D.R. Horton

2017 Performance Final Grade: 84.29/100
2016 Final Grade: 82.4/100
A+/A

35.24/40

Change YoY
Net debt-to-capital 20.7% 360bps
Pretax home building income
(in millions)
$1,571 18.2%
Total SG&A/Total revenue 10.5% --
Total SG&A
(in millions)
$1529.9 12.8%
Return on invested capital 9.7% -10bps
Return on equity 13.7% -60bps
Total shareholder return 89.1% --
EPS $2.73 8.2%

17.14/20

Change YoY
Community count 1,695 +217
Share of lots optioned to total controlled 51.5% 16%

18.10/20

Change YoY
Home building gross margins 19.8% -10bps
Sales per month to break even
(per community)
1.12 --
Revenue per employee
(in millions)
$2.4 5.1%
Change YoY
Closings 47,135 13.2%
Sales velocity
(per community per month)
2.4 0%
Unit backlog 12,294 8.7%


Total revenue (in millions):$14,519
HB revenue (in millions): $14,040
Debt per share: $8.67
Equity per basic share: $20.08
HB pretax margin: 11.1%
Backlog value (in millions): $3764.1
Inventory (in millions):$10,040.2
Lot supply (in years): 5.5

D.R. Horton (NYSE: DHI) focused on its brand strategy in 2017. The core D.R. Horton brand, which accounts for the majority of home closings, experienced solid demand, revenue growth, and profitability. Horton continued to expand its Express Homes brand for entry-level buyers as well as the Emerald Homes brand, which appeals to buyers of higher-end move-up and luxury homes. The company also introduced Freedom Homes, its active adult brand, into more markets.