$161.62
arrow_drop_down0.14%Is DHI a Buy or Sell based on AI Analysis?
Fundamental Analysis
DR Horton Inc, a leading home construction company, shows strong fundamental indicators. With a price-to-earnings ratio of 10.99, the company is valued attractively compared to its peers in the industry. Additionally, the company's return on equity of 21.66% reflects its ability to generate profit from shareholder equity, indicating efficient management of resources. The company's dividend yield of 0.78% and a payout ratio of 7.91% demonstrate a commitment to returning value to shareholders while maintaining financial stability. Furthermore, the company's revenue growth of 5.92% and net income of $4.8B highlight its strong financial performance and market position. In terms of liquidity and financial health, DR Horton Inc boasts a current ratio of 5.3 and quick ratio of 2.79, indicating its ability to meet short-term financial obligations comfortably. The company's debt-to-equity ratio of 0.23 suggests a conservative capital structure, reducing financial risk. Additionally, with a free cash flow margin of 11.72% and free cash flow of $4.16B, the company has sufficient cash flow to invest in growth opportunities and reward shareholders. Overall, DR Horton Inc's strong financial position, efficient management of resources, and commitment to shareholder value make it an attractive investment option in the consumer cyclical sector.
Positive Development
D.R. Horton Inc. stock outperforms competitors despite losses on the day, indicating strong market performance. D.R. Horton has been able to generate significant stock gains and market share growth in the home-building industry. D.R. Horton's management presented at Citi 2024 Global Industrial Tech and Mobility Conference, which could indicate a positive outlook for the company.
Negative Development
The recent unloading of shares by Berkshire Hathaway Inc. could potentially negatively impact D.R. Horton's stock price. Despite the overall positive performance, D.R. Horton's stock has underperformed compared to its competitors on certain days. The company's net debt to total equity ratio is slightly high at 0.085, indicating a potential financial risk.
Technical Analysis
DR Horton Inc currently has a technical rating of NEUTRAL, with a price of $152.45. The stock has shown a price change of -0.34% compared to the previous close, with a seven-day price change percent of 4.18%. The company's stock has a beta of 1.64, indicating moderate volatility compared to the market. Additionally, there are various technical indicators in place, with one technical buy indicator (ATR) and four technical hold indicators (RSI, MACD, ADX, and ROC). On the other hand, there are three technical sell indicators (CCI, WILLR, and STOCHRSI) present as well. The technical indicators were last updated on March 4, 2024. Furthermore, DR Horton Inc's stock sector is classified as Consumer Cyclical, with a stock sector change of 28.64% over the past year. The company's technical analysis also includes information on the stock's historical performance, such as the fifty-two weeks high and low prices. The stock's fifty-two weeks high price change percent is 3.59%, while the fifty-two week low price change percent is significantly higher at 67.81%. The stock has a cumulative multiple of 6.7, indicating the stock's performance relative to its historical prices. Overall, the technical analysis provides valuable insights into the stock's performance and potential movements in the market.
Conclusion and recommendation
Based on the data provided, DR Horton Inc (DHI) appears to be a solid investment option. The company has a strong financial performance with a market cap of $50.59 billion and a price-to-earnings ratio of 10.99. Additionally, DR Horton has shown consistent growth with a five-year price change percent of 281.22% and a three-month price change percent of 16.81%. The company also pays dividends, with a dividend yield of 0.78% and a payout ratio of 7.91%. Furthermore, DR Horton has a healthy balance sheet with assets of $33.38 billion and only $5.51 billion in debts, resulting in a low debt-to-equity ratio of 0.23. In conclusion, DR Horton Inc presents a promising investment opportunity for investors looking for a stable and growing company in the consumer cyclical sector. The company's strong financial performance, consistent growth, and solid balance sheet indicate a potential for long-term profitability. With a positive analyst forecast price change percent of 5.52% and a neutral analyst recommendation, DR Horton is positioned to continue its upward trajectory in the housing market. Overall, investors may consider adding DR Horton to their portfolio for a well-rounded mix of growth and stability in the stock market.