Definitive Analysis
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Definitive Analysis

Financial Statements

Ticker

Industry

Sector

D.R. Horton, Inc. (DHI)

Company Dividend Discount ModelIndustry: Residential ConstructionSector: Consumer Cyclical

Valuation Snapshot

Stable Growth$311.90 - $1,007.33$504.65
Multi-Stage$200.67 - $219.46$209.89
Blended Fair Value$357.27
Current Price$169.47
Upside110.82%
DecisionBuy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2025202420232022202120202019201820172016
DPS14.09%18.37%1.611.281.111.030.940.830.730.610.490.39
YoY Growth--25.20%15.83%7.80%9.40%13.01%14.59%18.58%25.94%26.03%29.59%
Dividend Yield--0.95%0.92%0.73%1.15%0.87%1.21%1.37%1.76%0.95%1.41%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)3,585.20
(-) Cash Dividends Paid (M)494.80
(=) Cash Retained (M)3,090.40
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)717.04448.15268.89
Cash Retained (M)3,090.403,090.403,090.40
(-) Cash Required (M)-717.04-448.15-268.89
(=) Excess Retained (M)2,373.362,642.252,821.51
(/) Shares Outstanding (M)308.13308.13308.13
(=) Excess Retained per Share7.708.589.16
LTM Dividend per Share1.611.611.61
(+) Excess Retained per Share7.708.589.16
(=) Adjusted Dividend9.3110.1810.76
WACC / Discount Rate8.65%8.65%8.65%
Growth Rate5.50%6.50%7.50%
Fair Value$311.90$504.65$1,007.33
Upside / Downside84.04%197.78%494.40%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)3,585.203,818.244,066.424,330.744,612.244,912.035,059.40
Payout Ratio13.80%29.04%44.28%59.52%74.76%90.00%92.50%
Projected Dividends (M)494.801,108.851,800.642,577.683,448.124,420.834,679.94

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate8.65%8.65%8.65%
Growth Rate5.50%6.50%7.50%
Year 1 PV (M)1,011.001,020.591,030.17
Year 2 PV (M)1,496.871,525.381,554.16
Year 3 PV (M)1,953.732,009.822,066.96
Year 4 PV (M)2,382.862,474.492,568.75
Year 5 PV (M)2,785.472,920.013,059.69
PV of Terminal Value (M)52,203.0154,724.4457,342.36
Equity Value (M)61,832.9464,674.7267,622.11
Shares Outstanding (M)308.13308.13308.13
Fair Value$200.67$209.89$219.46
Upside / Downside18.41%23.85%29.50%

High-Yield Dividend Screener

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