0.43 | 1.60%
D R HORTON INC's gross profit margin for the second quarter of its fiscal year 2013 has increased when compared to the same period a year ago. The company has grown sales and net income significantly, outpacing the average growth rates of competitors within its industry.
At the same time, stockholders' equity ("net worth") has greatly increased by 38.55% from the same quarter last year.
| Income Statement | Q2 FY13 | Q2 FY12 |
|---|---|---|
| Net Sales ($mil) | 1433.9 | 963.6 |
| EBITDA ($mil) | 147.1 | 50.2 |
| EBIT ($mil) | 141.8 | 45.4 |
| Net Income ($mil) | 111.0 | 40.6 |
| Balance Sheet | Q2 FY13 | Q2 FY12 |
|---|---|---|
| Cash & Equiv. ($mil) | 1205.0 | 1019.6 |
| Total Assets ($mil) | 8232.5 | 5484.9 |
| Total Debt ($mil) | 3273.0 | 1756.7 |
| Equity ($mil) | 3741.0 | 2700.0 |
| Profitability | Q2 FY13 | Q2 FY12 |
|---|---|---|
| Gross Profit Margin | 23.01 | 20.48 |
| EBITDA Margin | 10.25 | 5.2 |
| Operating Margin | 9.89 | 4.71 |
| Sales Turnover | 0.63 | 0.72 |
| Return on Assets | 12.94 | 2.41 |
| Return on Equity | 28.47 | 4.91 |
| Debt | Q2 FY13 | Q2 FY12 |
|---|---|---|
| Current Ratio | 0.0 | 0.0 |
| Debt/Capital | 0.47 | 0.39 |
| Interest Expense | 43.0 | 29.0 |
| Interest Coverage | 3.3 | 1.57 |
| Share Data | Q2 FY13 | Q2 FY12 |
|---|---|---|
| Shares outstanding (mil) | 322.8 | 318.37 |
| Div / share | 0.0 | 0.04 |
| EPS | 0.32 | 0.13 |
| Book value / share | 11.59 | 8.48 |
| Institutional Own % | n/a | n/a |
| Avg Daily Volume | 5752921.0 | 6159072.0 |
BUY. The current P/E ratio indicates a significant discount compared to an average of 21.04 for the Household Durables industry and a discount compared to the S&P 500 average of 18.80. To use another comparison, its price-to-book ratio of 2.31 indicates valuation on par with the S&P 500 average of 2.40 and a significant discount versus the industry average of 4.71. The current price-to-sales ratio is above both the S&P 500 average and the industry average, indicating a premium. Upon assessment of these and other key valuation criteria, D R HORTON INC proves to trade at a discount to investment alternatives within the industry.
| Price/Earnings |
|
Price/Cash Flow |
| |||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| DHI 8.82 | Peers 21.04 | DHI NM | Peers 14.70 | |||||||||||||||||||||
|
Discount. A lower P/E ratio than its peers can signify a less expensive stock or lower growth expectations. DHI is trading at a significant discount to its peers. |
Neutral. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures. DHI's P/CF is negative making the measure meaningless. |
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| Price/Projected Earnings |
|
Price to Earnings/Growth |
|
|||||||||||||||||||||
| DHI 15.87 | Peers 21.30 | DHI NM | Peers 0.95 | |||||||||||||||||||||
|
Average. An average price-to-projected earnings ratio can signify an industry neutral stock price and average future growth expectations. DHI is trading at a valuation on par with its peers. |
Neutral. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples. DHI's negative PEG ratio makes this valuation measure meaningless. |
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| Price/Book |
|
Earnings Growth |
|
|||||||||||||||||||||
| DHI 2.31 | Peers 4.71 | DHI 623.80 | Peers 448.09 | |||||||||||||||||||||
|
Discount. A lower price-to-book ratio makes a stock more attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet. DHI is trading at a significant discount to its peers. |
Higher. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios. DHI is expected to have an earnings growth rate that significantly exceeds its peers. |
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| Price/Sales |
|
Sales Growth |
|
|||||||||||||||||||||
| DHI 1.66 | Peers 1.33 | DHI 30.84 | Peers 13.04 | |||||||||||||||||||||
|
Premium. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales. DHI is trading at a significant premium to its industry. |
Higher. A sales growth rate that exceeds the industry implies that a company is gaining market share. DHI has a sales growth rate that significantly exceeds its peers. |
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