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DHI D.R. Horton

D.R. Horton, Inc. is a home construction company incorporated in Delaware and headquartered in Arlington, Texas. Since 2002, the company has been the largest homebuilder by volume in the United States. The company ranked number 194 on the 2019 Fortune 500 list of the largest United States corporations by revenue. The company operates in 90 markets in 29 states. D.R. Horton operates four brands: D.R. Horton, Emerald Homes, Express Homes, and Freedom Homes. Express Homes is tailored to entry-level buyers while the Emerald Homes brand is sold as luxury real estate. Freedom Homes caters to the active adult community.

Company profile

Ticker
DHI
Exchange
CEO
David Auld
Employees
Incorporated
Location
Fiscal year end
Industry (SIC)
SEC CIK
IRS number
752386963

DHI stock data

(
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Calendar

27 Jan 21
17 Apr 21
30 Sep 21
Quarter (USD)
Dec 20 Jun 20 Mar 20 Dec 19
Revenue
Cost of revenue
Operating income
Operating margin
Net income
Net profit margin
Cash on hand
Change in cash
Diluted EPS
Annual (USD)
Sep 20 Sep 19 Sep 18 Sep 17
Revenue
Cost of revenue
Operating income
Operating margin
Net income
Net profit margin
Cash on hand
Change in cash
Diluted EPS

Financial data from D.R. Horton earnings reports.

Cash burn rate (estimated) Burn method: Change in cash Burn method: Operating income/loss Burn method: FCF (opex + capex)
Last Q Avg 4Q Last Q Avg 4Q Last Q Avg 4Q
Cash on hand (at last report) 2.47B 2.47B 2.47B 2.47B 2.47B
Cash burn (monthly) (positive/no burn) (positive/no burn) (positive/no burn) 84.03M 21.01M
Cash used (since last report) n/a n/a n/a 298.9M 74.72M
Cash remaining n/a n/a n/a 2.18B 2.4B
Runway (months of cash) n/a n/a n/a 25.9 114.2

Beta Read what these cash burn values mean

Date Owner Security Transaction Code Indirect 10b5-1 $Price #Shares $Value #Remaining
31 Mar 21 Horton Donald R Common Stock Payment of exercise Dispose F No No 89.12 305,109 27.19M 294,891
31 Mar 21 Horton Donald R Common Stock Option exercise Aquire M No No 23.86 150,000 3.58M 600,000
31 Mar 21 Horton Donald R Common Stock Option exercise Aquire M No No 23.8 150,000 3.57M 450,000
31 Mar 21 Horton Donald R Common Stock Option exercise Aquire M No No 9.97 300,000 2.99M 300,000
31 Mar 21 Horton Donald R Stock Option Common Stock Option exercise Dispose M No No 23.86 150,000 3.58M 0
31 Mar 21 Horton Donald R Stock Option Common Stock Option exercise Dispose M No No 23.8 150,000 3.57M 0
31 Mar 21 Horton Donald R Stock Option Common Stock Option exercise Dispose M No No 9.97 300,000 2.99M 0
30 Mar 21 Horton Donald R Common Stock Gift Dispose G No No 0 47,195 0 0
23 Mar 21 Hewatt Michael W Common Stock Sell Dispose S No No 85.3029 5,000 426.51K 5,342
23 Mar 21 Hewatt Michael W Common Stock Option exercise Aquire M No No 9.97 5,000 49.85K 10,342

Data for the last complete 13F reporting period. To see the most recent changes to ownership, click the ownership history button above.

86.6% owned by funds/institutions
13F holders
Current Prev Q Change
Total holders 808 736 +9.8%
Opened positions 150 110 +36.4%
Closed positions 78 75 +4.0%
Increased positions 279 248 +12.5%
Reduced positions 296 294 +0.7%
13F shares
Current Prev Q Change
Total value 21.8B 23.12B -5.7%
Total shares 315.12M 296.33M +6.3%
Total puts 4.38M 3.37M +29.8%
Total calls 5.62M 4.82M +16.6%
Total put/call ratio 0.8 0.7 +11.3%
Largest owners
Shares Value Change
Vanguard 35.71M $2.46B -1.2%
BLK Blackrock 33.68M $2.32B +4.6%
Horton Family Limited Partnership 23.9M $1.65B NEW
FMR 17.27M $1.19B +0.1%
Sanders Capital 15.57M $1.16B +1.2%
STT State Street 15.57M $1.07B -3.2%
Egerton Capital 10.56M $727.96M +1.2%
Capital Research Global Investors 6.77M $466.76M -39.7%
Capital World Investors 6.45M $444.79M +0.0%
Geode Capital Management 6.22M $427.99M +1.7%
Largest transactions
Shares Bought/sold Change
Horton Family Limited Partnership 23.9M +23.9M NEW
Capital Research Global Investors 6.77M -4.45M -39.7%
Norges Bank 3.47M +3.47M NEW
GQG Partners 0 -2.32M EXIT
Wellington Management 2.24M -1.51M -40.3%
BLK Blackrock 33.68M +1.49M +4.6%
GS Goldman Sachs 1.04M -1.27M -55.1%
Millennium Management 1.77M +1.12M +174.6%
IVZ Invesco 4.64M -1.08M -18.9%
Citadel Advisors 1.01M +1.01M NEW

Financial report summary

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Risks
  • The homebuilding and lot development 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 and lot 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.
  • 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.
  • Supply shortages and other risks related to acquiring land, building materials and skilled labor could increase our costs and delay deliveries.
  • 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.
  • Homebuilding, lot development and financial services are 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.
  • 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 2020, our number of homes closed and home sales revenues increased 15% and 16%, respectively, compared to the prior year, and our consolidated revenues increased 15% to $20.3 billion compared to $17.6 billion in the prior year. Our pre-tax income was $3.0 billion in fiscal 2020 compared to $2.1 billion in fiscal 2019, and our pre-tax operating margin was 14.7% compared to 12.1%. Net income was $2.4 billion in fiscal 2020 compared to $1.6 billion in the prior year. The current year results include a tax benefit of $93.4 million related to the retroactive reinstatement of the federal energy efficient homes tax credit.
  • Cash provided by our homebuilding operations was $1.9 billion in fiscal 2020 compared to $1.4 billion in fiscal 2019. In fiscal 2020, our return on equity (ROE) was 22.1% compared to 17.2% in fiscal 2019, and our homebuilding return on inventory (ROI) was 24.6% compared to 18.1%. 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.
  • Within our homebuilding land and lot portfolio, our lots controlled under purchase contracts represent 70% of the lots owned and controlled at September 30, 2020 compared to 60% at September 30, 2019. Our relationship with Forestar and expanded relationships with other land developers across the country have allowed us to increase the controlled portion of our finished lot pipeline.
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