D.R. Horton, Inc. logo DHI - D.R. Horton, Inc.

Price: -- -- | CONSENSUS: Hold DETAILS
STRONG
BUY
2
BUY 23
HOLD 25
SELL 3
STRONG
SELL
0
| PRICE TARGET: $163.75 DETAILS
HIGH: $190.00
LOW: $140.00
MEDIAN: $162.50
CONSENSUS: $163.75
UPSIDE: 15.03%
AlphaQuality

AlphaQuality

Quantitative six-pillar business-quality grade

Cyclical & Capital-Intensive

AlphaQuality — archetype-weighted quantitative grade

B 70.9 / 100 composite

Composite Grade

Composite of six pillars weighted for cyclical & capital-intensive businesses. Purely quantitative — the six pillars score only reported financials, no analyst input.

Profitability

Weight: 15%
C+ 60.6
  • 5yr Avg ROIC 17.5% 86/100
  • Operating Margin Trend -1.94 pp/yr 1/100
Contributes 9.1 pts toward composite.

Capital Efficiency

Weight: 15%
A+ 96.1
  • 5yr Avg ROE 22.6% 96/100
  • 5yr Share-Count CAGR -3.5% 96/100
Contributes 14.4 pts toward composite.

Growth Quality

Weight: 10%
A- 82.2
  • 5yr Revenue CAGR 11.0% 83/100
  • 5yr EPS CAGR 12.5% 83/100
  • Revenue-Growth Years (5) 4/5 80/100
Contributes 8.2 pts toward composite.

Cash Generation

Weight: 15%
C- 49.1
  • 5yr FCF Margin 5.8% 53/100
  • 5yr FCF/NI Conversion 0.47x 44/100
Contributes 7.4 pts toward composite.

Balance Sheet

Weight: 25%
A+ 94.9
  • Net Debt / EBITDA 0.63x 89/100
  • Interest Coverage (EBIT/Int) 30.00x 100/100
  • Altman Z-Score 5.95 100/100
Contributes 23.7 pts toward composite.

Stability

Weight: 20%
D+ 40.6
  • EPS Volatility (σ/μ) 0.67 16/100
  • Negative-Revenue Years (5) 1/5 80/100
  • Piotroski F-Score 4 44/100
Contributes 8.1 pts toward composite.

Guru Flow

Curated superinvestor sentiment — not part of the AlphaQuality grade.
Holding

5 of 5 gurus held; 1 new buy; 2 added; 2 trimmed; 1 full exit.

Holders
5 +1
Avg Δ position
+1.6%
New buys
1
Full exits
1
As of Q2 2026
How this is calculated

AlphaQuality grades six pillars from 0-100 and weights each by archetype:

  • Profitability (15%) — 5yr Avg ROIC, Operating Margin Trend
  • Capital Efficiency (15%) — 5yr Avg ROE, 5yr Share-Count CAGR
  • Growth Quality (10%) — 5yr Revenue CAGR, 5yr EPS CAGR, Revenue-Growth Years (5)
  • Cash Generation (15%) — 5yr FCF Margin, 5yr FCF/NI Conversion
  • Balance Sheet (25%) — Net Debt / EBITDA, Interest Coverage (EBIT/Int), Altman Z-Score
  • Stability (20%) — EPS Volatility (σ/μ), Negative-Revenue Years (5), Piotroski F-Score

The six pillars read only reported financial-statement fields — no analyst targets or consensus ratings. The archetype that picks which pillar formulas apply is not fully price-free, though: it can route a company to the distressed/ungradable archetype based on price vs. its 52-week high, and beta affects one classification check. A minimum of 5 fiscal years of audited statements is required. Insurers and banks are graded on their own methodology — insurers on loss ratio, its trend and stability, and premiums-to-surplus; banks on the efficiency ratio, its trend and stability, and equity-to-assets — rather than on industrial margin/ROIC signals. Distressed, highly leveraged infrastructure, asset-manager, and other financial businesses are declared ungradable rather than forced into a numeric score.