D.R. Horton, Inc. (DHI) AI Stock Analysis

Founded in 1978 and headquartered in Arlington, Texas, D.R. Horton, Inc. operates in the residential construction industry across 106 markets in 33 states. The company acquires and develops land, constructing single-family detached homes as well as attached options including townhomes, duplexes, and triplexes. It markets homes under brands including D.R. Horton, America's Builder, Express Homes, Emerald Homes, and Freedom Homes. Complementary services include mortgage financing, title insurance, and closing services, alongside residential lot development. Additionally, the company has diversified into multi-family and single-family rental properties and non-residential real estate assets like ranch land.

Between FY2020 and FY2025, D.R. Horton grew revenue at a 5-year CAGR of 11.0%, peaking at $36.80B in FY2024 before contracting 6.9% to $34.25B in FY2025. Gross margin decreased from 31.4% in FY2022 to 23.7% in FY2025, while operating margin fell from 23.0% to 12.9% over the same period. Net income peaked at $5.86B in FY2022 and settled at $3.59B in FY2025, with diluted EPS of $11.59. Over the trailing twelve months ended June 30, 2026, revenue stood at $33.35B with a 9.2% profit margin. In the latest quarter ended June 30, 2026, quarterly earnings declined 4.8% year-over-year.

As of June 30, 2026, D.R. Horton held $2.08B in cash and short-term investments against $7.18B in total debt, resulting in net debt of $5.10B. Its current ratio stood at 9.84, with a debt-to-equity ratio of 0.30 against $23.82B in shareholders' equity. In FY2025, the company generated $3.42B in operating cash flow and $3.28B in free cash flow. Cash deployment in FY2025 included $137.4M in capital expenditures, $494.8M in dividends paid, and $4.28B in share buybacks, which helped reduce share count by 19.9% over five years.

At a share price of $139.39 as of October 16, 2026, D.R. Horton trades at a trailing P/E of 12.9x and a forward P/E of 11.9x, both below the median of its S&P 500 Consumer Cyclical peers of 20.1x and 15.7x, respectively. Its enterprise value to EBITDA ratio of 11.3x and price-to-sales ratio of 1.2x also trail peer medians of 13.8x and 2.0x. Over the past year, the stock fell 7.8% while the S&P 500 gained 16.8%. Over five years, the stock returned 68.7% compared to 83.0% for the S&P 500.

D.R. Horton pays a forward annual dividend of $1.80 per share, representing a dividend yield of 1.29% as of October 16, 2026. The company has paid dividends for 30 consecutive years, with a 5-year annualized dividend growth rate of 17.9%. Its payout ratio is 17.1%, and payments are made on a quarterly frequency, with the last ex-dividend date on August 6, 2026.

Wall Street coverage consists of 4 Strong Buy, 14 Hold, 1 Sell, and 1 Strong Sell ratings. The mean price target of $152.93 reflects a 9.7% upside compared to the October 16, 2026 close of $139.39. For the fiscal year ending September 30, 2026, analysts estimate revenue of $32.75B and EPS of $10.43, a 9.9% decrease. D.R. Horton beat EPS estimates in 3 of the last 4 quarters, and its next earnings date is October 29, 2026.

This page is an AI-written research summary of D.R. Horton, Inc. (DHI). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

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