MERITAGE HOMES CORP (MTH) Fundamental Analysis & Valuation

NYSE:MTH • US59001A1025

Current stock price

58.76 USD
-1.44 (-2.39%)
At close:
58.76 USD
0 (0%)
After Hours:

This MTH fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

4

1. MTH Profitability Analysis

1.1 Basic Checks

  • MTH had positive earnings in the past year.
  • In the past year MTH had a positive cash flow from operations.
  • In the past 5 years MTH has always 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 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 500M 1B

1.2 Ratios

  • With a decent Return On Assets value of 5.94%, MTH is doing good in the industry, outperforming 63.33% of the companies in the same industry.
  • MTH has a Return On Equity (8.72%) which is in line with its industry peers.
  • MTH has a Return On Invested Capital (6.45%) which is comparable to the rest of the industry.
  • The Average Return On Invested Capital over the past 3 years for MTH is in line with the industry average of 9.22%.
  • The 3 year average ROIC (10.58%) for MTH is well above the current ROIC(6.45%). The reason for the recent decline needs to be investigated.
Industry RankSector Rank
ROA 5.94%
ROE 8.72%
ROIC 6.45%
ROA(3y)9.52%
ROA(5y)12.22%
ROE(3y)13.34%
ROE(5y)17.87%
ROIC(3y)10.58%
ROIC(5y)13.85%
MTH Yearly ROA, ROE, ROICMTH Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 5 10 15 20 25

1.3 Margins

  • MTH's Profit Margin of 7.73% is fine compared to the rest of the industry. MTH outperforms 75.00% of its industry peers.
  • In the last couple of years the Profit Margin of MTH has declined.
  • MTH's Operating Margin of 9.93% is fine compared to the rest of the industry. MTH outperforms 71.67% of its industry peers.
  • MTH's Operating Margin has declined in the last couple of years.
  • The Gross Margin of MTH (12.79%) is worse than 91.67% of its industry peers.
  • In the last couple of years the Gross Margin of MTH has declined.
Industry RankSector Rank
OM 9.93%
PM (TTM) 7.73%
GM 12.79%
OM growth 3Y-21.33%
OM growth 5Y-3.38%
PM growth 3Y-21.14%
PM growth 5Y-3.84%
GM growth 3Y-18.26%
GM growth 5Y-3.36%
MTH Yearly Profit, Operating, Gross MarginsMTH Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 5 10 15 20

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ROAROEROICOperating and Profit MarginShow most profitable peers

6

2. MTH Health Analysis

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.
  • MTH has less shares outstanding than it did 5 years ago.
  • The debt/assets ratio for MTH is higher compared to a year ago.
MTH Yearly Shares OutstandingMTH Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 20M 40M 60M 80M
MTH Yearly Total Debt VS Total AssetsMTH Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2B 4B 6B

2.2 Solvency

  • An Altman-Z score of 3.96 indicates that MTH is not in any danger for bankruptcy at the moment.
  • MTH's Altman-Z score of 3.96 is fine compared to the rest of the industry. MTH outperforms 68.33% of its industry peers.
  • The Debt to FCF ratio of MTH is 19.76, which is on the high side as it means it would take MTH, 19.76 years of fcf income to pay off all of its debts.
  • MTH's Debt to FCF ratio of 19.76 is in line compared to the rest of the industry. MTH outperforms 41.67% 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.
  • MTH has a Debt to Equity ratio (0.35) which is in line with its industry peers.
Industry RankSector Rank
Debt/Equity 0.35
Debt/FCF 19.76
Altman-Z 3.96
ROIC/WACC0.7
WACC9.27%
MTH Yearly LT Debt VS Equity VS FCFMTH Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 1B 2B 3B 4B 5B

2.3 Liquidity

  • MTH has a Current Ratio of 11.83. This indicates that MTH is financially healthy and has no problem in meeting its short term obligations.
  • MTH has a better Current ratio (11.83) than 93.33% of its industry peers.
  • MTH has a Quick Ratio of 1.81. This is a normal value and indicates that MTH is financially healthy and should not expect problems in meeting its short term obligations.
  • With a decent Quick ratio value of 1.81, MTH is doing good in the industry, outperforming 78.33% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 11.83
Quick Ratio 1.81
MTH Yearly Current Assets VS Current LiabilitesMTH Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2B 4B 6B

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

3

3. MTH Growth Analysis

3.1 Past

  • MTH shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -41.02%.
  • The Earnings Per Share has been growing slightly by 2.78% on average over the past years.
  • Looking at the last year, MTH shows a decrease in Revenue. The Revenue has decreased by -8.40% in the last year.
  • The Revenue has been growing slightly by 5.41% on average over the past years.
EPS 1Y (TTM)-41.02%
EPS 3Y-22.11%
EPS 5Y2.78%
EPS Q2Q%-49.15%
Revenue 1Y (TTM)-8.4%
Revenue growth 3Y-2.36%
Revenue growth 5Y5.41%
Sales Q2Q%-11.47%

3.2 Future

  • Based on estimates for the next years, MTH will show a quite strong growth in Earnings Per Share. The EPS will grow by 12.67% on average per year.
  • MTH is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.12% yearly.
EPS Next Y-5.11%
EPS Next 2Y8.65%
EPS Next 3Y12.67%
EPS Next 5YN/A
Revenue Next Year-2.2%
Revenue Next 2Y3.6%
Revenue Next 3Y4.12%
Revenue Next 5YN/A

3.3 Evolution

  • The EPS growth rate is accelerating: in the next years the growth will be better 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 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2B 4B 6B
MTH Yearly EPS VS EstimatesMTH Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2 4 6 8 10

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4

4. MTH Valuation Analysis

4.1 Price/Earnings Ratio

  • The Price/Earnings ratio is 9.30, which indicates a very decent valuation of MTH.
  • Based on the Price/Earnings ratio, MTH is valued a bit cheaper than the industry average as 73.33% of the companies are valued more expensively.
  • When comparing the Price/Earnings ratio of MTH to the average of the S&P500 Index (25.23), we can say MTH is valued rather cheaply.
  • Based on the Price/Forward Earnings ratio of 9.80, the valuation of MTH can be described as reasonable.
  • 78.33% of the companies in the same industry are more expensive than MTH, based on the Price/Forward Earnings ratio.
  • When comparing the Price/Forward Earnings ratio of MTH to the average of the S&P500 Index (22.42), we can say MTH is valued rather cheaply.
Industry RankSector Rank
PE 9.3
Fwd PE 9.8
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

  • Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of MTH is on the same level as its industry peers.
  • MTH's Price/Free Cash Flow ratio is a bit more expensive when compared to the industry. MTH is more expensive than 61.67% of the companies in the same industry.
Industry RankSector Rank
P/FCF 42.4
EV/EBITDA 8.2
MTH Per share dataMTH EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 20 40 60 80

4.3 Compensation for Growth

  • MTH's earnings are expected to grow with 12.67% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)3.34
EPS Next 2Y8.65%
EPS Next 3Y12.67%

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Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

6

5. MTH Dividend Analysis

5.1 Amount

  • With a Yearly Dividend Yield of 2.94%, MTH has a reasonable but not impressive dividend return.
  • Compared to an average industry Dividend Yield of 1.30, MTH pays a better dividend. On top of this MTH pays more dividend than 81.67% of the companies listed in the same industry.
  • MTH's Dividend Yield is rather good when compared to the S&P500 average which is at 1.89.
Industry RankSector Rank
Dividend Yield 2.94%

5.2 History

  • The dividend of MTH is nicely growing with an annual growth rate of 221.91%!
  • 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)221.91%
Div Incr Years1
Div Non Decr Years1
MTH Yearly Dividends per shareMTH Yearly Dividends per shareYearly Dividends per share 2023 2024 2025 2026 0.5 1 1.5

5.3 Sustainability

  • MTH pays out 26.73% of its income as dividend. This is a sustainable payout ratio.
  • MTH's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP26.73%
EPS Next 2Y8.65%
EPS Next 3Y12.67%
MTH Yearly Income VS Free CF VS DividendMTH Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 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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MTH Fundamentals: All Metrics, Ratios and Statistics

MERITAGE HOMES CORP

NYSE:MTH (3/20/2026, 8:11:30 PM)

After market: 58.76 0 (0%)

58.76

-1.44 (-2.39%)

Chartmill FA Rating
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryHousehold Durables
Earnings (Last)01-28
Earnings (Next)04-21
Inst Owners106.05%
Inst Owner Change-3.45%
Ins Owners2.46%
Ins Owner Change3.37%
Market Cap3.93B
Revenue(TTM)5.86B
Net Income(TTM)453.01M
Analysts72
Price Target83.67 (42.39%)
Short Float %5.15%
Short Ratio3.37
Dividend
Industry RankSector Rank
Dividend Yield 2.94%
Yearly Dividend1.73
Dividend Growth(5Y)221.91%
DP26.73%
Div Incr Years1
Div Non Decr Years1
Ex-Date03-17
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-19.19%
Min EPS beat(2)-22.69%
Max EPS beat(2)-15.68%
EPS beat(4)1
Avg EPS beat(4)-8.95%
Min EPS beat(4)-22.69%
Max EPS beat(4)3.16%
EPS beat(8)4
Avg EPS beat(8)3.44%
EPS beat(12)8
Avg EPS beat(12)10.11%
EPS beat(16)12
Avg EPS beat(16)10.44%
Revenue beat(2)0
Avg Revenue beat(2)-4.71%
Min Revenue beat(2)-4.92%
Max Revenue beat(2)-4.5%
Revenue beat(4)2
Avg Revenue beat(4)-1.56%
Min Revenue beat(4)-4.92%
Max Revenue beat(4)2.09%
Revenue beat(8)6
Avg Revenue beat(8)1.92%
Revenue beat(12)10
Avg Revenue beat(12)5.34%
Revenue beat(16)12
Avg Revenue beat(16)3.74%
PT rev (1m)1.8%
PT rev (3m)3.02%
EPS NQ rev (1m)0.13%
EPS NQ rev (3m)-25.15%
EPS NY rev (1m)-6.42%
EPS NY rev (3m)-16.15%
Revenue NQ rev (1m)0.08%
Revenue NQ rev (3m)-12.93%
Revenue NY rev (1m)-0.12%
Revenue NY rev (3m)-7.7%
Valuation
Industry RankSector Rank
PE 9.3
Fwd PE 9.8
P/S 0.67
P/FCF 42.4
P/OCF 33.18
P/B 0.76
P/tB 0.76
EV/EBITDA 8.2
EPS(TTM)6.32
EY10.76%
EPS(NY)6
Fwd EY10.21%
FCF(TTM)1.39
FCFY2.36%
OCF(TTM)1.77
OCFY3.01%
SpS87.69
BVpS77.78
TBVpS77.29
PEG (NY)N/A
PEG (5Y)3.34
Graham Number105.17
Profitability
Industry RankSector Rank
ROA 5.94%
ROE 8.72%
ROCE 8.28%
ROIC 6.45%
ROICexc 7.25%
ROICexgc 7.5%
OM 9.93%
PM (TTM) 7.73%
GM 12.79%
FCFM 1.58%
ROA(3y)9.52%
ROA(5y)12.22%
ROE(3y)13.34%
ROE(5y)17.87%
ROIC(3y)10.58%
ROIC(5y)13.85%
ROICexc(3y)12.16%
ROICexc(5y)16.21%
ROICexgc(3y)12.59%
ROICexgc(5y)16.76%
ROCE(3y)13.58%
ROCE(5y)17.77%
ROICexgc growth 3Y-32.34%
ROICexgc growth 5Y-14.2%
ROICexc growth 3Y-32.51%
ROICexc growth 5Y-14.39%
OM growth 3Y-21.33%
OM growth 5Y-3.38%
PM growth 3Y-21.14%
PM growth 5Y-3.84%
GM growth 3Y-18.26%
GM growth 5Y-3.36%
F-Score4
Asset Turnover0.77
Health
Industry RankSector Rank
Debt/Equity 0.35
Debt/FCF 19.76
Debt/EBITDA 3.01
Cap/Depr 101.73%
Cap/Sales 0.44%
Interest Coverage 250
Cash Conversion 19.49%
Profit Quality 20.43%
Current Ratio 11.83
Quick Ratio 1.81
Altman-Z 3.96
F-Score4
WACC9.27%
ROIC/WACC0.7
Cap/Depr(3y)120.96%
Cap/Depr(5y)113.93%
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)-41.02%
EPS 3Y-22.11%
EPS 5Y2.78%
EPS Q2Q%-49.15%
EPS Next Y-5.11%
EPS Next 2Y8.65%
EPS Next 3Y12.67%
EPS Next 5YN/A
Revenue 1Y (TTM)-8.4%
Revenue growth 3Y-2.36%
Revenue growth 5Y5.41%
Sales Q2Q%-11.47%
Revenue Next Year-2.2%
Revenue Next 2Y3.6%
Revenue Next 3Y4.12%
Revenue Next 5YN/A
EBIT growth 1Y-42.16%
EBIT growth 3Y-23.19%
EBIT growth 5Y1.85%
EBIT Next Year-5.37%
EBIT Next 3Y7.96%
EBIT Next 5YN/A
FCF growth 1Y136.13%
FCF growth 3Y-37.45%
FCF growth 5Y-28.93%
OCF growth 1Y151.98%
OCF growth 3Y-33.67%
OCF growth 5Y-25.92%

MERITAGE HOMES CORP / MTH Fundamental Analysis FAQ

What is the fundamental rating for MTH stock?

ChartMill assigns a fundamental rating of 4 / 10 to MTH.


What is the valuation status of MERITAGE HOMES CORP (MTH) stock?

ChartMill assigns a valuation rating of 4 / 10 to MERITAGE HOMES CORP (MTH). This can be considered as Fairly Valued.


What is the profitability of MTH stock?

MERITAGE HOMES CORP (MTH) has a profitability rating of 4 / 10.


What is the financial health of MERITAGE HOMES CORP (MTH) stock?

The financial health rating of MERITAGE HOMES CORP (MTH) is 6 / 10.


How sustainable is the dividend of MERITAGE HOMES CORP (MTH) stock?

The dividend rating of MERITAGE HOMES CORP (MTH) is 5 / 10 and the dividend payout ratio is 26.73%.