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DR Horton Inc
DHI : NYSE : Industrial Goods

$27.23 0.43 | 1.60%
Today's Range: 26.88 - 27.35
Avg. Daily Volume: 5,689,800
05/17/13 - 4:02 PM ET

Financial Analysis


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 ($mil)1433.9963.6
EBITDA ($mil)147.150.2
EBIT ($mil)141.845.4
Net Income ($mil)111.040.6


Balance Sheet Q2 FY13 Q2 FY12
Cash & Equiv. ($mil)1205.01019.6
Total Assets ($mil)8232.55484.9
Total Debt ($mil)3273.01756.7
Equity ($mil)3741.02700.0


Profitability Q2 FY13 Q2 FY12
Gross Profit Margin23.0120.48
EBITDA Margin10.255.2
Operating Margin9.894.71
Sales Turnover0.630.72
Return on Assets12.942.41
Return on Equity28.474.91
Debt Q2 FY13 Q2 FY12
Current Ratio0.00.0
Debt/Capital0.470.39
Interest Expense43.029.0
Interest Coverage3.31.57


Share Data Q2 FY13 Q2 FY12
Shares outstanding (mil)322.8318.37
Div / share0.00.04
EPS0.320.13
Book value / share11.598.48
Institutional Own % n/a n/a
Avg Daily Volume5752921.06159072.0

Valuation


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
1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
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.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
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.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
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.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
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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