Is HORTON D R INC /DE/ (DHI) Halal?

NYSE Consumer Cyclical United States $39.1B
✓ HALAL
Confidence: 95/100
HORTON D R INC /DE/ (DHI) is Halal under all 5 major Shariah screening standards. With a debt ratio of just 14.1% against the AAOIFI threshold of 30%, HORTON D R INC /DE/ comfortably passes the key financial ratio tests. The company operates in the Consumer Cyclical sector (Residential Construction), which is not a prohibited industry under Islamic finance principles.

Shariah Screening — 5 Standards

Based on financial data from September 2025

Standard Debt Ratio Cash Ratio Receivables Income Status
AAOIFI 14.1%
/ 30%
7.0%
/ 30%
1.1%
/ 30%
0.92%
/ 5%
✓ HALAL
DJIM 14.1%
/ 33%
7.0%
/ 33%
1.1%
/ 33%
0.92%
/ 5%
✓ HALAL
MSCI 17.0%
/ 33%
8.4%
/ 33%
1.3%
/ 33%
0.92%
/ 5%
✓ HALAL
S&P 14.1%
/ 33%
7.0%
/ 33%
1.1%
/ 33%
0.92%
/ 5%
✓ HALAL
FTSE 17.0%
/ 33%
8.4%
/ 33%
1.3%
/ 50%
0.92%
/ 5%
✓ HALAL

Financial Highlights

P/E Ratio
12.2
Forward: 10.9
EPS
$10.99
Dividend Yield
134.0%
Payout: 15.0%
P/B Ratio
1.6
EV/EBITDA
9.5
EV: $42.5B
Revenue
$34.3B
Growth: -9.5%
Beta
1.4
High volatility
Current Ratio
6.3

Profitability

Gross Margin 22.1%
Operating Margin 11.0%
Net Margin 9.9%
Return on Equity (ROE) 13.5%
Return on Assets (ROA) 7.8%

Cash Flow & Balance Sheet

Operating Cash Flow$3.4B
Free Cash Flow$3.3B
Total Debt$6.0B
Debt-to-Equity22.9
Current Ratio6.3
Total Assets$35.5B

Price & Trading

Last Close$135.96
50-Day MA$151.74
200-Day MA$151.94
Avg Volume3.0M
Beta1.4
52-Week Range
$110.44
$184.55

About HORTON D R INC /DE/ (DHI)

CEO
Mr. Paul J. Romanowski
Employees
14,341
Sector
Consumer Cyclical
Industry
Residential Construction
Country
United States
Exchange
NYSE
Market Cap
$39.1B
Currency
USD

D.R. Horton, Inc. operates as a homebuilding company in East, North, Southeast, South Central, Southwest, and Northwest regions in the United States. It engages in the acquisition and development of land; and construction and sale of residential homes in 126 markets across 36 states under the names of D.R. Horton. The company also constructs and sells single-family detached homes; and attached homes, such as townhomes and duplexes. In addition, it provides mortgage financing and title agency services; and engages in the residential lot development business. Further, the company develops, constructs, owns, leases, and sells multi-family and single-family rental properties; conducts insurance-related operations; and owns water rights and other water-related assets, as well as non-residential real estate, including ranch land and improvements. It primarily serves homebuyers. D.R. Horton, Inc. was founded in 1978 and is headquartered in Arlington, Texas.

Purification Calculator

As a halal stock with 0.92% impermissible income, you need to purify your dividends.

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Frequently Asked Questions

Is HORTON D R INC /DE/ (DHI) halal to invest in?

Based on our screening using AAOIFI Standard 21 (the strictest methodology), HORTON D R INC /DE/ is Halal. The company passes all financial ratio thresholds for debt, cash, receivables, and impermissible income. We screen against all 5 major standards: AAOIFI, DJIM, MSCI, S&P, and FTSE.

What is HORTON D R INC /DE/'s debt ratio?

HORTON D R INC /DE/'s debt ratio is 14.1% under the AAOIFI standard (which uses market capitalization as the denominator). The AAOIFI threshold is 30%. Under MSCI and FTSE (which use total assets as the denominator), the debt ratio is 17.0%.

Does HORTON D R INC /DE/ require dividend purification?

Yes, HORTON D R INC /DE/ has an impermissible income ratio of 0.92%, which means 0.92% of any dividends received should be donated to charity as purification. This is because a small portion of the company's revenue comes from non-Shariah-compliant sources.

What are HORTON D R INC /DE/'s key financial metrics?

HORTON D R INC /DE/ has a market capitalization of $39.1B, trailing P/E ratio of 12.2, and revenue of $34.3B. The company maintains a gross margin of 22.1% and a net margin of 9.9%. Return on equity stands at 13.5%.

How often is the screening data updated?

Our screening data is updated regularly using the latest available financial statements and market data. Stock prices and market caps are refreshed frequently, while financial statements are updated quarterly when companies report earnings.

Disclaimer: HalalStockGuide.com provides Shariah compliance screening for educational and informational purposes only. This is not a fatwa, financial advice, or a recommendation to buy or sell any security. Screening results are based on publicly available financial data and established methodologies. Always consult a qualified Islamic scholar and a licensed financial advisor before making investment decisions.