D.R. Horton's headline numbers were weak, but the results were decent given the current housing market context. Mortgage rates remain elevated and have been a major headwind for affordability and consumer sentiment, leading to soft demand for new homes.
The US housing market is undersupplied. This supply/demand imbalance will take years to address and should support homebuilder pricing power.
High home prices, elevated interest rates, and economic uncertainty could cause a meaningful and protracted slowdown in housing demand. Muted demand, along with elevated new homes inventory, can lead to significant margin pressure.
|
Metric
|
DHI
|
TOL
|
INVH
|
|---|---|---|---|
Price/Earnings (Normalized) | 13.89 | 10.23 | 45.03 |
Price/Book Value | 1.71 | 1.58 | 1.75 |
Price/Sales | 1.26 | 1.30 | 5.50 |
Price/Cash Flow | 11.82 | 8.72 | 13.43 |
|
Metric
|
DHI
|
TOL
|
INVH
|
|---|---|---|---|
Quick Ratio | 0.70 | 0.40 | 0.23 |
Current Ratio | 9.84 | 4.35 | 0.67 |
Interest Coverage | — | — | 2.84 |
|
Metric
|
DHI
|
TOL
|
INVH
|
|---|---|---|---|
Return on Assets (Normalized) | 9.21% | 9.04% | 3.95% |
Return on Equity (Normalized) | 13.75% | 15.70% | 7.97% |
Return on Invested Capital (Normalized) | 10.16% | 11.41% | 5.69% |
|
1-Day Chart
|
Name
|
Price
|
Morningstar Rating for Stocks
|
Capital Allocation
|
Economic Moat
|
Market Cap
|
|---|---|---|---|---|---|---|
| PulteGroup Inc
PHM
| LOCK|?!>kHR$ | LOCK|>W | $24B | |||
| Lennar Corp Class B
LEN.B
| — | LOCK|C%@ | $21B | |||
| Lennar Corp Class A
LEN
| LOCK|@NC$%S | LOCK|Wy | $21B | |||
| NVR Inc
NVR
| LOCK|@JZk#>FL | LOCK|#>T%R | $16B | |||
| Sekisui House Ltd
SKHSF
| — | LOCK|H?x | $14B | |||
| Sekisui House Ltd ADR
SKHSY
| — | LOCK|&G | $14B | |||
| Toll Brothers Inc
TOL
| LOCK|@H&N$m | LOCK|M^x | $13B | |||
| Barratt Redrow PLC ADR
BTDPY
| — | LOCK|q$g | $6B | |||
| Barratt Redrow PLC
BTDPF
| — | LOCK|pLF | $6B |
United States