Skip to Content

D.R. Horton Inc DHI

Rating as of

Morningstar’s Analysis

Valuation
Currency in USD
Is it the right time to buy or sell?
Find out with Morningstar Premium
Is it the right time to buy or sell?
Find out with Morningstar Premium

1-Star Price

PREMIUM

5-Star Price

PREMIUM

Economic Moat

PREMIUM

Capital Allocation

PREMIUM

As Supply Constraints Mount, D.R. Horton Is Maximizing Profits at the Expense of Its Sales Pace

Analyst Note

| Brian Bernard, CFA, CPA |

Even America's largest builder (by volume), D.R. Horton, has not been immune to the stresses of unrelenting strong demand coupled with supply chain issues that have lengthened the time it takes to build homes. Horton has responded by aggressively raising prices, which has slowed its new order pace to better match its current production capacity. As a result, the average selling price of new orders during Horton's fiscal third quarter increased a stunning 22% year over year to $359,200 and new orders declined 17% to 17,952. While this is a big increase in price, D.R. Horton's more affordable product and geographic mix compared with other builders has kept its ASP competitive with the national existing home sales market. Indeed, the average sales price for existing homes in June was $381,800.

Read Full Analysis

Company Profile

Business Description

D.R. Horton is a leading homebuilder in the United States with operations in 90 markets across 29 states. D.R. Horton mainly builds single-family detached homes (over 90% of home sales revenue) and offers products to entry-level, move-up, luxury buyers, and active adults. The company offers homebuyers mortgage financing and title agency services through its financial services segment. D.R. Horton's headquarters are in Arlington, Texas, and it manages five regional homebuilding offices across the United States.

Contact
1341 Horton Circle
Arlington, TX, 76011
T +1 817 390-8200
Sector Consumer Cyclical
Industry Residential Construction
Most Recent Earnings Jun 30, 2021
Fiscal Year End Sep 30, 2021
Stock Type Cyclical
Employees 9,716

Related

Transparency is how we protect the integrity of our work and keep empowering investors to achieve their goals and dreams. And we have unwavering standards for how we keep that integrity intact, from our research and data to our policies on content and your personal data.

We’d like to share more about how we work and what drives our day-to-day business.

We sell different types of products and services to both investment professionals and individual investors. These products and services are usually sold through license agreements or subscriptions. Our investment management business generates asset-based fees, which are calculated as a percentage of assets under management. We also sell both admissions and sponsorship packages for our investment conferences and advertising on our websites and newsletters.

How we use your information depends on the product and service that you use and your relationship with us. We may use it to:

  • Verify your identity, personalize the content you receive, or create and administer your account.
  • Provide specific products and services to you, such as portfolio management or data aggregation.
  • Develop and improve features of our offerings.
  • Gear advertisements and other marketing efforts towards your interests.

To learn more about how we handle and protect your data, visit our privacy center.

Maintaining independence and editorial freedom is essential to our mission of empowering investor success. We provide a platform for our authors to report on investments fairly, accurately, and from the investor’s point of view. We also respect individual opinions––they represent the unvarnished thinking of our people and exacting analysis of our research processes. Our authors can publish views that we may or may not agree with, but they show their work, distinguish facts from opinions, and make sure their analysis is clear and in no way misleading or deceptive.

To further protect the integrity of our editorial content, we keep a strict separation between our sales teams and authors to remove any pressure or influence on our analyses and research.

Read our editorial policy to learn more about our process.