D.R. Horton DHI
Builder of single-family homes in the US, with rental and financial services businesses. D.R. Horton trades at a P/E of 13.49 and a FCF yield of 6.10%, but earnings growth is negative (-4.80%) and the housing market is weak, with home sales below 4 million. Berkshire Hathaway's accumulation (10% of the company) is a positive signal supporting the valuation.
Detailed metrics
Market and fundamental data as of the analysis date.
Full AI report
Generated automatically from the metrics, the macro context and the company's news.
Builder of single-family homes in the US, with rental and financial services businesses. D.R. Horton trades at a P/E of 13.49 and a FCF yield of 6.10%, but earnings growth is negative (-4.80%) and the housing market is weak, with home sales below 4 million. Berkshire Hathaway's accumulation (10% of the company) is a positive signal supporting the valuation.
Score by category
| Category | Score |
|---|---|
| Financial health | 6.9 |
| Quality / Moat | 5.5 |
| Valuation | 7.5 |
| Growth | 3.3 |
| Dividend | 4.7 |
| Momentum | 4.3 |
| Risk & Context | 4.0 |
OVERALL SCORE: 5.5/10
Context and risks
The rise in 10-year Treasury yields (5.17%) makes mortgage financing more expensive, pressuring housing demand. The drop in home sales below 4 million confirms the impact on the market.
News considered in the analysis
- Berkshire Now Owns About 10% of Lennar — La acumulación de Berkshire Hathaway es una señal de confianza de un inversor de gran prestigio, lo que respalda la valoración y la percepción de calidad.
- Berkshire Hathaway Doubles Down on Housing Stock — La duplicación de la participación de Berkshire en Lennar refuerza la tesis de inversión y sugiere que el mercado puede estar infravalorando el valor de los activos de la compañía.
- Is Lennar Stock Really On Sale? — El análisis especulativo sobre si la acción está en oferta no aporta información concreta, pero refleja el debate sobre la valoración actual.
- Why Lennar Is Getting Hit Worse Than D.R. Horton in This Crummy Housing Market — El artículo señala una debilidad relativa frente a su competidor, lo que puede indicar problemas específicos de la empresa en un mercado débil.
- ‘This Is the Pain That Comes With Bringing Inflation Down’: Home Sales Drop Below 4 Million — La caída de las ventas de viviendas por debajo de 4 millones refleja un mercado inmobiliario débil, lo que afecta directamente a la demanda de viviendas nuevas de Lennar.
Verdict: Hold, with a positive bias due to Berkshire's backing, but monitoring the housing market and interest rates.
Main risk: The main risk is the weakness in the housing market, reflected in falling home sales and rising interest rates, which could prolong negative earnings growth.
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