D.R. HortonFRA:HO2 -0.61%92 Pretax Margin % is 11.48% as of Mar. 2026, which is 20% below its 10-year median of 14.27. 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 91 Homebuilding & Construction companies, D.R. Horton ranks better than 74.73% on this metric.
Pre-Tax margin is calculated as Pre-Tax Income divided by its Revenue. D.R. Horton's Pre-Tax Income for the
three
months ended in Mar. 2026 was €750 Mil. D.R. Horton's Revenue for the
three
months ended in Mar. 2026 was €6,538 Mil. Therefore, D.R. Horton's pretax margin for the quarter that ended in Mar. 2026 was 11.48%.
The historical rank and industry rank for D.R. Horton's Pretax Margin % or its related term are showing as below:
FRA:HO2'
s Pretax Margin % Range Over the Past 10 Years
Min: 11.13 Med: 14.27 Max: 22.79
Current: 12.68
FRA:HO2's Pretax Margin % is ranked better than 74.73% of 91
companies
in the Homebuilding & Construction industry
Industry Median: 7.18
vs FRA:HO2: 12.68
D.R. Horton (FRA:HO2) Pretax Margin % Explanation
The pretax margin, as know as pretax profit margin, is widely used to measure the operating efficiency of a company before deducting taxes.
The pretax margin is sometimes preferred over the net margin as tax expenditures can make profitability comparisons between companies misleading.
It is a useful tool to compare companies operating in the same sector and less effective when comparing companies from other sectors as each industry generally has different operating expenses and sales patterns.
The long term trend of the pretax margin is a good indicator of the competitiveness and health of the business.
D.R. Horton Pretax Margin % Related Terms
D.R. Horton Pretax Margin % Historical Data
* Premium members only.
The historical data trend for D.R. Horton's Pretax 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.
FRA:HO2 vs PHM, LEN, NVR: Pretax Margin % Comparison
For the Residential Construction subindustry, D.R. Horton's Pretax Margin %, along with its competitors' market caps and Pretax 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 Pretax Margin % vs Homebuilding & Construction Industry
For the Homebuilding & Construction industry and Consumer Cyclical sector, D.R. Horton's Pretax Margin % distribution charts can be found below:
* The bar in red indicates where D.R. Horton's Pretax 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 (FRA:HO2) has a Pretax Margin % of 11.48% as of Mar. 2026. Pre-Tax margin is the ratio of total pre-tax income to net sales. View historical data on D.R. Horton and its competitors. This is 20% below median its historical median of 14.27. Over the past decade, D.R. Horton's Pretax Margin % has ranged from 11.13 to 22.79. 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 Pretax Margin % too high?
D.R. Horton's current Pretax Margin % of 11.48% is 20% below median its 10-year median of 14.27. Over the past 10 years, this metric has ranged from a low of 11.13 to a high of 22.79. The Homebuilding & Construction industry median Pretax Margin % is 7.18. D.R. Horton's value of 11.48% is 59.9% 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 Pretax Margin % compare to PHM and LEN?
According to the Homebuilding & Construction industry distribution chart, D.R. Horton ranks #23 out of 91 companies for Pretax Margin %. This puts D.R. Horton in the upper half of its industry. The industry median Pretax Margin % is 7.18. D.R. Horton's value of 11.48% is 59.9% above this benchmark. Historically, D.R. Horton's own Pretax Margin % has ranged from 11.13 to 22.79 over the past decade. While the company's 10-year median is 14.27 vs. the industry median of 7.18, 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 Pretax Margin % for a Homebuilding & Construction company?
The median Pretax Margin % among Homebuilding & Construction companies is 7.18, based on 91 companies in the industry. Companies in the top quartile (top 25%) have a Pretax Margin % significantly above this median, while those in the bottom quartile fall well below. However, Pretax Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. D.R. Horton's current Pretax Margin % of 11.48% is 59.9% 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 Pretax Margin % mean?
A high Pretax Margin % can signal that a stock is expensive relative to its fundamentals. Pre-Tax margin is the ratio of total pre-tax income to net sales. View historical data on D.R. Horton and its competitors. For the Homebuilding & Construction industry, the median Pretax Margin % is 7.18 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. D.R. Horton's current Pretax Margin % is 11.48%, which is 20% below median its own 10-year median of 14.27. 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 Pretax Margin % is 11.48%, which is 20% below median its 10-year median of 14.27 and 59.9% above the Homebuilding & Construction industry median of 7.18. 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 Pretax Margin % calculated?
Pretax Margin % is calculated from a company's financial statements. For D.R. Horton (FRA:HO2), the current Pretax Margin % is 11.48% 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 (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:
Pretax Margin %: 11.48% (20% below median its 10-year median of 14.27)
GF Value™: €133.41 vs. price of €145.45 (9% above fair value)
Industry Position: 59.9% above the Homebuilding & Construction median (#23 of 91)
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 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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