D.R. Horton, Inc. (DHI) is a publicly traded company in the Consumer Cyclical — Residential Construction industry listed on NYSE. This overview shows the latest price, key valuation ratios, profitability metrics and financial-health indicators used by fundamental investors.
Established in Arlington, Texas, in 1978, D.R. Horton, Inc. operates as a prominent residential construction enterprise. The company's core business involves acquiring and preparing land, then constructing and marketing homes across a substantial portion of the United States. Its operations span 31 states and 98 distinct markets, covering the East, North, Southeast, South Central, Southwest, and Northwest regions. Under several well-known brand names, including D.R.
Is D.R. Horton, Inc. stock overvalued or undervalued in 2026?
D.R. Horton, Inc. (DHI) trades at 14.4× earnings (P/E), against a median of 17.9× across the 209 consumer cyclicals companies above $2bn in Kaplio's universe. It trades at 16.6 times its average earnings over ten years; between the 10 times Lynch paid for a cyclical and the 25 of Graham's limit for the defensive investor, it is fairly priced.
Kaplio overview: D.R. Horton, Inc.
Market cap $41B · 52 weeks $133 – $168 (13 % below the high) · P/E 14.4× · 2027 expected P/E 13.0× · Dividend 1.2 % · 11 years rising · Next earnings January 19, 2027 · expected EPS $1.53 · Closing price, Oct 30 · accounts published Oct 29.
- Valuation: P/E 14.4× (fairly priced).
- Business: 5-year ROIC 15.9 % (solid).
- Balance sheet: Net debt/EBITDA 0.6× (solid).
- Earnings: 5 of 8 (uneven).
It trades at 16.6 times its average earnings over ten years; between the 10 times Lynch paid for a cyclical and the 25 of Graham's limit for the defensive investor, it is fairly priced.
What matters in consumer cyclicals: 5 of 7 pass
- Inventory turnover 1.0×, fails.
- EV/Sales vs history 1.6×, fails.
- 5y avg operating margin 17.9 %, passes.
- 5y avg ROIC 15.9 %, passes.
- Net debt / EBITDA 0.6×, passes.
- Current Ratio 6.01, passes.
- Altman Z-Score 6.6, passes.
- P/E read in reverse (cyclicals) 14.4×, info.
Against its peers (reference peers) — D.R. Horton, Inc.: P/E 14.4×; EV/EBITDA 11.4×; ROIC 7.9 %; $40.8B. PulteGroup, Inc. (P/E 13.4×; EV/EBITDA 10.9×; ROIC 10.9 %; $23.8B), Lennar Corporation (P/E 16.4×; EV/EBITDA 11.9×; ROIC 4.0 %; $20.7B), NVR, Inc. (P/E 16.4×; EV/EBITDA 11.3×; ROIC 22.1 %; $16.0B).
Expensive or cheap against its last ten years?
P/E at each close: today 14.4× · median 12.4× · minimum 5.2× · maximum 21.3× · cheap below 10.1× · expensive above 14.9×. It has been cheaper than today 74% of the time over its last ten years.
Dividend
solid · Yield 1.2 % ($1.60 per share in 2025) · Years raising it ≥ 11 · 5-year growth +18 % a year · Free cash flow coverage 7.6× · With $1,000 invested today you'd collect $12.30 a year ($1.03 a month).
Kaplio's reading: D.R. Horton, Inc.
Updated on October 31, 2026 · accounts published on October 29, 2026
A conservatively financed business whose margins and returns are coming down from their peak
D.R. Horton trades at a P/E of 14.4× over the last 12 months, 19 % below its sector median but 17 % above its own ten-year median.
- Is D.R. Horton expensive or cheap? At 14.4× earnings, D.R. Horton is 19 % below its sector's P/E but has traded cheaper 74 % of the past decade.
- How is the business doing? Operating margin fell to 11.4 % over the last 12 months, below its 14.4 % average for 2014-2025, with EPS down 13 %.
- How strong is the balance sheet? Net debt is $9.87 per share in fiscal 2025, just 6.8 % of the share price, with 11 straight years of dividend increases.
- What to expect from the next earnings? Analysts expect EPS of $1.53 on January 19, 2027, after the 2027 EPS consensus fell 3.6 % in the last 30 days.
- Can the balance sheet withstand a recession? Its Altman Z of 6.6 over the last 12 months is more than double the 2.99 safe-zone line used for consumer cyclicals.
Is D.R. Horton expensive or cheap?
Over the last 12 months D.R. Horton trades at a P/E of 14.4×, 19 % below the 17.9× median of its sector, yet 17 % above its own ten-year median of 12.4×. In ten years the multiple ranged from 5.2× to 21.3×, and it has been lower than today 74 % of the time. Against its five-year average of 9.4×, the current P/E looks high, a signal in cyclical stocks that earnings may be depressed. EV/sales of 1.6× in fiscal 2025 also sits above its 1.2× ten-year average. A free cash flow yield of 10.7 % over the last 12 months is the strongest argument on the other side.
How is the business doing?
Revenue fell 3.5 % and EPS 12.6 % over the last 12 months, and margins are following. The operating margin of 11.4 % is below the 12.9 % of fiscal 2025 and the 14.4 % average of 2014-2025. ROIC tells the same story: 7.9 % over the last 12 months, 1.6 points below the 9.5 % sector median, after topping 10 % in 8 of the last 10 fiscal years and averaging 15.9 % in 2021-2025. The business remains profitable, with a net margin of 8.7 %, but it is earning less on each dollar invested than at the peak.
How strong is the balance sheet?
D.R. Horton carries little leverage. Debt to equity is 0.26 over the last 12 months and the current ratio is 6.01, so short-term assets cover short-term liabilities six times over. Net debt of $9.87 per share in fiscal 2025 equals 6.8 % of the current price and 0.6× EBITDA. The dividend yields 1.2 % over the last 12 months, but it has risen for 11 consecutive fiscal years and absorbed only 14 % of fiscal 2025 earnings, leaving ample room. The weak spot is a Piotroski score of 4 out of 9 over the last 12 months, consistent with falling earnings and margins.
What to expect from the next earnings?
On October 29, 2026, D.R. Horton reported EPS of $2.67, 11.3 % below the $3.01 expected, although it has beaten estimates in 5 of the last 8 quarters. Estimates are also moving down: over the last 30 days the 2027 EPS consensus dropped 3.6 %, from $11.62 to $11.20 (17 analysts), and the 2027 revenue consensus fell 2.5 %. The next report, on January 19, 2027, is expected to show EPS of $1.53. Of 53 analysts, 23 recommend buying, 25 holding and 3 selling, a split that matches the mixed signals in the numbers.
Can the balance sheet withstand a recession?
In consumer cyclicals, demand can shrink sharply in a downturn, so the sector is judged on survival and on returns averaged over the whole cycle. D.R. Horton passes the survival tests: net debt of 0.6× EBITDA in fiscal 2025 against a 3.0× ceiling, a current ratio of 6.01 against a 1.5 floor, and an Altman Z of 6.6, well inside the safe zone. Its five-year averages also clear the bar, with a 17.9 % operating margin against a healthy 8 % and a 15.9 % ROIC against 12 %. It fails on inventory turnover, at 1.0× in fiscal 2025 against a 4.0× benchmark, so capital stays tied up in stock for about a year.
How this was prepared: the data comes from companies' official filings, collected by a professional provider, and from Kaplio's analysis engine (trailing-12-month ratios, 10 years of history and sector medians computed across US-listed companies). The text is written from that data alone, every figure is checked against it before publication, and it is reviewed when the company reports results. This is not investment advice.
Profitability
| Return on Equity | 12.22% |
| Return on Invested Capital | 7.88% |
| Return on Assets | 8.30% |
| Gross Margin | 22.28% |
| Operating Margin | 11.41% |
| Net Margin | 8.74% |
Financial Health
| Debt / Equity | 0.26 |
| Current Ratio | 6.01 |
| Piotroski F-Score | 4 |
| Altman Z-Score | 6.61 |
Price Performance
| 1 month | +6.52% |
| 3 months | +2.06% |
| Year-to-date | +1.37% |
| 1 year | -2.07% |
| 3 years | +33.58% |
| 5 years | +61.68% |
| 10 years | +410.31% |
Dividend History
Paid in the last 12 months: $1.8000 per share in 4 payments.
| Date | Amount |
|---|---|
| 2026-08-06 | $0.4500 |
| 2026-05-07 | $0.4500 |
| 2026-02-05 | $0.4500 |
| 2025-11-13 | $0.4500 |
| 2025-08-07 | $0.4000 |
| 2025-05-02 | $0.4000 |
| 2025-02-07 | $0.4000 |
| 2024-11-12 | $0.4000 |
| 2024-08-01 | $0.3000 |
| 2024-05-01 | $0.3000 |
Amounts adjusted for stock splits.
Related companies: PHM · LEN · NVR · TOL · MTH · MHO · KBH · GRBK
Explore sector: Consumer Cyclical · Residential Construction
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