US homebuilders operate in a highly cyclical, competitive, and capital-intensive industry that makes it challenging to earn consistent economic profits over the business cycle. The market has been consolidating but remains highly fragmented with intense competition.
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
|
LEN
|
TOL
|
|---|---|---|---|
Price/Earnings (Normalized) | 14.16 | 13.59 | 9.84 |
Price/Book Value | 1.82 | 1.04 | 1.59 |
Price/Sales | 1.34 | 0.71 | 1.27 |
Price/Cash Flow | 12.13 | 10.51 | 8.33 |
|
Metric
|
DHI
|
LEN
|
TOL
|
|---|---|---|---|
Quick Ratio | 0.80 | 3.19 | 0.43 |
Current Ratio | 11.66 | 10.31 | 4.40 |
Interest Coverage | — | 14.83 | — |
|
Metric
|
DHI
|
LEN
|
TOL
|
|---|---|---|---|
Return on Assets (Normalized) | 9.64% | 5.58% | 9.70% |
Return on Equity (Normalized) | 14.26% | 8.59% | 16.97% |
Return on Invested Capital (Normalized) | 9.64% | 7.49% | 12.29% |
|
1-Day Chart
|
Name
|
Price
|
Morningstar Rating for Stocks
|
Capital Allocation
|
Economic Moat
|
Market Cap
|
|---|---|---|---|---|---|---|
| PulteGroup Inc
PHM
| Cmpxjntc | Hgxn | $23B | |||
| Lennar Corp Class B
LEN.B
| — | Jdpp | $23B | |||
| Lennar Corp Class A
LEN
| Hktlvfbt | Pmzm | $23B | |||
| NVR Inc
NVR
| Kmyzrswkry | Dkpwgss | $17B | |||
| Toll Brothers Inc
TOL
| Jydjyqlxy | Nxqn | $13B | |||
| Sekisui House Ltd
SKHSF
| — | Bdx | $13B | |||
| Sekisui House Ltd ADR
SKHSY
| — | Rdvdz | $13B | |||
| Taylor Morrison Home Corp
TMHC
| Zbgcxrpth | Hdwx | $7B | |||
| Installed Building Products Inc
IBP
| — | Xbrcwp | $6B |
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United States