D.R. Horton Inc (DHI, Financial) has recently captured the attention of investors and financial analysts alike, thanks to its strong financial position and promising market performance. With a current share price of $147.28 and a notable daily gain of 5.51%, despite a slight dip of -2.73% over the past three months, D.R. Horton Inc stands out as a potential leader in its sector. A detailed analysis, supported by the GF Score, indicates that D.R. Horton Inc is poised for significant growth in the foreseeable future.
What Is the GF Score?
The GF Score is a proprietary ranking system developed by GuruFocus, assessing stocks based on five key valuation aspects. These aspects have been proven to correlate strongly with long-term stock performance from 2006 to 2021. Stocks with higher GF Scores typically yield better returns. The GF Score ranges from 0 to 100, with 100 indicating the highest potential for outperformance. D.R. Horton Inc boasts a GF Score of 96, suggesting it is well-equipped to outperform the market significantly.
- Financial strength rank: 7/10
- Profitability rank: 10/10
- Growth rank: 10/10
- GF Value rank: 5/10
- Momentum rank: 8/10
Understanding D.R. Horton Inc's Business
D.R. Horton Inc, a leading homebuilder in the United States, operates across 118 markets in 33 states. Primarily focused on constructing single-family detached homes, which constitute over 90% of its home sales revenue, D.R. Horton Inc caters to a diverse range of customers including entry-level, move-up, luxury buyers, and active adults. Additionally, the company provides mortgage financing and title agency services through its financial services segment. With a market cap of $48.5 billion and annual sales of $37.06 billion, D.R. Horton Inc demonstrates a robust operating margin of 16.98%, underscoring its financial health and operational efficiency.
Financial Strength Breakdown
D.R. Horton Inc's financial resilience is evident through its Financial Strength rating. With an Altman Z-Score of 6.54, the company showcases a strong buffer against financial distress. Furthermore, its strategic debt management is reflected in a favorable Debt-to-Revenue ratio of 0.16, enhancing its financial stability.
Profitability and Growth Metrics
The Profitability Rank of D.R. Horton Inc is impressive, with significant improvements in its Operating Margin and Gross Margin over the past five years. These trends not only highlight the company's efficiency in revenue conversion but also its competitive edge in the market. Additionally, D.R. Horton Inc's Growth Rank is exemplary, with a 3-Year Revenue Growth Rate of 23.5%, outperforming 89.47% of its industry peers.
Conclusion
Considering D.R. Horton Inc's robust financial strength, impressive profitability, and consistent growth metrics, the GF Score distinctly highlights the company's superior position for potential market outperformance. Investors looking for solid investment opportunities may find D.R. Horton Inc an attractive option. For more insights into companies with strong GF Scores, visit our GF Score Screen.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
