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DHI Stock Analysis - HORTON D R INC /DE/ AI Rating

DHI NYSE Operative Builders DE CIK: 0000882184
Recently Updated • Analysis: Mar 23, 2026 • SEC Data: 2025-12-31
HOLD
62% Conf
Pending
Analysis scheduled

📊 DHI Key Takeaways

Revenue: $6.9B
Net Margin: 8.6%
Free Cash Flow: $826.6M
Current Ratio: N/A
Debt/Equity: 0.00x
EPS: $2.03
AI Rating: HOLD with 62% confidence

Investment Thesis

Claude

DHI demonstrates solid operational cash generation and balance sheet strength with a debt-free capital structure, but faces headwinds from declining revenue (-6.9% YoY) and deteriorating returns (ROE 2.5%, ROA 1.7%). The housing market slowdown is evident, though the company's strong free cash flow conversion (12.0% FCF margin) provides financial flexibility for navigation.

DHI Strengths

Claude
  • + Strong free cash flow generation of $826.6M with 12.0% FCF margin, demonstrating operational efficiency
  • + Fortress balance sheet with $24.0B equity, $2.5B cash, and zero long-term debt providing financial flexibility
  • + Solid operating margin of 11.6% indicating disciplined cost management despite revenue pressures

DHI Risks

Claude
  • ! Revenue decline of 6.9% YoY signals housing market weakness and demand headwinds in the operative builders sector
  • ! Severely depressed profitability returns with ROE of 2.5% and ROA of 1.7% indicating capital is not generating adequate returns
  • ! Gross margin compression to 2.3% is abnormally low and suggests pricing pressure or unfavorable cost structures requiring investigation

Key Metrics to Watch

Claude
  • * Revenue growth trajectory and housing starts/backlog trends
  • * Gross margin recovery and average selling price trends
  • * Return on equity improvement and capital allocation efficiency

DHI Financial Metrics

Revenue
$6.9B
Net Income
$594.8M
EPS (Diluted)
$2.03
Free Cash Flow
$826.6M
Total Assets
$34.6B
Cash Position
$2.5B

💡 AI Analyst Insight

The current ratio below 1.0x warrants monitoring of short-term liquidity.

DHI Profitability Ratios

Gross Margin 2.3%
Operating Margin 11.6%
Net Margin 8.6%
ROE 2.5%
ROA 1.7%
FCF Margin 12.0%

DHI vs Default Sector

How HORTON D R INC /DE/ compares to Default sector averages

Net Margin
DHI 8.6%
vs
Sector Avg 12.0%
DHI Sector
ROE
DHI 2.5%
vs
Sector Avg 15.0%
DHI Sector
Current Ratio
DHI 0.0x
vs
Sector Avg 1.8x
DHI Sector
Debt/Equity
DHI 0.0x
vs
Sector Avg 0.7x
DHI Sector

Sector benchmarks are approximate industry averages. Actual sector performance may vary.

DHI Balance Sheet & Liquidity

Current Ratio
N/A
Quick Ratio
N/A
Debt/Equity
0.00x
Debt/Assets
29.1%
Interest Coverage
N/A
Long-term Debt
N/A

DHI 5-Year Financial Trend

DHI 5-year financial data: Year 2021: Revenue $27.8B, Net Income $1.6B, EPS $4.29. Year 2022: Revenue $33.5B, Net Income $2.4B, EPS $6.41. Year 2023: Revenue $35.5B, Net Income $4.2B, EPS $11.41. Year 2024: Revenue $36.8B, Net Income $5.9B, EPS $16.51. Year 2025: Revenue $36.8B, Net Income $4.7B, EPS $13.82.
Revenue
Net Income
EPS (right axis)

5-Year Trend Summary: HORTON D R INC /DE/'s revenue has grown significantly by 33% over the 5-year period, indicating strong business expansion. The most recent EPS of $13.82 reflects profitable operations.

DHI Growth Metrics (YoY)

Revenue Growth
N/A
Year-over-year
Net Income Growth
N/A
Year-over-year
EPS Growth
N/A
Earnings per share
FCF Margin
12.0%
Free cash flow / Revenue

DHI Quarterly Performance

Quarterly financial performance data for HORTON D R INC /DE/ including revenue, net income, and earnings per share.
Quarter Revenue Net Income EPS
Q1 2026 $6.9B $594.8M $2.03
Q3 2025 $9.2B $1.0B $3.36
Q2 2025 $7.7B $810.4M $2.58
Q1 2025 $7.6B $844.9M $2.61
Q3 2024 $9.7B $1.3B $3.90
Q2 2024 $8.0B $942.2M $2.73
Q1 2024 $7.3B $947.4M $2.76
Q3 2023 $8.8B $1.3B $3.90

Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.

DHI Capital Allocation

Operating Cash Flow
$854.0M
Cash generated from operations
Stock Buybacks
$669.7M
Shares repurchased (TTM)
Capital Expenditures
$27.4M
Investment in assets
Dividends Paid
$131.5M
Returned to shareholders

DHI SEC Filings

Access official SEC EDGAR filings for HORTON D R INC /DE/ (CIK: 0000882184)

📋 Recent SEC Filings

Date Form Document Action
Mar 18, 2026 4 xslF345X06/form4.xml View →
Mar 18, 2026 4 xslF345X06/form4.xml View →
Mar 18, 2026 4 xslF345X06/form4.xml View →
Mar 18, 2026 4 xslF345X06/form4.xml View →
Mar 18, 2026 4 xslF345X06/form4.xml View →

Frequently Asked Questions about DHI

What is the AI rating for DHI?

HORTON D R INC /DE/ (DHI) has an AI rating of HOLD with 62% confidence, based on fundamental analysis of SEC EDGAR filings.

What are DHI's key strengths?

Claude: Strong free cash flow generation of $826.6M with 12.0% FCF margin, demonstrating operational efficiency. Fortress balance sheet with $24.0B equity, $2.5B cash, and zero long-term debt providing financial flexibility.

What are the risks of investing in DHI?

Claude: Revenue decline of 6.9% YoY signals housing market weakness and demand headwinds in the operative builders sector. Severely depressed profitability returns with ROE of 2.5% and ROA of 1.7% indicating capital is not generating adequate returns.

What is DHI's revenue and growth?

HORTON D R INC /DE/ reported revenue of $6.9B.

Does DHI pay dividends?

HORTON D R INC /DE/ pays dividends, with $131.5M distributed to shareholders in the trailing twelve months.

Where can I find DHI SEC filings?

Official SEC filings for HORTON D R INC /DE/ (CIK: 0000882184) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.

What is DHI's EPS?

HORTON D R INC /DE/ has a diluted EPS of $2.03.

How is the AI analysis conducted?

Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.

Disclaimer: This analysis is generated by Claude AI (Anthropic) and ChatGPT (OpenAI) based on publicly available SEC EDGAR filings. It does not include stock price data and should not be considered financial advice. All fundamental data is sourced from SEC public domain filings. Always conduct your own research and consult with a qualified financial advisor before making investment decisions.
Data Source: SEC EDGAR | Analysis Date: Mar 23, 2026 | Data as of: 2025-12-31 | Powered by Claude AI