Forensic Analysis · Homebuilders & Residential Construction · as of Nov 8, 2026
Horton D R Inc /De/ (DHI)
A forensic read on Horton D R Inc /De/ built from its complete SEC filings — financial-health screens, earnings quality, red flags and a price-aware rating. Reproducible math, not opinion.
B · Sound & dependable
Forensic grade
Clean
Earnings quality
3
Forensic signals
14.5%
ROE
-6.9%
Revenue growth
This free snapshot doesn't read filing or proxy text, so the auditor-quality and governance checks that can lower a grade were not evaluated (auditor quality, say on pay, board independence, going concern). Those checks only ever lower a grade, so the full analysis can land below the grade above but never above it — treat it as the most favourable reading, not the settled one.
Horton D R Inc /De/ earns a B (Sound & dependable) forensic quality grade. 3 forensic signals were flagged in its latest SEC filings, led by shareholder returns.
What the filings flag
146% of FCF
FY2025
Shareholder returns.Returned $4.8B to shareholders (buybacks + dividends) in FY2025 — 146% of free cash flow. That is $1.5B (46%) more than free cash flow covered, and more than operating cash flow as well. The balance sheet covered it: cash fell $1.5B and total debt rose $48M over FY2025. A payout past free cash flow draws the balance sheet down in every year it continues, which isn't sustainable indefinitely. Counting the $131M of stock-based comp paid out in shares on top of that, the combined claim on free cash flow is 150%.
0.76×
FY2023–FY2025
Cash conversion.Over FY2023–FY2025, cumulative operating cash flow was 0.76× cumulative net income. Cash is lagging reported profit. The shortfall is profit tied up in working capital rather than collected — the accrual and receivables lines below show where.Cash conversion: operating cash flow divided by net income, the share of profit that arrived as cash.
13.4%
FY2025
Return on invested capital.Return on invested capital is 13.4% in the latest fiscal year and slipping across FY2023–FY2025 from 20.0%. After-tax operating profit was $4.8B in FY2023 and $3.6B in FY2025. The capital base behind it grew +13% across FY2023–FY2025, from $23.9B to $26.9B, while the return fell 6.6 points, so the dollars added over that window earned less than the 20.0% the older base was already earning.
Key fundamentals
Latest Revenue$34.25B
Revenue Growth YoY-6.9%
Revenue CAGR (2yr)-1.7%
Net Margin10.5%
Free Cash Flow$3.28B
Return on Equity14.5%
Debt / Equity0.25x
The forensic grade and screens above are free — no account needed. Want the AI investment read on top — the 0–100 rating, thesis, bull-vs-bear, red flags and the 12-month scenario, written from Horton D R Inc /De/'s actual 10-K/10-Q/8-K filings?