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MERITAGE HOMES CORP (MTH) Stock Fundamental Analysis

NYSE:MTH - US59001A1025 - Common Stock

77.88 USD
-0.42 (-0.54%)
Last: 8/26/2025, 1:57:07 PM
Fundamental Rating

5

We assign a fundamental rating of 5 out of 10 to MTH. MTH was compared to 63 industry peers in the Household Durables industry. While MTH has a great profitability rating, there are some minor concerns on its financial health. MTH is valued correctly, but it does not seem to be growing.


Dividend Valuation Growth Profitability Health

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7

1. Profitability

1.1 Basic Checks

MTH had positive earnings in the past year.
MTH had a negative operating cash flow in the past year.
Each year in the past 5 years MTH has been profitable.
In multiple years MTH reported negative operating cash flow during the last 5 years.
MTH Yearly Net Income VS EBIT VS OCF VS FCFMTH Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 500M 1B

1.2 Ratios

With a decent Return On Assets value of 8.23%, MTH is doing good in the industry, outperforming 71.43% of the companies in the same industry.
The Return On Equity of MTH (12.11%) is better than 60.32% of its industry peers.
MTH has a better Return On Invested Capital (9.04%) than 61.90% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for MTH is above the industry average of 10.45%.
The 3 year average ROIC (15.00%) for MTH is well above the current ROIC(9.04%). The reason for the recent decline needs to be investigated.
Industry RankSector Rank
ROA 8.23%
ROE 12.11%
ROIC 9.04%
ROA(3y)13.26%
ROA(5y)13.22%
ROE(3y)18.81%
ROE(5y)19.74%
ROIC(3y)15%
ROIC(5y)15.05%
MTH Yearly ROA, ROE, ROICMTH Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 5 10 15 20 25

1.3 Margins

The Profit Margin of MTH (10.27%) is better than 84.13% of its industry peers.
In the last couple of years the Profit Margin of MTH has grown nicely.
The Operating Margin of MTH (13.22%) is better than 84.13% of its industry peers.
In the last couple of years the Operating Margin of MTH has grown nicely.
The Gross Margin of MTH (16.34%) is worse than 85.71% of its industry peers.
MTH's Gross Margin has improved in the last couple of years.
Industry RankSector Rank
OM 13.22%
PM (TTM) 10.27%
GM 16.34%
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%
MTH Yearly Profit, Operating, Gross MarginsMTH Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 5 10 15 20

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6

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.
Compared to 1 year ago, MTH has less shares outstanding
MTH has less shares outstanding than it did 5 years ago.
MTH has a worse debt/assets ratio than last year.
MTH Yearly Shares OutstandingMTH Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 20M 40M 60M 80M
MTH Yearly Total Debt VS Total AssetsMTH Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2B 4B 6B

2.2 Solvency

An Altman-Z score of 4.44 indicates that MTH is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 4.44, MTH is in the better half of the industry, outperforming 74.60% of the companies in the same industry.
A Debt/Equity ratio of 0.35 indicates that MTH is not too dependend on debt financing.
With a Debt to Equity ratio value of 0.35, MTH perfoms like the industry average, outperforming 46.03% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 0.35
Debt/FCF N/A
Altman-Z 4.44
ROIC/WACC1.03
WACC8.76%
MTH Yearly LT Debt VS Equity VS FCFMTH Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 1B 2B 3B 4B 5B

2.3 Liquidity

A Current Ratio of 10.86 indicates that MTH has no problem at all paying its short term obligations.
MTH has a better Current ratio (10.86) than 96.83% of its industry peers.
MTH has a Quick Ratio of 1.82. This is a normal value and indicates that MTH is financially healthy and should not expect problems in meeting its short term obligations.
MTH's Quick ratio of 1.82 is amongst the best of the industry. MTH outperforms 80.95% of its industry peers.
Industry RankSector Rank
Current Ratio 10.86
Quick Ratio 1.82
MTH Yearly Current Assets VS Current LiabilitesMTH Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2B 4B 6B

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3

3. Growth

3.1 Past

The earnings per share for MTH have decreased strongly by -22.99% in the last year.
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 -3.72% 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)-22.99%
EPS 3Y3.55%
EPS 5Y26.87%
EPS Q2Q%-35.34%
Revenue 1Y (TTM)-3.72%
Revenue growth 3Y7.54%
Revenue growth 5Y11.77%
Sales Q2Q%-3.56%

3.2 Future

The Earnings Per Share is expected to decrease by -5.38% on average over the next years.
Based on estimates for the next years, MTH will show a small growth in Revenue. The Revenue will grow by 1.76% on average per year.
EPS Next Y-31.79%
EPS Next 2Y-13.6%
EPS Next 3Y-5.38%
EPS Next 5YN/A
Revenue Next Year-4.51%
Revenue Next 2Y0.89%
Revenue Next 3Y1.76%
Revenue Next 5YN/A

3.3 Evolution

The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
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.
MTH Yearly Revenue VS EstimatesMTH Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2B 4B 6B
MTH Yearly EPS VS EstimatesMTH Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2 4 6 8 10

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5

4. Valuation

4.1 Price/Earnings Ratio

Based on the Price/Earnings ratio of 8.89, the valuation of MTH can be described as reasonable.
Based on the Price/Earnings ratio, MTH is valued a bit cheaper than 77.78% of the companies in the same industry.
When comparing the Price/Earnings ratio of MTH to the average of the S&P500 Index (27.03), we can say MTH is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 9.74, the valuation of MTH can be described as reasonable.
MTH's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. MTH is cheaper than 79.37% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.63. MTH is valued rather cheaply when compared to this.
Industry RankSector Rank
PE 8.89
Fwd PE 9.74
MTH Price Earnings VS Forward Price EarningsMTH Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20 25

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, MTH is valued a bit cheaper than 65.08% of the companies in the same industry.
Industry RankSector Rank
P/FCF N/A
EV/EBITDA 7.63
MTH Per share dataMTH EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 20 40 60 80

4.3 Compensation for Growth

The decent profitability rating of MTH may justify a higher PE ratio.
A cheap valuation may be justified as MTH's earnings are expected to decrease with -5.38% in the coming years.
PEG (NY)N/A
PEG (5Y)0.33
EPS Next 2Y-13.6%
EPS Next 3Y-5.38%

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5

5. Dividend

5.1 Amount

MTH has a Yearly Dividend Yield of 2.15%.
MTH's Dividend Yield is rather good when compared to the industry average which is at 3.25. MTH pays more dividend than 80.95% of the companies in the same industry.
MTH's Dividend Yield is comparable with the S&P500 average which is at 2.34.
Industry RankSector Rank
Dividend Yield 2.15%

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
MTH Yearly Dividends per shareMTH Yearly Dividends per shareYearly Dividends per share 2023 2024 2025 0.5 1 1.5

5.3 Sustainability

18.11% of the earnings are spent on dividend by MTH. This is a low number and sustainable payout ratio.
DP18.11%
EPS Next 2Y-13.6%
EPS Next 3Y-5.38%
MTH Yearly Income VS Free CF VS DividendMTH Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 200M -200M 400M 600M 800M
MTH Dividend Payout.MTH Dividend Payout, showing the Payout Ratio.MTH Dividend Payout.PayoutRetained Earnings

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MERITAGE HOMES CORP

NYSE:MTH (8/26/2025, 1:57:07 PM)

77.88

-0.42 (-0.54%)

Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryHousehold Durables
Earnings (Last)07-23 2025-07-23/amc
Earnings (Next)10-27 2025-10-27/amc
Inst Owners103.29%
Inst Owner Change2.45%
Ins Owners2.24%
Ins Owner Change2.22%
Market Cap5.54B
Analysts75
Price Target90.76 (16.54%)
Short Float %4.27%
Short Ratio2.7
Dividend
Industry RankSector Rank
Dividend Yield 2.15%
Yearly Dividend1.5
Dividend Growth(5Y)175.81%
DP18.11%
Div Incr Years1
Div Non Decr Years1
Ex-Date06-16 2025-06-16 (0.43)
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)1.28%
Min EPS beat(2)-0.6%
Max EPS beat(2)3.16%
EPS beat(4)2
Avg EPS beat(4)0.76%
Min EPS beat(4)-6.04%
Max EPS beat(4)6.52%
EPS beat(8)6
Avg EPS beat(8)10.55%
EPS beat(12)10
Avg EPS beat(12)14.09%
EPS beat(16)14
Avg EPS beat(16)14.05%
Revenue beat(2)2
Avg Revenue beat(2)1.59%
Min Revenue beat(2)1.08%
Max Revenue beat(2)2.09%
Revenue beat(4)4
Avg Revenue beat(4)1.27%
Min Revenue beat(4)0.1%
Max Revenue beat(4)2.09%
Revenue beat(8)8
Avg Revenue beat(8)4.25%
Revenue beat(12)11
Avg Revenue beat(12)5.61%
Revenue beat(16)13
Avg Revenue beat(16)4.6%
PT rev (1m)-2.08%
PT rev (3m)-2.76%
EPS NQ rev (1m)-26.69%
EPS NQ rev (3m)-27.53%
EPS NY rev (1m)-13.05%
EPS NY rev (3m)-12.76%
Revenue NQ rev (1m)-15.29%
Revenue NQ rev (3m)-15.53%
Revenue NY rev (1m)-7.98%
Revenue NY rev (3m)-7.98%
Valuation
Industry RankSector Rank
PE 8.89
Fwd PE 9.74
P/S 0.89
P/FCF N/A
P/OCF N/A
P/B 1.05
P/tB 1.06
EV/EBITDA 7.63
EPS(TTM)8.76
EY11.25%
EPS(NY)8
Fwd EY10.27%
FCF(TTM)-3.49
FCFYN/A
OCF(TTM)-3.1
OCFYN/A
SpS87.36
BVpS74.05
TBVpS73.26
PEG (NY)N/A
PEG (5Y)0.33
Profitability
Industry RankSector Rank
ROA 8.23%
ROE 12.11%
ROCE 11.58%
ROIC 9.04%
ROICexc 10.41%
ROICexgc 10.9%
OM 13.22%
PM (TTM) 10.27%
GM 16.34%
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%
ROICexcg growth 3Y-13.71%
ROICexcg 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 Turnover0.8
Health
Industry RankSector Rank
Debt/Equity 0.35
Debt/FCF N/A
Debt/EBITDA 2.16
Cap/Depr 108.15%
Cap/Sales 0.45%
Interest Coverage N/A
Cash Conversion N/A
Profit Quality N/A
Current Ratio 10.86
Quick Ratio 1.82
Altman-Z 4.44
F-Score3
WACC8.76%
ROIC/WACC1.03
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)-22.99%
EPS 3Y3.55%
EPS 5Y26.87%
EPS Q2Q%-35.34%
EPS Next Y-31.79%
EPS Next 2Y-13.6%
EPS Next 3Y-5.38%
EPS Next 5YN/A
Revenue 1Y (TTM)-3.72%
Revenue growth 3Y7.54%
Revenue growth 5Y11.77%
Sales Q2Q%-3.56%
Revenue Next Year-4.51%
Revenue Next 2Y0.89%
Revenue Next 3Y1.76%
Revenue Next 5YN/A
EBIT growth 1Y-23.65%
EBIT growth 3Y1.3%
EBIT growth 5Y26.86%
EBIT Next Year-9.67%
EBIT Next 3Y4.05%
EBIT Next 5YN/A
FCF growth 1Y-126.62%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-122.77%
OCF growth 3YN/A
OCF growth 5YN/A