Dr Horton net worth has become a popular topic, especially when we look at the factors behind their financial performance.
At Ando Money, we explore Dr Horton’s revenue drivers and key financial data, providing a professional yet accessible analysis.
Let’s dive into how Dr Horton makes its mark in the industry.
Quick Facts
| FACT | DETAIL |
|---|---|
| Name | D.R. Horton, Inc. |
| Full Name | D.R. Horton, Inc. |
| Website | https://www.drhorton.com/ |
| Industry | Home Construction |
| Traded as | NYSE: DHI |
| ISIN | US23331A1097 |
| Founded | 1978 |
| Founders | Donald R. Horton |
| Country/Territory | United States |
| Headquarters | Arlington, Texas, USA |
| Chief Executive Officer | David Auld |
| Number of Employees | 13,000 |
| Market Cap | $61.97 billion (October 2024) |
| Total Assets | $35.15 billion (June 30, 2024) |
| Total Equity | $25.15 billion (June 30, 2024) |
| Revenue | $10.0 billion (Q3 Fiscal 2024) |
| Net Income | $1.4 billion (Q3 Fiscal 2024) |
What is the Net Worth or Market Cap of Dr Horton in 2024?
As of October 2024, Dr Horton’s market cap stands at $61.97 billion, making it a significant player in the global construction industry.
When compared to others in the sector, Dr Horton’s financial standing is competitive, ranking it among the largest in its industry.
For those interested in understanding where this company fits within the global rankings of wealth and market influence, our list below highlights some competitors and industry partners.
- Lennar Corporation
- PulteGroup
- KB Home
- Toll Brothers
- Forestar Group Inc.
- David Weekley Homes
- Taylor Morrison Home
- Meritage Homes
- Beazer Homes USA
- Hovnanian Enterprises
Curious about how Dr Horton compares to the richest companies in the world? Visit this page for more insights.
Dr Horton Revenue and Financial Performance Overview
Key Drivers of Revenue Growth
Dr Horton‘s revenue growth is fueled by several primary sources, each contributing differently to its overall financial health. One of the biggest drivers is home sales, accounting for the majority of the company’s revenue.
The company reported $9.2 billion in revenue from home sales in Q3 of Fiscal 2024. This marks an increase of 6% compared to the same quarter last year, driven by strong market demand and strategic homebuilding in high-demand regions.
The company’s rental operations have also played an essential role, generating $413.7 million in revenue in Q3 Fiscal 2024.
Though smaller in comparison to home sales, rental operations are strategically designed to provide consistent income.
Meanwhile, land and lot sales contributed $318.4 million through their subsidiary, Forestar Group. Together, these elements ensure diversified income streams, mitigating risk from any one particular area.
Role of Residential Land and Lot Development
Land and lot development remains a crucial element of Dr Horton’s business model. Forestar Group Inc., a majority-owned subsidiary, is responsible for much of this work.
It reported revenues of $318.4 million in Q3 Fiscal 2024 from the sale of 3,255 lots, providing a significant boost to Dr Horton’s asset portfolio.
Dr Horton’s ability to control land lots — with 24% owned and 76% controlled through contracts — gives it a strategic advantage in an industry where lot availability is often a constraint.
Financial Services and Its Impact on the Bottom Line
Besides direct home sales, Dr Horton offers financial services including mortgage financing, title services, and insurance agency services. In Q3 Fiscal 2024, these services contributed $242.3 million to the company’s revenue, with a robust pre-tax profit margin of 37.7%. This sector not only supports buyers through the purchasing process but also diversifies income, offering steady financial inflows independent of market volatility.
Strategic Investments and Capital Allocation
The company has been strategically utilizing share repurchases and dividend payments to maintain liquidity and enhance shareholder value.
During the nine months ending June 30, 2024, Dr Horton repurchased 9.0 million shares for $1.2 billion and announced a $4.0 billion new share repurchase authorization.
Dividend payments during this period totaled $297.5 million, showing a commitment to providing returns to shareholders while sustaining growth.
Homebuilding Operations and Regional Performance Analysis
Dr Horton’s operations span across 121 markets in 33 states.
The Southeast and South Central regions have proven to be the most profitable, with 6,669 homes closed in the Southeast and 6,104 homes in the South Central region during Q3 Fiscal 2024.
Together, these markets contributed significantly to the $9.2 billion revenue in homebuilding. Analyzing such regional trends is crucial in understanding Dr Horton’s strategy of focusing on high-demand areas for better profitability.
Rental Property Sales and Profitability
Rental operations add yet another revenue stream to Dr Horton’s portfolio.
The company sold 790 single-family rental homes and 610 multi-family units in Q3 Fiscal 2024, which brought in $258.5 million and $155.2 million, respectively.
These rental operations not only diversify revenue but also enhance financial stability by tapping into a growing market segment where rental housing is becoming increasingly popular.
Liquidity and Cash Flow Management
Effective cash flow management has kept Dr Horton in a solid financial position. As of June 30, 2024, the company had $3.0 billion in cash, coupled with available credit capacity of $2.8 billion, bringing total liquidity to $5.8 billion.
The debt-to-total capital ratio was a healthy 18.8%, showing prudent financial leverage.
The company’s net cash provided by operating activities was $228.2 million, driven mainly by strong homebuilding sales and efficient debt management strategies.
Market Conditions Affecting Financial Performance
Market conditions play an integral role in Dr Horton’s financial outcomes. Despite elevated mortgage interest rates, demand for affordable housing remains strong.
Supply constraints, along with favorable demographics, have positively influenced the company’s revenue growth. T
he cancellation rate remained steady at 18% in Q3 Fiscal 2024, reflecting resilience in maintaining buyer interest despite the external pressures of inflation and financing challenges.
Future Financial Guidance and Expected Revenue Contributors
Looking ahead, Dr Horton expects consolidated revenues for Fiscal 2024 to range between $36.8 billion and $37.2 billion.
Homes closed by homebuilding operations are projected to be around 90,000 to 90,500, with consistent cash flow expected from these operations.
The company’s strategic investments, cost control, and share repurchase programs are expected to contribute significantly to future growth.
FAQs About Dr Horton
What are the primary sources of revenue for the company?
The primary sources of revenue for Dr Horton are home sales, rental property sales, financial services, and land and lot sales. Home sales alone accounted for $9.2 billion in Q3 Fiscal 2024.
How does the company manage its land inventory?
The company manages its land inventory through a combination of ownership and contracts, with 24% owned and 76% controlled through lot purchase contracts. This strategic mix allows for flexibility and security in operations.
What was Dr Horton’s total revenue in Q3 Fiscal 2024?
The total revenue for Q3 Fiscal 2024 was $10.0 billion, reflecting a 2% increase compared to the same period in Fiscal 2023.
How has the company used its cash flow recently?
Recently, Dr Horton used its cash flow for share repurchases amounting to $1.2 billion and paid dividends totaling $297.5 million for the nine months ending June 30, 2024.
What regions generate the most revenue for Dr Horton?
The Southeast and South Central regions generate the most revenue, with 6,669 and 6,104 homes closed in these areas, respectively, in Q3 Fiscal 2024.
Conclusion
Dr Horton’s financial health, driven by diverse revenue streams and strategic growth initiatives, remains robust.
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