DFH - Dream Finders Homes- Some Good Qualities But Not Yet A Buy

2024-05-13 15:40:58 ET

Summary

• Dream Finders Homes specializes in single-family homes and targets entry-level and first-time move-up homebuyers, putting it in a good position to attract millennial purchasing power.
• The company also follows a very selective expansion strategy, focusing on markets with robust population and employment growth, as well as low taxes, which drive migration.
• DFH follows an asset-light policy and has a high asset turnover ratio, allowing for efficient conversion to sales.
• Despite some of its structural merits, we remain conflicted about a long position in DFH and expand on our neutral stance.

DFH - What’s To Like

Dream Finders Homes ( DFH ) is a 15-year old homebuilder that specializes in the sale of single-family homes in terrains such as the Mid-west, the Mid-Atlantic, and the Southeast US. DFH is one of those rare companies that has always been profitable since its inception, and today it is amongst the top 15 builders in the country....

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