D.R. Horton Inc (DHI, Financial) has recently captured the attention of investors and financial analysts with its strong financial performance. With a current share price of $186.05 and a daily gain of 3.59%, the company has shown a significant three-month growth of 24.33%. A detailed analysis, supported by the GF Score, indicates that D.R. Horton Inc is poised for substantial growth, making it a compelling choice for investors.
What Is the GF Score?
The GF Score is a proprietary ranking system developed by GuruFocus, assessing stocks based on five key valuation aspects. These aspects have been proven to correlate strongly with long-term stock performance from 2006 to 2021. Stocks with higher GF Scores typically yield higher returns. The GF Score ranges from 0 to 100, with 100 indicating the highest potential for outperformance. D.R. Horton Inc boasts a GF Score of 93, signaling strong future performance potential.
- Financial strength rank: 7/10
- Profitability rank: 10/10
- Growth rank: 10/10
- GF Value rank: 3/10
- Momentum rank: 9/10
Understanding D.R. Horton Inc's Business
D.R. Horton Inc, a leading homebuilder in the United States, operates in 118 markets across 33 states. Primarily focusing on single-family detached homes, which constitute over 90% of its home sales revenue, the company caters to a diverse range of buyers including entry-level, move-up, luxury, and active adults. D.R. Horton Inc also provides mortgage financing and title agency services through its financial services segment. Headquartered in Arlington, Texas, the company manages six regional segments across the country.
Financial Strength Breakdown
D.R. Horton Inc's financial strength is evident in its robust balance sheet and strategic debt management. With an Altman Z-Score of 7.34, the company demonstrates a strong buffer against financial distress. Additionally, its Debt-to-Revenue ratio of 0.15 further solidifies its financial health, reflecting prudent capital management.
Profitability and Growth Metrics
The company's Profitability Rank is impressive, with significant improvements in Operating Margin and Gross Margin over the past five years. These trends highlight D.R. Horton Inc's increasing efficiency in revenue conversion to profit. Furthermore, its Predictability Rank of 5.0 stars reflects consistent operational performance, enhancing investor confidence.
Conclusion
Considering D.R. Horton Inc's robust financial strength, impressive profitability, and consistent growth metrics, the GF Score underscores the company's strong position for potential market outperformance. Investors looking for similar opportunities can explore more companies with strong GF Scores using the GF Score Screen.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
