Should you buy D.R. Horton stock? (May 2024)

Published first at https://www.3minutebreakdowns.com D.R. Horton stock analysis. Ticker: $DHI Over the past 10 years, homebuilder DR Horton has gone up over 600%. Despite that impressive run, this is one of the cheapest stocks on the market. Based on the latest share price, DR Horton has a market cap of 48.4 billion dollars with 3 billion of cash and 6 billion of debt. Revenue over the last 12 months comes to 37 billion with 5 billion of net income and 6.5 billion of ebitda. So Horton is valued at under 10 times earnings and under 8 times ebitda. Those kinds of multiples are usually reserved for companies that aren’t growing but Horton is. Revenue has grown 18% per year for the last 10 years, net income has grown an impressive 25% per year. This performance can be attributed to several factors. First, the US is dealing with a massive housing shortage. The 2008 financial crisis led to severe underbuilding that is still being felt today and it’s thought the US is short an estimated 3-4 million homes. Second, high interest rates have caused parts of the housing market to freeze up. For many homebuyers, new builds are their only option. Horton’s CEO admitted in February that he’d never seen such a tight market. Lastly, Horton’s scale and asset-light business model has allowed it to outmaneuver smaller builders. #investing #stocks #drhorton #3mb