MERITAGE HOMES CORP (MTH) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:MTH - US59001A1025 - Common Stock
73.475 USD
+5.11 (+7.48%)
Overall MTH gets a fundamental rating of 5 out of 10. We evaluated MTH against 60 industry peers in the Household Durables industry. MTH has only an average score on both its financial health and profitability. MTH has a valuation in line with the averages, but on the other hand it scores bad on growth.
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
MTH has a better Return On Assets (6.98%) than 65.00% of its industry peers.
MTH has a Return On Equity (10.24%) which is comparable to the rest of the industry.
The Return On Invested Capital of MTH (7.67%) is comparable to the rest of the industry.
The Average Return On Invested Capital over the past 3 years for MTH is significantly above the industry average of 9.69%.
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
MTH has a better Profit Margin (8.96%) than 76.67% 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 73.33% of its industry peers.
MTH's Operating Margin has improved in the last couple of years.
The Gross Margin of MTH (14.69%) is worse than 90.00% of its industry peers.
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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), MTH 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.
Compared to 1 year ago, MTH has a worse debt to assets ratio.
2.2 Solvency
MTH has an Altman-Z score of 4.21. This indicates that MTH is financially healthy and has little risk of bankruptcy at the moment.
With a decent Altman-Z score value of 4.21, MTH is doing good in the industry, outperforming 73.33% of the companies in the same industry.
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 Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.35 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 4.21 |
ROIC/WACC0.88
WACC8.76%
2.3 Liquidity
A Current Ratio of 11.20 indicates that MTH has no problem at all paying its short term obligations.
MTH's Current ratio of 11.20 is amongst the best of the industry. MTH outperforms 98.33% of its industry peers.
A Quick Ratio of 1.64 indicates that MTH should not have too much problems paying its short term obligations.
The Quick ratio of MTH (1.64) is better than 71.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 11.2 | ||
| Quick Ratio | 1.64 |
3. Growth
3.1 Past
The earnings per share for MTH have decreased strongly by -32.28% in the last year.
MTH shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 26.87% yearly.
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
MTH is expected to show a decrease in Earnings Per Share. In the coming years, the EPS will decrease by -7.54% yearly.
Based on estimates for the next years, MTH will show a small growth in Revenue. The Revenue will grow by 2.23% on average per year.
EPS Next Y-36.5%
EPS Next 2Y-18.31%
EPS Next 3Y-7.54%
EPS Next 5YN/A
Revenue Next Year-6.55%
Revenue Next 2Y-0.66%
Revenue Next 3Y2.23%
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.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 9.82, the valuation of MTH can be described as very reasonable.
75.00% 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 27.00, MTH is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 10.27, the valuation of MTH can be described as reasonable.
Based on the Price/Forward Earnings ratio, MTH is valued cheaply inside the industry as 86.67% of the companies are valued more expensively.
MTH's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 23.70.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.82 | ||
| Fwd PE | 10.27 |
4.2 Price Multiples
MTH's Enterprise Value to EBITDA is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 8.17 |
4.3 Compensation for Growth
MTH has a very decent profitability rating, which may justify a higher PE ratio.
MTH's earnings are expected to decrease with -7.54% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)0.37
EPS Next 2Y-18.31%
EPS Next 3Y-7.54%
5. Dividend
5.1 Amount
MTH has a Yearly Dividend Yield of 2.61%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 1.23, MTH pays a better dividend. On top of this MTH pays more dividend than 85.00% of the companies listed in the same industry.
MTH's Dividend Yield is a higher than the S&P500 average which is at 1.94.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.61% |
5.2 History
The dividend of MTH is nicely growing with an annual growth rate of 175.81%!
MTH has been paying a dividend for over 5 years, so it has already some track record.
The dividend of MTH decreased 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-18.31%
EPS Next 3Y-7.54%
NYSE:MTH (1/9/2026, 12:10:01 PM)
73.475
+5.11 (+7.48%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryHousehold Durables
Earnings (Last)
Earnings (Next)
Inst Owners103.25%
Inst Owner Change0%
Ins Owners2.27%
Ins Owner Change0.27%
Market Cap5.17B
Revenue(TTM)6.04B
Net Income(TTM)541.63M
Analysts72.5
Price Target81.21 (10.53%)
Short Float %5.8%
Short Ratio4.67
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.61% |
Yearly Dividend1.5
Dividend Growth(5Y)175.81%
DP21.92%
Div Incr Years1
Div Non Decr Years1
Ex-DateN/A
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)0.5%
PT rev (3m)-11.18%
EPS NQ rev (1m)-0.13%
EPS NQ rev (3m)-15.84%
EPS NY rev (1m)-0.03%
EPS NY rev (3m)-6.9%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-4.51%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-2.14%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.82 | ||
| Fwd PE | 10.27 | ||
| P/S | 0.86 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 0.98 | ||
| P/tB | 0.99 | ||
| EV/EBITDA | 8.17 |
EPS(TTM)7.48
EY10.18%
EPS(NY)7.15
Fwd EY9.73%
FCF(TTM)-3.59
FCFYN/A
OCF(TTM)-3.19
OCFYN/A
SpS85.83
BVpS75.1
TBVpS74.22
PEG (NY)N/A
PEG (5Y)0.37
Graham Number112.42
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.98% | ||
| ROE | 10.24% | ||
| ROCE | 9.81% | ||
| ROIC | 7.67% | ||
| ROICexc | 8.54% | ||
| ROICexgc | 8.9% | ||
| 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 | 4.21 |
F-Score3
WACC8.76%
ROIC/WACC0.88
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-36.5%
EPS Next 2Y-18.31%
EPS Next 3Y-7.54%
EPS Next 5YN/A
Revenue 1Y (TTM)-6.06%
Revenue growth 3Y7.54%
Revenue growth 5Y11.77%
Sales Q2Q%-10.81%
Revenue Next Year-6.55%
Revenue Next 2Y-0.66%
Revenue Next 3Y2.23%
Revenue Next 5YN/A
EBIT growth 1Y-33.05%
EBIT growth 3Y1.3%
EBIT growth 5Y26.86%
EBIT Next Year-16.3%
EBIT Next 3Y0.71%
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.
What is the valuation status of MERITAGE HOMES CORP (MTH) stock?
ChartMill assigns a valuation rating of 5 / 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 6 / 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 21.92%.