D.R. Horton, Inc. (DHI) Stock

D.R. Horton, Inc. (DHI) is a Industrials stock trading at $144.42 (as of 2026-09-03), with a market capitalization of $40.39B and a trailing P/E of 13.3. Figures are sourced from first-party U.S. SEC EDGAR filings and market data.

D.R. Horton, Inc. operates as a homebuilding company in East, North, Southeast, South Central, Southwest, and Northwest regions in the United States. It engages in the acquisition and development of land; and construction and sale of residential homes in 31 states and 98 markets under the names of D.R. Horton, America's Builder, Express Homes, Emerald Homes, and Freedom Homes. The company constructs and sells single-family detached homes; and attached homes, such as town homes, duplexes, and triplexes. It also provides mortgage financing services; and title insurance policies, and examination and closing services, as well as engages in the residential lot development business. In addition, the company develops, constructs, owns, leases, and sells multi-family and single-family rental properties; owns non-residential real estate, including ranch land and improvements; and owns and operates energy related assets. It primarily serves homebuyers. D.R. Horton, Inc. was founded in 1978 and is headquartered in Arlington, Texas.

Understand D.R. Horton, Inc.: how it makes money

D.R. Horton builds and sells single-family homes across 31 U.S. states, earning its revenue from the markup on completed homes plus a modest Forestar land and financial-services tail. The moat is speed and scale: 98 markets, assembled land pipelines, and a multi-brand stack that lets it convert lots to closings faster than smaller regional builders.

The profit engine is land-to-cash speed: Forestar assembles and controls lots, the build team turns them into closable homes, and the interval between the two determines how much capital sits idle (or compounds) in any given cycle.

Revenue by segment (latest quarter)
Homebuilding$8.4B
Forestar$0.4B
Rental$0.2B
Financial Services$0.2B

Business quality (Mixed): Scale and cycle-time discipline give DHI a structural edge, but 90%+ revenue concentration in a single cyclical product leaves limited hedging against a demand step-down.

Valuation: At 15× earnings, DHI trades 37% below the Construction average (23×). Note: the low multiple may reflect one-time earnings items.

Bull case

  • Faster land-to-cash conversion: Management flagged improved cycle times, meaning homes move from groundbreaking to closed sale in fewer months. For a land-intensive builder, every month saved cuts carrying costs and frees capital for the next community launch.
  • Priced well below the sector: At a 14.8x P/E versus the 24x Construction industry average, DHI carries a 37% multiple discount. If delivery volumes stabilize, even a partial re-rating toward the sector mean closes a large gap.
  • Land pipeline without the idle carry: The company holds substantial controlled land while simultaneously reducing its owned-land exposure. That mix secures future supply without locking up as much capital in lots that sit unsold during a slow phase.

Bear case

  • Delivery guidance already cut: Management pointed to softened demand and lowered full-year delivery guidance. For a volume-driven homebuilder, fewer closings directly compress top-line revenue and increase SG&A per unit sold.
  • Incentives cap the gross margin: Elevated home-buyer incentives are already squeezing the 23% gross margin, and management noted limited remaining cost savings. If buyers need further discounts to close, the margin floor is exposed.
  • SG&A outpacing revenue growth: New communities expanded faster than revenue and absorption, so SG&A is deleveraging. Until those communities ramp to full cadence, the 13% operating margin carries a structural headwind from fixed-period costs spread over fewer sales.
Valuation — source: SEC EDGAR (first-party)
Price$144.42
Market Cap$40.39B
P/E Ratio13.3
EV / EBITDA9.1
Price / Book1.66
Price / Sales1.21
FCF Yield8.1%
DCF Value (model)$212.81
DCF Upside vs Price47.4%
Profitability & Growth — source: SEC EDGAR
Revenue (TTM)$34.25B
Net Margin10.5%
Revenue Growth (YoY)0.0%
EPS Growth (YoY)-4.7%
FCF Growth (YoY)-9.5%
Valuation vs Sector & Industry
Stock P/E13.3
Sector P/E (Industrials)25.5
Industry P/E (Construction)24.4
vs Sector-47.9%
vs Industry-45.5%
Smart-Money Activity — SEC Form 4 / 13F / Congressional disclosures
Top Institutional HolderCapital World Investors ($5.07B)
Institutional Holders Tracked10
Congressional Trades (recent)10
Company
SectorIndustrials
IndustryConstruction
CEOPaul J. Romanowski
Employees14,766
CountryUS
IPO Date1992-06-05

D.R. Horton, Inc. earnings call transcripts

  • DHI Q3 FY26 earnings call transcript (reported 2026-07-21) · analysis
  • DHI Q2 FY26 earnings call transcript (reported 2026-04-21) · analysis
  • DHI Q4 FY25 earnings call transcript (reported 2025-10-28) · analysis
  • DHI Q3 FY25 earnings call transcript (reported 2025-07-22) · analysis

All DHI earnings calls

Related Companies (Construction; 8 comparable construction companies)

  • PulteGroup, Inc. (PHM)
  • Toll Brothers, Inc. (TOL)
  • NVR, Inc. (NVR)
  • KB Home (KBH)
  • Taylor Morrison Home Corporation (TMHC)
  • M/I Homes, Inc. (MHO)
  • Dream Finders Homes, Inc. (DFH)
  • Lennar Corporation (LEN)
DHI earnings history · DHI institutional & insider holders · DHI KPIs & operating metrics · DHI financials · DHI investor presentations & press releases · DHI SEC filings · DHI peers · Congress trades · Insider trades · Short interest · Stock screener

Data as of 2026-09-03.

Figures sourced from U.S. Securities and Exchange Commission (SEC EDGAR) filings and market data. Not personalized investment advice.