D.R. Horton, Inc.
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D.R. Horton, Inc. Financial Snapshot
Operating Performance
Fast Facts
301 Commerce Street, Fort Worth, The company reported revenues of US$4,400.20
Headquarters Address
76102,United States of America million during 2010, with a CAGR of -26.47% during
2006–2010. Its revenue grew at an annual rate of
Telephone + 1 817 3908200
20.30% over the previous fiscal year. In 2010, the
company recorded an operating margin of 2.26%, as
Fax N/A against -15.22% in 2009.
Website www.drhorton.com
Revenue and Margins
Ticker Symbol, Stock Exchange DHI, New York Stock Exchange
Number of Employees 3,214
Fiscal Year End September
Revenue (in US$ million) 4,400.20
SWOT Analysis
Strengths Weaknesses Return on Equity
Decentralized operations Declining order backlog The company recorded a return on equity (ROE) of
9.38% for 2010, as compared to its peers, Lennar
Corporation (Ticker: LEN), Beazer Homes USA, Inc.
Efficient cost management Lack of international presence (Ticker: BZH) and KB Home (Ticker: KBH), which
recorded ROEs of 3.65%, -8.57% and -10.98%
Strengthening solvency position respectively. The company reported an operating
margin of 2.26% in 2010.
Opportunities Threats
Return on Equity
Geographic diversification Rising labor costs
Positive outlook of housing starts in the Shrinking supply of skilled craft
US professionals
Rising demand for senior housing in
Volatile input prices
the US
Financial Leverage
The company reported a debt to equity ratio of 0.83 in
2010, as compared to its peers, Lennar Corporation,
Beazer Homes USA, Inc. and KB Home, which
recorded debt to equity ratios of 1.60, 3.05 and 2.81
respectively. In 2010, the company recorded a debt
to capital ratio of 0.00, as compared to its peers,
Lennar Corporation, Beazer Homes USA, Inc. and KB
Home, which recorded debt to capital ratios of 0.00,
0.01 and 0.01 respectively.
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D.R. Horton, Inc. - SWOT Profile Page 1
D.R. Horton, Inc.
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TABLE OF CONTENTS
1 Business Analysis ................................................................................................................................... 5
1.1 Company Overview ................................................................................................................................................5
1.2 Business Description ..............................................................................................................................................5
1.3 Major Products and Services .................................................................................................................................6
2 Analysis of Key Performance Indicators ............................................................................................... 7
2.1 Five Year Snapshot: Overview of Financial and Operational Performance Indicators ..........................................7
2.2 Key Financial Performance Indicators .................................................................................................................10
2.2.1 Revenue and Operating Profit .........................................................................................................................10
2.2.2 Asset, Liabilities and Capex .............................................................................................................................11
2.2.3 Net Debt vs. Gearing Ratio ..............................................................................................................................12
2.2.4 Valuation ..........................................................................................................................................................13
2.3 Competitive Benchmarking ..................................................................................................................................14
2.3.1 Efficiency ..........................................................................................................................................................15
2.3.2 Turnover – Inventory and Asset .......................................................................................................................16
3 Recent Developments ........................................................................................................................... 17
4 SWOT Analysis ...................................................................................................................................... 18
4.1 SWOT Analysis - Overview ..................................................................................................................................18
4.2 Strengths ..............................................................................................................................................................18
4.3 Weaknesses .........................................................................................................................................................18
4.4 Opportunities ........................................................................................................................................................18
4.5 Threats .................................................................................................................................................................19
5 D.R. Horton, Inc. - Company Statement ........................................................