D.R. Horton Inc (DHI, Financial) has recently captured the attention of investors and financial analysts alike, thanks to its strong financial performance and promising market position. With its shares currently valued at $191.49, D.R. Horton Inc has experienced a daily increase of 0.28%, alongside a notable three-month growth of 10.61%. A detailed analysis, supported by the GF Score, indicates that D.R. Horton Inc is poised for significant future growth.
What Is the GF Score?
The GF Score is a proprietary stock performance ranking system developed by GuruFocus. It evaluates stocks based on five key aspects: financial strength, profitability, growth, GF Value, and momentum. These components are weighted differently to calculate a comprehensive score ranging from 0 to 100, with 100 indicating the highest potential for outperformance. D.R. Horton Inc boasts a GF Score of 93, signaling strong future performance prospects.
- Financial strength rank: 7/10
- Profitability rank: 10/10
- Growth rank: 10/10
- GF Value rank: 3/10
- Momentum rank: 9/10
Understanding D.R. Horton Inc's Business
D.R. Horton Inc, a leading homebuilder in the United States, operates in 118 markets across 33 states. Predominantly constructing single-family detached homes, the company caters to a diverse clientele including entry-level, move-up, luxury buyers, and active adults. D.R. Horton Inc also provides mortgage financing and title agency services through its financial services segment. With a market cap of $62.39 billion and annual sales of $37.30 billion, the company's operating margin stands impressively at 16.83%. Headquartered in Arlington, Texas, D.R. Horton Inc manages six regional segments across the country.
Financial Strength and Stability
D.R. Horton Inc's robust balance sheet reflects its resilience against financial volatility, underscored by an Altman Z-Score of 7.56, indicating a strong defense against financial distress. Additionally, its strategic debt management is evident from a favorable Debt-to-Revenue ratio of 0.15, further solidifying its financial health.
Exceptional Profitability and Growth
The company's Profitability Rank is outstanding, with significant improvements in operating and gross margins over the past five years. This trend highlights D.R. Horton Inc's increasing efficiency in revenue conversion to profit. Furthermore, its Predictability Rank of 5.0 stars reflects consistent operational performance, enhancing investor confidence.
D.R. Horton Inc's commitment to growth is evident from its high Growth Rank. The company's 3-Year Revenue Growth Rate of 23.5% outperforms 88.89% of its industry peers. The robust increase in EBITDA over recent years further underscores its growth capabilities.
Conclusion
Considering D.R. Horton Inc's strong financial strength, impressive profitability, and consistent growth metrics, the GF Score highlights the company's unparalleled position for potential market outperformance. Investors looking for similar opportunities can explore more companies with strong GF Scores using the 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.
