D.R. Horton Inc. (DHI) Stock

D.R. Horton Inc. trades at a P/E ratio of 13.44, which is below the market average of approximately 20. This lower valuation could indicate the market has modest growth expectations, or it might represent an undervalued opportunity if the fundamentals are strong. Looking ahead, the forward P/E of 13.26 is lower than the current P/E, indicating analysts expect earnings to grow over the next year. The PEG ratio of 1.78 indicates reasonable value when growth is considered.

With a beta of 1.36, D.R. Horton Inc. is roughly as volatile as the market, moving in line with broad market trends. This moderate beta suggests the stock offers market-level returns without excessive volatility. The price-to-book ratio of 2.07 shows investors value the company above its book value, which often reflects intangible assets or growth prospects.

D.R. Horton Inc. achieves a profit margin of 11.50%, meaning it retains $11.50 from every $100 in revenue after all expenses. This represents a solid margin typical of well-run businesses, showing the company can effectively balance revenue generation with cost control. The operating margin of 14.60% reveals how efficiently the company runs its core business operations before interest and taxes. With ROE at 16.10% and ROA at 8.96%, the company generates strong returns on invested capital.

D.R. Horton Inc.'s revenue declined by 7.40% year-over-year, indicating challenges in maintaining sales momentum. This contraction may reflect market headwinds, competitive pressures, or strategic transitions. Earnings decreased by 18.00% year-over-year, reflecting the bottom-line impact of business performance. These growth metrics should be evaluated against RESIDENTIAL CONSTRUCTION industry averages for proper context.

D.R. Horton Inc. offers a dividend yield of 0.90%, paying $1.50 per share annually. This modest yield below 2% suggests the company prioritizes growth investments over current income. While the dividend provides some return, investors are likely attracted more by capital appreciation potential than income generation. To receive the next dividend, shares must be purchased before the ex-dividend date of Aug 7, 2025.

The dividend sustainability can be assessed through the payout ratio - D.R. Horton Inc. pays $1.50 per share in dividends against earnings of $12.64 per share, resulting in a payout ratio of 11.87%. This conservative payout below 30% indicates excellent dividend safety with substantial room for future increases. The company retains most earnings for growth while still rewarding shareholders. The next dividend payment is scheduled for Aug 14, 2025.

D.R. Horton Inc. has a market capitalization of $50.6B, classifying it as a large-cap stock ($10B-$200B). Large-caps are typically industry leaders with established business models, offering a balance of stability and growth potential. They often provide dividend income and are core holdings in institutional portfolios. With 298.12M shares outstanding, the company's ownership is relatively concentrated. As a participant in the RESIDENTIAL CONSTRUCTION industry, it competes with other firms in this sector.

D.R. Horton Inc.'s book value per share is $80.46, while the current stock price is $147.96, resulting in a price-to-book (P/B) ratio of 1.84. This reasonable premium to book value suggests the market values the company's earnings power and intangible assets appropriately. Most profitable companies trade between 1-3x book value. As a common stock, this represents equity ownership with voting rights.

19 analysts cover DHI with 37% recommending buy/strong buy ratings. Analyst predictions have mixed reliability - studies show consensus rarely beats market returns consistently. The mixed views reflect uncertainty about the outlook. The consensus target of $163.93 implies 10.8% upside, but targets are often adjusted to follow price moves rather than predict them.

Current analyst recommendations:1 Strong Buy, 6 Buy, 10 Hold, 02 Strong Sell. The neutral stance suggests uncertainty or fair valuation at current levels.Remember that analyst opinions often lag price movements and can be influenced by investment banking relationships.