DREM (Dream Homes & Development) ROE %: 35.79% (As of Dec. 2025)


What is Dream Homes & Development ROE %?

Dream Homes & Development DREM ROE % is 35.79% as of Dec. 2025. The stock has 4 warning signs investors should review. Among 95 Homebuilding & Construction companies, Dream Homes & Development ranks better than 96.84% on this metric.

ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Dream Homes & Development's annualized net income for the quarter that ended in Dec. 2025 was $0.20 Mil. Dream Homes & Development's average Total Stockholders Equity over the quarter that ended in Dec. 2025 was $0.57 Mil. Therefore, Dream Homes & Development's annualized ROE % for the quarter that ended in Dec. 2025 was 35.79%.

The historical rank and industry rank for Dream Homes & Development's ROE % or its related term are showing as below:

DREM' s ROE % Range Over the Past 10 Years
Min: -66.67   Med: -8.98   Max: 30.49
Current: 30.49

During the past 12 years, Dream Homes & Development's highest ROE % was 30.49%. The lowest was -66.67%. And the median was -8.98%.

DREM's ROE % is ranked better than
96.84% of 95 companies
in the Homebuilding & Construction industry
Industry Median: 7.88 vs DREM: 30.49

Dream Homes & Development  (OTCPK:DREM) ROE % Explanation

ROE % measures the rate of return on the ownership interest (shareholder's equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' equity (also known as net assets or assets minus liabilities). ROE % shows how well a company uses investment funds to generate earnings growth. ROE %s between 15% and 20% are considered desirable.

The factors that affect a company's ROE % can be illustrated with the three-step DuPont Analysis:

ROE %(Q: Dec. 2025 )
=Net Income/Total Stockholders Equity
=0.204/0.57
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(0.204 / 12.396)*(12.396 / 8.2015)*(8.2015 / 0.57)
=Net Margin %*Asset Turnover*Equity Multiplier
=1.65 %*1.5114*14.3886
=ROA %*Equity Multiplier
=2.49 %*14.3886
=35.79 %

With this breakdown, it is clear that if a company grows its Net Profit Margin, its Asset Turnover, or its Leverage, it can grow its ROE %.

The factors that affect a company's ROE % can also be illustrated with the five-step DuPont Analysis:

ROE %(Q: Dec. 2025 )
=Net Income/Total Stockholders Equity
=0.204/0.57
=(Net Income / Pre-Tax Income) * (Pre-Tax Income / Operating Income) * (Operating Income / Revenue) * (Revenue / Total Assets) * (Total Assets / Total Stockholders Equity)
= (0.204 / -7.864) * (-7.864 / -7.456) * (-7.456 / 12.396) * (12.396 / 8.2015) * (8.2015 / 0.57)
= Tax Burden * Interest Burden * Operating Margin % * Asset Turnover * Equity Multiplier
= -0.0259 * 1.0547 * -60.15 % * 1.5114 * 14.3886
=35.79 %

Note: The net income data used here is four times the quarterly (Dec. 2025) net income data. The Revenue data used here is four times the quarterly (Dec. 2025) revenue data. The same rule applies to Pre-Tax Income and Operating Income.
* In the five-step DuPont Analysis, Operating Income is only available for non-financial companies. Thus, for Insurance companies, we use EBIT as a substitution of Operating Income. For Banks, both Operating Income and EBIT is unavailable. Thus we combined Interest Burden and Operating Margin % into Pretax Margin %, and the DuPont Analysis is divided into four components instead.

* 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.


Be Aware

Net Income is used.

Because a company can increase its ROE % by having more financial leverage, it is important to watch the equity multiplier when investing in high ROE % companies. Like ROA %, ROE % is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.

Asset light businesses require very few assets to generate very high earnings. Their ROE %s can be extremely high.


Dream Homes & Development ROE % Related Terms


Dream Homes & Development ROE % Historical Data

* Premium members only.

The historical data trend for Dream Homes & Development's ROE % 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.

Dream Homes & Development ROE % Chart

Dream Homes & Development Annual Data
Trend Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24 Dec25
ROE %
Get a 7-Day Free Trial Premium Member Only Premium Member Only -35.09 27.40 -15.25 24.91 22.16

Dream Homes & Development Quarterly Data
Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25 Jun25 Sep25 Dec25
ROE % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 56.92 -1.23 17.45 259.23 35.79

DREM vs BDCC, DHI, PHM: ROE % Comparison

For the Residential Construction subindustry, Dream Homes & Development's ROE %, along with its competitors' market caps and ROE % 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 Homes & Development ROE % vs Homebuilding & Construction Industry

For the Homebuilding & Construction industry and Consumer Cyclical sector, Dream Homes & Development's ROE % distribution charts can be found below:

* The bar in red indicates where Dream Homes & Development's ROE % falls into.



Dream Homes & Development ROE % Calculation

Dream Homes & Development's annualized ROE % for the fiscal year that ended in Dec. 2025 is calculated as

ROE %=Net Income (A: Dec. 2025 )/( (Total Stockholders Equity (A: Dec. 2024 )+Total Stockholders Equity (A: Dec. 2025 ))/ count )
=0.418/( (2.386+1.387)/ 2 )
=0.418/1.8865
=22.16 %

Dream Homes & Development's annualized ROE % for the quarter that ended in Dec. 2025 is calculated as

ROE %=Net Income (Q: Dec. 2025 )/( (Total Stockholders Equity (Q: Sep. 2025 )+Total Stockholders Equity (Q: Dec. 2025 ))/ count )
=0.204/( (-0.247+1.387)/ 2 )
=0.204/0.57
=35.79 %

* 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.

In the calculation of annual ROE %, the net income of the last fiscal year and the average total shareholder equity over the fiscal year are used. In calculating the quarterly data, the net income data used here is four times the quarterly (Dec. 2025) net income data. ROE % is displayed in the 30-year financial page.

Frequently Asked Questions Learn more about ROE % →
What does a ROE % of 35.79% mean?
Dream Homes & Development (DREM) has a ROE % of 35.79% as of Dec. 2025. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Dream Homes & Development and its competitors. According to the industry distribution chart, Dream Homes & Development ranks #3 out of 95 companies in the Homebuilding & Construction industry, placing it in the top 3.2%.
Is Dream Homes & Development's ROE % too high?
Dream Homes & Development's current ROE % is 35.79%. The Homebuilding & Construction industry median ROE % is 7.88. Dream Homes & Development's value of 35.79% is 354.2% above this industry median. Based on the distribution chart, Dream Homes & Development ranks #3 out of 95 companies in the Homebuilding & Construction industry, which is in the top quartile — a strong position relative to peers.
How does Dream Homes & Development's ROE % compare to BDCC and DHI?
According to the Homebuilding & Construction industry distribution chart, Dream Homes & Development ranks #3 out of 95 companies for ROE %. This places Dream Homes & Development in the top 3% of its industry — outperforming the majority of peers. The industry median ROE % is 7.88. Dream Homes & Development's value of 35.79% is 354.2% above this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good ROE % for a Homebuilding & Construction company?
The median ROE % among Homebuilding & Construction companies is 7.88, based on 95 companies in the industry. Companies in the top quartile (top 25%) have a ROE % significantly above this median, while those in the bottom quartile fall well below. However, ROE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Dream Homes & Development's current ROE % of 35.79% is 354.2% 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 ROE % mean?
A high ROE % can signal that a stock is expensive relative to its fundamentals. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Dream Homes & Development and its competitors. For the Homebuilding & Construction industry, the median ROE % is 7.88 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Dream Homes & Development's current ROE % is 35.79%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Dream Homes & Development stock overvalued right now?
Based on GuruFocus' analysis, Dream Homes & Development (DREM) is currently considered Significantly Undervalued. The stock's GF Value™ is $0.03, compared to a current price of $0.01 — trading 55.7% below its estimated fair value. The current ROE % is 35.79% and 354.2% above the Homebuilding & Construction industry median of 7.88. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROE % calculated?
ROE % is calculated from a company's financial statements. For Dream Homes & Development (DREM), the current ROE % is 35.79% as of Dec. 2025. 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.

Dream Homes & Development Business Description

Address 314 South Main Street, Forked River, NJ, USA, 08731
Dream Homes & Development Corp is a regional builder and developer of new single and multi-family homes and subdivisions, as well as a market leader in real estate development. Operations include custom homes, Build to Lease, Build for Sale and Sale of Improved Lots to national builders.