D.R. Horton (BSP:D1HI34) Beneish M-Score : -2.25 (As of Dec. 12, 2024)

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What is D.R. Horton Beneish M-Score?

The zones of discrimination for M-Score is as such:

An M-Score of equal or less than -1.78 suggests that the company is unlikely to be a manipulator.
An M-Score of greater than -1.78 signals that the company is likely to be a manipulator.

Good Sign:

Beneish M-Score -2.25 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

The historical rank and industry rank for D.R. Horton's Beneish M-Score or its related term are showing as below:

BSP:D1HI34' s Beneish M-Score Range Over the Past 10 Years
Min: -2.5 Med: -2.18 Max: -1.17
Current: -2.25

During the past 13 years, the highest Beneish M-Score of D.R. Horton was -1.17. The lowest was -2.50. And the median was -2.18.

D.R. Horton Beneish M-Score Historical Data

The historical data trend for D.R. Horton's Beneish M-Score 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.

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D.R. Horton Beneish M-Score Chart

D.R. Horton Annual Data

Trend

Sep15

Sep16

Sep17

Sep18

Sep19

Sep20

Sep21

Sep22

Sep23

Sep24

Beneish M-Score

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-2.11

-1.81

-1.17

-2.37

-2.25

D.R. Horton Quarterly Data
	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24	Jun24	Sep24
Beneish M-Score	Get a 7-Day Free Trial															-2.37	-2.22	-1.65	-1.72	-2.25

Competitive Comparison of D.R. Horton's Beneish M-Score

For the Residential Construction subindustry, D.R. Horton's Beneish M-Score, along with its competitors' market caps and Beneish M-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's Beneish M-Score Distribution in the Homebuilding & Construction Industry

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

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

D.R. Horton Beneish M-Score Calculation

The M-score was created by Professor Messod Beneish. Instead of measuring the bankruptcy risk (Altman Z-Score) or business trend (Piotroski F-Score), M-score can be used to detect the risk of earnings manipulation. This is the original research paper on M-score.

The M-Score Variables:

The M-score of D.R. Horton for today is based on a combination of the following eight different indices:

-4.84

0.92 * DSRI

0.528 * GMI

0.404 * AQI

0.892 * SGI

0.115 * DEPI

-4.84

0.92 * 1.0286

0.528 * 1.0172

0.404 * 0.8645

0.892 * 1.0761

0.115 * 1.0977

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 1.063

4.679 * 0.053783

0.327 * 1

-2.18

This Year (Sep24) TTM:

Last Year (Sep23) TTM:

Total Receivables was R$2,334 Mil.
Revenue was 55392.398 + 53676.257 + 45352.035 + 37855.855 = R$192,277 Mil.
Gross Profit was 14145.203 + 14230.076 + 11617.375 + 9829.979 = R$49,823 Mil.
Total Current Assets was R$192,416 Mil.
Total Assets was R$199,938 Mil.
Property, Plant and Equipment(Net PPE) was R$388 Mil.
Depreciation, Depletion and Amortization(DDA) was R$454 Mil.
Selling, General, & Admin. Expense(SGA) was R$18,769 Mil.
Total Current Liabilities was R$11,278 Mil.
Long-Term Debt & Capital Lease Obligation was R$33,066 Mil.
Net Income was 7107.213 + 7290.625 + 5836.824 + 4642.071 = R$24,877 Mil.
Non Operating Income was 640.723 + 434.12 + 379.461 + 373.855 = R$1,828 Mil.
Cash Flow from Operations was 10862.948 + 3761.114 + -1577.103 + -751.629 = R$12,295 Mil.

Total Receivables was R$2,108 Mil.
Revenue was 51876.105 + 47205.145 + 41527.647 + 38070.064 = R$178,679 Mil.
Gross Profit was 13943.432 + 12540.99 + 10295.84 + 10315.079 = R$47,095 Mil.
Total Current Assets was R$153,953 Mil.
Total Assets was R$160,915 Mil.
Property, Plant and Equipment(Net PPE) was R$319 Mil.
Depreciation, Depletion and Amortization(DDA) was R$464 Mil.
Selling, General, & Admin. Expense(SGA) was R$16,408 Mil.
Total Current Liabilities was R$10,290 Mil.
Long-Term Debt & Capital Lease Obligation was R$25,398 Mil.

1. DSRI = Days Sales in Receivables Index

Measured as the ratio of Revenue in Total Receivables in year t to year t-1.

A large increase in DSR could be indicative of revenue inflation.

DSRI	=	(Receivables_t / Revenue_t)	/	(Receivables_t-1 / Revenue_t-1)
	=	(2333.629 / 192276.545)	/	(2108.331 / 178678.961)
	=	0.012137	/	0.0118
	=	1.0286

2. GMI = Gross Margin Index

Measured as the ratio of gross margin in year t-1 to gross margin in year t.

Gross margin has deteriorated when this index is above 1. A firm with poorer prospects is more likely to manipulate earnings.

GMI	=	GrossMargin_t-1	/	GrossMargin_t
	=	(GrossProfit_t-1 / Revenue_t-1)	/	(GrossProfit_t / Revenue_t)
	=	(47095.341 / 178678.961)	/	(49822.633 / 192276.545)
	=	0.263575	/	0.25912
	=	1.0172

3. AQI = Asset Quality Index

AQI is the ratio of asset quality in year t to year t-1.

Asset quality is measured as the ratio of non-current assets other than Property, Plant and Equipment to Total Assets.

AQI	=	(1 - (CurrentAssets_t + PPE_t) / TotalAssets_t)	/	(1 - (CurrentAssets_t-1 + PPE_t-1) / TotalAssets_t-1)
	=	(1 - (192415.845 + 387.646) / 199938.393)	/	(1 - (153953.107 + 319.04) / 160914.699)
	=	0.035686	/	0.04128
	=	0.8645

4. SGI = Sales Growth Index

Ratio of Revenue in year t to sales in year t-1.

Sales growth is not itself a measure of manipulation. However, growth companies are likely to find themselves under pressure to manipulate in order to keep up appearances.

SGI	=	Sales_t	/	Sales_t-1
	=	Revenue_t	/	Revenue_t-1
	=	192276.545	/	178678.961
	=	1.0761

5. DEPI = Depreciation Index

Measured as the ratio of the rate of Depreciation, Depletion and Amortization in year t-1 to the corresponding rate in year t.

DEPI greater than 1 indicates that assets are being depreciated at a slower rate. This suggests that the firm might be revising useful asset life assumptions upwards, or adopting a new method that is income friendly.

DEPI	=	(Depreciation_t-1 / (Depreciaton_t-1 + PPE_t-1))	/	(Depreciation_t / (Depreciaton_t + PPE_t))
	=	(463.65 / (463.65 + 319.04))	/	(454.411 / (454.411 + 387.646))
	=	0.59238	/	0.539644
	=	1.0977

Note: If the Depreciation, Depletion and Amortization data is not available, we assume that the depreciation rate is constant and set the Depreciation Index to 1.

6. SGAI = Sales, General and Administrative expenses Index

The ratio of Selling, General, & Admin. Expense(SGA) to Sales in year t relative to year t-1.

SGA expenses index > 1 means that the company is becoming less efficient in generate sales.

SGAI	=	(SGA_t / Sales_t)	/	(SGA_t-1 /Sales_t-1)
	=	(18769.096 / 192276.545)	/	(16407.747 / 178678.961)
	=	0.097615	/	0.091828
	=	1.063

7. LVGI = Leverage Index

The ratio of total debt to Total Assets in year t relative to yeat t-1.

An LVGI > 1 indicates an increase in leverage

LVGI	=	((LTD_t + CurrentLiabilities_t) / TotalAssets_t)	/	((LTD_t-1 + CurrentLiabilities_t-1) / TotalAssets_t-1)
	=	((33066.204 + 11277.73) / 199938.393)	/	((25397.759 + 10289.781) / 160914.699)
	=	0.221788	/	0.221779
	=	1

8. TATA = Total Accruals to Total Assets

Total accruals calculated as the change in working capital accounts other than cash less depreciation.

TATA	=	(IncomefromContinuingOperations_t	-	CashFlowsfromOperations_t)	/	TotalAssets_t
	=	(NetIncome_t - NonOperatingIncome_t	-	CashFlowsfromOperations_t)	/	TotalAssets_t
	=	(24876.733 - 1828.159	-	12295.33)	/	199938.393
	=	0.053783

An M-Score of equal or less than -1.78 suggests that the company is unlikely to be a manipulator. An M-Score of greater than -1.78 signals that the company is likely to be a manipulator.

D.R. Horton has a M-score of -2.18 suggests that the company is unlikely to be a manipulator.

D.R. Horton Beneish M-Score Related Terms

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D.R. Horton Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Homebuilding & Construction » D.R. Horton Inc (BSP:D1HI34) » Definitions » Beneish M-Score

Comparable Companies

Traded in Other Exchanges

DHI:USA DHI:Mexico 0I6K:UK HO2:Germany HO2:Germany

Address

1341 Horton Circle, Arlington, TX, USA, 76011

Website

https://www.drhorton.com

D.R. Horton is a leading homebuilder in the United States with operations in 125 markets across 36 states. D.R. Horton mainly builds single-family detached 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. D.R. Horton's headquarters are in Arlington, Texas, and it manages six regional segments across the United States.

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