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.