MERITAGE HOMES CORP (MTH)
US59001A1025 - Common Stock
Taking everything into account, MTH scores 6 out of 10 in our fundamental rating. MTH was compared to 67 industry peers in the Household Durables industry. MTH gets an excellent profitability rating and is at the same time showing great financial health properties. MTH has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
In the past year MTH was profitable.
In the past year MTH had a positive cash flow from operations.
In the past 5 years MTH has always been profitable.
Of the past 5 years MTH 4 years had a positive operating cash flow.
1.2 Ratios
With an excellent Return On Assets value of 12.23%, MTH belongs to the best of the industry, outperforming 86.36% of the companies in the same industry.
MTH's Return On Equity of 16.81% is fine compared to the rest of the industry. MTH outperforms 72.73% of its industry peers.
MTH has a better Return On Invested Capital (13.85%) than 86.36% of its industry peers.
MTH had an Average Return On Invested Capital over the past 3 years of 16.78%. This is significantly above the industry average of 10.04%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.23% | ||
| ROE | 16.81% | ||
| ROIC | 13.85% |
ROA(3y)14.72%
ROA(5y)12.49%
ROE(3y)21.79%
ROE(5y)19.21%
ROIC(3y)16.78%
ROIC(5y)14.09%
1.3 Margins
MTH has a better Profit Margin (12.54%) than 86.36% of its industry peers.
MTH's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 16.18%, MTH belongs to the top of the industry, outperforming 84.85% of the companies in the same industry.
In the last couple of years the Operating Margin of MTH has grown nicely.
With a Gross Margin value of 19.13%, MTH is not doing good in the industry: 84.85% of the companies in the same industry are doing better.
MTH's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 16.18% | ||
| PM (TTM) | 12.54% | ||
| GM | 19.13% |
OM growth 3Y9.53%
OM growth 5Y15.32%
PM growth 3Y8.55%
PM growth 5Y13.32%
GM growth 3Y6.8%
GM growth 5Y10.5%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so MTH is still 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.
MTH has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 5.64 indicates that MTH is not in any danger for bankruptcy at the moment.
With an excellent Altman-Z score value of 5.64, MTH belongs to the best of the industry, outperforming 86.36% of the companies in the same industry.
MTH has a debt to FCF ratio of 3.61. This is a good value and a sign of high solvency as MTH would need 3.61 years to pay back of all of its debts.
MTH has a Debt to FCF ratio (3.61) which is in line with its industry peers.
MTH has a Debt/Equity ratio of 0.21. This is a healthy value indicating a solid balance between debt and equity.
MTH has a better Debt to Equity ratio (0.21) than 63.64% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.21 | ||
| Debt/FCF | 3.61 | ||
| Altman-Z | 5.64 |
ROIC/WACC1.34
WACC10.36%
2.3 Liquidity
MTH has a Current Ratio of 8.04. This indicates that MTH is financially healthy and has no problem in meeting its short term obligations.
Looking at the Current ratio, with a value of 8.04, MTH belongs to the top of the industry, outperforming 84.85% of the companies in the same industry.
A Quick Ratio of 1.64 indicates that MTH should not have too much problems paying its short term obligations.
MTH has a Quick ratio of 1.64. This is in the better half of the industry: MTH outperforms 74.24% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 8.04 | ||
| 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 -12.41%.
MTH shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 28.78% yearly.
MTH shows a small growth in Revenue. In the last year, the Revenue has grown by 0.68%.
The Revenue has been growing by 11.71% on average over the past years. This is quite good.
EPS 1Y (TTM)-12.41%
EPS 3Y21.86%
EPS 5Y28.78%
EPS growth Q2Q42.94%
Revenue 1Y (TTM)0.68%
Revenue growth 3Y10.89%
Revenue growth 5Y11.71%
Revenue growth Q2Q14.77%
3.2 Future
Based on estimates for the next years, MTH will show a small growth in Earnings Per Share. The EPS will grow by 0.64% on average per year.
Based on estimates for the next years, MTH will show a small growth in Revenue. The Revenue will grow by 3.17% on average per year.
EPS Next Y-10.57%
EPS Next 2Y-1.46%
EPS Next 3Y0.64%
EPS Next 5YN/A
Revenue Next Year2.19%
Revenue Next 2Y5.17%
Revenue Next 3Y3.17%
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
A Price/Earnings ratio of 8.25 indicates a reasonable valuation of MTH.
Compared to the rest of the industry, the Price/Earnings ratio of MTH indicates a rather cheap valuation: MTH is cheaper than 86.36% of the companies listed in the same industry.
MTH is valuated cheaply when we compare the Price/Earnings ratio to 27.73, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 9.14 indicates a reasonable valuation of MTH.
Based on the Price/Forward Earnings ratio, MTH is valued cheaper than 80.30% of the companies in the same industry.
MTH is valuated cheaply when we compare the Price/Forward Earnings ratio to 20.41, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.25 | ||
| Fwd PE | 9.14 |
4.2 Price Multiples
MTH's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. MTH is cheaper than 92.42% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of MTH indicates a slightly more expensive valuation: MTH is more expensive than 66.67% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 23.18 | ||
| EV/EBITDA | 6.22 |
4.3 Compensation for Growth
The excellent profitability rating of MTH may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.29
EPS Next 2Y-1.46%
EPS Next 3Y0.64%
5. Dividend
5.1 Amount
MTH has a yearly dividend return of 0.90%, which is pretty low.
Compared to an average industry Dividend Yield of 3.06, MTH pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.41, MTH's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.9% |
5.2 History
The dividend of MTH is nicely growing with an annual growth rate of 134.10%!
MTH has been paying a dividend for over 5 years, so it has already some track record.
Dividend Growth(5Y)134.1%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
MTH pays out 7.17% of its income as dividend. This is a sustainable payout ratio.
The dividend of MTH is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP7.17%
EPS Next 2Y-1.46%
EPS Next 3Y0.64%
MERITAGE HOMES CORP
NYSE:MTH (5/3/2024, 7:07:35 PM)
After market: 177.04 0 (0%)177.04
+3.92 (+2.26%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryHousehold Durables
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap6.43B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.9% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.25 | ||
| Fwd PE | 9.14 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)0.29
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.23% | ||
| ROE | 16.81% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 16.18% | ||
| PM (TTM) | 12.54% | ||
| GM | 19.13% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.98
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.21 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 8.04 | ||
| Quick Ratio | 1.64 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)-12.41%
EPS 3Y21.86%
EPS 5Y
EPS growth Q2Q
EPS Next Y-10.57%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)0.68%
Revenue growth 3Y10.89%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y