Dream Finders Homes, Inc. (DFH) stock analysis
Close on Nov 11, 2026Market cap $1.10BP/E 12.9Yield –
StockData Score
Prices as of Nov 11, 2026How the score works
Mixed9 of 30 checks passed
Dream Finders Homes passes 9 of the 30 checks behind our score; 10 could not be run for lack of data and count as not passed. Each dot in the shape is one check — hover it for the numbers.
- Valuation
- 4/6
- Growth
- 0/6
- Past performance
- 1/6
- Financial health
- 4/6
- Dividend
- 0/6
What stands out
Trading below fair value
The share price of $11.99 is below our fair value estimate of $13.96.
No debt
Dream Finders Homes has no borrowings on its latest balance sheet.
Earnings grew over 5 years
Net income grew 22.4% a year on average over the last five fiscal years.
Interest well covered
No meaningful interest expense to cover.
What to watch
Margin of safety under 20%
The price is 14.1% below fair value, less than the 20% cushion we look for.
Revenue growing under 10% a year
Revenue grew 9.0% a year over the last three fiscal years, short of the 10% we look for.
EPS growing under 10% a year
Diluted EPS grew -4.4% a year over the last three fiscal years.
Earnings growth not accelerating
Net income grew -63.0% over the last twelve months, against a 5-year average of 22.4% a year.
Valuation4/6
P/E above its 5-year median
Dream Finders Homes's P/E of 12.9 is above its own 5-year median of 8.6.
P/E below the industry
Dream Finders Homes's P/E of 12.9 is below the Operative Builders median of 14.1.
EV/EBITDA below its 5-year median
Dream Finders Homes's EV/EBITDA of 5.1 is below its 5-year median of 5.2.
P/B below the industry
Dream Finders Homes's price-to-book of 0.77 is below the Operative Builders median of 1.00.
Trading below fair value
The share price of $11.99 is below our fair value estimate of $13.96.
Margin of safety under 20%
The price is 14.1% below fair value, less than the 20% cushion we look for.
Growth0/6
Revenue growing under 10% a year
Revenue grew 9.0% a year over the last three fiscal years, short of the 10% we look for.
EPS growing under 10% a year
Diluted EPS grew -4.4% a year over the last three fiscal years.
Earnings growth not accelerating
Net income grew -63.0% over the last twelve months, against a 5-year average of 22.4% a year.
Growing slower than the industry
Revenue grew -10.9% over the last twelve months; the Operative Builders median is -7.3%.
Guidance issued
The latest outlook (full year 2026 home closings, Oct 29, 2026) was issued for the first time, so it neither adds nor takes away points.
Gross margin trend
This company does not report gross profit.
Past performance1/6
Return on equity
Needs positive equity and five years of results.
Return on invested capital
Needs operating income and invested capital.
Return on equity below the industry
Dream Finders Homes's return on equity of 7.6% is below the Operative Builders median of 10.7%.
Earnings grew over 5 years
Net income grew 22.4% a year on average over the last five fiscal years.
Net margin below its 5-year average
Net margin was 2.6% over the last twelve months, against a 5-year average of 6.9%.
Net margin below the industry
Dream Finders Homes's net margin of 2.6% is below the Operative Builders median of 4.3%.
Financial health4/6
No debt
Dream Finders Homes has no borrowings on its latest balance sheet.
Debt not rising
With no debt today, leverage cannot have risen.
Debt covered by cash flow
There is no debt to cover.
Interest well covered
No meaningful interest expense to cover.
Short-term liquidity
The balance sheet is not split into current and non-current items.
Elevated bankruptcy risk
The Altman Z-score is 1.66; above 3 is the safe zone and below 1.8 the distress zone.
Dividend0/6
No dividend
Dream Finders Homes has not paid a dividend in the last twelve months.
Yield against Treasuries
No dividend.
Yield against the market
No dividend.
Dividend stability
No dividend.
Earnings cover
No dividend.
Cash-flow cover
No dividend.
Fair value
How we estimate itOur estimate per share
$13.96
The share price is 14% below this estimate.
| Method | Multiple used | Own 5Y median | Industry median | Value per share | Weight |
|---|---|---|---|---|---|
| P/E | 11.5× | 8.6× | 14.1× | $10.67 | 47% |
| EV/EBITDA | 7.0× | 5.2× | 8.6× | $15.46 | 41% |
| P/B | 1.4× | 1.8× | 1.0× | $21.83 | 12% |
| Fair value | $13.96 | 100% | |||
Valuation over time
Using the earnings and balance sheet published at each date, not today's.
- P/E at month end
- Own 5-year median 8.6
- Operative Builders median 14.1
An estimate from reported numbers and market multiples, not a price target or investment advice. It can be far off for companies whose profits are about to change sharply.
Market risk
From the past year of daily prices.
Liquidity
Medium risk
- Average value traded per day
- $16.06M
- Value traded per 1% price move
- $3.10M
Downside
High risk
- Typical loss in a bad month
- 30.2%
- Volatility (annualized)
- 73%
- Sharpe ratio, 1 year
- -0.56
- Beta to the S&P 500 (5Y)
- 1.28
Typical bad-month loss, week by week
Margins
Share of revenue, fiscal years 2018 to 2025
Gross margin
Net margin
Growth rates
Compound annual growth to fiscal 2025
| Per year | 1 year | 3 years | 5 years | 10 years | Five-year pace |
|---|---|---|---|---|---|
| Revenue | -2.9% | +9.0% | +30.7% | – | |
| Net income | -35.2% | -6.1% | +22.4% | – | |
| EPS, diluted | -35.9% | -4.4% | – | – |
Returns and balance sheet
8 fiscal years. Hover a measure to see how it is calculated.
| Measure | FY2018 | FY2020 | FY2025 | Trend |
|---|---|---|---|---|
| Return on equity | – | – | 16.3% | |
| Return on assets | – | – | 6.2% | |
| Capex to revenue | – | 0.3% | 0.6% | |
| Diluted shares | – | 0M | 101M |
Where the cash went
Fiscal 2021 to 2025, five years combined
Dream Finders Homes generated $824.05M from operations and spent $113.76M on capital expenditure, dividends and share buybacks. 56% of that went back into the business.
DuPont analysis
Return on equity split into margin, efficiency and leverage
| Fiscal year | Net margin | Asset turnover | Equity multiplier | Return on equity |
|---|---|---|---|---|
| FY2025 | 5.0% | 1.23× | 2.64× | 16.3% |
| FY2024 | 7.5% | 1.51× | 2.72× | 30.9% |
Piotroski F-Score
Nine tests of profitability, balance sheet and efficiency, fiscal 2025 against fiscal 2024
- ProfitableNet income above zero$217.20M
- Cash generatingOperating cash flow above zero-$100.57M
- Return on assets improvedROA up on the prior year13.1% → 6.5%
- Earnings backed by cashOperating cash flow above net income-$100.57M vs $217.20M
- Less leverageLong-term debt to assets fell– → –
- Better liquidityCurrent ratio rose– → –
- No dilutionShare count did not rise100M → 101M
- Gross margin improvedGross margin up on the prior year– → –
- More efficientAsset turnover rose1.74 → 1.30
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