DHICAUTIOUS

DHI Gross Margin Analysis

23.3%

Updated 84h ago·SEC filings & market data

Key Takeaway

Gross margin measures the percentage of revenue a company keeps after paying direct production costs—a higher figure generally indicates stronger pricing power or cost control.

Sector Performance

17th percentile

DHI

23.3%

Sector Median

44.6%

Sector Avg

45.5%

Prior Period

22.5%(Jul 2026)

↑ Improving

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Deep Analysis

Gross margin measures the percentage of revenue a company keeps after paying direct production costs—a higher figure generally indicates stronger pricing power or cost control.

At 23.3%, DHI’s gross margin sits well below the sector median of 44.4%, placing it in the 18th percentile among its peers. The year-over-year change is not available, but the quarter-over-quarter change shows a +3.6% improvement from the prior period’s 22.5%. While the current level remains low relative to competitors, the recent upward tick suggests some near-term operational stabilization. The combination of a deeply sub-par margin and a slight sequential gain points to ongoing competitive pressure that outweighs the modest improvement, introducing higher investment risk. This metric directly supports the overall CAUTIOUS verdict, as DHI’s persistently weak profitability compared to its sector underscores fundamental challenges.

Frequently Asked Questions

What does the Gross Margin tell investors about DHI?

Gross margin reveals pricing power and cost structure. Software companies often sustain 70–80%; manufacturers typically 30–50%. Expansion is a bullish signal.

How is the Gross Margin calculated?

Gross Margin is calculated as: Gross Profit / Revenue.

Who are DHI's closest peers by Gross Margin?

The closest peers by Gross Margin include: MSCI (82.7%), SYF (82.7%), EA (82.8%), THC (83.4%), INTU (83.9%).

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Learn More About Gross Margin

Gross Margin vs Net Margin: Why the Gap Between Them Tells You Everything

Gross margin vs net margin: learn what the spread between them reveals about operating leverage, cost structure, and early warning signs in any stock.

The Formula

Gross Profit / Revenue

Why It Matters

Gross margin reveals pricing power and cost structure. Software companies often sustain 70–80%; manufacturers typically 30–50%. Expansion is a bullish signal.