CARBON
Profitability & Returns

Returns League Table

The public homebuilders ranked by return on equity, decomposed into the three DuPont drivers: net margin (profit per sale), asset turnover (how hard the asset base works), and the equity multiplier (balance-sheet leverage). Gross margin and inventory turnover sit alongside, so a builder earning its return on operating quality is distinguishable from one leaning on leverage.

Latest fiscal year · ranked by ROEpeer median ROE 12.3%
#BuilderROE=Net marginAsset T/OEquity mult.Gross marginInv T/O
1NVR
34.7%
13.0%1.8×1.5×
21.2%
4.6×
2PHM
17.1%
12.8%1.0×1.4×
26.3%
1.0×
3GRBK
16.8%
14.9%0.8×1.4×
30.5%
0.7×
4TOL
16.3%
12.3%0.8×1.8×
25.1%
0.8×
5DFH
15.2%
5.0%1.2×2.6×
17.4%
1.7×
6DHI
14.8%
10.5%1.0×1.5×
23.7%
1.0×
7MHO
12.7%
9.1%0.9×1.5×
23.0%
1.0×
8TMHC
12.4%
9.6%0.8×1.6×
23.0%
1.0×
9SDHC
12.3%
1.1%1.7×6.4×
21.8%
2.5×
10KBH
11.0%
6.9%0.9×1.7×
18.6%
0.9×
11LEN
9.5%
6.1%1.0×1.6×
17.7%
2.7×
12MTH
9.1%
4.5%1.0×2.1×
17.8%
1.0×
13HOV
7.7%
2.1%1.1×3.2×
12.7%
1.4×
14TPH
7.3%
6.9%0.7×1.5×
21.0%
0.8×
15CCS
5.7%
3.6%0.9×1.7×
17.6%
1.0×
16BZH
3.7%
1.9%0.9×2.1×
14.2%
1.0×
17LGIH
3.5%
4.3%0.4×1.9×
20.7%
0.4×

ROE = net margin × asset turnover × equity multiplier. A dash indicates the metric is not derivable from standard XBRL tags for that filer (most often gross margin). Balances are period-end; see the methodology for definitions and limitations. Open any builder for the full DuPont panel and four-year history.

Carbon Investment Partners

Homebuilder
Equity Analysis

Operations, margins, balance sheet and valuation across the public US homebuilders, derived entirely from SEC filings. Enter your email to continue.

For research and illustration only, not investment advice. Your email is used only to record interest in this Carbon Investment Partners tool.