D.R. HortonDHI +6.68%92 Net Margin % is 8.57% as of Mar. 2026, which is 23% below its 10-year median of 11.08. GuruFocus rates DHI with a GF Score™ of 92/100 and a GF Value™ of $152.46 (Fairly Valued). The stock has 6 warning signs investors should review. Among 91 Homebuilding & Construction companies, D.R. Horton ranks better than 74.73% on this metric.
Net margin is calculated as Net Income divided by its Revenue. D.R. Horton's Net Income for the
three
months ended in Mar. 2026 was $648 Mil. D.R. Horton's Revenue for the
three
months ended in Mar. 2026 was $7,558 Mil. Therefore, D.R. Horton's net margin for the quarter that ended in Mar. 2026 was 8.57%.
The historical rank and industry rank for D.R. Horton's Net Margin % or its related term are showing as below:
DHI'
s Net Margin % Range Over the Past 10 Years
Min: 7.29 Med: 11.08 Max: 17.5
Current: 9.51
DHI's Net Margin % is ranked better than 74.73% of 91
companies
in the Homebuilding & Construction industry
Industry Median: 4.73
vs DHI: 9.51
D.R. Horton (NYSE:DHI) Net Margin % Explanation
Although Net Income and Earnings-per-Share (EPS) are the most widely used parameter in measuring a company's profitability and valuation, it is the least reliable. The reason is that reported earnings can be manipulated easily by adjusting any numbers such as Depreciation, Depletion and Amotorization and non-recurring items.
But the long term trend of the net margin is a good indicator of the competitiveness and health of the business.
D.R. Horton Net Margin % Related Terms
D.R. Horton Net Margin % Historical Data
* Premium members only.
The historical data trend for D.R. Horton's Net Margin % 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, D.R. Horton's Net Margin %, along with its competitors' market caps and Net Margin % 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 Net Margin % vs Homebuilding & Construction Industry
For the Homebuilding & Construction industry and Consumer Cyclical sector, D.R. Horton's Net Margin % distribution charts can be found below:
* The bar in red indicates where D.R. Horton's Net Margin % 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.
D.R. Horton (DHI) has a Net Margin % of 8.57% as of Mar. 2026. Net margin is the ratio of total net income to net sales. View historical data on D.R. Horton and its competitors. This is 23% below median its historical median of 11.08. Over the past decade, D.R. Horton's Net Margin % has ranged from 7.29 to 17.50. According to the industry distribution chart, D.R. Horton ranks #23 out of 91 companies in the Homebuilding & Construction industry, placing it in the top 25.3%.
Is D.R. Horton's Net Margin % too high?
D.R. Horton's current Net Margin % of 8.57% is 23% below median its 10-year median of 11.08. Over the past 10 years, this metric has ranged from a low of 7.29 to a high of 17.50. The Homebuilding & Construction industry median Net Margin % is 4.73. D.R. Horton's value of 8.57% is 81.2% above this industry median. Based on the distribution chart, D.R. Horton ranks #23 out of 91 companies in the Homebuilding & Construction industry, which is above the industry midpoint. 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 Net Margin % compare to PHM and LEN?
According to the Homebuilding & Construction industry distribution chart, D.R. Horton ranks #23 out of 91 companies for Net Margin %. This puts D.R. Horton in the upper half of its industry. The industry median Net Margin % is 4.73. D.R. Horton's value of 8.57% is 81.2% above this benchmark. Historically, D.R. Horton's own Net Margin % has ranged from 7.29 to 17.50 over the past decade. While the company's 10-year median is 11.08 vs. the industry median of 4.73, D.R. Horton has consistently been above 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 Net Margin % for a Homebuilding & Construction company?
The median Net Margin % among Homebuilding & Construction companies is 4.73, based on 91 companies in the industry. Companies in the top quartile (top 25%) have a Net Margin % significantly above this median, while those in the bottom quartile fall well below. However, Net Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. D.R. Horton's current Net Margin % of 8.57% is 81.2% above 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 Net Margin % mean?
A high Net Margin % can signal that a stock is expensive relative to its fundamentals. Net margin is the ratio of total net income to net sales. View historical data on D.R. Horton and its competitors. For the Homebuilding & Construction industry, the median Net Margin % is 4.73 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. D.R. Horton's current Net Margin % is 8.57%, which is 23% below median its own 10-year median of 11.08. 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 (DHI) is currently considered Fairly Valued. The stock's GF Value™ is $152.46, compared to a current price of $166.51 — trading 9.2% above its estimated fair value. The current Net Margin % is 8.57%, which is 23% below median its 10-year median of 11.08 and 81.2% above the Homebuilding & Construction industry median of 4.73. D.R. Horton's overall GF Score™ is 92/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Net Margin % calculated?
Net Margin % is calculated from a company's financial statements. For D.R. Horton (DHI), the current Net Margin % is 8.57% 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 D.R. Horton (DHI) Overvalued in 2026?
Based on GuruFocus' analysis, D.R. Horton stock appears to be overvalued.
The current stock price of $166.51 is trading 9.2% above its estimated GF Value™ of $152.46.
GuruFocus considers D.R. Horton to be Fairly Valued.
Key valuation signals for DHI:
Net Margin %: 8.57% (23% below median its 10-year median of 11.08)
GF Value™: $152.46 vs. price of $166.51 (9.2% above fair value)
Industry Position: 81.2% above the Homebuilding & Construction median (#23 of 91)
No single metric tells the full story. See the DHI stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
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
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