-2.13%
1.48%
-20.89%
-25.15%
-28.16%
26.69%
12.72%

Company Description

Dream Finders Homes, Inc.operates as a holding company for Dream Finders Holdings LLC that engages in homebuilding business in the United States.It designs, constructs, and sells single-family entry-level, and first-time and second time move-up homes in Charlotte, Raleigh, Jacksonville, Orlando, Denver, the Washington D.C. metropolitan area, Austin, Dallas, and Houston.


The company also operates as a licensed home mortgage broker that underwrites, originates, and sells mortgages to Prime Lending; and provides insurance agency services, including closing, escrow, and title insurance, as well as mortgage banking solutions.It sells its homes through its sales representatives and independent real estate brokers.The company was founded in 2008 and is headquartered in Jacksonville, Florida.

Market Data

Last Price 23.61
Change Percentage -2.13%
Open 23.85
Previous Close 24.13
Market Cap ( Millions) 2207
Volume 69691
Year High 44.38
Year Low 21.42
M A 50 26.78
M A 200 29.83

Financial Ratios

FCF Yield -16.55%
Dividend Yield 0.00%
ROE 26.50%
Debt / Equity 116.78%
Net Debt / EBIDTA 298.94%
Price To Book 1.75
Price Earnings Ratio 7.18
Price To FCF -6.04
Price To sales 0.55
EV / EBITDA 8.19

Business Breakdown

Expected Mid-Term Growth

Segment nΒ°1 -> Midwest

Expected Growth : 6.5 %

What the company do ?

The Midwest, from Dream Finders Homes, Inc., refers to the region of the United States including states such as Illinois, Indiana, Michigan, Ohio, and Wisconsin, known for its rolling plains, cornfields, and vibrant cities.

Why we expect these perspectives ?

Midwest segment's 6.5% growth is driven by increasing demand for affordable housing, favorable demographics, and strategic land acquisitions. Dream Finders Homes' focus on first-time homebuyers and expansion into adjacent markets also contribute to growth. Additionally, the region's strong job market and relatively low cost of living support housing demand, further fueling growth.

Segment nΒ°2 -> Southeast

Expected Growth : 6.8 %

What the company do ?

Southeast from Dream Finders Homes, Inc. offers new homes in Florida, Georgia, and the Carolinas, providing affordable luxury with a focus on customer satisfaction.

Why we expect these perspectives ?

Southeast region's growth of 6.8% is driven by Dream Finders Homes' strategic expansion into high-demand markets, such as Florida and the Carolinas, where job growth, migration, and limited housing supply create opportunities for new home sales. Additionally, the company's focus on affordable pricing and quality construction resonates with first-time homebuyers and families, fueling demand and driving growth.

Segment nΒ°3 -> Mid-Alantic

Expected Growth : 7.2 %

What the company do ?

The Mid-Atlantic segment from Dream Finders Homes, Inc. offers affordable luxury homes in Maryland, Virginia, and Washington D.C. with modern amenities and flexible floor plans.

Why we expect these perspectives ?

Mid-Atlantic segment's 7.2% growth is driven by strong demand in Washington D.C. and Maryland, fueled by government and private sector job growth. Additionally, Dream Finders Homes' strategic land acquisition and development in this region, coupled with its focus on affordable luxury homes, has enabled the company to capitalize on the area's growing population and limited housing supply.

Segment nΒ°4 -> Financial Services

Expected Growth : 7.5 %

What the company do ?

Dream Finders Homes, Inc.'s Financial Services offer mortgage solutions, title services, and insurance products to homebuyers, providing a one-stop-shop for their financial needs.

Why we expect these perspectives ?

Dream Finders Homes, Inc.'s 7.5% growth in Financial Services is driven by increasing mortgage originations, expansion of title and insurance services, and strategic partnerships. Additionally, the company's focus on digital transformation, process efficiencies, and customer experience enhancements have contributed to the growth. Furthermore, the rising demand for housing and favorable interest rates have also supported the segment's growth.

Segment nΒ°5 -> Reconciling Items

Expected Growth : 6.2 %

What the company do ?

Reconciling Items from Dream Finders Homes, Inc. refers to the process of identifying and resolving discrepancies between the company's financial records and external statements, ensuring accuracy and transparency in financial reporting.

Why we expect these perspectives ?

Dream Finders Homes, Inc.'s 6.2% growth is driven by increasing demand for affordable housing, strategic expansion into new markets, and a focus on operational efficiency. Additionally, the company's ability to navigate supply chain disruptions and maintain a strong balance sheet has contributed to its growth. Furthermore, Dream Finders' commitment to quality construction and customer satisfaction has led to positive word-of-mouth and repeat business.

Dream Finders Homes, Inc. Products

Product Range What is it ?
Single-Family Homes Dream Finders Homes, Inc. offers a wide range of single-family homes designed to meet the needs of various families and individuals, from first-time homebuyers to growing families and empty nesters.
Townhomes The company's townhome offerings provide a low-maintenance lifestyle with shared walls, perfect for those who want to own a home without the burden of yard work and exterior maintenance.
Active Adult Communities Dream Finders Homes, Inc. offers age-restricted communities designed specifically for active adults, providing a maintenance-free lifestyle and amenities tailored to this demographic.
Custom Homes The company's custom home division allows buyers to design and build their dream home from the ground up, offering flexibility and personalization.

Dream Finders Homes, Inc.'s Porter Forces

Dream Finders Homes, Inc. operates in the homebuilding industry, which has a low threat of substitutes due to the unique nature of its products and services.

Dream Finders Homes, Inc. has a diverse customer base, which reduces the bargaining power of individual customers. However, the company still needs to be responsive to customer needs and preferences.

Dream Finders Homes, Inc. has a diverse supplier base, which reduces the bargaining power of individual suppliers. The company also has a strong negotiating position due to its scale and purchasing power.

The homebuilding industry has moderate barriers to entry, including regulatory hurdles and capital requirements. However, new entrants can still pose a threat to Dream Finders Homes, Inc. if they are able to differentiate themselves through innovative products or services.

The homebuilding industry is highly competitive, with many established players competing for market share. Dream Finders Homes, Inc. needs to differentiate itself through its products, services, and brand reputation to maintain its market position.

Capital Structure

Value
Debt Weight 55.80%
Debt Cost 4.24%
Equity Weight 44.20%
Equity Cost 14.21%
WACC 8.65%
Leverage 126.24%

Historical Valuation

Price/Earnings Ratio

Margin Valuation

Peers Valuation

Competitors

Company Rational
GRBK Green Brick Partners, Inc. operates as a homebuilding and land development company in the United States. It operates through Builder operations Central, Builder operations Southeast, and Land development segments. The …
TPH Tri Pointe Homes, Inc. engages in the design, construction, and sale of single-family attached and detached homes in the United States. The company operates through a portfolio of six brands …
SKY Skyline Champion Corporation produces and sells factory-built housing in North America. The company offers manufactured and modular homes, park models RVs, accessory dwelling units, and modular buildings for the multi-family …
TMHC Taylor Morrison Home Corporation, together with its subsidiaries, operates as a public homebuilder in the United States. The company designs, builds, and sells single and multi-family detached and attached homes; …
CCS Century Communities, Inc., together with its subsidiaries, engages in the design, development, construction, marketing, and sale of single-family attached and detached homes. It is also involved in the entitlement and …

Peers Metrics

DCF BETA

Parameters

Short Term Growth
Short term Time
Long-Term Growth
WACC
Target Price
23.61$
Current Price
23.61$
Potential
-0.00%

Expected Cash-Flows

Scoring Insights

Peers Group Analysis

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