M/I HOMES INC (MHO) Stock Fundamental Analysis
NYSE:MHO - New York Stock Exchange, Inc. - US55305B1017 - Common Stock - Currency: USD
Taking everything into account, MHO scores 6 out of 10 in our fundamental rating. MHO was compared to 64 industry peers in the Household Durables industry. MHO has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. MHO may be a bit undervalued, certainly considering the very reasonable score on growth This makes MHO very considerable for value and quality investing!
1. Profitability
1.1 Basic Checks
MHO had positive earnings in the past year.
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
The Return On Assets of MHO (11.71%) is better than 85.94% of its industry peers.
With a decent Return On Equity value of 17.86%, MHO is doing good in the industry, outperforming 79.69% of the companies in the same industry.
The Return On Invested Capital of MHO (12.25%) is better than 76.56% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for MHO is above the industry average of 10.33%.
| 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
Looking at the Profit Margin, with a value of 12.11%, MHO belongs to the top of the industry, outperforming 89.06% of the companies in the same industry.
In the last couple of years the Profit Margin of MHO has grown nicely.
The Operating Margin of MHO (15.19%) is better than 87.50% of its industry peers.
MHO's Operating Margin has improved in the last couple of years.
MHO has a Gross Margin (26.35%) which is comparable to the rest of the industry.
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.
The number of shares outstanding for MHO has been reduced compared to 1 year ago.
Compared to 5 years ago, MHO has less shares outstanding
Compared to 1 year ago, MHO has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 4.40 indicates that MHO is not in any danger for bankruptcy at the moment.
MHO's Altman-Z score of 4.40 is fine compared to the rest of the industry. MHO outperforms 76.56% 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 comparable to the rest of the industry: MHO outperforms 56.25% of its industry peers.
A Debt/Equity ratio of 0.31 indicates that MHO is not too dependend on debt financing.
MHO has a Debt to Equity ratio (0.31) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.31 | ||
| Debt/FCF | 7.73 | ||
| Altman-Z | 4.4 |
ROIC/WACC1.44
WACC8.49%
2.3 Liquidity
MHO has a Current Ratio of 10.86. This indicates that MHO is financially healthy and has no problem in meeting its short term obligations.
The Current ratio of MHO (10.86) is better than 96.88% of its industry peers.
MHO has a Quick Ratio of 2.12. This indicates that MHO is financially healthy and has no problem in meeting its short term obligations.
Looking at the Quick ratio, with a value of 2.12, MHO belongs to the top of the industry, outperforming 87.50% of the companies in the same industry.
| 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.
The Earnings Per Share has been growing by 33.72% on average over the past years. This is a very strong growth
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
Based on estimates for the next years, MHO will show a decrease in Earnings Per Share. The EPS will decrease by -3.60% on average per year.
The Revenue is expected to grow by 0.59% on average over the next years.
EPS Next Y-12.9%
EPS Next 2Y-3.6%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 5.66, which indicates a rather cheap valuation of MHO.
Based on the Price/Earnings ratio, MHO is valued cheaply inside the industry as 87.50% of the companies are valued more expensively.
MHO is valuated cheaply when we compare the Price/Earnings ratio to 26.55, which is the current average of the S&P500 Index.
MHO is valuated cheaply with a Price/Forward Earnings ratio of 5.84.
Compared to the rest of the industry, the Price/Forward Earnings ratio of MHO indicates a rather cheap valuation: MHO is cheaper than 87.50% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.30, MHO is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.66 | ||
| Fwd PE | 5.84 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of MHO indicates a rather cheap valuation: MHO is cheaper than 96.88% of the companies listed in the same industry.
MHO's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 24.02 | ||
| EV/EBITDA | 4.37 |
4.3 Compensation for Growth
The excellent profitability rating of MHO may justify a higher PE ratio.
A cheap valuation may be justified as MHO's earnings are expected to decrease with -3.60% in the coming years.
PEG (NY)N/A
PEG (5Y)0.17
EPS Next 2Y-3.6%
EPS Next 3YN/A
5. Dividend
5.1 Amount
No dividends for MHO!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
107.05
-2.41 (-2.2%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryHousehold Durables
Earnings (Last)
Earnings (Next)
Inst Owners98.27%
Inst Owner Change-0.52%
Ins Owners2.61%
Ins Owner Change11.75%
Market Cap2.87B
Analysts85.71
Price Target161.84 (51.18%)
Short Float %2.55%
Short Ratio2.73
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)-5.56%
PT rev (3m)-10.1%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0.91%
EPS NY rev (1m)-7.8%
EPS NY rev (3m)-7.8%
Revenue NQ rev (1m)-2%
Revenue NQ rev (3m)-4.5%
Revenue NY rev (1m)-3.04%
Revenue NY rev (3m)-8.79%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.66 | ||
| Fwd PE | 5.84 | ||
| P/S | 0.65 | ||
| P/FCF | 24.02 | ||
| P/OCF | 22.25 | ||
| P/B | 0.95 | ||
| P/tB | 0.96 | ||
| EV/EBITDA | 4.37 |
EPS(TTM)18.91
EY17.66%
EPS(NY)18.32
Fwd EY17.11%
FCF(TTM)4.46
FCFY4.16%
OCF(TTM)4.81
OCFY4.49%
SpS165.57
BVpS112.26
TBVpS111.65
PEG (NY)N/A
PEG (5Y)0.17
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 | 4.4 |
F-Score6
WACC8.49%
ROIC/WACC1.44
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-3.6%
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%