Should I Buy DHI Stock in 2026?

Data-driven analysis and honest assessment for DR Horton Inc

Analysis Updated:
HOLDMixed signals - suitable for existing holders

Current Price: $159.71P/E: 13.6

Decision Score

5.5/10

Hold

Based on 6 fundamental factors

Score Breakdown:

Valuation (20%)8/10

Attractive P/E of 13.6

Growth (20%)3/10

Declining -0%

Profitability (20%)4/10

Thin margins (0% net)

Financial Health (15%)5/10

Financial health data limited

Cash Flow (15%)8/10

Strong FCF yield of 7.3%

Insider Activity (10%)5/10

No recent insider activity

Key Investment Metrics

Current Price

$159.71

P/E Ratio

13.58

Revenue Growth

-0.0%

Profit Margin

0.1%

Market Cap

$45.9B

Dividend Yield

0.01%

How DHI Compares to Competitors

Understanding how DHI stacks up against peers helps inform your investment decision.

How DHI Compares to Peers

Upcoming Events for DHI

+5 Reasons TO Buy DHI

1. Attractively valued at 13.6x earnings

moderate

A P/E ratio of 13.6 is below the market average of ~20x, suggesting the stock may be undervalued.

2. High free cash flow yield of 7.3%

moderate

FCF yield above 5% means substantial cash generation for dividends, buybacks, or reinvestment.

-5 Reasons NOT to Buy DHI

1. Thin profit margins of 0.1%

high risk

Low margins provide little cushion against cost increases or pricing pressure.

2. Revenue declining 0%

medium risk

Shrinking revenue suggests loss of market share or weakening demand. Turnarounds are difficult.

3. Low gross margins of 23%

medium risk

Margins below 30% indicate commodity-like pricing and input cost vulnerability.

Who Should Buy DHI?

Investment Profile

Risk Level

Medium

Recommended Holding Period

3-5 years

Best For:

  • Value Investors

    P/E of 13.6 offers margin of safety

Not Suitable For:

  • Growth Investors

    Limited -0% growth may disappoint

  • Income-Focused Retirees

    Low 0.0% yield

Consider These Alternatives

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Pro tip: Compare DHI directly with competitors using our comparison tool to see which stock better fits your criteria.

Get the Full Picture

Access AI-powered insights, DCF valuations, insider trading data, and real-time analysis for DHI

Frequently Asked Questions

What is DHI stock price today?

DHI (DR Horton Inc) stock is trading at $159.71 as of the latest market data. Stock prices update in real-time during market hours (9:30 AM - 4:00 PM ET).

Is DHI stock going up or down today?

DHI stock price movements are influenced by market conditions, news, earnings reports, and investor sentiment. Check our live dashboard for real-time price changes and technical indicators.

Should I buy DHI stock now?

The decision to buy DHI depends on your investment strategy, risk tolerance, and financial goals. Our AI analysis evaluates fundamentals, valuation metrics, growth prospects, and market conditions to help inform your decision.

Is DHI a buy, hold, or sell right now?

Our AI-powered analysis provides buy/hold/sell recommendations for DHI based on multiple factors including valuation, growth metrics, technical indicators, and analyst consensus. Visit our dashboard for the latest recommendation.

Is DHI stock overvalued or undervalued?

DHI currently trades at a P/E ratio of 13.58, which may suggest attractive valuation. Our DCF calculator provides intrinsic value estimates to help determine if DHI is fairly priced.

What is DHI's P/E ratio?

DHI has a price-to-earnings (P/E) ratio of 13.58, which measures how much investors are willing to pay per dollar of earnings. Compare this to industry peers and historical averages for context.

What is DHI's market cap?

DHI (DR Horton Inc) has a market capitalization of $45.94 billion, making it a mid-cap stock.

What is DHI's price to book ratio?

DHI trades at a price-to-book (P/B) ratio of 1.89, which compares the stock price to the company's book value per share. A P/B below 1.0 may indicate undervaluation, while above 3.0 may suggest premium pricing.

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Disclaimer

This analysis is for informational purposes only and should not be considered financial advice. The decision score and recommendations are based on quantitative factors and do not account for all risks, your personal financial situation, or qualitative factors. Always do your own research and consider consulting with a financial advisor before making investment decisions.