D.R. Horton (DHI) reported revenue growth projected at 5.5% per year, which trails the broader US market’s 10.3% pace. EPS is forecast to rise 8.4% annually, again behind the US average of 15.7%, with the latest results showing a year-over-year decline and net profit margin narrowing from 12.9% to 10.5%. Despite solid profit quality and continued growth expectations, investors are taking a closer look at the company’s elevated price-to-earnings ratio and softer momentum after recent negative earnings growth.
See our full analysis for D.R. Horton.
Next up, we will weigh these headline results against the dominant narratives in the market and see where they align or face new scrutiny.
See what the community is saying about D.R. Horton
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Net profit margin has compressed from 12.9% last year to 10.5% currently, even as D.R. Horton continues to emphasize operational efficiency.
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Analysts’ consensus view highlights:
Curious how efficiency and shrinking margins will shape the debate? See the full consensus narrative for a deeper look at the company’s strategy and risks. 📊 Read the full D.R. Horton Consensus Narrative.
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Analysts expect the number of shares outstanding to decline by about 7% per year for the next three years, amplifying earnings per share growth even as overall profit expansion slows.
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Analysts’ consensus view notes:
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The price-to-earnings ratio stands at 12.2x, higher than both the US Consumer Durables industry average of 10.6x and peers at 11.2x, despite earnings and revenue growth forecasts that trail broader market trends.
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Analysts’ consensus view points out:
To see how these results tie into long-term growth, risks, and valuation, check out the full range of community narratives for D.R. Horton on Simply Wall St. Add the company to your watchlist or portfolio so you’ll be alerted when the story evolves.
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A great starting point for your D.R. Horton research is our analysis highlighting 2 key rewards and 1 important warning sign that could impact your investment decision.
D.R. Horton’s elevated valuation, lagging growth forecasts, and shrinking profit margins raise questions about the company’s ability to deliver strong future returns.
If you’re searching for more compelling value, check out these 848 undervalued stocks based on cash flows to discover companies priced below their intrinsic worth with greater upside potential.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Companies discussed in this article include DHI.
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