Evaluating MERITAGE HOMES CORP (NYSE:MTH) using Peter Lynch’s legendary strategy

Lynch preferred companies with low P/E ratios relative to growth, manageable debt, and strong profitability. In this analysis, we see if MERITAGE HOMES CORP (NYSE:MTH) fits his winning formula.

Would Peter Lynch consider MERITAGE HOMES CORP (NYSE:MTH) a winning stock?

• MTH has achieved an impressive Return on Equity (ROE) of 15.29%, showcasing its ability to generate favorable returns for shareholders.
• With a Debt/Equity ratio of 0.26, MTH maintains a solid financial position with controlled leverage.
• The 5-year EPS growth of MTH (26.87) highlights the company's ability to consistently improve its earnings performance and suggests a positive outlook for future profitability.
• Considering its PEG ratio of 0.25, MTH may be an undervalued growth opportunity.
• A Current Ratio of 9.69 suggests that MTH is in a solid financial position to handle short-term market fluctuations.

Fundamental analysis of MTH

Every day ChartMill assigns a Fundamental Rating to every stock. The score ranges from 0 to 10 and is determined by evaluating multiple fundamental indicators and properties.

Taking everything into account, MTH scores 6 out of 10 in our fundamental rating. MTH was compared to 64 industry peers in the Household Durables industry. While MTH belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. MTH has a decent growth rate and is not valued too expensively.

Our latest full fundamental report of MTH contains the most current fundamental analsysis.

Our Peter Lynch screener lists more Affordable Growth stocks and is updated daily.

Disclaimer

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.