DHI Profitability Analysis: Past Growth, Margins, Return on Capital, Free Cash Flow, and more - D R Horton Inc - Alpha Spread

D R Horton Inc
NYSE:DHI

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D R Horton Inc
NYSE:DHI
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Price: 184.64 USD -2.93% Market Closed
Market Cap: 60.8B USD
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Profitability Summary

We take all the information about a company's profitability (such as its margins, capital efficiency, free cash flow generating ability, and more) and consolidate it into one single number - the profitability score. The higher the profitability score, the more profitable the company is.

Past Growth

To be successful and remain in business, both growth and profitability are important and necessary. Net Income growth is often seen as a sign of a company's efficiency from an operational standpoint, but is influenced heavily by a company's goals and challenges and should therefore be assessed in conjunction with other metrics like revenue and operating income growth.

Margins

Profit margins represent what percentage of sales has turned into profits. Simply put, the percentage figure indicates how many cents of profit the company has generated for each dollar of sale.

Profit margins help investors assess if a company's management is generating enough profit from its sales and whether operating costs and overhead costs are being contained.

Earnings Waterfall
D R Horton Inc

Revenue
37.3B USD
Cost of Revenue
-27.4B USD
Gross Profit
9.9B USD
Operating Expenses
-3.2B USD
Operating Income
6.7B USD
Other Expenses
-1.7B USD
Net Income
5B USD

Margins Comparison
D R Horton Inc Competitors

Country Company Market Cap Gross
Margin
Operating
Margin
Net
Margin
US
D R Horton Inc
NYSE:DHI
60.4B USD
26%
18%
13%
US
Lennar Corp
NYSE:LEN
50B USD
18%
16%
11%
US
DR Horton Inc
XMUN:HO2
34.8B EUR
26%
18%
13%
US
NVR Inc
NYSE:NVR
29.4B USD
27%
20%
16%
US
Pultegroup Inc
NYSE:PHM
29B USD
30%
21%
17%
JP
Sekisui House Ltd
TSE:1928
2.6T JPY
20%
9%
7%
US
Toll Brothers Inc
NYSE:TOL
15.1B USD
28%
19%
15%
US
TopBuild Corp
NYSE:BLD
11.8B USD
31%
17%
12%
JP
Sumitomo Forestry Co Ltd
TSE:1911
1.3T JPY
24%
9%
6%
UK
Taylor Wimpey PLC
LSE:TW
5.9B GBP
19%
12%
7%
US
Taylor Morrison Home Corp
NYSE:TMHC
7.2B USD
24%
14%
10%
Country US
Market Cap 60.4B USD
Gross Margin
26%
Operating Margin
18%
Net Margin
13%
Country US
Market Cap 50B USD
Gross Margin
18%
Operating Margin
16%
Net Margin
11%
Country US
Market Cap 34.8B EUR
Gross Margin
26%
Operating Margin
18%
Net Margin
13%
Country US
Market Cap 29.4B USD
Gross Margin
27%
Operating Margin
20%
Net Margin
16%
Country US
Market Cap 29B USD
Gross Margin
30%
Operating Margin
21%
Net Margin
17%
Country JP
Market Cap 2.6T JPY
Gross Margin
20%
Operating Margin
9%
Net Margin
7%
Country US
Market Cap 15.1B USD
Gross Margin
28%
Operating Margin
19%
Net Margin
15%
Country US
Market Cap 11.8B USD
Gross Margin
31%
Operating Margin
17%
Net Margin
12%
Country JP
Market Cap 1.3T JPY
Gross Margin
24%
Operating Margin
9%
Net Margin
6%
Country UK
Market Cap 5.9B GBP
Gross Margin
19%
Operating Margin
12%
Net Margin
7%
Country US
Market Cap 7.2B USD
Gross Margin
24%
Operating Margin
14%
Net Margin
10%

Return on Capital

Return on capital ratios give a sense of how well a company is using its capital (equity, assets, capital employed, etc.) to generate profits (operating income, net income, etc.). In simple words, these ratios show how much income is generated for each dollar of capital invested.

Return on Capital Comparison
D R Horton Inc Competitors

Country Company Market Cap ROE ROA ROCE ROIC
US
D R Horton Inc
NYSE:DHI
60.4B USD
22%
15%
24%
17%
US
Lennar Corp
NYSE:LEN
50B USD
16%
11%
16%
14%
US
DR Horton Inc
XMUN:HO2
34.8B EUR
22%
15%
24%
17%
US
NVR Inc
NYSE:NVR
29.4B USD
40%
26%
41%
50%
US
Pultegroup Inc
NYSE:PHM
29B USD
27%
18%
29%
20%
JP
Sekisui House Ltd
TSE:1928
2.6T JPY
13%
6%
12%
7%
US
Toll Brothers Inc
NYSE:TOL
15.1B USD
22%
12%
20%
13%
US
TopBuild Corp
NYSE:BLD
11.8B USD
27%
13%
22%
17%
JP
Sumitomo Forestry Co Ltd
TSE:1911
1.3T JPY
14%
6%
14%
8%
UK
Taylor Wimpey PLC
LSE:TW
5.9B GBP
6%
4%
8%
7%
US
Taylor Morrison Home Corp
NYSE:TMHC
7.2B USD
14%
8%
14%
10%
Country US
Market Cap 60.4B USD
ROE
22%
ROA
15%
ROCE
24%
ROIC
17%
Country US
Market Cap 50B USD
ROE
16%
ROA
11%
ROCE
16%
ROIC
14%
Country US
Market Cap 34.8B EUR
ROE
22%
ROA
15%
ROCE
24%
ROIC
17%
Country US
Market Cap 29.4B USD
ROE
40%
ROA
26%
ROCE
41%
ROIC
50%
Country US
Market Cap 29B USD
ROE
27%
ROA
18%
ROCE
29%
ROIC
20%
Country JP
Market Cap 2.6T JPY
ROE
13%
ROA
6%
ROCE
12%
ROIC
7%
Country US
Market Cap 15.1B USD
ROE
22%
ROA
12%
ROCE
20%
ROIC
13%
Country US
Market Cap 11.8B USD
ROE
27%
ROA
13%
ROCE
22%
ROIC
17%
Country JP
Market Cap 1.3T JPY
ROE
14%
ROA
6%
ROCE
14%
ROIC
8%
Country UK
Market Cap 5.9B GBP
ROE
6%
ROA
4%
ROCE
8%
ROIC
7%
Country US
Market Cap 7.2B USD
ROE
14%
ROA
8%
ROCE
14%
ROIC
10%

Free Cash Flow

Free cash flow (FCF) is the money a company has left over after paying its operating expenses and capital expenditures. The more free cash flow a company has, the more it can allocate to dividends, paying down debt, and growth opportunities.

If a company has a decreasing free cash flow, that is not necessarily bad if the company is investing in its growth.

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