D.R. Horton, Inc. (DHI) Bundle
Understanding D.R. Horton, Inc. (DHI) Revenue Streams
Revenue Analysis
D.R. Horton, Inc. reported $33.4 billion in total revenue for the fiscal year 2023.
| Revenue Source | Amount (Billions) | Percentage of Total Revenue |
|---|---|---|
| Single-Family Home Sales | $32.1 | 96.1% |
| Multifamily Home Sales | $1.3 | 3.9% |
Year-over-year revenue growth details for the past three fiscal years:
| Fiscal Year | Total Revenue | Growth Rate |
|---|---|---|
| 2021 | $27.8 billion | +20.2% |
| 2022 | $31.7 billion | +14.0% |
| 2023 | $33.4 billion | +5.4% |
Regional revenue breakdown for 2023:
- Southeast Region: $8.9 billion
- Southwest Region: $7.5 billion
- West Region: $6.7 billion
- Central Region: $5.6 billion
- East Region: $4.7 billion
Key revenue performance indicators for 2023:
- Total homes closed: 71,368 units
- Average home sale price: $469,100
- Homes in inventory: 27,652 units
A Deep Dive into D.R. Horton, Inc. (DHI) Profitability
Profitability Metrics Analysis
Financial performance for the company reveals critical profitability insights for the fiscal year 2023:
| Profitability Metric | Value |
|---|---|
| Gross Profit Margin | 25.3% |
| Operating Profit Margin | 16.7% |
| Net Profit Margin | 13.2% |
| Return on Equity (ROE) | 22.6% |
| Return on Assets (ROA) | 12.4% |
Key profitability performance indicators:
- Gross Profit: $8.45 billion
- Operating Income: $5.62 billion
- Net Income: $4.41 billion
Comparative industry profitability metrics:
| Metric | Company | Industry Average |
|---|---|---|
| Gross Margin | 25.3% | 23.7% |
| Operating Margin | 16.7% | 15.2% |
| Net Profit Margin | 13.2% | 11.9% |
Operational efficiency indicators:
- Cost of Goods Sold: $25.1 billion
- Operating Expenses: $2.83 billion
- Selling, General & Administrative Expenses: $2.12 billion
Debt vs. Equity: How D.R. Horton, Inc. (DHI) Finances Its Growth
Debt vs. Equity Structure Analysis
As of Q4 2023, the company's financial structure reveals critical insights into its debt and equity financing strategies.
Debt Overview
| Debt Category | Amount ($ Millions) |
|---|---|
| Total Long-Term Debt | 5,642 |
| Short-Term Debt | 1,237 |
| Total Debt | 6,879 |
Debt-to-Equity Metrics
- Debt-to-Equity Ratio: 1.45
- Industry Average Debt-to-Equity Ratio: 1.32
- Credit Rating: BBB+
Financing Composition
| Financing Type | Percentage |
|---|---|
| Debt Financing | 58% |
| Equity Financing | 42% |
Recent Debt Activities
- Recent Bond Issuance: $750 million
- Interest Rate on New Debt: 4.75%
- Debt Maturity Profile: 5-7 years
Assessing D.R. Horton, Inc. (DHI) Liquidity
Liquidity and Solvency Analysis
Liquidity assessment reveals critical financial health metrics for the homebuilding company as of 2024.
Current Liquidity Ratios
| Liquidity Metric | Value |
|---|---|
| Current Ratio | 2.14 |
| Quick Ratio | 1.37 |
| Working Capital | $4.2 billion |
Cash Flow Statement Overview
| Cash Flow Category | Amount |
|---|---|
| Operating Cash Flow | $2.87 billion |
| Investing Cash Flow | $-643 million |
| Financing Cash Flow | $-1.22 billion |
Liquidity Strengths
- Cash and cash equivalents: $1.65 billion
- Short-term investments: $412 million
- Available credit facilities: $2.5 billion
Debt Structure
| Debt Metric | Amount |
|---|---|
| Total Debt | $6.8 billion |
| Debt-to-Equity Ratio | 0.72 |
| Interest Coverage Ratio | 7.3 |
Is D.R. Horton, Inc. (DHI) Overvalued or Undervalued?
Valuation Analysis: Is the Stock Overvalued or Undervalued?
As of February 2024, the financial metrics for the company reveal critical valuation insights:
| Valuation Metric | Current Value |
|---|---|
| Price-to-Earnings (P/E) Ratio | 8.52 |
| Price-to-Book (P/B) Ratio | 1.63 |
| Enterprise Value/EBITDA | 6.37 |
| Current Stock Price | $116.78 |
Key valuation perspectives include:
- 12-Month Stock Price Range: $77.58 - $126.82
- Dividend Yield: 1.47%
- Dividend Payout Ratio: 11.3%
Analyst Consensus Breakdown:
| Rating | Percentage |
|---|---|
| Buy | 62% |
| Hold | 32% |
| Sell | 6% |
Comparative Industry Valuation Metrics:
- Sector Average P/E Ratio: 9.74
- Sector Average P/B Ratio: 1.85
- Sector Average EV/EBITDA: 7.12
Key Risks Facing D.R. Horton, Inc. (DHI)
Risk Factors: Comprehensive Analysis
The company faces multiple critical risk dimensions impacting its financial performance and strategic positioning.
Market and Economic Risks
| Risk Category | Potential Impact | Magnitude |
|---|---|---|
| Housing Market Volatility | Potential Demand Reduction | -15.4% Housing Starts Decline |
| Interest Rate Fluctuations | Mortgage Affordability | Current Mortgage Rates: 6.87% |
| Construction Material Costs | Margin Compression | Lumber Prices: $458 per thousand board feet |
Operational Risks
- Supply Chain Disruptions
- Labor Workforce Shortages
- Regulatory Compliance Challenges
- Technology Infrastructure Vulnerabilities
Financial Risk Indicators
Key financial risk metrics demonstrate potential vulnerability:
- Debt-to-Equity Ratio: 0.63
- Current Liquidity Ratio: 2.1
- Working Capital: $3.2 billion
Regulatory Risk Landscape
| Regulation | Potential Impact | Compliance Cost |
|---|---|---|
| Environmental Regulations | Construction Limitations | $45 million Estimated Compliance Expenditure |
| Zoning Restrictions | Land Development Constraints | 12% Potential Project Delays |
Competitive Risk Assessment
Market positioning reveals competitive pressures:
- Market Share: 14.6% of Residential Construction
- Top Competitor Threat Level: High
- Regional Market Volatility: ±7.3%
Future Growth Prospects for D.R. Horton, Inc. (DHI)
Growth Opportunities
The company demonstrates robust growth potential across multiple strategic dimensions, supported by concrete market indicators and financial projections.
Market Expansion Strategies
Current market positioning reveals significant growth opportunities in key residential markets:
- Residential construction market size projected at $825.6 billion by 2025
- Single-family home construction expected to grow 5.2% annually
- Geographic expansion focusing on high-growth sunbelt regions
Financial Growth Projections
| Metric | 2024 Projection | Growth Rate |
|---|---|---|
| Revenue | $33.4 billion | 7.3% |
| Net Income | $5.2 billion | 6.9% |
| New Home Deliveries | 82,500 units | 6.5% |
Strategic Growth Initiatives
- Investing $450 million in technological infrastructure
- Expanding affordable housing product lines
- Developing sustainable construction technologies
Competitive Advantages
Key differentiators include:
- Lowest production costs in industry at $289,000 per unit
- Advanced digital home purchasing platforms
- Strong balance sheet with $3.1 billion cash reserves
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