| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 82 | 13.1x | 17.8x | Top tier | |
Growth | 15 | -3.5% | 7.1% | Bottom tier | |
Quality | 55 | 9.2% | 4.5% | Around median | |
Safety | 84 | 1.2x | 2.6x | Top tier | |
Capital Return | 74 | 1.26% | 2.12% | Top tier | |
Momentum | 30 | -20.3% | 2.9% | Bottom tier | |
Sentiment | 83 | 15 | 3 | Top tier |
Estimates — analyst targets and a simplified DCF, not investment advice.
Ten ratios that matter, each compared against its sector median and average — so you can see whether a number is rich or cheap relative to peers in the same sector.
D.R. Horton is a homebuilding and home sales company whose core business focuses on providing affordable housing across a broad geographic footprint in the United States. It manages each residential community by balancing sales pace, pricing, incentives, and inventory, while also benefiting from Forestar, its majority-owned residential land development company, as well as mortgage financing and rental housing operations. In fiscal Q3 2026, 65% of the mortgage company's closings were to first-time buyers, and the average closing price of a home was $362 thousand, down 2% year over year and approximately $155 thousand below the average price of new homes in the United States, according to management.
D.R. Horton reported consolidated revenue of $9.2 billion, gross profit of $2.1 billion, net income of $904.9 million, and diluted earnings per share of $3.20 in fiscal Q3 2026. This equates to a consolidated gross margin of approximately 22.8% and a net income margin of approximately 9.8%, while the pretax profit margin was 13.3% on pretax income of $1.2 billion. Year over year, earnings per share declined from $3.36, despite an increase in homes closed to 23,983 from 23,160.
Home sales were the largest driver, generating revenue of $8.7 billion and a home sales gross margin of 20.7%. Rental operations generated revenue of $266 million and pretax income of $31 million from the sale of 601 single-family rental homes and 339 multifamily rental units, while financial services generated revenue of $221 million and pretax income of $70 million at a margin of 31.9%. Forestar reported revenue of $407 million from the sale of 3,659 lots and pretax income of $49 million.
The analyst consensus on DHI is neutral, with an average target of $163.75 and a wide range between $140 and $190. The average target is approximately 11% below the 52-week range high of $184.55, while the highest target exceeds that high by only approximately 3%; this distribution reflects a balance between strong cash flow and cost efficiency on one hand, and weak demand and reduced delivery expectations on the other.
Figures in the text are as of 2026-08-27; the live price is shown at the top of the page.
The company reported revenue of $9.2 billion, net income of $904.9 million, and diluted earnings per share of $3.20. Gross profit according to EDGAR data was approximately $2.1 billion, while the consolidated pretax profit margin reached 13.3%. The company closed 23,983 homes and generated $8.7 billion in home sales revenue, with a home sales gross margin of 20.7%. However, earnings per share declined from $3.36 in the corresponding period of the previous year.
Management said on the July 21, 2026 call that the sales pace was below its internal expectations and that demand weakened during the quarter. Accordingly, it now expects consolidated revenue of between $32.5 billion and $33 billion and closings of 83,800 to 84,300 homes in fiscal 2026. The company preserved more margin rather than driving sales volume and expects fewer construction starts in fiscal Q4 2026 compared with 23,900 starts in fiscal Q3. Nevertheless, it maintained its operating cash flow outlook at at least $3 billion.
First-time buyers represented 65% of the mortgage company's closings in fiscal Q3 2026. The average closing price of a home was $362 thousand, approximately $155 thousand or 30% below the average price of a new home in the United States, according to management. Interest-rate buydown programs helped mortgage buyers in the backlog achieve an average interest rate of 4.9% on June 30, 2026, compared with an approximate market rate of 6.5%. However, demand's reliance on this segment increases sales sensitivity to financing qualification requirements and consumer confidence.
Automated analysis for informational purposes only — not investment advice.
Management expects a home sales gross margin of between 20.5% and 21% in fiscal Q4 2026, compared with 20.7% in fiscal Q3. The margin benefited from a 5% year-over-year decline in home material and construction costs, with framing work providing the largest source of savings, along with a slight sequential decline in incentives. Conversely, the company expects incentives to remain at historically elevated levels and land cost inflation to remain near 5%. Higher lumber prices may also appear in costs after a lag typically ranging from two to three quarters.
Consolidated liquidity totaled $6.1 billion on June 30, 2026, split between $2.1 billion in cash and $4 billion of available capacity under credit facilities. Total debt was $7.1 billion, with $600 million of homebuilding senior notes due during the following twelve months, while consolidated leverage was 23%. The company repurchased 4.2 million shares for $616 million in fiscal Q3 2026, reducing shares outstanding by 6% year over year, and paid dividends of $0.45 per share. For fiscal 2026, it is targeting share repurchases of approximately $2.5 billion and dividends of approximately $500 million, subject to cash flow.
The land position totaled approximately 570 thousand lots on June 30, 2026, of which 22% were owned and 78% were controlled through purchase contracts. The number of owned lots declined 13% year over year, while the company built 67% of homes closed on lots developed by Forestar or other parties. The company ended the quarter with inventory of 38 thousand homes, including 23,300 unsold homes and 7,600 completed unsold homes, but only 600 homes had remained completed for more than six months. The median time from construction start to closing also improved by approximately three weeks year over year, supporting inventory turnover and capital efficiency.
