DHICAUTIOUS

DHI Return on Equity (ROE) Analysis

12.6%

Updated 369h ago·SEC filings & market data

Key Takeaway

Return on Equity (ROE) measures how efficiently a company turns shareholders’ invested money into profit, so DHI’s 12.6% means it earns $12.60 for every $100 of equity.

Sector Performance

47th percentile

DHI

12.6%

Sector Median

13.3%

Sector Avg

16.9%

Prior Period

13.1%(Jul 2026)

↓ Declining

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Deep Analysis

Return on Equity (ROE) measures how efficiently a company turns shareholders’ invested money into profit, so DHI’s 12.6% means it earns $12.60 for every $100 of equity.

That sits below the sector median of 13.4%, placing DHI in the 46th percentile among peers, or just under half the group. The trend is N/A for the last eight quarters, but the year-over-year change is N/A while the quarter-over-quarter change is -3.8%, with the prior quarter’s 13.1% slipping to 12.6%. This combination of a below-median level and a recent quarterly decline suggests erosion in profitability relative to peers, adding near-term risk with limited long-term insight. The lack of broader trend data means investors cannot confirm whether this dip is temporary or sustained. That modestly underperforming level plus the negative QoQ movement supports the overall CAUTIOUS verdict directly.

Frequently Asked Questions

What does the Return on Equity (ROE) tell investors about DHI?

ROE measures how effectively management turns equity into profit. Consistently above 15% is typically considered strong. Negative equity distorts this metric.

How is the Return on Equity (ROE) calculated?

Return on Equity (ROE) is calculated as: Net Income / Shareholders' Equity.

Who are DHI's closest peers by Return on Equity (ROE)?

The closest peers by Return on Equity (ROE) include: LOW (-67.1%), MAR (-69.0%), BMBL (-76.9%), WBA (-82.7%), NIO (-84.0%).

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Learn More About Return on Equity (ROE)

What Is Return on Equity (ROE) and Is Higher Always Better?

Return on equity ROE measures how efficiently a company generates profit from shareholder capital. Learn how to decompose ROE using DuPont analysis and why high leverage can make it dangerous—with Apple and JPMorgan examples.

The Formula

Net Income / Shareholders' Equity

Why It Matters

ROE measures how effectively management turns equity into profit. Consistently above 15% is typically considered strong. Negative equity distorts this metric.