D.R. Horton Inc. (DHI): Score-Card Analysis

This analysis attributes an Overall Score to a company by analyzing several aspects that I consider to be among the most important.

In summary, a company to have an overall score close to 100% must have the following characteristics:

  • Report high growth rates in the last 3 years (and in the last quarter) in terms of Revenue, Gross Profit, Operating Income and Net Income. Furthermore, it must operate with high and improving margins in recent years.
  • Analysts expect Earnings Per Share (EPS) and revenues to grow in the short term (in the next quarter) and in the medium to long term (in the next 5 years). Moreover, they expect the company to be undervalued at current prices and in the last quarter their EPS expectations must have been beaten with a consequent rise in share prices.
  • The stock price of the company must have outperformed the S&P 500 index and in the last 3 months the Hedge Funds and Insiders bought shares in the company.

The overall score ranges from -100% (if the characteristics listed above are all very negative) to +100% and it is unlikely that there will be a company with a +100% score because the requirements for achieving this score are very high, however a score higher than +40% can be considered good.

This analysis alone is not enough to decide whether or not to invest in a company because it does not provide indications on the timing of entry, but it is a good starting point.


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D.R. Horton Inc. (DHI)


Summary

  • Overall Score: +42.6%
  • Analysts are optimistic both in the short term and in the medium to long term.
  • Net income doubled in the last 3 years
  • Decrease in margins in the last quarter.
  • 14 million shares purchased by hedge funds in the last 3 months
  • DHI continues its positive trend and is only 1.65% from the historical highs reached at the beginning of 2018
  • YTD performance: +49%

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Full description

D. R. Horton, Inc. is a home construction company incorporated in Delaware and headquartered in Arlington, Texas.

The overall score of DHI is +42.6% .

In the last 6 months, DHI has overperformed the S&P500 index by 16,3% and analysts believe the company is undervalued by 4,3% .

In the last quarter, the company reported revenues of 4906,3 million, up by 10,6% compared to the same quarter 12 months earlier. Revenue TTM (Trailing-12-Months) are equal to 17059,1 million, up by 57,6% in the last 3 years.


DHI reported an operating income of 626,7 million in the last quarter, an improvement of 1,7% compared to the same quarter 12 months earlier, also reporting a reduction by -8,1% in the operating margin. Considering the sum of the last four quarters (TTM), DHI reports an operating income of 2072,9 Million , a growth of 84,5% compared to three years ago and an improvement of 17,1% in the operating margin.


DHI reported a net income of 474,8 million in the last quarter, an improvement of 4,6% compared to the same quarter 12 months earlier, also reporting an improvement of -5,4% in the net margin. The TTM net income is 1579,5 million , a growth of 110,4% compared to three years ago and the net margin has improved by 33,5% .

In the next quarter, analysts expect growth in EPS (Earnings Per Share) of 2,5% and a growth in revenue of 7,9% . Furthermore, they expect an annual growth of DHI EPS by 13,0% for the next 5 years.

In the last quarter, DHI reported better EPS than analysts’ expectations and the stock price reacted by increasing by 5,7% .

Finally, in the last 3 months the Hedge Funds have increased their positions by 14.4M shares. The Insiders have sold shares worth $937.28k .


Sources & additional info

*Data updated to the last quarterly report available
*Data in Millions of Dollars
*Data from zacks.com, tipranks.com, reuters.com, finance.yahoo.com
*Company information from wikipedia.com


This analysis gives you a general idea of whether a company is good or not, but you may also be interested in finding potential entry points, so I am waiting for you here to know about the best chart patterns of today.


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DISCLAIMER: The information in this blog post represents my own analysis/opinions and does not contain a recommendation for any particular security or investment.