DR Horton Price To Earning vs. Debt To Equity
| D1HI34 Stock | BRL 1,012 58.84 6.17% |
For DR Horton profitability analysis, we use financial ratios and fundamental drivers that measure the ability of DR Horton to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well DR Horton utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between DR Horton's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of DR Horton over time as well as its relative position and ranking within its peers.
D1HI34 |
DR Horton Debt To Equity vs. Price To Earning Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining DR Horton's current stock value. Our valuation model uses many indicators to compare DR Horton value to that of its competitors to determine the firm's financial worth. DR Horton is one of the top stocks in price to earning category among its peers. It also is one of the top stocks in debt to equity category among its peers fabricating about 0.03 of Debt To Equity per Price To Earning. The ratio of Price To Earning to Debt To Equity for DR Horton is roughly 30.76 . Comparative valuation analysis is a catch-all model that can be used if you cannot value DR Horton by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for DR Horton's Stock. Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued.D1HI34 Debt To Equity vs. Price To Earning
Price to Earnings ratio is typically used for current valuation of a company and is one of the most popular ratios that investors monitor daily. Holding a low PE stock is less risky because when a company's profitability falls, it is likely that earnings will also go down as well. In other words, if you start from a lower position, your downside risk is limited. There are also some investors who believe that low Price to Earnings ratio reflects the low pricing because a given company is in trouble. On the other hand, a higher PE ratio means that investors are paying more for each unit of profit.
DR Horton |
| = | 10.55 X |
Generally speaking, the Price to Earnings ratio gives investors an idea of what the market is willing to pay for the company's current earnings.
Debt to Equity is calculated by dividing the Total Debt of a company by its Equity. If the debt exceeds equity of a company, then the creditors have more stakes in a firm than the stockholders. In other words, Debt to Equity ratio provides analysts with insights about composition of both equity and debt, and its influence on the valuation of the company.
DR Horton |
| = | 0.34 % |
High Debt to Equity ratio typically indicates that a firm has been borrowing aggressively to finance its growth and as a result may experience a burden of additional interest expense. This may reduce earnings or future growth. On the other hand a small D/E ratio may indicate that a company is not taking enough advantage from financial leverage. Debt to Equity ratio measures how the company is leveraging borrowing against the capital invested by the owners.
D1HI34 Debt To Equity Comparison
DR Horton is currently under evaluation in debt to equity category among its peers.
DR Horton Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in DR Horton, profitability is also one of the essential criteria for including it into their portfolios because, without profit, DR Horton will eventually generate negative long term returns. The profitability progress is the general direction of DR Horton's change in net profit over the period of time. It can combine multiple indicators of DR Horton, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
Horton, Inc. operates as a homebuilding company in East, Midwest, Southeast, South Central, Southwest, and West regions in the United States. Horton, Inc. was founded in 1978 and is based in Arlington, Texas. DR HORTON operates under Residential Construction classification in Brazil and is traded on Sao Paolo Stock Exchange. It employs 9716 people.
D1HI34 Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on DR Horton. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of DR Horton position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the DR Horton's important profitability drivers and their relationship over time.
Use DR Horton in pair-trading
One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if DR Horton position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in DR Horton will appreciate offsetting losses from the drop in the long position's value.DR Horton Pair Trading
DR Horton Pair Trading Analysis
The ability to find closely correlated positions to DR Horton could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace DR Horton when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back DR Horton - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling DR Horton to buy it.
The correlation of DR Horton is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as DR Horton moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if DR Horton moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for DR Horton can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.Use Investing Themes to Complement your DR Horton position
In addition to having DR Horton in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.Did You Try This Idea?
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Additional Information and Resources on Investing in D1HI34 Stock
When determining whether DR Horton offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of DR Horton's financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Dr Horton Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Dr Horton Stock:Check out Investing Opportunities. For information on how to trade D1HI34 Stock refer to our How to Trade D1HI34 Stock guide.You can also try the Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
To fully project DR Horton's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of DR Horton at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include DR Horton's income statement, its balance sheet, and the statement of cash flows.