D.R. Horton Inc. (DHI) exhibits 23.7% gross margins and 13.4% return on invested capital within Consumer Discretionary (Homebuilding), balanced against a 9.5x enterprise multiple and 6.9% implied options volatility.
Sustained 23.7% gross profitability converts into 12.8% operating margin and 13.4% ROIC, outpacing sector cost of capital.
ROIC: 13.4% // GM: 23.7%YoY revenue trajectory of -6.9% paired with 8.01% free cash flow yield supports self-funded R&D and capital return.
REV YOY: -6.9% // FCF YLD: 8.01%Altman Z-Score of 5.44 and Piotroski F-Score of 5/9 indicate low near-term refinancing stress.
ALTMAN Z: 5.44 // F-SCORE: 5/9Trading at 11.4x trailing P/E (10.6x Fwd P/E) leaves valuation vulnerable if real 10Y TIPS yields spike.
P/E: 11.4x // EV/EBITDA: 9.5xOptions market prices a ±6.9% implied move with a 0.68 put/call ratio around $144.00 max pain.
IMPL MOVE: ±6.9% // P/C: 0.68Elevated industry capital intensity and customer concentration in Homebuilding require continuous execution to defend 10.5% net margins.
NET MARGIN: 10.5% // D/E: 0.18x| FILER | SIDE | $ VALUE |
|---|---|---|
| INSPECT FULL OWNERSHIP LEDGER IN OWN <GO> | ||
| STRIKE / EXP | TYPE | PREMIUM |
|---|---|---|
| INSPECT GEX & CHAIN IN OPT <GO> | ||
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