# D.R. Horton Inc. (DHI) — Stock CV

D.R. Horton Inc. is a $37.7B industrial company. Revenue shrank 3.5% over the last year, it keeps 9¢ of every dollar of sales as profit, and its net debt equals ~1.0 years of free cash flow. It trades at 12.4× earnings — in the most expensive third of its own history.

> D.R. Horton is the largest homebuilder in the United States with operations in 126 markets across 36 states.

## Identity

- **Ticker**: DHI
- **Sector**: Industrials
- **Industry**: Operative Builders
- **Headquarters**: ARLINGTON, TX
- **Employees**: 14 341
- **Website**: https://www.drhorton.com
- **Market cap**: $37.7B
- **Last price**: $134.88
- **Financial profile**: Strong

## Vitals (TTM)

- **Revenue**: $33.4B
- **Net income**: $3.05B
- **Free cash flow**: $3.20B
- **Net debt**: $3.08B
- **P/E**: 12.4
- **Revenue growth (YoY)**: -3.5%

## Skills (profile scores, 0–100)

| Pillar | Score |
|---|---|
| Valuation | 75 |
| Growth | 37 |
| Profitability | 49 |
| Health | 95 |
| Quality | 85 |
| Moat | 74 |

## Qualifications (beginner checklist) — 9 of 11 passed

- [ ] Revenue growing — -3.5% YoY
- [x] Profitable — $3.05B TTM
- [ ] Profit growing — -11.2% YoY
- [x] Generates cash — $3.20B TTM
- [x] Debt under control — ~1.0y of cash flow to repay
- [x] Established company — $37.7B market cap
- [x] Not printing shares — -16.3% shares over ~5y
- [x] Proven track record — 10/10 profitable years
- [x] Financially stable — Altman Z 5.1 — safe
- [x] Pays a dividend — yield 1.34%
- [x] Valuation not extreme — P/E 12.4

## Experience (career milestones)

- **FY2022** — Best year on record: $5.86B net income
- **FY2018** — Revenue crossed $1B: $16.1B for the year
- **FY2018** — Revenue crossed $10B: $16.1B for the year
- **2018** — The company acquired Terramor Homes, Classic Builders, and Westport Homes
- **FY2016** — Profitable every year on record: 10 consecutive profitable years in our data
- **FY2016** — Positive free cash flow every year since: 10-year streak
- **2016** — The company acquired Wilson Parker Homes for $90 million
- **2015** — The company acquired Pacific Ridge Homes, based in Seattle, for $72 million
- **2002** — The company acquired Schuler Homes
- **2001** — The company acquired Emerald Builders and Fortress Homes and Communities of Florida
- **1999** — The company acquired Century Title Agency
- **1997** — The company acquired Continental Homes for $305 million and the assumption of $278 million in debt
- **1978** — The company was founded in 1978 by Donald R

## Strengths

- Could repay net debt from ~1.6 years of free cash flow
- Interest covered 140.4× by operating earnings
- Altman Z-Score 5.06 — low bankruptcy-risk zone

## Watch-outs

- Revenue shrinking 3.5% year over year

## Track record

| Year | Revenue | Net income | Free cash flow |
|---|---|---|---|
| FY2021 | $27.8B | $4.18B | $441M |
| FY2022 | $33.5B | $5.86B | $414M |
| FY2023 | $35.5B | $4.75B | $4.16B |
| FY2024 | $36.8B | $4.76B | $2.02B |
| FY2025 | $34.3B | $3.59B | $3.28B |

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Source: https://stockcv.com/DHI — derived from company filings; may be delayed or incomplete. Information, not investment advice.