 billion of revenues, delivering a pre-tax profit margin of 13.3%. Home sales gross margin of 20.7%, above the high end of guidance.
Read all positive updates
Company Guidance
Management guided fourth-quarter consolidated revenues of $8.8–$9.3 billion, homebuilding closings of 22,500–23,000 homes, a home‑sales gross margin of 20.5%–21.0% and a consolidated pre‑tax profit margin of 12.3%–12.8%; for full‑year fiscal 2026 they now expect consolidated revenues of about $32.5–$33.0 billion, 83,800–84,300 homes closed, an income tax rate of ~25%, at least $3.0 billion of operating cash flow, roughly $2.5 billion of share repurchases and about $500 million of dividends; they also said Q4 starts will be lower than Q3, rental inventory should remain around $3.0 billion, and noted June 30 liquidity of $6.1 billion (including $2.1 billion cash and $4.0 billion available credit), total debt of $7.1 billion and consolidated leverage of 23% (long‑term target ~20%).DR Horton Financial Statement Overview
Summary
Income Statement
72
Positive
Balance Sheet
78
Positive
Cash Flow
67
Positive
| Breakdown | TTM | Sep 2025 | Sep 2024 | Sep 2023 | Sep 2022 | Sep 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 33.35B | 34.25B | 36.80B | 35.46B | 33.48B | 27.77B |
| Gross Profit | 7.54B | 8.12B | 9.54B | 9.35B | 10.50B | 7.88B |
| EBITDA | 4.11B | 4.84B | 6.37B | 6.41B | 7.71B | 5.43B |
| Net Income | 3.05B | 3.59B | 4.76B | 4.75B | 5.86B | 4.18B |
Balance Sheet | ||||||
| Total Assets | 36.51B | 35.47B | 36.10B | 32.58B | 30.35B | 24.02B |
| Cash, Cash Equivalents and Short-Term Investments | 2.08B | 2.99B | 4.52B | 3.87B | 2.54B | 3.21B |
| Total Debt | 7.18B | 6.03B | 5.97B | 5.14B | 6.11B | 5.45B |
| Total Liabilities | 12.10B | 10.73B | 10.28B | 9.44B | 10.57B | 8.80B |
| Stockholders Equity | 23.82B | 24.19B | 25.31B | 22.70B | 19.40B | 14.89B |
Cash Flow | ||||||
| Free Cash Flow | 3.31B | 3.28B | 2.02B | 4.16B | 413.60M | 267.00M |
| Operating Cash Flow | 3.35B | 3.42B | 2.19B | 4.30B | 561.80M | 534.40M |
| Investing Cash Flow | -258.70M | -168.70M | -190.60M | -310.20M | -414.90M | -252.20M |
| Financing Cash Flow | -3.62B | -4.76B | -1.36B | -2.67B | -811.20M | -85.10M |
DR Horton Technical Analysis
Positive
150.80
Price Trends
141.12
Positive
146.06
Positive
147.26
Positive
Market Momentum
0.12
Negative
62.07
Neutral
82.13
Negative
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 137.37, above the 50-day MA of 141.12, and above the 200-day MA of 147.26, indicating a bullish trend. The MACD of 0.12 indicates Negative momentum. The RSI at 62.07 is Neutral, neither overbought nor oversold. The STOCH value of 82.13 is Negative, 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 | $12.49B | 10.77 | 14.23% | 0.76% | -1.08% | -8.57% | |
72 Outperform | $15.93B | 14.52 | 31.02% | ― | -9.66% | -19.36% | |
70 Outperform | $21.47B | 11.48 | 14.73% | 0.92% | -7.28% | -26.86% | |
69 Neutral | $38.87B | 13.20 | 12.77% | 1.30% | -3.54% | -15.86% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
61 Neutral | $18.47B | 14.69 | 6.03% | 2.57% | -8.01% | -47.77% | |
52 Neutral | $2.63B | 11.85 | 5.93% | 2.33% | -20.80% | -50.30% |
* Consumer Cyclical Sector Average
DHI
DR Horton
147.66
-9.01
-5.75%
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DR Horton Corporate Events
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.