Latest news with #DRHorton
Yahoo
20 hours ago
- Business
- Yahoo
Is D.R. Horton, Inc.'s (NYSE:DHI) Recent Stock Performance Tethered To Its Strong Fundamentals?
Most readers would already be aware that D.R. Horton's (NYSE:DHI) stock increased significantly by 13% over the past three months. Given the company's impressive performance, we decided to study its financial indicators more closely as a company's financial health over the long-term usually dictates market outcomes. Particularly, we will be paying attention to D.R. Horton's ROE today. Return on equity or ROE is a key measure used to assess how efficiently a company's management is utilizing the company's capital. In short, ROE shows the profit each dollar generates with respect to its shareholder investments. This technology could replace computers: discover the 20 stocks are working to make quantum computing a reality. The formula for return on equity is: Return on Equity = Net Profit (from continuing operations) ÷ Shareholders' Equity So, based on the above formula, the ROE for D.R. Horton is: 17% = US$4.3b ÷ US$25b (Based on the trailing twelve months to March 2025). The 'return' is the profit over the last twelve months. That means that for every $1 worth of shareholders' equity, the company generated $0.17 in profit. Check out our latest analysis for D.R. Horton We have already established that ROE serves as an efficient profit-generating gauge for a company's future earnings. We now need to evaluate how much profit the company reinvests or "retains" for future growth which then gives us an idea about the growth potential of the company. Generally speaking, other things being equal, firms with a high return on equity and profit retention, have a higher growth rate than firms that don't share these attributes. At first glance, D.R. Horton seems to have a decent ROE. Even when compared to the industry average of 15% the company's ROE looks quite decent. This probably goes some way in explaining D.R. Horton's moderate 12% growth over the past five years amongst other factors. We then performed a comparison between D.R. Horton's net income growth with the industry, which revealed that the company's growth is similar to the average industry growth of 11% in the same 5-year period. Earnings growth is an important metric to consider when valuing a stock. The investor should try to establish if the expected growth or decline in earnings, whichever the case may be, is priced in. This then helps them determine if the stock is placed for a bright or bleak future. One good indicator of expected earnings growth is the P/E ratio which determines the price the market is willing to pay for a stock based on its earnings prospects. So, you may want to check if D.R. Horton is trading on a high P/E or a low P/E, relative to its industry. In D.R. Horton's case, its respectable earnings growth can probably be explained by its low three-year median payout ratio of 7.2% (or a retention ratio of 93%), which suggests that the company is investing most of its profits to grow its business. Moreover, D.R. Horton is determined to keep sharing its profits with shareholders which we infer from its long history of paying a dividend for at least ten years. Our latest analyst data shows that the future payout ratio of the company is expected to rise to 13% over the next three years. However, the company's ROE is not expected to change by much despite the higher expected payout ratio. On the whole, we feel that D.R. Horton's performance has been quite good. Particularly, we like that the company is reinvesting heavily into its business, and at a high rate of return. Unsurprisingly, this has led to an impressive earnings growth. That being so, a study of the latest analyst forecasts show that the company is expected to see a slowdown in its future earnings growth. To know more about the latest analysts predictions for the company, check out this visualization of analyst forecasts for the company. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
06-07-2025
- Business
- Yahoo
New Camp Morrison plan could turn Newport News WWI-era industrial park into housing
NEWPORT NEWS — Vegetation has reclaimed the gravel drives separating the warehouses at Camp Morrison Industrial Park, which sit empty echoing a past before their rust and broken windows. Now, Newport News is considering a new plan to turn the vacant lot into hundreds of homes to boost housing availability. The roughly 110-acre site sits between railroad tracks and Warwick Village Shopping Center. It served as a World War I air service depot for the Army in 1917 before it replaced the temporary housing with warehouses in the 1930's and 1940's. The site is vacant, and research into revitalizing the area dates nearly 20 years. The Newport News Planning Commission opted in June to delay a vote to approve rezoning of the site so it could solicit more community feedback and to allow developer D.R. Horton to make adjustments to the plan. The proposal under consideration would have cleared the way for a 638-house community, including 201 single-family units, 237 townhomes, 96 duplexes and 56 quadplex units, along with wider 50 and 60-foot roads and open space with trails and a dog park. The plan is part of an broader effort by the city to significantly increase its housing availability. However, it is a departure from a community-involved 2013 master plan. The proposal included one less unit, with smaller homes than originally planned, and proffers including one that would allow developer D.R. Horton to use cheaper materials in its construction. 'I have received emails and a lot of phone calls. We still have some things to do,' planning commission member Bill Black said at the June 4 meeting. 'This is our last chance (to) make this right.' The commission will vote Aug. 6 on an updated proposal. Community feedback on the planned Morrison Station was split. The commission received more than a dozen emails opposing the project, and several speakers cited increased traffic, along with noise and safety concerns with the nearby railroad as reasons to reconsider. A recurring concern came with the lack of community involvement with a plan that changes the proffers set more than a decade ago. Newport News real estate agent Dana Robbins said she understands the need for additional housing in the city, and looks forward to seeing the area revitalized. But she said the changes turn their back on the community that worked to help shape the site's future. 'The request to discard the carefully negotiated 2013 proffers with a new set of conditions aimed at a higher-density development is something that unravels years of community input and planning,' Robbins said. 'The new proposal from D.R. Horton moves in the opposite direction of what was previously and thoughtfully approved.' Robbins said the new zoning, which includes smaller lots and looser architectural standards, would erode public trust in the name of financial benefit for developers. D.R. Horton has adjusted its proposal after hearing the community's concerns, according to spokesperson Jessica Hansen. The plan now includes an added member of the design committee to help represent the community, more green space and buffers for the railroad, clarified that the homeowner's association will enforce design guidelines in perpetuity and removed the use of an exterior insulation and finish system. 'Make a better life': Fort Monroe naturalization ceremony welcomes nearly 100 new citizens Norfolk housing authority chooses a developer for Calvert Square and Young Terrace FUSE Fest aims to give voice to unheard residents of a Norfolk neighborhood Newport News to crack down on short-term rental violations Judge voids Virginia Beach district-based election system, but not results 'Morrison Station is a special project, and we understand our responsibility to create a high-quality community for the city,' said Kyle Schnaufer, president for D.R. Horton's Southern Virginia division, in a statement. 'A few community members that attended the planning meeting voiced their concerns with the project. Their concerns are important, and we appreciate the planning commission deferring the vote to try to address them.' Schnaufer added that D.R. Horton had already conducted community meetings prior to the commission meeting to ensure the proposal aligned with community interests. Those community interests were reflected by several other speakers during the commission meeting. Many expressed excitement at the prospect of using new housing opportunities to retain Newport News residents and help support local businesses. Jamika Bivens told the commission her family was one of many that had to relocate out of Newport News due to a lack of housing, and the city sorely needs a new development to replace infrastructure that has spent years decaying. 'They become more than just an eyesore, they become a reminder of what happens when we stop investing in our neighborhoods,' Bivens said. 'Morrison Station isn't just a housing development. It's a symbol for something better.' Devlin Epding, 757-510-4037,
Yahoo
01-07-2025
- Business
- Yahoo
Earnings Preview: What to Expect From D.R. Horton's Report
Arlington, Texas-based D.R. Horton, Inc. (DHI) operates as a homebuilding company in East, North, Southeast, South Central, Southwest, and Northwest regions in the United States. With a market cap of $39.5 billion, the company is one of the leading national homebuilders, primarily engaged in the construction and sale of single-family houses both in the entry-level and move-up markets. The homebuilder is set to unveil its third-quarter results before the markets open on Tuesday, July 22. Ahead of the event, analysts expect DHI to report a non-GAAP earnings of $2.93 per share, down 28.5% from the profit of $4.10 per share reported in the year-ago quarter. Additionally, the company has surpassed the Street's bottom-line projections in two of the past four quarters, while missing on two other occasions. Jeff Bezos Unloads $5.4B in Amazon Shares: Should You Buy or Sell AMZN Stock Now? Elon Musk's Tesla Makes History With 'First Time That a Car Has Delivered Itself to Its Owner' This Defense Stock Could Be the Next Palantir. Should You Buy It Now? Get exclusive insights with the FREE Barchart Brief newsletter. Subscribe now for quick, incisive midday market analysis you won't find anywhere else. For the current year, its earnings are expected to come in at $11.47 per share, down 20% from $14.34 per share reported in the year-ago quarter. However, in fiscal 2026, its earnings are expected to rise 5.2% year-over-year to $12.07 per share. DHI stock has declined 8.5% over the past 52 weeks, underperforming the Consumer Discretionary Select Sector SPDR Fund's (XLY) 19.2% rise and the S&P 500 Index's ($SPX) 13.6% uptick during the same time frame. On Apr. 17, DHI shares surged 3.2% following the release of its Q2 earnings. The company's revenue declined 15.1% year-over-year to $7.7 billion, missing the consensus estimates, primarily due to affordability challenges and declining consumer confidence. Moreover, its adjusted EPS fell 26.7% from the year-ago quarter and failed to touch the consensus estimates by 3%. The consensus opinion on DHI is moderately optimistic, with a 'Moderate Buy' rating overall. Of the 20 analysts covering the stock, opinions include nine 'Strong Buys,' nine 'Holds,' and two 'Strong Sells.' Its mean price target of $151.38 suggests a 17.4% upside potential from current price levels. On the date of publication, Kritika Sarmah did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Associated Press
30-06-2025
- Business
- Associated Press
Forestar Group Inc. Announces Dual Listing on NYSE Texas
ARLINGTON, Texas--(BUSINESS WIRE)--Jun 30, 2025-- Forestar Group Inc. (NYSE: FOR) announced today the dual listing of its common stock on NYSE Texas, the newly launched fully electronic equities exchange headquartered in Dallas, Texas. The Company will maintain its primary listing on the New York Stock Exchange and trade with the same 'FOR' ticker symbol on NYSE Texas. Donald J. Tomnitz, Chairman of the Board, said, 'We are pleased to join the NYSE Texas as a Founding Member and promote the state that we have operated in for over 70 years. We believe Texas's long-standing commitment to pro-growth, business-friendly policies fosters a resilient economy. With over 26,000 owned and controlled lots and 50 active communities in the State of Texas, we are committed to supporting the growing need for housing in the state.' 'As a key player in developing residential communities across Texas, Forestar is a natural addition to the NYSE Texas community,' said Chris Taylor, Chief Development Officer, NYSE Group. About Forestar Group Inc. Forestar Group Inc. is a residential lot development company with operations in 65 markets and 24 states. Based in Arlington, Texas, the Company delivered more than 14,300 residential lots during the twelve-month period ended March 31, 2025. Forestar is a majority-owned subsidiary of D.R. Horton, Inc., the largest homebuilder by volume in the United States since 2002. View source version on CONTACT: Chris Hibbetts, 817-769-1860 Vice President of Finance & Investor Relations [email protected] KEYWORD: UNITED STATES NORTH AMERICA TEXAS INDUSTRY KEYWORD: RESIDENTIAL BUILDING & REAL ESTATE URBAN PLANNING CONSTRUCTION & PROPERTY REIT SOURCE: Forestar Group Inc. Copyright Business Wire 2025. PUB: 06/30/2025 11:49 AM/DISC: 06/30/2025 11:49 AM
Yahoo
29-06-2025
- Business
- Yahoo
KB Home's housing market warning: Incentives might hide overpriced homes
Want more housing market stories from Lance Lambert's ResiClub in your inbox? Subscribe to the ResiClub newsletter. He was buried in a mushroom casket. Soon he'll be part of the soil CEO of an $11 billion builder empire warns that these housing markets face a short-term oversupply Lifting the veil on the critical—and oft-times overlooked—factors driving AI growth Since the pandemic housing boom fizzled out, major homebuilders across various markets—especially in top pandemic boomtowns—have had to cut net effective home prices to avoid a deeper sales pullback. However, some builders, like Lennar and D.R. Horton, have primarily done so through larger incentives—such as mortgage rate buydowns—in part to protect community comps and avoid upsetting buyers already in their backlog. Speaking to analysts on Tuesday, KB Home—which prefers outright home price cuts over incentives—said that some buyers turning to some of their competitors are effectively overpaying for new builds just to get rate buydowns, and if they need to sell in the immediate future, they might not be able to fetch the artificially high base price they paid. 'I believe that there are customers [of other homebuilders] that are overpaying for the home to effectively get an incentive. So they're tied into this higher price that they're gonna be stuck with forever until they sell that home,' KB Home COO Rob McGibney said on the builder's June 23 earnings call. 'They may potentially be upside down when they try to sell that home versus a clean, simple, transparent way of selling—the value of what we offer.' Below are ResiClub's other takeaways from KB Home's Q2 earnings report and earnings call this week. KB Home's net new orders by Q2: Q2 2018 —> 3,532 Q2 2019 —> 4,064 Q2 2020 —> 1,758 (COVID-19 lockdowns) Q2 2021 —> 4,300 Q2 2022 —> 3,914 Q2 2023 —> 3,936 Q2 2024 —> 3,997 Q2 2025 —> 3,460 'The actions we began to take late in our 2025 first quarter—evaluating base pricing in every community relative to local market conditions, then repositioning our communities with a focus on offering the most compelling value—led to strong net orders in March. However, our net orders declined in April and May, which did not follow the typical spring trajectory,' McGibney said. 'As a result, even though our average community count was in line with our projection, and our cancellation rate was fairly steady, our monthly absorption pace per community was 4.5 net orders compared to 5.5 in last year's second quarter. While our net order pace was below our internal goal, we believe it ranks high among the large production homebuilders,' he added. While the pricing story continues to be very local and vary a great deal across the country, most markets are at least seeing some softening. 'I would say that all of the markets we operate in experienced some level of softening at some point during the quarter,' McGibney told investors on Tuesday. 'Markets that I would say where we're still seeing relatively strong demand and sales performance would be Las Vegas, the Inland Empire [in Southern California], the North Bay in Northern California, and Texas markets like Houston and San Antonio.' McGibney added: 'By contrast, some of the markets that are facing some more significant headwinds recently are Sacramento and Seattle. They've slowed down a little bit, and we've had to do a little more there with price relative to some of the others. Markets like Austin, Colorado, Jacksonville, and Orlando [have been weaker too]. Places where resale supply has increased starts putting pressure on pricing and creating more competition and just more choices for buyers. But, you know, it is very local, very specific. [We] can't put a market condition on an entire state or even an entire market in most cases. It's community by community.' On Tuesday, KB Home told analysts that it cut base home prices in half of its communities in the quarter ending May 31. 'In the markets where you've seen resale inventory or resale supply get back to norms or above those norms of six or seven months of supply—those resales become a more formidable competitor than they were to us back when we would measure months of supply in terms of weeks instead of months. And on the flip side, most of the markets where resale supply has stayed fairly suppressed and limited, we're tending to see better results there,' McGibney said. During the pandemic housing boom, many publicly traded homebuilders achieved record profit margins as home prices soared and buyer demand ran red-hot. Ever since the national housing demand boom fizzled out in the summer of 2022, many large homebuilders have reduced margin and made affordability/pricing adjustments where and when needed to maintain their sales pace or prevent a bigger sales pullback. That includes KB Home, which reported a housing gross profit margin of 19.3% in Q2 2025—or 19.7% excluding inventory charges—down from a cycle peak of 26.7% in Q3 2022. Its margin has now compressed all the way back to pre-pandemic 2019 levels. So far, tariffs haven't had much impact on KB Home's material costs. 'Homes that we started in May came in at the lowest cost per square foot, year to date, as our divisions are continuing to drive better performance on cost. Our costs, including lumber, are protected for almost all of our third-quarter starts under the terms of our supply contracts. Our national purchasing team, working with our divisions, has done an excellent job holding off tariff-related cost increases, with only two minor price increases to date,' McGibney said. This post originally appeared at to get the Fast Company newsletter: Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
