Core Insights - Dream Finders Homes (DFH) is currently rated with a Zacks Rank of 2 (Buy) and has a Value grade of A, indicating strong potential for value investors [4][3] - The stock is trading at a P/E ratio of 7.21, significantly lower than the industry average P/E of 9.08, suggesting it may be undervalued [4] - DFH's P/S ratio stands at 0.48, compared to the industry average of 0.77, reinforcing the notion of its undervaluation [5] - The P/CF ratio for DFH is 6.74, which is also lower than the industry's average P/CF of 7.22, indicating a solid cash outlook [6] - Over the past 12 months, DFH's P/CF has fluctuated between 5.97 and 14.22, with a median of 8.94, further supporting its undervalued status [6] - Overall, the metrics suggest that Dream Finders Homes is likely undervalued and presents a strong investment opportunity for value investors [7]

Industry Overview - The U.S. homebuilding industry is facing challenges such as elevated mortgage rates, high construction costs, and a shortage of buildable lots, which are impacting the prospects of the Zacks Building Products - Home Builders industry [1][4] - Despite these challenges, the industry is expected to grow due to anticipated Federal Reserve rate cuts, limited home supply, and strong demand for homeownership [2][6] Economic Factors - The Federal Reserve has maintained interest rates between 4.25% and 4.5%, with a potential for cuts later in 2025, which could stabilize the housing market [4][6] - The Fed has revised its GDP growth forecast for 2024 down to 1.7% from 2.1%, while projecting inflation to rise to 2.7% [4] Market Dynamics - The housing market is under pressure from rising material and labor costs, a shortage of buildable lots, and financial strain on homebuilders, leading to price cuts and sales incentives [5][10] - There is a significant shortage of new and existing homes due to over a decade of under-building relative to population growth, which is driving demand for new homes [7][8] Company Strategies - Homebuilders are implementing mortgage buydown programs and balancing speculative building with build-to-order projects to meet diverse buyer needs [2][9] - Companies are focusing on cost control and efficiency in homebuilding to manage rising raw material prices and improve operating leverage [10][11] Performance Metrics - The Zacks Building Products - Home Builders industry has underperformed the S&P 500 Index, declining 20.5% over the past year compared to the S&P 500's 9% increase [16] - The industry is currently trading at a forward price-to-earnings ratio of 8.87, significantly lower than the S&P 500's 22.85 [18] Company Highlights - Dream Finders Homes (DFH) has shown consistent growth, closing 8,583 homes in 2024, up from 7,314 in 2023, and has a land-light approach that reduces financial risk [20][21] - Toll Brothers has signed 2,307 net contracts worth $2.3 billion, reflecting a 13% increase in units and 12% in value, while maintaining a disciplined financial strategy [24][25]

Core Viewpoint - The U.S. homebuilding industry is facing significant challenges due to high mortgage rates, elevated construction costs, and a shortage of buildable lots, yet it remains poised for growth driven by factors such as anticipated Federal Reserve rate cuts and strong demand for homeownership [1][2][4]. Industry Overview - The Zacks Building Products - Home Builders industry includes manufacturers of residential and commercial buildings, as well as companies providing financial services related to mortgages and title insurance [3]. - The industry encompasses a variety of housing types, including single-family homes, townhouses, and multi-family rental properties, and is involved in the development and sale of residential land [3]. Current Challenges - High interest rates, soaring construction costs, and a severe shortage of buildable lots are major impediments to growth, with the Federal Reserve maintaining rates between 4.25%-4.5% amid economic uncertainty [4][5]. - The industry is experiencing financial strain due to rising material and labor costs, leading many builders to reduce prices and offer sales incentives [5]. Growth Factors - Anticipated rate cuts by the Federal Reserve, limited home supply, and strong demand for homeownership are expected to support the industry's growth [2][6]. - The housing market is showing signs of improvement, with single-family housing starts increasing by 11.4% to 1.11 million units in February 2025, the highest pace since February 2024 [7]. Strategic Responses - Builders are implementing mortgage buydown programs to attract buyers and are balancing speculative building with build-to-order projects to meet diverse buyer needs [2][8]. - Companies are focusing on cost control and efficiency in homebuilding, with many adopting dynamic pricing models to respond to market conditions [9]. Financial Performance - The Zacks Building Products - Home Builders industry is currently ranked 231, placing it in the bottom 6% of over 250 Zacks industries, indicating dim near-term prospects [10][11]. - The industry's earnings estimates for 2025 have decreased from $12.02 to $11.04 per share since December 2024, reflecting a loss of confidence in earnings growth potential [12]. Market Performance - Over the past year, the industry has declined by 20.5%, underperforming the broader Zacks Construction sector, which dropped by 8%, while the S&P 500 rose by 9% [14]. - The industry is currently trading at a forward price-to-earnings ratio of 8.87, significantly lower than the S&P 500's 22.85 and the sector's 16.34 [16]. Company Highlights - **Dream Finders Homes (DFH)**: This company has shown consistent growth, closing 8,583 homes in 2024, up from 7,314 in 2023, with revenues reaching $4.45 billion. DFH employs a land-light approach to minimize financial risk and has a trailing 12-month Return on Equity (ROE) of 30.5% [18][20]. - **Toll Brothers (TOL)**: Despite recent challenges, Toll Brothers signed 2,307 net contracts worth $2.3 billion, reflecting a 13% increase in units. The company maintains a disciplined financial strategy, including a $500 million stock repurchase plan, and has a trailing 12-month ROE of 18.3% [22][23].

Industry Overview - Builder confidence declined for the second consecutive month in March, with the National Association of Home Builders/Wells Fargo Housing Market Index (HMI) falling three points to 39, marking the lowest level in seven months [2][3] - Economic uncertainty, tariff concerns, high construction costs, ongoing labor shortages, and limited lot availability are significant challenges facing the homebuilding industry [1][5][10] Market Trends - Two of the three major HMI indices declined in March, with current sales conditions dropping to 43 and prospective buyer traffic falling to 24, indicating weaker demand [3] - The three-month moving averages for regional HMI scores declined across all regions, with the Northeast and Midwest dropping to 54 and 42, respectively, while the South and West recorded declines to 42 and 37 [4] Cost Pressures - Rising construction expenses and limited supply of buildable land are straining the housing market, leading to increased material and labor prices that pressure profitability [5] - In March, 29% of builders reduced home prices, up from 26% in February, with an average price cut of 5% [5] Interest Rates and Mortgage Trends - Economic uncertainty over interest rates persists, with the Federal Reserve expected to hold rates steady unless inflation slows further [6] - Mortgage rates remain high, with the average 30-year mortgage rate at 6.65% as of March 13, limiting housing demand [7] Labor Market Challenges - A persistent shortage of skilled labor continues to challenge the homebuilding industry, slowing project timelines and increasing costs [10] Positive Factors - The Trump administration's decision to pause certain building code requirements has eased some cost burdens for builders [11] - Despite recent increases, mortgage rates remain near a three-month low, and new home sales inventory increased to 495,000, indicating a supply of 9 months at the current sales rate [12] Company Performance - The Zacks Building Products - Home Builders industry declined 2.2% last month, performing better than the broader construction sector and S&P 500 [13] - Homebuilders like Dream Finders Homes, Toll Brothers, and NVR are demonstrating resilience through strategic initiatives focused on operational efficiency and financial stability [14] Company Highlights - Dream Finders Homes reported a 17% year-over-year increase in net new orders to 6,727 units, supported by strong cost management and operational efficiency [15] - Toll Brothers reported 2,307 net contracts worth $2.3 billion in the first quarter of fiscal 2025, marking a 13% year-over-year increase in units [18] - NVR's new orders increased to 22,560 units in 2024 from 21,729 units in 2023, aided by a disciplined business model and a focus on maximizing liquidity [19]

Core Viewpoint - Dream Finders Homes Inc. is experiencing mixed performance in the market, with a recent stock price decline and upcoming earnings report that may reflect a decrease in earnings per share but an increase in revenue compared to the previous year [1][2]. Company Performance - The stock closed at $24.02, down by 0.87%, underperforming the S&P 500's gain of 0.64% [1]. - Over the past month, the stock has increased by 7.69%, contrasting with a 7.66% loss in the Construction sector and a 7.69% loss in the S&P 500 [1]. Earnings Forecast - The upcoming earnings report is expected to show an EPS of $0.49, which is a 10.91% decrease from the same quarter last year [2]. - Revenue is forecasted to be $945.3 million, indicating a 14.19% growth compared to the corresponding quarter of the prior year [2]. Full-Year Estimates - Full-year estimates predict earnings of $3.14 per share and revenue of $4.82 billion, representing year-over-year changes of -5.99% and +8.25%, respectively [3]. Analyst Estimates - Recent modifications to analyst estimates reflect changing business dynamics, with positive revisions indicating optimism about the company's profitability [4]. - The Zacks Rank system, which assesses these estimate changes, currently ranks Dream Finders Homes Inc. as 3 (Hold) [6]. Valuation Metrics - The company has a Forward P/E ratio of 7.73, which is lower than the industry average of 8.35, suggesting a valuation discount [7]. - The PEG ratio stands at 1.4, compared to the industry average of 0.84, indicating a higher expected earnings growth relative to its price [7]. Industry Context - The Building Products - Home Builders industry is ranked 230 out of over 250 industries, placing it in the bottom 9% [8]. - The Zacks Industry Rank indicates that the top 50% of rated industries outperform the bottom half by a factor of 2 to 1 [8].

Core Insights - Dream Finders Homes (DFH) has reported impressive fourth-quarter results, exceeding analysts' expectations [1] - The company is characterized as a fast-growing, land-light homebuilder, indicating a strategic focus on minimizing land acquisition costs while maximizing growth potential [1] - There is an optimistic outlook for continued growth in the company, suggesting that further opportunities may arise in the near future [1] Financial Performance - The fourth-quarter results showcased strong performance metrics, although specific figures were not detailed in the summary [1] - The stock price mentioned reflects the market's perception of the company's value as of February 27, 2025, indicating a potentially undervalued position in the market [1] Market Position - Dream Finders Homes operates in a competitive homebuilding industry, where its land-light strategy may provide a competitive edge [1] - The company's ability to exceed expectations may enhance its reputation among investors and analysts, potentially leading to increased interest in its stock [1]

Homebuilders have performed poorly in recent months, but the tide could be about to turn.Homebuilders haven't exactly been stellar performers, thanks to the combination of a weak real estate market and potential tariffs cutting into their profits. But that could be changing. In this video, Fool.com contributors Matt Frankel and Tyler Crowe discuss the latest results from Dream Finders Homes (DFH 1.79%) and Green Brick Partners (GRBK -2.40%) and why they both performed better than expected.*Stock prices used ...

o Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 Table Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K (Mark One) x Annual Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the fiscal year ended December 31, 2024 OR For the transition period from _________to_________. Commission file number 001-39916 ___________________________________________ DREAM FINDERS HOMES, INC. (Exact name of registra ...

Core Insights - Dream Finders Homes Inc. (DFH) reported quarterly earnings of $1.29 per share, exceeding the Zacks Consensus Estimate of $1.13 per share, and up from $1 per share a year ago, representing an earnings surprise of 14.16% [1] - The company achieved revenues of $1.56 billion for the quarter ended December 2024, surpassing the Zacks Consensus Estimate by 9.31%, compared to $1.14 billion in the same quarter last year [2] - The stock has underperformed the market, losing about 9.8% since the beginning of the year, while the S&P 500 gained 1.7% [3] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.48 on revenues of $878.4 million, and for the current fiscal year, it is $3.11 on revenues of $4.53 billion [7] - The estimate revisions trend for Dream Finders Homes is currently unfavorable, resulting in a Zacks Rank 5 (Strong Sell) for the stock, indicating expected underperformance in the near future [6] Industry Context - The Building Products - Home Builders industry is currently in the bottom 4% of over 250 Zacks industries, suggesting a challenging environment for stocks in this sector [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can impact investor sentiment and stock performance [5]

Exhibit 99.1 Management Commentary Patrick Zalupski, Dream Finders Homes Chairman and CEO, said, "In 2024, we were pleased to achieve another year of growth. We ended on a high note — our fourth quarter was by far the best quarter of the year, and, arguably, the best in Company history. The team worked hard to produce outstanding results and to position us for another year of growth in 2025. Highlighting fourth quarter key metrics: we closed 3,008 homes, up 40% quarter over quarter, also a record number of ...