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D.R. Horton Inc DHI

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Morningstar’s Analysis

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D.R. Horton Sees 10%-Plus Volume Growth in 2022 Despite Continued Supply Chain Issues

Analyst Note

| Brian Bernard, CFA, CPA |

D.R. Horton enjoyed a fantastic fiscal 2021 that saw home deliveries rise 25% year over year (to 81,965 homes) and full-year home sales gross profit margin reach levels last seen during the peak of the prior housing boom (25.5%). The United States housing market remains strong, and D.R. Horton and other homebuilders continue to enjoy robust pricing power as demand outstrips supply. While D.R. Horton has plenty of land (total lots increased over 40% year over year to 530,300), unrelenting demand and supply chain disruptions have made it challenging for the no-moat homebuilder to quickly replace sold-out communities. Indeed, D.R. Horton's quarter-end average community count declined 5% year over year.

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Company Profile

Business Description

D.R. Horton is a leading homebuilder in the United States with operations in 90 markets across 29 states. D.R. Horton mainly builds single-family detached homes (over 90% of home sales revenue) and offers products to entry-level, move-up, luxury buyers, and active adults. The company offers homebuyers mortgage financing and title agency services through its financial services segment. D.R. Horton's headquarters are in Arlington, Texas, and it manages five regional homebuilding offices across the United States.

Contact
1341 Horton Circle
Arlington, TX, 76011
T +1 817 390-8200
Sector Consumer Cyclical
Industry Residential Construction
Most Recent Earnings Sep 30, 2021
Fiscal Year End Sep 30, 2021
Stock Type Cyclical
Employees 11,788

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