D.R. Horton, Inc.
- Open
- 147.50
- Day high
- 148.96
- Day low
- 145.36
- Prev close
- 145.26
- Volume
- 1.4M
- Mkt cap
- $41.2B
- P/E (TTM)
- 14.0
- EPS (TTM)
- $10.53
- P/B
- 1.7
- P/S
- 1.2
- Yield
- 1.22%
- Per share
- $1.80
D.R. Horton, Inc. (DHI) is a Consumer Cyclical company listed on NYSE. The stock is down 14% over the past year. Drillr has 3 published research articles covering DHI.
D.R. Horton, Inc. (DHI) financials & analyst ratings
Fundamentals (TTM)
Analyst consensus · 7 analysts
Source: exchange market data + company filings. Figures are trailing-twelve-month or as most recently reported. For informational purposes only — not investment advice.
DHI earnings date, history & EPS estimates
| Report date | EPS est | EPS actual | Surprise | Revenue | Rev. surprise |
|---|---|---|---|---|---|
| Jul 21, 2026 | $3.02 | $3.20 | +6.0% | $9.2B | +1.4% |
| Apr 21, 2026 | $2.15 | $2.24 | +4.2% | $7.6B | +0.1% |
| Jan 20, 2026 | $1.93 | $2.03 | +5.2% | $6.9B | +4.6% |
| Oct 28, 2025 | $3.27 | $3.04 | -7.0% | $9.7B | +2.8% |
| Jul 22, 2025 | $2.94 | $3.36 | +14.3% | $9.2B | +5.1% |
| Apr 17, 2025 | $2.62 | $2.58 | -1.5% | $7.7B | -3.7% |
| Jan 21, 2025 | $2.37 | $2.61 | +10.1% | $7.6B | +8.5% |
| Jul 18, 2024 | $3.75 | $4.10 | +9.3% | $10.0B | +3.7% |
| Apr 18, 2024 | $3.06 | $3.52 | +15.0% | $9.1B | +11.8% |
| Jan 23, 2024 | $2.88 | $2.82 | -2.1% | $7.7B | +1.7% |
| Jul 20, 2023 | $2.79 | $3.90 | +39.8% | $9.7B | -2.5% |
| Apr 20, 2023 | $1.93 | $2.73 | +41.5% | $8.0B | +23.2% |
DHI insider trading activity (SEC Form 4)
| Date | Insider | Type | Shares | Price |
|---|---|---|---|---|
| Aug 26, 2026 | CROWLEY ELAINE Ddirector | Option | 264 | — |
| Aug 26, 2026 | Smith Barbaradirector | Option | 264 | — |
| Aug 26, 2026 | CROW M CHADdirector | Option | 264 | — |
| Apr 22, 2026 | Romanowski Paul Jdirector, officer: President and CEO | Option | 2,370 | — |
| Apr 22, 2026 | CARSON BENJAMIN SRdirector | Option | 139 | — |
| Apr 22, 2026 | CARSON BENJAMIN SRdirector | Option | 683 | — |
| Apr 22, 2026 | Romanowski Paul Jdirector, officer: President and CEO | Tax | 933 | $153.34 |
| Apr 22, 2026 | WHEAT BILL Wofficer: EVP and CFO | Grant | 5,110 | — |
| Apr 22, 2026 | Romanowski Paul Jdirector, officer: President and CEO | Grant | 7,665 | — |
| Apr 22, 2026 | WHEAT BILL Wofficer: EVP and CFO | Tax | 622 | $153.34 |
| Apr 22, 2026 | WHEAT BILL Wofficer: EVP and CFO | Tax | 3,920 | $162.95 |
| Apr 22, 2026 | Auld David Vdirector, officer: Executive Chairman | Tax | 1,618 | $153.34 |
| Apr 22, 2026 | Murray Michael Jofficer: EVP and COO | Option | 2,370 | — |
| Apr 22, 2026 | Auld David Vdirector, officer: Executive Chairman | Option | 7,016 | — |
| Apr 22, 2026 | Auld David Vdirector, officer: Executive Chairman | Tax | 4,013 | $162.95 |
Source: DHI SEC Form 4 filings, latest Aug 26, 2026. For informational purposes only — not investment advice.
See the full DHI insider & 13F page →DHI research & analysis
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D.R. Horton, Inc. company profile
Overview
D.R. Horton, Inc. (NYSE:DHI) is America's largest homebuilder by volume, founded in 1978 by Donald R. Horton in Fort Worth, Texas. The company has grown from a small regional builder to a national powerhouse, constructing and selling over one million homes across its 47-year history. Headquartered in Arlington, Texas, D.R. Horton operates in 36 states and 126 markets, serving homebuyers through multiple brand names including D.R. Horton, America's Builder, Express Homes, Emerald Homes, and Freedom Homes. The company went public in 1992 and has established itself as a leader in affordable housing, consistently ranking as the top homebuilder in the United States by homes closed annually.
Business
D.R. Horton operates in the residential construction industry, which involves the development, construction, and sale of new homes to consumers. The homebuilding industry is a critical component of the broader construction sector and serves as both a economic indicator and driver of consumer spending. The company's core business revolves around acquiring land, developing residential communities, and constructing single-family detached homes as well as attached homes such as townhomes, duplexes, and triplexes. The company operates through several distinct business segments. **Homebuilding** represents the largest segment, generating approximately 85-90% of total revenues through the construction and sale of residential homes. This segment involves land acquisition, community development, home construction, and direct sales to homebuyers. **Rental Operations** contributes roughly 5-10% of revenues by developing, constructing, and operating both single-family and multi-family rental properties, which are eventually sold to investors. **Financial Services** provides approximately 2-3% of revenues through mortgage financing, title insurance, and closing services to D.R. Horton homebuyers. **Forestar** (formerly called lot development) accounts for about 3-5% of revenues by developing and selling finished lots to both D.R. Horton and third-party builders. The company's strategy focuses heavily on affordable housing, with average home prices around $375,000-$380,000, significantly below the national average. This positioning allows D.R. Horton to serve first-time homebuyers, who represent approximately 63% of their customer base. The company constructs homes across various price points but emphasizes entry-level and move-up segments rather than luxury housing.
Revenue model
D.R. Horton generates revenue primarily through **product sales** of newly constructed homes to individual homebuyers. The company's business model involves purchasing or controlling land through option contracts, developing residential communities with necessary infrastructure, constructing homes, and selling completed properties directly to consumers. The typical home sale process involves buyers purchasing homes during various stages of construction, with final closing occurring upon completion. The company's **paying customers** are primarily individual homebuyers, with a significant focus on first-time buyers who represent nearly two-thirds of sales. The company also sells to move-up buyers seeking larger or upgraded homes, though it deliberately avoids the luxury market segment. Additionally, D.R. Horton sells rental properties to institutional investors and finished lots to other homebuilders. **Revenue enhancement factors** include favorable demographics with millennials entering prime home-buying years, limited housing supply creating pricing power, population growth in target markets, and the company's scale advantages in purchasing materials and land. The company benefits from **mortgage rate buydowns** and other incentives that help maintain affordability during periods of higher interest rates. **Margin compression factors** include rising construction costs, particularly labor and materials, increasing land costs that typically rise mid-single digits annually, higher interest rates that reduce affordability and demand, competitive pressures requiring increased sales incentives, and regulatory changes affecting development costs. The company's margins are also sensitive to construction cycle times, with extended build periods increasing carrying costs and reducing inventory turnover. The business model requires significant **working capital** as the company must invest in land acquisition and development, construction materials, and labor before receiving payment upon home closings. This creates seasonal cash flow patterns and requires careful inventory management to optimize returns while maintaining adequate supply to meet demand.
Competitive moat
D.R. Horton's competitive moat is **moderately strong** but not insurmountable, built primarily on scale advantages and operational efficiency rather than unique technology or irreplaceable assets. The company's primary moat stems from its position as the largest homebuilder in the United States, which provides significant **economies of scale** in purchasing materials, securing financing, and spreading fixed costs across a large volume of homes. The company's **land control strategy** represents a key competitive advantage, with 75% of its 613,000 lot position controlled through option contracts rather than owned outright. This approach reduces capital requirements and financial risk while providing flexibility to walk away from unfavorable deals. The company's scale allows it to secure better terms on these land options and maintain relationships with developers nationwide. **Operational efficiency** through standardized processes, simplified product offerings, and supply chain management creates cost advantages that smaller builders cannot easily replicate. D.R. Horton's ability to operate across 36 states and 126 markets provides geographic diversification and reduces dependence on any single regional economy. However, the company's moat faces several **competitive threats**. The homebuilding industry has relatively low barriers to entry for smaller, regional builders who can compete effectively in local markets. Large national builders like Lennar, PulteGroup, and KB Home possess similar scale advantages and compete directly for market share. **Technological disruption** through modular construction, 3D printing, or other innovative building methods could potentially reduce D.R. Horton's operational advantages. The company's focus on **affordable housing** provides some protection during economic downturns, as demand for entry-level homes tends to be more resilient than luxury segments. However, this positioning also limits pricing power and exposes the company to interest rate sensitivity, as affordability constraints become more binding when rates rise. Overall, D.R. Horton's moat is **sustainable in the medium term** but requires continuous investment in operational efficiency and market expansion to maintain competitive advantages in a cyclical, capital-intensive industry.
Risks & safety
D.R. Horton demonstrates a **strong margin of safety** with robust financial metrics and conservative capital structure, though the business remains cyclical and sensitive to economic conditions. **Liquidity and Solvency:** - Cash and short-term investments: $2.5 billion as of Q2 2025 - Total liquidity: Over $6.5 billion including credit facilities - Debt-to-equity ratio: 0.27, indicating conservative leverage - Current ratio: 17.2, showing strong short-term liquidity - No significant debt maturities creating refinancing risk **Valuation Metrics:** - Price-to-earnings ratio: 12.3x (reasonable for cyclical business) - EV/EBITDA: 10.0x (moderate valuation) - Price-to-book ratio: 1.6x (slight premium to tangible assets) - Graham number suggests fair valuation around current levels **Operational Considerations:** - Strong free cash flow generation: $2.0 billion in fiscal 2024 - Return on equity: 17-22% range demonstrating efficient capital use - Inventory management: 37,400 homes in inventory with improving cycle times - Geographic diversification across 36 states reduces regional concentration risk - Controlled land position (75% optioned vs. owned) limits downside exposure
Recent development
Over the past several years, D.R. Horton has implemented several strategic initiatives to strengthen its market position and adapt to changing housing market conditions. The company has significantly **expanded its geographic footprint**, growing from operating in 31 states to 36 states and increasing its market presence from 98 to 126 markets. This expansion strategy provides greater diversification and access to growing population centers. The company has made **affordability a central strategic focus**, deliberately targeting entry-level and first-time homebuyers who represent 63% of sales. This positioning includes offering smaller floor plans, utilizing mortgage rate buydowns as sales incentives, and maintaining average selling prices around $375,000-$380,000, well below national averages. During periods of rising interest rates, D.R. Horton has increased its use of rate buydowns, typically offering 1-1.25 percentage points below market rates. **Operational efficiency improvements** have been a key focus, with the company working to reduce construction cycle times and streamline production processes. The company has simplified its product offerings and improved supply chain relationships to address labor shortages and material cost inflation that have challenged the industry. D.R. Horton has **enhanced its capital allocation strategy**, significantly increasing share repurchases from $1.2 billion in fiscal 2023 to $4.0 billion planned for fiscal 2025. The company also raised its quarterly dividend by 33% to $0.40 per share in 2024, demonstrating confidence in cash flow generation. The company has **evolved its land strategy** to maintain flexibility while securing adequate lot supply. Currently controlling 613,000 lots with 75% held through option contracts rather than ownership, this approach reduces capital requirements and financial risk while providing development pipeline visibility. **Technology and process improvements** have focused on construction efficiency rather than revolutionary changes, with emphasis on standardized building processes and improved project management to reduce cycle times and costs.
DHI company profile · for informational purposes only — not investment advice.
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