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D.R. Horton (DHI)

D.R. Horton, Inc., America's Builder, has been the largest homebuilder by volume in the United States since 2002. Founded in 1978 in Fort Worth, Texas, D.R. Horton has operations in 88 markets in 29 states across the United States and closed 65,388 homes during its fiscal year ended September 30, 2020. The Company is engaged in the construction and sale of high-quality homes through its diverse brand portfolio that includes D.R. Horton, Emerald Homes, Express Homes and Freedom Homes ranging from $150,000 to over $1,000,000. D.R. Horton also provides mortgage financing, title services and insurance agency services for homebuyers through its mortgage, title and insurance subsidiaries.

Company profile

Ticker
DHI
Exchange
CEO
David Auld
Employees
Incorporated
Location
Fiscal year end
Industry (SIC)
SEC CIK
Subsidiaries
ANN & 215, LLC • Austin Data, Inc. • BP456, Inc. • C. Richard Dobson Builders, Inc. • Cane Island, LLC • CH Funding, LLC • CH Investments of Texas, Inc. • CHM Partners, L.P. • CHTEX of Texas, Inc. • The Club at Cobblestone, LLC ...
IRS number
752386963

DHI stock data

Calendar

22 Jul 22
12 Aug 22
30 Sep 22
Quarter (USD) Jun 22 Mar 22 Dec 21 Sep 21
Revenue
Cost of revenue
Operating income
Operating margin
Net income
Net profit margin
Cash on hand
Change in cash
Diluted EPS
Annual (USD) Sep 21 Sep 20 Sep 19 Sep 18
Revenue
Cost of revenue
Operating income
Operating margin
Net income
Net profit margin
Cash on hand
Change in cash
Diluted EPS
Cash burn rate (est.) Burn method: Change in cash Burn method: Operating income Burn method: FCF (opex + capex)
Last Q Avg 4Q Last Q Avg 4Q Last Q Avg 4Q
Cash on hand (at last report) 1.68B 1.68B 1.68B 1.68B 1.68B 1.68B
Cash burn (monthly) 1.6M 23.73M (no burn) (no burn) (no burn) (no burn)
Cash used (since last report) 2.32M 34.36M n/a n/a n/a n/a
Cash remaining 1.68B 1.65B n/a n/a n/a n/a
Runway (months of cash) 1051.2 69.5 n/a n/a n/a n/a

Beta Read what these cash burn values mean

Date Owner Security Transaction Code Indirect 10b5-1 $Price #Shares $Value #Remaining
2 Aug 22 Hewatt Michael W Common Stock Sell Dispose S No No 77.0711 4,000 308.28K 1,067
22 Jul 22 Odom Aron M. Common Stock Sell Dispose S No No 77.7188 5,000 388.59K 3,024
25 May 22 Hewatt Michael W Common Stock Sell Dispose S No No 67.97 1,948 132.41K 5,067
20 Apr 22 Benjamin Carson SR Common Stock Option exercise Acquire M No No 0 544 0 544
20 Apr 22 Benjamin Carson SR RSU Common Stock Option exercise Dispose M No No 0 544 0 2,176
19 Apr 22 Horton Donald R Common Stock Payment of exercise Dispose F No No 74.12 17,948 1.33M 383,189
19 Apr 22 Horton Donald R Common Stock Grant Acquire A No No 0 45,609 0 401,137
86.3% owned by funds/institutions
13F holders Current Prev Q Change
Total holders 870 957 -9.1%
Opened positions 94 180 -47.8%
Closed positions 181 87 +108.0%
Increased positions 354 326 +8.6%
Reduced positions 311 320 -2.8%
13F shares Current Prev Q Change
Total value 23.02B 33.12B -30.5%
Total shares 299.76M 305.13M -1.8%
Total puts 3.71M 5.29M -29.9%
Total calls 5.7M 6.29M -9.4%
Total put/call ratio 0.7 0.8 -22.6%
Largest owners Shares Value Change
Vanguard 35.9M $2.68B +1.1%
BLK Blackrock 31.65M $2.36B -9.0%
Horton Family Limited Partnership 19.44M $2.11B 0.0%
Capital World Investors 17.82M $1.33B +176.2%
STT State Street 14.76M $1.1B -4.5%
Egerton Capital 7.82M $582.59M -7.2%
Geode Capital Management 6.38M $474.08M -1.6%
Dimensional Fund Advisors 6.01M $448.29M +2.4%
FMR 5.67M $422.62M -47.7%
Allspring Global Investments 5.34M $397.73M +13.7%
Largest transactions Shares Bought/sold Change
Capital World Investors 17.82M +11.37M +176.2%
FMR 5.67M -5.18M -47.7%
BEN Franklin Resources 4.7M +4.36M +1269.5%
Norges Bank 0 -3.32M EXIT
BLK Blackrock 31.65M -3.15M -9.0%
Long Pond Capital 2.41M +2.41M NEW
Parnassus Investments 2.18M +2.18M NEW
BAC Bank Of America 5.09M -1.79M -26.0%
First Trust Advisors 413.32K -1.6M -79.4%
JPM JPMorgan Chase & Co. 2.08M -1.59M -43.3%

Financial report summary

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Risks
  • The homebuilding, lot development and rental housing industries are cyclical and affected by changes in economic, real estate or other conditions that could adversely affect our business or financial results.
  • Constriction of the credit and public capital markets could limit our ability to access capital and increase our costs of capital.
  • Reductions in the availability of mortgage financing provided by government agencies, changes in government financing programs, a decrease in our ability to sell mortgage loans on attractive terms or an increase in mortgage interest rates could decrease our buyers’ ability to obtain financing and adversely affect our business or financial results.
  • The risks associated with our land, lot and rental inventory could adversely affect our business or financial results.
  • We cannot make any assurances that our growth strategies, acquisitions or investments will be successful or will not expose us to additional risks or other negative consequences.
  • Our business and financial results could be adversely affected by significant inflation, higher interest rates or deflation.
  • Supply shortages and other risks related to acquiring land, building materials and skilled labor could increase our costs and delay deliveries.
  • Public health issues such as a major epidemic or pandemic could adversely affect our business or financial results.
  • Our business and financial results could be adversely affected by weather conditions and natural disasters.
  • Homebuilding is subject to home warranty and construction defect claims in the ordinary course of business that can be significant.
  • A health and safety incident relating to our operations could be costly in terms of potential liability and reputational damage.
  • We are required to obtain performance bonds, the unavailability of which could adversely affect our results of operations and cash flows.
  • Increases in the costs of owning a home could prevent potential customers from buying our homes and adversely affect our business or financial results.
  • Governmental regulations and environmental matters could increase the cost and limit the availability of our land development and homebuilding projects and adversely affect our business or financial results.
  • Governmental regulation of our financial services operations could adversely affect our business or financial results.
  • We operate in competitive industries, and competitive conditions could adversely affect our business or financial results.
  • We have significant amounts of debt and may incur additional debt, which could affect our financial health and our ability to raise additional capital to fund our operations or potential acquisitions.
  • Servicing our debt requires a significant amount of cash, and we or our subsidiaries may not have sufficient cash flow from our respective businesses to pay our substantial debt.
  • The instruments governing our and our subsidiaries’ indebtedness impose certain restrictions on our and our subsidiaries’ business, and the ability of us and our subsidiaries to comply with related covenants, restrictions or limitations could adversely affect our and our subsidiaries’ financial condition or operating flexibility.
  • Our access to capital and our ability to obtain additional financing could be affected by any downgrade of our debt ratings.
  • The instruments governing our indebtedness contain change of control provisions which could affect the timing of repayment.
  • Damage to our corporate reputation or brands from negative publicity could adversely affect our business, financial results and/or stock price.
  • Our business could be adversely affected by the loss of key personnel.
  • Our business could be negatively impacted as a result of actions by activist stockholders or others.
  • Information technology failures, data security breaches, and the failure to satisfy privacy and data protection laws and regulations could harm our business.
Management Discussion
  • In fiscal 2021, our number of homes closed and home sales revenues increased 25% and 35%, respectively, compared to the prior year, and our consolidated revenues increased 37% to $27.8 billion compared to $20.3 billion in the prior year. Our pre-tax income was $5.4 billion in fiscal 2021 compared to $3.0 billion in fiscal 2020, and our pre-tax operating margin was 19.3% compared to 14.7%. Net income was $4.2 billion in fiscal 2021 compared to $2.4 billion in fiscal 2020, and our diluted earnings per share was $11.41 compared to $6.41.
  • Cash provided by our homebuilding operations was $1.2 billion in fiscal 2021 compared to $1.9 billion in fiscal 2020. In fiscal 2021, our return on equity (ROE) was 31.6% compared to 22.1% in fiscal 2020, and our homebuilding return on inventory (ROI) was 37.9% compared to 24.6%. ROE is calculated as net income attributable to D.R. Horton for the year divided by average stockholders’ equity, where average stockholders’ equity is the sum of ending stockholders’ equity balances of the trailing five quarters divided by five. Homebuilding ROI is calculated as homebuilding pre-tax income for the year divided by average inventory, where average inventory is the sum of ending homebuilding inventory balances for the trailing five quarters divided by five.
  • During March 2020, the impacts of the COVID-19 pandemic and the related widespread reductions in economic activity across the United States began to adversely affect our business. As economic activity resumed and restrictive orders relating to COVID-19 were eased, demand for our homes improved significantly during the remainder of fiscal 2020 and remained strong throughout fiscal 2021. We believe the increase in demand has been fueled by historically low interest rates on mortgage loans and the limited supply of homes at affordable price points across most of our markets. We are well-positioned for increased demand with our affordable product offerings, lot supply and housing inventory. However, multiple disruptions in the supply chain, combined with the improvement in economic conditions and strong demand for new homes, have resulted in shortages in certain building materials and tightness in the labor market, which has caused our construction cycle to lengthen. We have slowed our home sales pace to more closely align with our production levels, and we are selling homes later in the construction cycle when we have more certainty regarding the home close date for our homebuyers. Based on the current availability of labor and materials, the stage of completion of our current homes in inventory, production schedules and capacity, we expect to continue restricting the pace of our sales orders in many of our communities in the near term to match our production levels.

Content analysis

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New words: elevated, elongation, essentially, expansion, finalized, foreseeable, Intangible, Louisville, moderation, Palm, preliminary
Removed: closely, Lake, multiple, Salt, stage