D.R. Horton, Inc. (DHI) Bundle
An Overview of D.R. Horton, Inc. (DHI)
General Summary of D.R. Horton, Inc. (DHI)
D.R. Horton, Inc. (NYSE: DHI), founded in 1978, has become the largest homebuilder in the United States by volume. The company operates across 125 markets in 36 states, offering a diverse portfolio of homes that typically range in price from $200,000 to over $1,000,000. As of fiscal year 2024, D.R. Horton closed 89,690 homes, indicating a robust operational capacity and market presence.
In addition to homebuilding, D.R. Horton engages in the construction and sale of multi-family rental properties and provides mortgage financing, title services, and insurance agency services. The company is also the majority owner of Forestar Group Inc., a residential lot development company.
Company's Financial Performance in the Latest Financial Reports
In fiscal year 2024, D.R. Horton reported consolidated revenues of $36.8 billion, marking a 4% increase from $35.5 billion in fiscal 2023. Home sales revenues alone increased by 7% to $33.9 billion, with the company closing 89,690 homes compared to 82,917 homes in the previous year.
| Metric | FY 2024 | FY 2023 |
|---|---|---|
| Consolidated Revenues | $36.8 billion | $35.5 billion |
| Home Sales Revenues | $33.9 billion | $31.7 billion |
| Homes Closed | 89,690 | 82,917 |
| Net Income | $4.8 billion | $4.7 billion |
| Earnings per Diluted Share | $14.34 | $13.82 |
| Pre-tax Profit Margin | 17.1% | 17.8% |
| Net Cash Provided by Operations | $2.2 billion | $4.3 billion |
| Debt to Total Capital Ratio | 18.9% | 19.0% |
During the fourth quarter of fiscal 2024, D.R. Horton achieved revenues of $10.0 billion, down from $10.5 billion in the same quarter of fiscal 2023. Net income for this quarter was $1.3 billion compared to $1.5 billion in the prior year quarter. The company also reported a pre-tax income of $1.7 billion.
Introduction to D.R. Horton as a Leader in the Industry
D.R. Horton continues to be recognized as a leader in the homebuilding industry, maintaining its position as the largest homebuilder in the United States since 2002. The company has successfully navigated various market challenges and remains well-positioned for future growth, with a strong focus on affordable housing solutions. With an extensive inventory of 37,400 homes and a robust land and lot portfolio totaling 632,900 lots, D.R. Horton is strategically equipped to meet ongoing housing demand.
As of September 30, 2024, the company's sales order backlog was 12,180 homes, valued at $4.8 billion. This reflects a decrease from the previous year, but the company's commitment to enhancing its product offerings continues to drive its success in a competitive market. Investors and analysts are encouraged to explore further to understand the factors contributing to D.R. Horton's ongoing success.
Mission Statement of D.R. Horton, Inc. (DHI)
Mission Statement of D.R. Horton, Inc. (DHI)
D.R. Horton, Inc. (DHI) articulates its mission statement as a commitment to delivering high-quality homes and providing exceptional customer service. This mission serves as a guiding principle for the company's operations and strategic decisions, emphasizing a focus on quality, customer satisfaction, and operational excellence.
Core Components of the Mission Statement
1. Commitment to Quality
D.R. Horton places significant importance on the quality of its homes. This commitment is reflected in its construction practices and materials used. In fiscal 2024, the company closed 89,690 homes, generating home sales revenues of $33.9 billion, which is a 7% increase compared to the previous year. The company aims to maintain high construction standards to ensure customer satisfaction and long-term durability of its homes.
| Year | Homes Closed | Home Sales Revenue (in billions) |
|---|---|---|
| 2022 | 82,917 | $31.6 |
| 2023 | 89,690 | $33.9 |
| 2024 | 89,690 | $33.9 |
2. Exceptional Customer Service
Providing exceptional customer service is another cornerstone of D.R. Horton's mission. The company strives to meet and exceed customer expectations throughout the home buying process. In fiscal 2024, despite challenges such as rising mortgage rates, the company managed to maintain a cancellation rate of 18%, which is an improvement from 20% in fiscal 2023. This indicates that D.R. Horton is effectively addressing customer concerns and enhancing satisfaction levels.
3. Operational Excellence
D.R. Horton is committed to operational excellence, which is evident in its financial performance. For fiscal 2024, the company reported consolidated revenues of $36.8 billion, a 4% increase from $35.5 billion in fiscal 2023. The pre-tax profit margin for the year was 17.1%, reflecting the company's efficient operational strategies. Such operational efficiency not only supports profitability but also reinforces the company's mission to deliver high-quality homes at competitive prices.
| Financial Metric | Fiscal Year 2023 | Fiscal Year 2024 |
|---|---|---|
| Consolidated Revenues (in billions) | $35.5 | $36.8 |
| Pre-tax Profit Margin (%) | 16.6 | 17.1 |
| Net Income (in billions) | $4.8 | $4.8 |
Through its mission statement, D.R. Horton, Inc. emphasizes a strong commitment to quality, customer service, and operational excellence, positioning itself as a leader in the homebuilding industry. The company's financial performance and operational metrics demonstrate its dedication to these core components, ensuring sustainable growth and customer satisfaction in the long term.
Vision Statement of D.R. Horton, Inc. (DHI)
Vision Statement Overview
D.R. Horton, Inc. (DHI) aims to be the leading homebuilder in the United States by delivering quality homes and exceptional customer service, while maintaining a commitment to sustainable practices and community development. The vision emphasizes growth, innovation, and the creation of value for stakeholders.
Commitment to Quality
D.R. Horton is dedicated to building high-quality homes that meet the needs of diverse customers. In fiscal 2024, the company closed 89,690 homes, reflecting a 8% increase from the previous year. The homebuilding revenue for the year reached $34.0 billion, up from $31.7 billion in fiscal 2023.
Customer Focus
The vision statement highlights a strong focus on customer satisfaction. D.R. Horton has implemented various customer service initiatives aimed at enhancing the home buying experience. The average net income attributable to D.R. Horton per common share in fiscal 2024 was $14.34, an increase of 4% from $13.82 in fiscal 2023.
Sustainability and Community Development
D.R. Horton is committed to sustainable building practices and community engagement. The company manages a portfolio of 632,900 lots at the end of fiscal 2024, with 76% controlled through purchase contracts. This strategic positioning allows for responsible land use and community development.
Innovation and Technology
Innovation is a key component of D.R. Horton's vision. The company has invested in technology to streamline operations and improve efficiency. For instance, the pre-tax return on inventory for homebuilding operations was 27.8% in fiscal 2024, indicating effective management of resources.
Financial Performance Metrics
| Metric | Fiscal Year 2023 | Fiscal Year 2024 | Change (%) |
|---|---|---|---|
| Homes Closed | 82,917 | 89,690 | 8% |
| Homebuilding Revenue ($ Billion) | 31.7 | 34.0 | 7% |
| Net Income ($ Billion) | 4.7 | 4.8 | 2% |
| Earnings per Share ($) | 13.82 | 14.34 | 4% |
| Debt to Total Capital (%) | 18.9 | 18.9 | 0% |
Strategic Growth Plans
D.R. Horton plans to continue its growth trajectory by focusing on affordable housing and expanding its market presence. The guidance for fiscal 2025 includes anticipated revenues of $36.0 billion to $37.5 billion and homes closed between 90,000 to 92,000.
Core Values of D.R. Horton, Inc. (DHI)
Integrity
D.R. Horton, Inc. (DHI) emphasizes integrity as a core value, ensuring ethical practices in all its operations. This commitment is reflected in the company's transparent reporting and adherence to industry regulations.
For instance, in fiscal 2024, D.R. Horton maintained a debt to total capital ratio of 18.9%, demonstrating financial prudence and responsible capital management. The company also repurchased $1.8 billion of common stock, which reduced the outstanding share count by 3%, showcasing its dedication to returning value to shareholders while adhering to ethical financial practices.
Quality
Quality is a fundamental value at D.R. Horton, reflected in the construction of homes that meet high standards. The company reported closing 89,690 homes in fiscal 2024, with a revenue increase of 7% to $34.0 billion.
Additionally, the pre-tax profit margin for homebuilding operations was 16.1%, indicating that quality construction is a priority that also contributes to profitability. D.R. Horton's commitment to quality is further evidenced by its collaboration with Forestar Group Inc. for land development, which ensures high-quality home sites.
Customer Focus
D.R. Horton prioritizes customer satisfaction through various initiatives. In fiscal 2024, the company implemented incentives such as mortgage rate buydowns to enhance affordability. This approach is crucial as the company faced a cancellation rate of 21% for the fourth quarter, unchanged from the previous year, indicating a need for adaptability in customer engagement.
Moreover, D.R. Horton closed 3,970 single-family rental homes during the year, highlighting its commitment to providing diverse housing options that cater to customer needs.
Community Engagement
Community engagement is a core value that D.R. Horton actively pursues. The company has a strong presence in 125 markets across 36 states, allowing it to contribute to local economies. In fiscal 2024, D.R. Horton generated $99.9 million of pre-tax income from its rental operations, which supports community development.
Furthermore, the company's focus on affordable housing solutions addresses the pressing need for accessible homes, demonstrating its commitment to community welfare.
Teamwork
D.R. Horton values teamwork as essential for achieving its business objectives. In fiscal 2024, the company reported a consolidated pre-tax income of $6.3 billion on revenues of $36.8 billion, a testament to the collective efforts of its workforce.
The company's operational efficiency is evident as it closed 23,647 homes in the fourth quarter alone, underscoring the importance of collaboration among various departments. D.R. Horton promotes an inclusive culture that fosters teamwork, vital for navigating complex market conditions.
| Core Value | Key Metrics | Examples of Commitment |
|---|---|---|
| Integrity | Debt to total capital: 18.9% | Repurchased $1.8 billion of common stock |
| Quality | Homes closed: 89,690 | Revenue: $34.0 billion; Pre-tax profit margin: 16.1% |
| Customer Focus | Cancellation rate: 21% | Closed 3,970 single-family rental homes |
| Community Engagement | Pre-tax income from rental operations: $99.9 million | Strong presence in 125 markets |
| Teamwork | Consolidated pre-tax income: $6.3 billion | Closed 23,647 homes in Q4 |
D.R. Horton, Inc. (DHI) DCF Excel Template
5-Year Financial Model
40+ Charts & Metrics
DCF & Multiple Valuation
Free Email Support
Article updated on 8 Nov 2024
Resources:
- D.R. Horton, Inc. (DHI) Financial Statements – Access the full quarterly financial statements for Q4 2024 to get an in-depth view of D.R. Horton, Inc. (DHI)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View D.R. Horton, Inc. (DHI)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.