MERITAGE HOMES CORP (MTH) Stock Fundamental Analysis
USA - NYSE:MTH - US59001A1025 - Common Stock
68.88 USD
+1.86 (+2.78%)
68.88 USD
0 (0%)
We assign a fundamental rating of 5 out of 10 to MTH. MTH was compared to 61 industry peers in the Household Durables industry. MTH has an average financial health and profitability rating. MTH has a valuation in line with the averages, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
In the past year MTH was profitable.
In the past year MTH has reported a negative cash flow from operations.
In the past 5 years MTH has always been profitable.
The reported operating cash flow has been mixed in the past 5 years: MTH reported negative operating cash flow in multiple years.
1.2 Ratios
Looking at the Return On Assets, with a value of 6.98%, MTH is in the better half of the industry, outperforming 65.57% of the companies in the same industry.
MTH has a Return On Equity of 10.24%. This is comparable to the rest of the industry: MTH outperforms 54.10% of its industry peers.
MTH's Return On Invested Capital of 7.67% is in line compared to the rest of the industry. MTH outperforms 57.38% of its industry peers.
The Average Return On Invested Capital over the past 3 years for MTH is significantly above the industry average of 9.86%.
The last Return On Invested Capital (7.67%) for MTH is well below the 3 year average (15.00%), which needs to be investigated, but indicates that MTH had better years and this may not be a problem.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.98% | ||
| ROE | 10.24% | ||
| ROIC | 7.67% |
ROA(3y)13.26%
ROA(5y)13.22%
ROE(3y)18.81%
ROE(5y)19.74%
ROIC(3y)15%
ROIC(5y)15.05%
1.3 Margins
The Profit Margin of MTH (8.96%) is better than 77.05% of its industry peers.
MTH's Profit Margin has improved in the last couple of years.
The Operating Margin of MTH (11.56%) is better than 75.41% of its industry peers.
In the last couple of years the Operating Margin of MTH has grown nicely.
Looking at the Gross Margin, with a value of 14.69%, MTH is doing worse than 90.16% of the companies in the same industry.
MTH's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 11.56% | ||
| PM (TTM) | 8.96% | ||
| GM | 14.69% |
OM growth 3Y-5.81%
OM growth 5Y13.51%
PM growth 3Y-5.01%
PM growth 5Y12.55%
GM growth 3Y-5.75%
GM growth 5Y9.07%
2. Health
2.1 Basic Checks
MTH has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
The number of shares outstanding for MTH has been reduced compared to 1 year ago.
The number of shares outstanding for MTH has been reduced compared to 5 years ago.
MTH has a worse debt/assets ratio than last year.
2.2 Solvency
MTH has an Altman-Z score of 4.23. This indicates that MTH is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of MTH (4.23) is better than 72.13% of its industry peers.
MTH has a Debt/Equity ratio of 0.35. This is a healthy value indicating a solid balance between debt and equity.
With a Debt to Equity ratio value of 0.35, MTH perfoms like the industry average, outperforming 49.18% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.35 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 4.23 |
ROIC/WACC0.91
WACC8.46%
2.3 Liquidity
MTH has a Current Ratio of 11.20. This indicates that MTH is financially healthy and has no problem in meeting its short term obligations.
MTH has a better Current ratio (11.20) than 98.36% of its industry peers.
MTH has a Quick Ratio of 1.64. This is a normal value and indicates that MTH is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 1.64, MTH is in the better half of the industry, outperforming 73.77% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 11.2 | ||
| Quick Ratio | 1.64 |
3. Growth
3.1 Past
MTH shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -32.28%.
The Earnings Per Share has been growing by 26.87% on average over the past years. This is a very strong growth
Looking at the last year, MTH shows a decrease in Revenue. The Revenue has decreased by -6.06% in the last year.
The Revenue has been growing by 11.77% on average over the past years. This is quite good.
EPS 1Y (TTM)-32.28%
EPS 3Y3.55%
EPS 5Y26.87%
EPS Q2Q%-47.94%
Revenue 1Y (TTM)-6.06%
Revenue growth 3Y7.54%
Revenue growth 5Y11.77%
Sales Q2Q%-10.81%
3.2 Future
Based on estimates for the next years, MTH will show a decrease in Earnings Per Share. The EPS will decrease by -7.60% on average per year.
Based on estimates for the next years, MTH will show a small growth in Revenue. The Revenue will grow by 2.24% on average per year.
EPS Next Y-35.1%
EPS Next 2Y-17.61%
EPS Next 3Y-7.6%
EPS Next 5YN/A
Revenue Next Year-5.9%
Revenue Next 2Y0.07%
Revenue Next 3Y2.24%
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 9.21, which indicates a very decent valuation of MTH.
68.85% of the companies in the same industry are more expensive than MTH, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 26.35, MTH is valued rather cheaply.
A Price/Forward Earnings ratio of 9.47 indicates a reasonable valuation of MTH.
72.13% of the companies in the same industry are more expensive than MTH, based on the Price/Forward Earnings ratio.
MTH's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 33.72.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.21 | ||
| Fwd PE | 9.47 |
4.2 Price Multiples
MTH's Enterprise Value to EBITDA ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 8.29 |
4.3 Compensation for Growth
MTH has a very decent profitability rating, which may justify a higher PE ratio.
A cheap valuation may be justified as MTH's earnings are expected to decrease with -7.60% in the coming years.
PEG (NY)N/A
PEG (5Y)0.34
EPS Next 2Y-17.61%
EPS Next 3Y-7.6%
5. Dividend
5.1 Amount
MTH has a Yearly Dividend Yield of 2.54%. Purely for dividend investing, there may be better candidates out there.
MTH's Dividend Yield is rather good when compared to the industry average which is at 3.32. MTH pays more dividend than 83.61% of the companies in the same industry.
MTH's Dividend Yield is comparable with the S&P500 average which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.54% |
5.2 History
On average, the dividend of MTH grows each year by 175.81%, which is quite nice.
MTH has been paying a dividend for over 5 years, so it has already some track record.
MTH has decreased its dividend recently.
Dividend Growth(5Y)175.81%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
21.92% of the earnings are spent on dividend by MTH. This is a low number and sustainable payout ratio.
DP21.92%
EPS Next 2Y-17.61%
EPS Next 3Y-7.6%
68.88
+1.86 (+2.78%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryHousehold Durables
Earnings (Last)
Earnings (Next)
Inst Owners103.71%
Inst Owner Change1.24%
Ins Owners2.24%
Ins Owner Change0.78%
Market Cap4.90B
Revenue(TTM)6.04B
Net Income(TTM)541.63M
Analysts72.5
Price Target84.12 (22.13%)
Short Float %4.74%
Short Ratio3.8
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.54% |
Yearly Dividend1.5
Dividend Growth(5Y)175.81%
DP21.92%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-6.26%
Min EPS beat(2)-15.68%
Max EPS beat(2)3.16%
EPS beat(4)1
Avg EPS beat(4)-4.79%
Min EPS beat(4)-15.68%
Max EPS beat(4)3.16%
EPS beat(8)5
Avg EPS beat(8)6.64%
EPS beat(12)9
Avg EPS beat(12)12.03%
EPS beat(16)13
Avg EPS beat(16)12.02%
Revenue beat(2)1
Avg Revenue beat(2)-1.21%
Min Revenue beat(2)-4.5%
Max Revenue beat(2)2.09%
Revenue beat(4)3
Avg Revenue beat(4)0.12%
Min Revenue beat(4)-4.5%
Max Revenue beat(4)2.09%
Revenue beat(8)7
Avg Revenue beat(8)3.44%
Revenue beat(12)11
Avg Revenue beat(12)5.76%
Revenue beat(16)12
Avg Revenue beat(16)3.98%
PT rev (1m)-8.01%
PT rev (3m)-6.97%
EPS NQ rev (1m)-15.74%
EPS NQ rev (3m)-15.94%
EPS NY rev (1m)-4.85%
EPS NY rev (3m)-17.27%
Revenue NQ rev (1m)-3.88%
Revenue NQ rev (3m)-3.88%
Revenue NY rev (1m)-1.45%
Revenue NY rev (3m)-4.24%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.21 | ||
| Fwd PE | 9.47 | ||
| P/S | 0.81 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 0.93 | ||
| P/tB | 0.93 | ||
| EV/EBITDA | 8.29 |
EPS(TTM)7.48
EY10.86%
EPS(NY)7.27
Fwd EY10.56%
FCF(TTM)-3.55
FCFYN/A
OCF(TTM)-3.16
OCFYN/A
SpS84.93
BVpS74.3
TBVpS74.3
PEG (NY)N/A
PEG (5Y)0.34
Graham Number111.83
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.98% | ||
| ROE | 10.24% | ||
| ROCE | 9.81% | ||
| ROIC | 7.67% | ||
| ROICexc | 8.54% | ||
| ROICexgc | 8.81% | ||
| OM | 11.56% | ||
| PM (TTM) | 8.96% | ||
| GM | 14.69% | ||
| FCFM | N/A |
ROA(3y)13.26%
ROA(5y)13.22%
ROE(3y)18.81%
ROE(5y)19.74%
ROIC(3y)15%
ROIC(5y)15.05%
ROICexc(3y)17.65%
ROICexc(5y)17.95%
ROICexgc(3y)18.2%
ROICexgc(5y)18.52%
ROCE(3y)19.2%
ROCE(5y)19.27%
ROICexgc growth 3Y-13.71%
ROICexgc growth 5Y9%
ROICexc growth 3Y-13.77%
ROICexc growth 5Y8.56%
OM growth 3Y-5.81%
OM growth 5Y13.51%
PM growth 3Y-5.01%
PM growth 5Y12.55%
GM growth 3Y-5.75%
GM growth 5Y9.07%
F-Score3
Asset Turnover0.78
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.35 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 2.53 | ||
| Cap/Depr | 109.62% | ||
| Cap/Sales | 0.46% | ||
| Interest Coverage | N/A | ||
| Cash Conversion | N/A | ||
| Profit Quality | N/A | ||
| Current Ratio | 11.2 | ||
| Quick Ratio | 1.64 | ||
| Altman-Z | 4.23 |
F-Score3
WACC8.46%
ROIC/WACC0.91
Cap/Depr(3y)123.38%
Cap/Depr(5y)106.42%
Cap/Sales(3y)0.5%
Cap/Sales(5y)0.49%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-32.28%
EPS 3Y3.55%
EPS 5Y26.87%
EPS Q2Q%-47.94%
EPS Next Y-35.1%
EPS Next 2Y-17.61%
EPS Next 3Y-7.6%
EPS Next 5YN/A
Revenue 1Y (TTM)-6.06%
Revenue growth 3Y7.54%
Revenue growth 5Y11.77%
Sales Q2Q%-10.81%
Revenue Next Year-5.9%
Revenue Next 2Y0.07%
Revenue Next 3Y2.24%
Revenue Next 5YN/A
EBIT growth 1Y-33.05%
EBIT growth 3Y1.3%
EBIT growth 5Y26.86%
EBIT Next Year-9.67%
EBIT Next 3Y4.05%
EBIT Next 5YN/A
FCF growth 1Y-125.35%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-121.73%
OCF growth 3YN/A
OCF growth 5YN/A
MERITAGE HOMES CORP / MTH FAQ
What is the fundamental rating for MTH stock?
ChartMill assigns a fundamental rating of 5 / 10 to MTH.
Can you provide the valuation status for MERITAGE HOMES CORP?
ChartMill assigns a valuation rating of 5 / 10 to MERITAGE HOMES CORP (MTH). This can be considered as Fairly Valued.
How profitable is MERITAGE HOMES CORP (MTH) stock?
MERITAGE HOMES CORP (MTH) has a profitability rating of 6 / 10.
Can you provide the financial health for MTH stock?
The financial health rating of MERITAGE HOMES CORP (MTH) is 6 / 10.
What is the earnings growth outlook for MERITAGE HOMES CORP?
The Earnings per Share (EPS) of MERITAGE HOMES CORP (MTH) is expected to decline by -35.1% in the next year.