DR Horton has roughly 2.54
B in cash with 561.8
M of positive cash flow from operations. This results in cash-per-share (CPS) ratio of 7.08.
On a scale of 0 to 100, DR Horton holds a
performance score of 15. The firm owns a Beta (Systematic Risk) of 1.1508, which means a somewhat significant risk relative to the market. Let's try to break down what DR Horton's beta means in this case. As the market goes up, the company is expected to outperform it. However, if the market returns are negative, DR Horton will likely underperform. Although it is vital to follow
DR Horton existing
price patterns, it is good to be conservative about what you can do with the information regarding equity
price patterns. The way in which we are predicting
future performance of any stock is to evaluate the business as a whole together with its past performance, including all
available fundamental and
technical indicators. By examining
DR Horton technical indicators, you can at this moment evaluate if the expected return of 0.45% will be sustainable into the future. Please utilizes DR Horton
sortino ratio,
semi variance, and the
relationship between the
information ratio and
value at risk to make a quick decision on whether DR Horton current price history will revert.
Investing in DR Horton, just like investing in any other equity instrument, is characterized by a strong risk-return correlation. High risks mean high returns and low risk means lower expected returns. Risk management is the act of identifying and assessing the potential risk and developing strategies to minimize these risks and earn maximum possible profits while holding DR Horton along with other instruments in the same portfolio. Using conventional
technical analysis and
fundamental analysis to select individual securities into a portfolio complements risk management and adds value to overall investors' investing strategies.
Please note, it is not enough to conduct a financial or market analysis of a single entity such as DR Horton. Your research has to be compared to or analyzed against DR Horton's peers to derive any actionable benefits. When done correctly, DR Horton's competitive analysis will give you plenty of quantitative and qualitative data to validate your investment decisions or develop an entirely new strategy toward taking a position in DR Horton.
How important is DR Horton's Liquidity
DR Horton
financial leverage refers to using borrowed capital as a funding source to finance DR Horton ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. DR Horton financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Financial leverage can amplify the potential profits to DR Horton's owners, but it also increases the potential losses and risk of financial distress, including bankruptcy, if the firm cannot cover its debt costs. The degree of DR Horton's financial leverage can be measured in several ways, including by ratios such as the debt-to-equity ratio (total debt / total equity), equity multiplier (total assets / total equity), or the debt ratio (total debt / total assets). Please check the
breakdown between DR Horton's total debt and its cash.
DR Horton Gross Profit
DR Horton Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing DR Horton previous period's values with its current period's values. Each time period you're measuring should be of equal lengths the increase or decrease, in a company's Gross Profit between two periods. Here we show DR Horton Gross Profit growth over the last 10 years. Please check DR Horton's
gross profit and other
fundamental indicators for more details.
DR Horton Correlation with Peers
Investors in DHI can reduce exposure to individual asset risk by holding a diversified portfolio of assets in addition to a long position in DR Horton. Diversification will allow for the same portfolio return with reduced risk. The correlation table of DR Horton and its peers is a two-dimensional matrix that shows the correlation coefficient between pairs of securities DHI is related in some way. The cells in the table are color-coded to highlight significantly positive and negative relationships. Each cell shows the correlation between one pair of equities and can be used to run pair trading strategies or create efficient portfolios with
your current brokerage. Please check
volatility of DHI for more details
What is the case for DR Horton Investors
DR Horton appears to be very steady, given 3 months investment horizon.
DR Horton retains Efficiency (Sharpe Ratio) of 0.2, which denotes the company had 0.2% of return per unit of price deviation over the last 3 months. Our outlook to predicting the volatility of a stock is to use all available market data together with stock-specific
technical indicators that cannot be
diversified away. We have found twenty-seven
technical indicators for DR Horton, which you can use to evaluate the future volatility of the firm. Please utilize DR Horton's Market Risk Adjusted Performance of 0.3983,
downside deviation of 1.9, and Standard Deviation of 2.42 to check if our risk estimates are consistent with your expectations.
Is DR Horton relapse expected?
DR Horton current mean deviation boosts over 1.73. DR Horton has relatively low volatility with skewness of 1.13 and kurtosis of 5.67. However, we advise all investors to independently investigate DR Horton to ensure all accessible information is consistent with the expectations about its upside potential and future expected returns. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure DR Horton's stock risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact DR Horton's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different stocks as prices fall.
Our Conclusion on DR Horton
While other entities within the residential construction industry are still a little expensive, even after the recent corrections, DR Horton may offer a potential longer-term growth to stockholders. While some mid-run oriented stockholders may not share our view, we believe it may be a good time to buy new shares of DR Horton.
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Raphi Shpitalnik is a Junior Member of Macroaxis Editorial Board. Raphael is a young entrepreneur who joined Macroaxis on a part-time basis at the beginning of the pandemic and eventually acquired a real taste for investing and fintech. He likes to analyze different equity instruments across a wide range of industries, focusing primarily on consumer products, sports, fintech, cannabis, and AI.
View Profile This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Raphi Shpitalnik do not own shares of DR Horton. Please refer to our
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