D.R. Horton: A compelling opportunity for value investors

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D.R. Horton, Inc., a leading homebuilder in the United States, offers an opportunity for value investors interested in the homebuilding industry. The company has a strong balance sheet with little debt and a healthy cash position.

In addition, D.R. Horton is trading at a significant discount to its book value and has a history of increasing its dividend. The current market environment is ripe with opportunity for value investors. With the overall market down significantly from its highs, many quality companies are trading at significant discounts. D.R. Horton is one such company. The company has a strong balance sheet, with little debt and a healthy cash position. In addition, D.R. Horton is trading at a significant discount to its book value. The company has a history of increasing its dividend, which provides income-oriented investors with an attractive option.

Stock Price

D.r. Horton Stock Intrinsic Value – On Tuesday, D.R. ($NYSE:DHI) Horton stock opened at $71.9 and closed at $72.4, up by 3.4% from last closing price of 70.0. D.R. Horton is the largest homebuilder in the United States by market share.

The company reported strong fiscal third-quarter results, with revenues and profits both coming in ahead of analyst expectations. The company’s strong results were driven by continued growth in its homebuilding operations.

VI Analysis – D.r. Horton Stock Intrinsic Value

D.R. Horton’s fundamentals reflect its long-term potential, and the company’s intrinsic value is around $96.6 per share. The stock is currently traded at $72.4, representing a 25% discount to its intrinsic value.

VI Peers

The competition in the homebuilding industry is fierce, with many large companies vying for market share. D.R. Horton Inc is one of the largest homebuilders in the United States, and it competes against other large homebuilders such as PulteGroup Inc, Toll Brothers Inc, and StoneMor Inc.

– PulteGroup Inc ($NYSE:PHM)

PulteGroup is one of the largest homebuilders in the United States. The company has a market cap of $9.17 billion as of 2022 and a return on equity of 24.25%. PulteGroup builds homes for a variety of buyers, including first-time buyers, move-up buyers, and active adults. The company also has a financial services arm that provides mortgage and title services. PulteGroup has operations in more than 50 markets across the United States.

– Toll Brothers Inc ($NYSE:TOL)

Toll Brothers Inc is a homebuilding company that was founded in 1967. The company is headquartered in Horsham, Pennsylvania, and it operates in the United States and Canada. As of 2022, the company has a market cap of 4.88B and a Return on Equity of 15.37%. The company builds single-family detached homes, townhomes, and condominiums. It also develops master-planned communities.

– StoneMor Inc ($NYSE:STON)

StoneMor Inc. is a publicly traded death care company headquartered in Trevose, Pennsylvania. The company operates funeral homes, cemeteries, and cremation facilities in the United States. StoneMor was founded in 1996 and became a publicly traded company in 2004. As of 2018, the company operated 304 locations in 27 states and Puerto Rico.

Summary

D.R. Horton has been a strong performer in recent years, with its stock price rising steadily. The company’s financials are solid, with strong revenue and earnings growth. D.R. Horton is a well-established company with a strong track record, making it an attractive investment for value investors.