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 ongoing pricing power for homebuilders.
Higher-for-longer interest rates, lofty home prices, and economic uncertainty could stifle demand. Muted demand, along with elevated new homes inventory, can pressure margins.
|
Metric
|
LEN
|
TOL
|
DHI
|
|---|---|---|---|
Price/Earnings (Normalized) | 13.29 | 9.41 | 13.65 |
Price/Book Value | 1.02 | 1.52 | 1.76 |
Price/Sales | 0.69 | 1.21 | 1.29 |
Price/Cash Flow | 10.27 | 7.97 | 11.69 |
|
Metric
|
LEN
|
TOL
|
DHI
|
|---|---|---|---|
Quick Ratio | 3.19 | 0.43 | 0.80 |
Current Ratio | 10.31 | 4.40 | 11.66 |
Interest Coverage | 14.83 | — | — |
|
Metric
|
LEN
|
TOL
|
DHI
|
|---|---|---|---|
Return on Assets (Normalized) | 5.58% | 9.70% | 9.64% |
Return on Equity (Normalized) | 8.59% | 16.97% | 14.26% |
Return on Invested Capital (Normalized) | 7.49% | 12.29% | 9.64% |
|
1-Day Chart
|
Name
|
Price
|
Morningstar Rating for Stocks
|
Capital Allocation
|
Economic Moat
|
Market Cap
|
|---|---|---|---|---|---|---|
| D.R. Horton Inc
DHI
| Tnqjcqhps | Hft | $42B | |||
| Lennar Corp Class B
LEN.B
| — | Hfyhh | $23B | |||
| PulteGroup Inc
PHM
| Kmbdzvqhw | Wzsd | $23B | |||
| NVR Inc
NVR
| Bzhtyqgvm | Kgtmr | $17B | |||
| Sekisui House Ltd ADR
SKHSY
| — | Zjzm | $13B | |||
| Sekisui House Ltd
SKHSF
| — | Sqhq | $13B | |||
| Toll Brothers Inc
TOL
| Bwyxnjrs | Zxhw | $13B | |||
| Taylor Morrison Home Corp
TMHC
| Wwhkyht | Fqdtg | $7B | |||
| Installed Building Products Inc
IBP
| — | Nxbjn | $5B |
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United States