D.R. Horton, Inc.
DHI Consumer Cyclical Residential Construction
D.R. Horton, Inc.’s revenue for fiscal 2025 (year ended September 2025) was $34.3 billion, down 6.93% from fiscal 2024. In the quarter to June 2026, revenue was flat, EPS fell 4.75%, free cash flow fell 44.1% and total debt fell 1.88%, each against the same quarter a year earlier. Member of the S&P 500; dividend growth for ten consecutive years.
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D.R. Horton, Inc. (DHI) Altman Z-score
D.R. Horton, Inc.'s Altman Z-score for fiscal 2025 is 6.41, in the safe zone (above 2.99).
Altman Z-score, annual
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Annual newest first
| Period | Altman Z-score | Change (points) |
|---|---|---|
| FY2025 | 6.41 | (0.82) |
| FY2024 | 7.23 | 1.28 |
| FY2023 | 5.95 | 0.92 |
| FY2022 | 5.03 | (0.64) |
| FY2021 | 5.67 | 0.02 |
| FY2020 | 5.65 | 0.27 |
| FY2019 | 5.38 | 0.31 |
| FY2018 | 5.08 | (0.01) |
| FY2017 | 5.09 | 0.84 |
| FY2016 | 4.25 | 0.41 |
How fiscal 2025’s score is made up
| Component | This year | Year before | Result | Points |
|---|---|---|---|---|
| Working capital / total assets | 0.74 | — | 0.88 | |
| Retained earnings / total assets | 0.88 | — | 1.23 | |
| EBIT / total assets | 0.12 | — | 0.41 | |
| Market value of equity / total liabilities | 4.87 | — | 2.92 | |
| Sales / total assets | 0.97 | — | 0.97 | |
| Altman Z-score | Safe zone | 6.41 | ||
| Z″ Variant for non-manufacturing and asset-light companies (drops the sales/assets term, uses book equity) | Safe zone | 10.94 | ||
How the Altman Z-score works
Z = 1.2 × working capital ÷ total assets + 1.4 × retained earnings ÷ total assets + 3.3 × EBIT ÷ total assets + 0.6 × market value of equity ÷ total liabilities + 1.0 × revenue ÷ total assets (Altman, 1968). The market value of equity is the close on the last trading day of the fiscal year times weighted basic shares.
Z″ = 6.56 × working capital ÷ total assets + 3.26 × retained earnings ÷ total assets + 6.72 × EBIT ÷ total assets + 1.05 × book equity ÷ total liabilities (Altman, Hartzell and Peck, 1995), the variant for non-manufacturing and asset-light companies.
| Zone | Z | Z″ |
|---|---|---|
| Safe zone | above 2.99 | above 2.60 |
| Grey zone | 1.81–2.99 | 1.10–2.60 |
| Distress zone | below 1.81 | below 1.10 |
Not worked out for banks, insurers and REITs, whose balance sheets the model does not describe, nor when a figure is missing or there is no share price in the week to the fiscal year end.
Altman Z-score against peers
| Company | Altman Z-score |
|---|---|
| NVR NVR, Inc. compare | 13.8× |
| CVCO Cavco Industries, Inc. compare | 9.6× |
| SKY Champion Homes, Inc. compare | 7.1× |
| DHI D.R. Horton, Inc. | 6.4× |
| IBP Installed Building Products, Inc. compare | 6.3× |
| PHM PulteGroup, Inc. compare | 5.0× |
| LEN Lennar Corporation compare | 4.3× |
| LEN.B Lennar Corporation compare | 4.2× |
| TOL Toll Brothers Inc. compare | 4.1× |
What Altman Z-score is
The Altman Z-Score weighs working capital, retained earnings, operating profit, market value and sales against assets and debts to gauge the risk of distress.
1.2 × working capital ÷ total assets + 1.4 × retained earnings ÷ total assets + 3.3 × EBIT ÷ total assets + 0.6 × market value of equity ÷ total liabilities + 1.0 × revenue ÷ total assets
More on DHI
- Revenue
- Net income
- EPS (diluted)
- EBITDA
- Free cash flow
- Operating cash flow
- Gross margin
- Operating margin
- Net margin
- Free cash flow margin
- P/E ratio
- P/S ratio
- P/B ratio
- Price to free cash flow
- EV/EBITDA
- EV/Sales
- EV/FCF
- Return on equity
- Return on assets
- Return on invested capital
- Debt to equity
- Current ratio
- Total debt
- Shares outstanding
- Book value per share
- Revenue growth
- Piotroski F-score
- The full statement