D.R. Horton (DHI) Expands Robotics Push, Is The Stock Still A Bargain?
D.R. Horton’s robotics partnership puts automation in focus
D.R. Horton (DHI) has signed a multiyear agreement with Canadian firm Promise Robotics to build more than 1,250 homes using its AI powered, factory-as-a-service construction platform.
The Promise Robotics deal lands at a time when D.R. Horton’s share price has been choppy, with a 7 day share price return of 3.34% and a 90 day share price return that has declined 6.69%, while the 3 year total shareholder return of 42.87% points to stronger longer term momentum.
Scan other construction and automation plays that are moving early on robotics and AI led building by reviewing the 92 robotics and automation stocks alongside D.R. Horton’s latest move.
D.R. Horton is leaning into robotics just as its share price has cooled after a period of strong multi year returns. Investors may be asking whether the valuation already reflects the potential efficiency gains from this shift, or if there is still some upside available.
Most Popular Narrative: 10% Undervalued
The most followed valuation view sees D.R. Horton’s fair value at about $154.43, compared with the recent $139.39 close. This puts the robotics push inside a broader affordability and efficiency story.
The capital light land approach, with about 570,000 lots controlled and only 22% owned alongside a higher share of closings on lots developed by Forestar or third parties, is structured to limit balance sheet intensity and support returns on capital and earnings.
Further reductions in start to close cycle times and continued focus on lower stick and brick construction costs per square foot, which were down 5% year over year in Q3 FY26, create room for D.R. Horton to defend or improve home sales gross margin and net margins even while incentives stay elevated.
See why 58 investors see D.R. Horton as 10% undervalued.
Result: Fair Value of $154.43 (UNDERVALUED)
Still, the narrative around D.R. Horton can crack if rising sales incentives continue to pressure margins or if legal and regulatory issues start to bite harder.
Find out about the key risks to this D.R. Horton narrative.
Next Steps
If this all sounds optimistic on D.R. Horton, put the sentiment to the test by running the numbers yourself and weighing the potential rewards. For a quick snapshot of what investors are excited about, start with the 2 key rewards.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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