M/I HOMES INC (MHO) Stock Fundamental Analysis
NYSE:MHO - New York Stock Exchange, Inc. - US55305B1017 - Common Stock - Currency: USD
Overall MHO gets a fundamental rating of 6 out of 10. We evaluated MHO against 63 industry peers in the Household Durables industry. MHO scores excellent points on both the profitability and health parts. This is a solid base for a good stock. MHO may be a bit undervalued, certainly considering the very reasonable score on growth With these ratings, MHO could be worth investigating further for value and quality investing!.
1. Profitability
1.1 Basic Checks
In the past year MHO was profitable.
In the past year MHO had a positive cash flow from operations.
MHO had positive earnings in each of the past 5 years.
MHO had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
MHO has a better Return On Assets (11.71%) than 85.71% of its industry peers.
MHO has a Return On Equity of 17.86%. This is in the better half of the industry: MHO outperforms 79.37% of its industry peers.
Looking at the Return On Invested Capital, with a value of 12.25%, MHO is in the better half of the industry, outperforming 76.19% of the companies in the same industry.
MHO had an Average Return On Invested Capital over the past 3 years of 13.50%. This is above the industry average of 10.29%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.71% | ||
| ROE | 17.86% | ||
| ROIC | 12.25% |
ROA(3y)12.39%
ROA(5y)11.7%
ROE(3y)20.45%
ROE(5y)20.97%
ROIC(3y)13.5%
ROIC(5y)13.06%
1.3 Margins
MHO has a better Profit Margin (12.11%) than 88.89% of its industry peers.
In the last couple of years the Profit Margin of MHO has grown nicely.
MHO's Operating Margin of 15.19% is amongst the best of the industry. MHO outperforms 87.30% of its industry peers.
In the last couple of years the Operating Margin of MHO has grown nicely.
MHO has a Gross Margin of 26.35%. This is comparable to the rest of the industry: MHO outperforms 55.56% of its industry peers.
In the last couple of years the Gross Margin of MHO has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 15.19% | ||
| PM (TTM) | 12.11% | ||
| GM | 26.35% |
OM growth 3Y4.25%
OM growth 5Y15.33%
PM growth 3Y5.7%
PM growth 5Y19.65%
GM growth 3Y3.13%
GM growth 5Y6.12%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), MHO is creating some value.
MHO has less shares outstanding than it did 1 year ago.
The number of shares outstanding for MHO has been reduced compared to 5 years ago.
MHO has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 4.48 indicates that MHO is not in any danger for bankruptcy at the moment.
The Altman-Z score of MHO (4.48) is better than 74.60% of its industry peers.
MHO has a debt to FCF ratio of 7.73. This is a slightly negative value and a sign of low solvency as MHO would need 7.73 years to pay back of all of its debts.
MHO has a Debt to FCF ratio of 7.73. This is in the better half of the industry: MHO outperforms 60.32% of its industry peers.
MHO has a Debt/Equity ratio of 0.31. This is a healthy value indicating a solid balance between debt and equity.
Looking at the Debt to Equity ratio, with a value of 0.31, MHO is in line with its industry, outperforming 49.21% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.31 | ||
| Debt/FCF | 7.73 | ||
| Altman-Z | 4.48 |
ROIC/WACC1.46
WACC8.42%
2.3 Liquidity
A Current Ratio of 10.86 indicates that MHO has no problem at all paying its short term obligations.
MHO has a better Current ratio (10.86) than 96.83% of its industry peers.
A Quick Ratio of 2.12 indicates that MHO has no problem at all paying its short term obligations.
MHO's Quick ratio of 2.12 is amongst the best of the industry. MHO outperforms 87.30% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 10.86 | ||
| Quick Ratio | 2.12 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 8.80% over the past year.
Measured over the past years, MHO shows a very strong growth in Earnings Per Share. The EPS has been growing by 33.72% on average per year.
Looking at the last year, MHO shows a quite strong growth in Revenue. The Revenue has grown by 8.69% in the last year.
The Revenue has been growing by 12.50% on average over the past years. This is quite good.
EPS 1Y (TTM)8.8%
EPS 3Y14.04%
EPS 5Y33.72%
EPS Q2Q%-16.74%
Revenue 1Y (TTM)8.69%
Revenue growth 3Y6.34%
Revenue growth 5Y12.5%
Sales Q2Q%-6.75%
3.2 Future
The Earnings Per Share is expected to decrease by -4.85% on average over the next years.
MHO is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 0.59% yearly.
EPS Next Y-12.9%
EPS Next 2Y-4.85%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-2.5%
Revenue Next 2Y0.59%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 6.03, the valuation of MHO can be described as very cheap.
Based on the Price/Earnings ratio, MHO is valued cheaper than 90.48% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.50, MHO is valued rather cheaply.
A Price/Forward Earnings ratio of 6.39 indicates a rather cheap valuation of MHO.
92.06% of the companies in the same industry are more expensive than MHO, based on the Price/Forward Earnings ratio.
MHO is valuated cheaply when we compare the Price/Forward Earnings ratio to 36.44, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.03 | ||
| Fwd PE | 6.39 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, MHO is valued cheaper than 96.83% of the companies in the same industry.
The rest of the industry has a similar Price/Free Cash Flow ratio as MHO.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 25.6 | ||
| EV/EBITDA | 4.71 |
4.3 Compensation for Growth
The excellent profitability rating of MHO may justify a higher PE ratio.
MHO's earnings are expected to decrease with -4.85% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)0.18
EPS Next 2Y-4.85%
EPS Next 3YN/A
5. Dividend
5.1 Amount
No dividends for MHO!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
114.1
-1.68 (-1.45%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryHousehold Durables
Earnings (Last)
Earnings (Next)
Inst Owners96.66%
Inst Owner Change0%
Ins Owners2.37%
Ins Owner Change11.75%
Market Cap3.06B
Analysts85.71
Price Target161.84 (41.84%)
Short Float %3.44%
Short Ratio3.67
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DP0%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-4.41%
Min EPS beat(2)-5.31%
Max EPS beat(2)-3.52%
EPS beat(4)2
Avg EPS beat(4)0.96%
Min EPS beat(4)-5.31%
Max EPS beat(4)10.38%
EPS beat(8)5
Avg EPS beat(8)9.39%
EPS beat(12)9
Avg EPS beat(12)15.84%
EPS beat(16)12
Avg EPS beat(16)14.78%
Revenue beat(2)1
Avg Revenue beat(2)-5.82%
Min Revenue beat(2)-13.77%
Max Revenue beat(2)2.14%
Revenue beat(4)3
Avg Revenue beat(4)-1.71%
Min Revenue beat(4)-13.77%
Max Revenue beat(4)3.91%
Revenue beat(8)5
Avg Revenue beat(8)-0.43%
Revenue beat(12)7
Avg Revenue beat(12)2.86%
Revenue beat(16)9
Avg Revenue beat(16)1.75%
PT rev (1m)0%
PT rev (3m)-5.56%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0.91%
EPS NY rev (1m)0%
EPS NY rev (3m)-7.8%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-4.5%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-8.79%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.03 | ||
| Fwd PE | 6.39 | ||
| P/S | 0.69 | ||
| P/FCF | 25.6 | ||
| P/OCF | 23.71 | ||
| P/B | 1.02 | ||
| P/tB | 1.02 | ||
| EV/EBITDA | 4.71 |
EPS(TTM)18.91
EY16.57%
EPS(NY)17.85
Fwd EY15.64%
FCF(TTM)4.46
FCFY3.91%
OCF(TTM)4.81
OCFY4.22%
SpS165.57
BVpS112.26
TBVpS111.65
PEG (NY)N/A
PEG (5Y)0.18
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.71% | ||
| ROE | 17.86% | ||
| ROCE | 15.97% | ||
| ROIC | 12.25% | ||
| ROICexc | 15.02% | ||
| ROICexgc | 15.9% | ||
| OM | 15.19% | ||
| PM (TTM) | 12.11% | ||
| GM | 26.35% | ||
| FCFM | 2.69% |
ROA(3y)12.39%
ROA(5y)11.7%
ROE(3y)20.45%
ROE(5y)20.97%
ROIC(3y)13.5%
ROIC(5y)13.06%
ROICexc(3y)16.19%
ROICexc(5y)15.2%
ROICexgc(3y)16.79%
ROICexgc(5y)15.85%
ROCE(3y)17.59%
ROCE(5y)17.02%
ROICexcg growth 3Y1.84%
ROICexcg growth 5Y16.09%
ROICexc growth 3Y2.49%
ROICexc growth 5Y16.51%
OM growth 3Y4.25%
OM growth 5Y15.33%
PM growth 3Y5.7%
PM growth 5Y19.65%
GM growth 3Y3.13%
GM growth 5Y6.12%
F-Score6
Asset Turnover0.97
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.31 | ||
| Debt/FCF | 7.73 | ||
| Debt/EBITDA | 1.34 | ||
| Cap/Depr | 60.23% | ||
| Cap/Sales | 0.21% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 18.69% | ||
| Profit Quality | 22.23% | ||
| Current Ratio | 10.86 | ||
| Quick Ratio | 2.12 | ||
| Altman-Z | 4.48 |
F-Score6
WACC8.42%
ROIC/WACC1.46
Cap/Depr(3y)52.66%
Cap/Depr(5y)82.58%
Cap/Sales(3y)0.18%
Cap/Sales(5y)0.32%
Profit Quality(3y)61.14%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)8.8%
EPS 3Y14.04%
EPS 5Y33.72%
EPS Q2Q%-16.74%
EPS Next Y-12.9%
EPS Next 2Y-4.85%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)8.69%
Revenue growth 3Y6.34%
Revenue growth 5Y12.5%
Sales Q2Q%-6.75%
Revenue Next Year-2.5%
Revenue Next 2Y0.59%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y7.63%
EBIT growth 3Y10.86%
EBIT growth 5Y29.74%
EBIT Next Year-9.68%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-66.48%
FCF growth 3YN/A
FCF growth 5Y22.9%
OCF growth 1Y-64.82%
OCF growth 3YN/A
OCF growth 5Y22.33%