Dream Finders HomesDFH +1.41%72 Cash Ratio is 0.24 as of Mar. 2026, which is 60% above its 10-year median of 0.15. GuruFocus rates DFH with a GF Score™ of 72/100 and a GF Value™ of $28.38 (Possible Value Trap). The stock has 9 warning signs investors should review. Among 93 Homebuilding & Construction companies, Dream Finders Homes ranks worse than 60.22% on this metric.
Dream Finders Homes has a Cash Ratio of 0.24. It indicates that there are more current liabilities than Cash, Cash Equivalents, Marketable Securities, and the company does not have sufficient cash on hand to pay off its short-term debt.
The historical rank and industry rank for Dream Finders Homes's Cash Ratio or its related term are showing as below:
DFH'
s Cash Ratio Range Over the Past 10 Years
Min: 0.01 Med: 0.15 Max: 0.47
Current: 0.24
During the past 8 years, Dream Finders Homes's highest Cash Ratio was 0.47. The lowest was 0.01. And the median was 0.15.
DFH's Cash Ratio is ranked worse than 60.22% of 93
companies
in the Homebuilding & Construction industry
Industry Median: 0.32
vs DFH: 0.24
Dream Finders Homes (NYSE:DFH) Cash Ratio Explanation
The cash ratio is more conservative than other liquidity ratios, such as Quick Ratio and Current Ratio, because it only considers a company's most liquid resources. The numerator of cash ratio only considers Cash, Cash Equivalents and marketable securities. Other current assets, such as accounts receivable and inventories, are not included. The rationale is that these assets may require time to be transformed into cash, and the amount of money received is also uncertain.
The cash ratio shows a company’s ability to pay all current liabilities immediately without selling or liquidating other assets. Generally speaking, a higher cash ratio suggests the company has a stronger ability to cover its short-term debt. However, a high cash ratio could also indicate inefficient management: the company is inefficient in making full utilization of cash to invest protential profitable project. It may also suggest that the company is not confident about future profitability.
In general, the higher the cash ratio, the better the company's liquidity position.
Dream Finders Homes Cash Ratio Related Terms
Dream Finders Homes Cash Ratio Historical Data
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The historical data trend for Dream Finders Homes's Cash Ratio can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
For the Residential Construction subindustry, Dream Finders Homes's Cash Ratio, along with its competitors' market caps and Cash Ratio data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Dream Finders Homes Cash Ratio vs Homebuilding & Construction Industry
For the Homebuilding & Construction industry and Consumer Cyclical sector, Dream Finders Homes's Cash Ratio distribution charts can be found below:
* The bar in red indicates where Dream Finders Homes's Cash Ratio falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Dream Finders Homes (DFH) has a Cash Ratio of 0.24 as of Mar. 2026. Cashflow ratio is the ratio of Cash, Cash Equivalents, Marketable Securities to current liabilities. View historical data on Dream Finders Homes and its competitors. This is 60% above median its historical median of 0.15. Over the past decade, Dream Finders Homes' Cash Ratio has ranged from 0.01 to 0.47. According to the industry distribution chart, Dream Finders Homes ranks #56 out of 93 companies in the Homebuilding & Construction industry, placing it in the top 60.2%.
Is Dream Finders Homes' Cash Ratio too high?
Dream Finders Homes' current Cash Ratio of 0.24 is 60% above median its 10-year median of 0.15. Over the past 10 years, this metric has ranged from a low of 0.01 to a high of 0.47. The Homebuilding & Construction industry median Cash Ratio is 0.32. Dream Finders Homes' value of 0.24 is 25% below this industry median. Based on the distribution chart, Dream Finders Homes ranks #56 out of 93 companies in the Homebuilding & Construction industry, which is below the industry midpoint. Overall, Dream Finders Homes has a GF Score™ of 72/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Dream Finders Homes' Cash Ratio compare to LGIH and HOV?
According to the Homebuilding & Construction industry distribution chart, Dream Finders Homes ranks #56 out of 93 companies for Cash Ratio. This places Dream Finders Homes in the lower half of its industry. The industry median Cash Ratio is 0.32. Dream Finders Homes' value of 0.24 is 25% below this benchmark. Historically, Dream Finders Homes' own Cash Ratio has ranged from 0.01 to 0.47 over the past decade. While the company's 10-year median is 0.15 vs. the industry median of 0.32, Dream Finders Homes has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Cash Ratio for a Homebuilding & Construction company?
The median Cash Ratio among Homebuilding & Construction companies is 0.32, based on 93 companies in the industry. Companies in the top quartile (top 25%) have a Cash Ratio significantly above this median, while those in the bottom quartile fall well below. However, Cash Ratio should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Dream Finders Homes's current Cash Ratio of 0.24 is 25% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Cash Ratio mean?
A high Cash Ratio can signal that a stock is expensive relative to its fundamentals. Cashflow ratio is the ratio of Cash, Cash Equivalents, Marketable Securities to current liabilities. View historical data on Dream Finders Homes and its competitors. For the Homebuilding & Construction industry, the median Cash Ratio is 0.32 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Dream Finders Homes's current Cash Ratio is 0.24, which is 60% above median its own 10-year median of 0.15. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Dream Finders Homes stock overvalued right now?
Based on GuruFocus' analysis, Dream Finders Homes (DFH) is currently considered Possible Value Trap. The stock's GF Value™ is $28.38, compared to a current price of $15.83 — trading 44.2% below its estimated fair value. The current Cash Ratio is 0.24, which is 60% above median its 10-year median of 0.15 and 25% below the Homebuilding & Construction industry median of 0.32. Dream Finders Homes' overall GF Score™ is 72/100 with 9 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Cash Ratio calculated?
Cash Ratio is calculated from a company's financial statements. For Dream Finders Homes (DFH), the current Cash Ratio is 0.24 as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Dream Finders Homes (DFH) Overvalued in 2026?
Based on GuruFocus' analysis, Dream Finders Homes stock appears to be undervalued.
The current stock price of $15.83 is trading 44.2% below its estimated GF Value™ of $28.38.
GuruFocus considers Dream Finders Homes to be Possible Value Trap.
Key valuation signals for DFH:
Cash Ratio: 0.24 (60% above median its 10-year median of 0.15)
GF Value™: $28.38 vs. price of $15.83 (44.2% below fair value)
Industry Position: 25% below the Homebuilding & Construction median (#56 of 93)
No single metric tells the full story. See the DFH stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Dream Finders Homes Inc designs, builds and sells homes in markets throughout the United States. The company's primary focus is on constructing and selling single-family homes across entry-level, first-time move-up, second-time move-up, and active adult markets. Its homebuilding operations are organized into four reportable segments: Southeast, Mid-Atlantic, Midwest, and Financial Services. It generates the maximum of its revenue from the Midwest segment.
72GF Score
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