DHI Gross Margin Analysis

Gross margin is the share of revenue left after paying for the direct costs of producing homes, and DHI currently sits at 23.3%.

That is far below the sector median of 46.4%, placing the company in the 16th percentile of its peer group. The year-over-year change is not available, but quarter-over-quarter the margin rose 3.6%, from 22.5% to 23.3% in the most recent period. This combination of a low level with a modest recent improvement suggests the company is still operating at a competitive disadvantage, though the upward move offers a small offset. For an investor, the low margin relative to peers raises risk, while the quarterly gain hints at possible cost or pricing relief but not enough to change the broader picture. This metric directly supports the overall CAUTIOUS verdict, as a 16th-percentile margin leaves DHI exposed to cost pressures that stronger peers absorb more easily.

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