D.R. Horton (FRA:HO2) Moat Score: 6/10 (As of Jun. 29, 2026)


FRA:HO2 D.R. Horton Inc FRA:HO2
92 GF Score
Price €145.45
GF Value €133.41
Valuation Fairly Valued
! 7 Warning Signs
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What is D.R. Horton Moat Score?

D.R. Horton FRA:HO2 -0.61% 92 Moat Score is 6 as of Jun. 29, 2026. GuruFocus rates FRA:HO2 with a GF Score™ of 92/100 and a GF Value™ of €133.41 (Fairly Valued). The stock has 7 warning signs investors should review. Among 102 Homebuilding & Construction companies, D.R. Horton ranks better than 98.04% on this metric.

D.R. Horton has the Moat Score of 6, which implies that the company might have Narrow Moat - Strong narrow moat, clearly distinguishable but not wide.

D.R. Horton has Narrow Moat: D.R. Horton has a strong narrow moat due to its leading market position in homebuilding, economies of scale, and brand recognition. While it benefits from cost advantages and a robust distribution network, the cyclical nature of the industry limits its moat from being wide.

Moat Score is a ranking system developed by GuruFocus to assess a company's ability to sustain a competitive advantage, rated on a scale from 0 to 10. It takes into account key factors such as market leadership, cost advantages, network effects, customer switching costs, and more.

The company's Moat Score is based on these criteria:

1. Market leadership and sustainable market share
2. Network effects and significant customer switching costs
3. Valuable intellectual property and patents
4. Strong brand strength and deep customer loyalty
5. Durable cost advantages (e.g., economies of scale, proprietary technology)
6. Significant regulatory barriers and exclusive licenses
7. Superior distribution network
8. Strong and sustainable pricing power
9. Consistent and impactful innovation and R&D capabilities

Based on the research, GuruFocus believes D.R. Horton might have Narrow Moat - Strong narrow moat, clearly distinguishable but not wide.

D.R. Horton  (FRA:HO2) Moat Score Explanation

The Moat Score ranges from 0 to 10, with 10 as the highest. GuruFocus divided Moat Score into following 8 categories:

Moat Score Moat Level
10Wide Moat - Exceptionally dominant and durable wide moat
8 - 9Wide Moat - Clear and robust wide moat
7Wide Moat - Entry-level wide moat, clearly possessing durable advantages
6Narrow Moat - Strong narrow moat, clearly distinguishable but not wide
5Narrow Moat - Solid narrow moat
4Narrow Moat - Discernible but modest moat
1 - 3No Moat - Very weak/transient advantages
0No Moat - No discernible moat

D.R. Horton Moat Score Related Terms

FRA:HO2 vs PHM, LEN, NVR: Moat Score Comparison

For the Residential Construction subindustry, D.R. Horton's Moat Score, along with its competitors' market caps and Moat Score 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.

D.R. Horton Moat Score vs Homebuilding & Construction Industry

For the Homebuilding & Construction industry and Consumer Cyclical sector, D.R. Horton's Moat Score distribution charts can be found below:

* The bar in red indicates where D.R. Horton's Moat Score falls into.


FRA:HO2
92GF Score
D.R. Horton Inc FRA:HO2
Moat Score is just one metric. See GF Score™, valuation, warning signs, and more.
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Frequently Asked Questions Learn more about Moat Score →
What does a Moat Score of 6 mean?
D.R. Horton (FRA:HO2) has a Moat Score of 6 as of Jun. 29, 2026. Moat Score is a ranking system developed by GuruFocus to assess a company's ability to sustain a competitive advantage, rated on a scale from 0 to 10. It takes into account key factors such as market leadership, cost advantages, network effects, customer switching costs, and more. According to the industry distribution chart, D.R. Horton ranks #2 out of 102 companies in the Homebuilding & Construction industry, placing it in the top 2%.
Is D.R. Horton's Moat Score too high?
D.R. Horton's current Moat Score is 6. Based on the distribution chart, D.R. Horton ranks #2 out of 102 companies in the Homebuilding & Construction industry, which is in the top quartile — a strong position relative to peers. Overall, D.R. Horton has a GF Score™ of 92/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does D.R. Horton's Moat Score compare to PHM and LEN?
According to the Homebuilding & Construction industry distribution chart, D.R. Horton ranks #2 out of 102 companies for Moat Score. This places D.R. Horton in the top 2% of its industry — outperforming the majority of peers. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Moat Score for a Homebuilding & Construction company?
A good Moat Score depends on the Homebuilding & Construction industry context. However, Moat Score should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Moat Score mean?
A high Moat Score can signal that a stock is expensive relative to its fundamentals. Moat Score is a ranking system developed by GuruFocus to assess a company's ability to sustain a competitive advantage, rated on a scale from 0 to 10. It takes into account key factors such as market leadership, cost advantages, network effects, customer switching costs, and more. D.R. Horton's current Moat Score is 6. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is D.R. Horton stock overvalued right now?
Based on GuruFocus' analysis, D.R. Horton (FRA:HO2) is currently considered Fairly Valued. The stock's GF Value™ is €133.41, compared to a current price of €145.45 — trading 9% above its estimated fair value. The current Moat Score is 6. D.R. Horton's overall GF Score™ is 92/100 with 7 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Moat Score calculated?
Moat Score is calculated from a company's financial statements. For D.R. Horton (FRA:HO2), the current Moat Score is 6 as of Jun. 29, 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 D.R. Horton (FRA:HO2) Overvalued in 2026?

Based on GuruFocus' analysis, D.R. Horton stock appears to be overvalued. The current stock price of €145.45 is trading 9% above its estimated GF Value™ of €133.41. GuruFocus considers D.R. Horton to be Fairly Valued.

Key valuation signals for FRA:HO2:

  • Moat Score: 6
  • GF Value™: €133.41 vs. price of €145.45 (9% above fair value)
  • GF Score™: 92/100 with 7 warning signs

No single metric tells the full story. See the FRA:HO2 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.

D.R. Horton Business Description

Address 1341 Horton Circle, Arlington, TX, USA, 76011
D.R. Horton is the largest homebuilder in the United States with operations in 126 markets across 36 states. D.R. Horton mainly builds single-family 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. The firm has majority ownership of Forestar Group, a publicly traded residential lot development company. D.R. Horton's headquarters are in Arlington, Texas.
92GF Score

Get the complete analysis for FRA:HO2

Moat Score is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

€145.45
Price
€133.41
GF Value