DHI Investment Analysis Report & Stock Research, D.R. Horton, Inc.

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D.R. Horton, Incorporated (DHI)

DHI Stock Report

2-Year Price History

Recent Price
(6/9 11:43AM) +0.6%
$9.72
52-Week Price
$3.79 - $15.46
Market Capitalization
$3.1 Billion
Dividend Yield
1.60%
Most Recent Dividend
$0.45
All Financial News about DHI is here.

About D.R. Horton, Inc.

D.R. Horton, Incorporated is considered to operate in the Industrial Goods sector. They specifically operate in the Residential Construction business segment contained within the Materials & Construction industry.

A homebuilding company, which constructs and sells homes in the United States and through financial services operations, it provides mortgage banking and title agency services to homebuyers.

Ockham's Rating

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DHI Revenue

As a value investing shop, we are interested in seeing how DHI's revenues measure up against past performances. One easily understandable way of doing that is to compare Price to Sales per share levels over a given time frame. Assuming it is available, Ockham prefers to look at ten years of history (for this stock there are 10 years of history available) and we weigh recent years more heavily. This allows us to find weighted average historical high and low Price to Sales ratios, which give us a better idea of the stock's current underlying value. Using this method, we have established a high range for Price to Sales of 0.80x and the low end of the range at 0.32x.

With respect to these historically rational metrics, notice that the current Price to Sales per share ratio for DHI of 0.44x is well below its normal historic Price to Sales levels. At a price of $9.21, DHI is 23% below where we would expect to see it. Clearly, this stock looks undervalued compared to historical levels, at least on a Price to Sales basis. This will positively affect our analysis because it is rare to find a stock this far below historical norms, and we would expect some price appreciation to bring this metric back towards a more normal range.

DHI Cash Earnings

Price to Cash Earnings analysis is inappropriate for this company due to anticipated negative cash flows for this year. A negative cash flow presents many complications when comparing the company's current value to historically normal valuations. Clearly, when a company fails to earn a profit, it should be a concern for investors. As such, we have taken a negative view on DHI from a cash perspective. We should point out that this metric is a significant element in Ockham’s methodology for analyzing the outlook for any company. Many young companies have come through difficult times like this before; these companies have an opportunity to grow revenue appropriately to bring them around to profitablity. However, for mature company's with a history of positive cash flow this can be much more distressing. Therefore, for DHI, our overall valutaion is now more dependent on the Price to Sales analysis, and investors should be cautious with a company with very limited, if any, positive cash earnings.

DHI Dividends

A strong dividend payment history is looked upon as a favorable characteristic on a company’s future and potentially can receive a positive Ockham rating. That being said, we don't require dividend payments for company's whose management has elected to forgo them entirely.

When reviewing dividend yields for DHI, we compare the historic high and low levels over the past, which is similar to our evaluation of Sales and Cash Earnings per share. Paying a dividend is not necessary for any company, but changes in dividend often can lend clues as to the health of the business. A rising dividend is a strong sign for an established company, as it reflects management's confidence in the company. DHI’s estimated annual dividend is $0.15 resulting in a current dividend yield of 1.63%. The highest dividend yield from DHI over recent history was 11.87% while the lowest dividend yield was 0.60%. It is never a good sign for a company to pay significantly lower dividends, in this case 73.86% below the median yield. Although, dividends are a relatively small portion of our analysis framework, we still see this as a negative factor.

Peer Comparison

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D.R. Horton, Inc. Industry Grouping

(6/8/2009)
Company Ticker Market Cap (Ml) Latest
Price
Price/Cash Earnings Price/Sales 5-Yr. Rev.
Growth Rate
5-Yr.
Avg. ROE.
Current 10-Yr. Range* Current 10-Yr. Range*
Peer Company Averages (not incuding DHI) 15.44 3.93 » 20.72 0.76 0.39 » 1.88 8.58% 44.10%
*10 year range does not include current year values
Martin Marietta Materials, Inc. MLM $3.5 Billion $77.60 11.05 5.13 » 17.03 1.42 0.74 » 3.19 4.38% 18.46%
MDU Resources Group, Inc. MDU $3.4 Billion $18.73 13.88 4.30 » 9.83 0.67 0.57 » 1.37 16.29% 13.94%
Foster Wheeler AG FWLT $3.4 Billion $27.12 6.99 1.67 » 27.83 0.44 0.01 » 2.38 12.98% 124.34%
D.R. Horton, Inc. DHI $3.1 Billion $9.66 -1.00 2.98 » 10.10 0.44 0.18 » 0.97 -5.30% 14.01%
NVR, Inc. NVR $2.8 Billion $491.83 32.02 2.16 » 33.88 0.59 0.16 » 1.21 0.08% 50.72%
The Valspar Corp. VAL $2.7 Billion $23.18 13.28 6.39 » 15.02 0.66 0.46 » 1.24 9.15% 13.04%
>
Ockham Ratings & Analysis Report
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The latest TV Media Discussion

3:03:49 PM DHI $8.78 D.R. Horton, Inc.
11 days ago (05/28)
“…Largest share of the foreclosure some of the home builders with a bit of weakness today. Ryland, lennar, D.R. HORTON, toll brothers. Gm, watching that what stock has right now showing unchanged. It's been a quite volatile day for the stock there. Reached a deal with major bondholders were a sweetened …” …more details…
11:10:44 AM DHI $8.84 D.R. Horton, Inc.
12 days ago (05/28)
“…Look at some of the home builders, for example, they moved a little bit lower on the housing data. >> they still are, right there. >> across-the-board. Ryland, lennar and DR HORTON. >> what about financials? >> they were mixed, holding in good, think the financials are going to sell off in massive foreclosures, at least it is not happening yet. …” …more details…
3:02:00 PM DHI $9.06 D.R. Horton, Inc.
18 days ago (05/21)
“…Of weeks. Home builders were moving higher. Not today. We have hovnanian, kren tex, d.R. More -- centex and D.R. HORTON losing 4 to 10%. I need to know what the traders are talking about, nicole petallides, as far as why we saw a fall of 40 points in the last hour. >> the pressure is on the …” …more details…
10:08:56 AM DHI $9.27 D.R. Horton, Inc.
22 days ago (05/18)
“…Corporation, upgraded by citigroup to a buy rating, saying that that stock trades at a 50% discount to its peers, but peers still up on the heels of that upgrade today, centex, D.R. HORTON among them all in the green and the financials, some traders arguably will say this is the hottest trading sector this morning as far as volume is concerned, there's a lot of trading activity in the …” …more details…
5:39:15 PM DHI $10.00 D.R. Horton, Inc.
Fast Money
5/8/2009 5:39 PM
“…I think there was a little bit less fear that the obama administration would legislate no profits ever for hmos. So big rallies there. And they were cheap. >> big drops in home builder D.R. HORTON down 20% on the >> they're going to auction $400 million in notes to raise cash. Here's something novel. That would work, right? Then you can buy the stock. Until then -- …” …more details…
1:49:44 PM DHI $10.96 D.R. Horton, Inc.
5/6/2009 1:49 PM
“…Builders. That's got to send you looking it did to me. Pulte, D.R. HORTON and centex. The company had a $2.02 share loss when all was in. Not really comparable, not really positive. I saw some positive things with their numbers. Their new orders were up quarter on quarter over 70%. We know what's coming up on a but it is what it is. Also hurting this sector is the fact that D.R. HORTON wants to issue some convertible debt. Depending on how you take your medicine, that could be a bad this group down about 4% here today. It has had a heck of a nice run …” …more details…
1:29:37 PM DHI $11.07 D.R. Horton, Inc.
5/6/2009 1:29 PM
“…>> there's a look at the home builders today with significant losses in pulte, sen text and DR HORTON. Reports say that morgan stanley does not need to raise more another leak happening here in the last few minutes about the but add morgan stanley to the …” …more details…
5:08:09 PM DHI $12.33 D.R. Horton, Inc.
Happy Hour
5/5/2009 5:08 PM
“…First quarter revenue call falling 59%. The stock is down after-hours. No surprise, one of the major homebuilders still economy. D.R. HORTON earlier reporting a loss as well. And we had, -- at the same time monday national association of realtors saying pending home sales index is little bit better. So the homebuilders are kind …” …more details…
4:04:03 PM DHI $12.35 D.R. Horton, Inc.
5/5/2009 4:04 PM
“…Most were okay. Ak steel was the one on the down side. Alcoa and bhp billiton fractionally down. Home building stocks, DR HORTON was important because they had a smaller than expected on the earnings report but didn't indicate business would get better. That's extraordinary. 30% of the contracts D.R. HORTON signed were canceled in the last despite that, the stock was $1 at the bottom in november. It's $12 right now. So, yes, business is still tough. But we're a long, long way from that bottom. …” …more details…
9:31:36 AM DHI $12.90 D.R. Horton, Inc.
5/5/2009 9:31 AM
“…Watching legg mason as they cut their dividends and ubs saying they won't need capital though they're still cautious, molson coors to the upside today and D.R. HORTON, largest value home builder 8th straight quarterly loss and kraft higher today on the quarterly numbers, beating the street 6.8% gains and mgm which trades to my left is open here, and you can see mgm. …” …more details…
3:00:19 PM DHI $13.31 D.R. Horton, Inc.
5/4/2009 3:00 PM
“…Pending home sales from today. Also, construction data helping us out. Tough home builders trading D.R. HORTON, lennar higher. Hovnanian is higher. You have beazer and toll brothers higher. Pending home sales is the contract has been signed, the …” …more details…
3:51:16 PM DHI $13.08 D.R. Horton, Inc.
4/30/2009 3:51 PM
“…Tremendously in california, the new home sales activity has been picking up for the last three >> that said, I mean, a lot of the companies you're looking at, jim, and correct me if i'm wrong I think some of your picks, D.R. HORTON, k.B. Homes. These are all companies that are they have very much an exposure to housing markets doing well and housing markets that are doing atrociously bad. …” …more details…
4:02:59 PM DHI $12.99 D.R. Horton, Inc.
4/24/2009 4:02 PM
“…A lot better than some people had feared. Take a look at the home builders sales of new homes slipped a the important number to watch is the inventories. Stocks like la far, DR HORTON, ryland, for example, like a look at ryland up 120%. Lenna 15%. Energy stocks, I mentioned that. …” …more details…
3:02:50 PM DHI $13.09 D.R. Horton, Inc.
4/24/2009 3:02 PM
“…Certainly better than a lot of people feared. Home sales slipped a bit. Inventories declined as well. Take a look at the names here. La nard, DR HORTON, ryland. Oil up 2 bucks a boil. 654 -- among the stocks i'm looking for here. Despite weak outlooks for the industrial stocks the market …” …more details…
11:04:28 AM DHI $12.32 D.R. Horton, Inc.
4/24/2009 11:04 AM
“…Discretionary performers over that period of time, an at that is the reason y the market is off to a strong start take a look at the home builders as well, contributing nicely, lennar, DR HORTON, reilly the stocks I want you to look at. New home sales flipped a bibit but the key number clearly remains the inventories and they declined, something everybody …” …more details…
12:50:19 PM DHI $11.96 D.R. Horton, Inc.
4/22/2009 12:50 PM
“…Date. Topping the tape right now, the home builders after this morning's unexpected rise in hsb up 5%. All of the home builders, D.R. HORTON, tolle. >> the trend and the application status is pret the I good. >> to phil lebeau with breaking >> melissa, we have comments …” …more details…
5:02:30 PM DHI $9.79 D.R. Horton, Inc.
Happy Hour
4/8/2009 5:02 PM
“…The sector has a history of guppyies eating whales but that is unlikely to continue because most of the builders are simply too damaged. Traders making bets on who will be the next to. Interestingly shares of D.R. HORTON declining possibly because of too big and relatively healthy to be bought by. Be careful building a portfolio with builders. Though eric liked one of the …” …more details…
4:58:07 PM DHI $9.71 D.R. Horton, Inc.
4/8/2009 4:58 PM
“…Some people are saying out there, there's a pretty strong argument on both sides. I'll tell you what both sides are saying. Yeah, there's probably going to be some chasing the joneses, trying to keep up with this. Particularly D.R. HORTON and lennar, which had always been perennially the big guys on the they're now suddenly feeling a little bit smaller, and like we saw in the pharmaceuticals sector that's the way it works on wall street. …” …more details…
12:53:55 PM DHI $9.56 D.R. Horton, Inc.
4/8/2009 12:53 PM
“…Home purchases not just refinances, it has everybody talking about a bottom in the housing market. Let's take a look that merger. This will create the largest homebuilder, knocking DR HORTON out of the top spot. Keeps the pulte name. The new pulte will have coverage in 59 markets in 29 states and right here in washington, d.C. Now, centex ceo tim eller said …” …more details…
11:48:37 AM DHI $9.50 D.R. Horton, Inc.
4/8/2009 11:48 AM
“…This a key milestone for the industry as a whole, giving the pulte unrivaled fire power. He said this is a combination game changer, pure and simple. Let's talk about that. This deal will create the nation's largest home builder, knocking DR HORTON out of the top spot. Pulte buys centex for 1.3 billion and keeps the pulte the new pulte will have coverage in 59 markets in 29 states and here in d.C. …” …more details…
10:27:56 AM DHI $9.77 D.R. Horton, Inc.
4/8/2009 10:27 AM
“…Potential acquirer that's going to be able to come to that type of land value. >> dagen: so, robert, it's dagen mcdowell. So what does that mean for other potential deals? Say, a DR HORTON going out there and buying something? I'm thinking of the other ones, kb, toll brothers, where do they all stand given this deal? >> you know, I think that they're all, now, waking up, especially those on the west coast, and you know, having …” …more details…
9:06:20 AM DHI $10.70 D.R. Horton, Inc.
4/8/2009 9:06 AM
“…For everyone else? The position of the home leader. This industry has huge cultural issues. D.R. HORTON, knocked out of the number one spot, is seen as a there's been talk of toll brothers and kb working well together but nobody wants to buy toll right now because they build the higher price homes and …” …more details…
6:41:20 PM DHI $10.81 D.R. Horton, Inc.
Mad Money
3/27/2009 6:41 PM
“…Was thinking about going on "conan o'brien" next week. Is he how there yet? >> caller: hey, jimmy, I added dhi today. D.R. HORTON to my basket with my home depot and my scotch miracle grow because the market out here is really starting to turn. Did I do okay? >> betsy, I will give you two …” …more details…
5:52:55 PM DHI $10.64 D.R. Horton, Inc.
Fast Money
3/27/2009 5:52 PM
“…Sum it up, fast money. T t the w worstst timime fofor for the fast fire. You said to stay away from the homebuilder etf which has since rallied 23%. Yes di. Not only these stocks are not cheap. DR. HORTON's up 45%. Look at home sales there. They might get a bounce next this is nothing to get excited it was a long way to come back. I would stay away. …” …more details…
4:03:53 PM DHI $10.81 D.R. Horton, Inc.
3/27/2009 4:03 PM
“…Bottomed in november. They did not bottom in march. So some of them have had spectacular gains considering the bottomed a while ago. Kb holmes, D.R. HORTON, lennar, and centec. Remember we had good home sales on top of the existing home in two weeks it will be all about earnings. …” …more details…
11:04:45 AM DHI $11.13 D.R. Horton, Inc.
3/27/2009 11:04 AM
“…Really, with kb homes, on fewer write-downs, saw orders on the up year to date. Up about 4% and you can tack on what we're seeing today. You can see DR HORTON, another up arrow in the home builders, and talk about the autos, gm, ford is higher. Gl is leader on 0 the dow and even yesterday as well. …” …more details…
3:08:57 PM DHI $9.59 D.R. Horton, Inc.
3/25/2009 3:08 PM
“…We have the new home sales. Red arrows in time for my report, but the stocks were all, of course, have had a quite a couple of years. Well off the highs. Only one now DR HORTON, dhi the ticker, still higher at the moment giving back all the stocks were posting double-digit gains earlier in the session today. We know there is a lot of short interest and people are betting the stocks will fall. …” …more details…
3:00:53 PM DHI $9.61 D.R. Horton, Inc.
3/23/2009 3:00 PM
“…Market is existing home forget the new home sales. That is certainly helping us out. Here are some of the home building names and how they're trading. D.R. HORTON higher by 15% right now. Hovnanian, lennar, toll brothers, all higher. Look at crude real quick, because eric bolling, my good friend telling me this. Crude is trading higher and …” …more details…
4:55:08 PM DHI $7.27 D.R. Horton, Inc.
3/3/2009 4:55 PM
“…Following, credit sweeps downgrading homebuilders. The fact the company stock tradeseseseseseseseseseseseseseseseseseseseseseses5% premium, you look at those D.R. HORTON shares, they got hammered today. Wall green, reporting a decline because of a big drop in …” …more details…
6:05:36 PM DHI $8.96 D.R. Horton, Inc.
Mad Money
2/13/2009 6:05 PM
“…Chrysler? Housing is awful, despite the fact that fewer homes are being built and the lack of serious housing tax credits this week in the stimulus means it's going to stay that way. Centex, D.R. HORTON, toll, they're all giving back the huge gains they had. Off a cliff. I wouldn't touch boeing with a 10,000-foot pole, or a plane for that matter. I don't want to go near a casino stock because no one seems to be …” …more details…
9:45:49 AM DHI $8.36 D.R. Horton, Inc.
2/13/2009 9:45 AM
“…And united micro. All four are moving on the news. We have an interesting trade that isn't working but notable. Goldman sachs with a long short recommendation. They say buy D.R. HORTON and toll brothers and go out the back door with centex and len after today it would be all out the back after that final hour of trade. We saw the home builders retracing their ground. …” …more details…
4:28:36 PM DHI $8.04 D.R. Horton, Inc.
2/12/2009 4:28 PM
“…Did them a few minutes ago. That's 100%. They're all off by about 5%. D.R. HORTON is up 90%. Meritage was up sharply but still is up almost 90% since november. And cent ex up 50% since the november lows. …” …more details…
11:10:57 AM DHI $8.00 D.R. Horton, Inc.
2/12/2009 11:10 AM
“…Run this by me again. Just give me one or two examples and then I want jason to talk about it. >> two examples will be the home building stocks. D.R. HORTON is one up 20% through yesterday. I haven't checked it this morning yet. Having a fairly good year. Home builders tend to bottom between four and six months, so that's happening. …” …more details…
8:58:29 AM DHI $9.03 D.R. Horton, Inc.
Squawk Box
2/9/2009 8:58 AM
“…Weekend, fell backwards, sheer >> sheer evil. >> D.R. HORTON was downgraded. Removed from the conviction sell double negative. Removed from a sell list. So that's a positive for u.S. But the rating remains a sell. …” …more details…
10:31:12 AM DHI $7.42 D.R. Horton, Inc.
2/3/2009 10:31 AM
“…Merck leading to up thethe upside about 3%. D.R. HORTON to the tune of 20%. Coco and ceco. Isn't there a celebrity child named cocoa? …” …more details…
9:42:54 AM DHI $7.42 D.R. Horton, Inc.
2/3/2009 9:42 AM
“…Are up. The ago culture processor easily beat expectations and quarterly profit up 24% despite weakness in the s and l market. Up 11/4%. D.R. HORTON shares also in the green. Up 9.8%. The biggest u.S. Home builder reported a first quarter loss of 62.2 million. That beat analyst estimates sending shares as you can see higher. What about aflac? …” …more details…
View All D.R. Horton, Inc. News

Key Fundamentals

DHI - D.R. Horton, Incorporated Fundamentals
Price (6/9 11:43AM) $9.72
Volume (6/9 11:43AM) 2.5 Million
Last Close Price $9.66
10 Day Average Volume 10.2 Million
13 Week Price Range $7.60 - $13.74
52 Week Price Range $3.79 - $15.46
LTM Revenue $4.9 Billion
 
Shares Outstanding (09/2008) 316.9 Million
Market Capitalization $3.1 Billion
Shares Held By Institutions 292.9 Million
Institutional Holders 434
% Shares Held By Institutions 92.50%
Earnings Per Share (EPS) ($8.34)
P/E Ratio n/a
Book Value Per Share $8.35
 
Gross Margin -16.60%
Annual Dividend 0.15
Dividend Yield 1.60%
Beta 0.99
Fiscal Year Ends September
NASDAQ 1850.28

7.88  0.43%
S&P; 500 937.54

-1.6  -0.17%
^DIA 87.57

-0.17  -0.19%