MERITAGE HOMES CORP (MTH) Stock Fundamental Analysis

NYSE:MTH • US59001A1025

74.58 USD
-2.9 (-3.74%)
At close: Feb 25, 2026
74.58 USD
0 (0%)
After Hours: 2/25/2026, 8:04:00 PM
Overview Stock Chart Technical Analysis Fundamental Analysis Analyst Ratings Earnings Estimates Financials Ownership News
Fundamental Rating

4

MTH gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 60 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.


Dividend Valuation Growth Profitability Health

4

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.
  • MTH had positive earnings in each of the past 5 years.
  • The reported operating cash flow has been mixed in the past 5 years: MTH reported negative operating cash flow in multiple 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

  • MTH has a Return On Assets of 5.94%. This is comparable to the rest of the industry: MTH outperforms 60.00% of its industry peers.
  • MTH has a Return On Equity (8.72%) which is in line with its industry peers.
  • With a Return On Invested Capital value of 6.45%, MTH perfoms like the industry average, outperforming 48.33% of the companies in the same industry.
  • The Average Return On Invested Capital over the past 3 years for MTH is in line with the industry average of 9.17%.
  • 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 73.33% 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 70.00% of its industry peers.
  • In the last couple of years the Operating Margin of MTH has declined.
  • With a Gross Margin value of 12.79%, MTH is not doing good in the industry: 91.67% of the companies in the same industry are doing better.
  • 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

More info and screens

ROAROEROICOperating and Profit MarginShow most profitable peers

6

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
  • Compared to 5 years ago, MTH has less shares outstanding
  • Compared to 1 year ago, MTH has a worse debt to assets ratio.
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

  • MTH has an Altman-Z score of 4.30. This indicates that MTH is financially healthy and has little risk of bankruptcy at the moment.
  • The Altman-Z score of MTH (4.30) is better than 71.67% 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.
  • The Debt to FCF ratio of MTH (19.76) is worse than 60.00% of its industry peers.
  • A Debt/Equity ratio of 0.35 indicates that MTH is not too dependend on debt financing.
  • MTH has a Debt to Equity ratio of 0.35. This is comparable to the rest of the industry: MTH outperforms 45.00% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.35
Debt/FCF 19.76
Altman-Z 4.3
ROIC/WACC0.72
WACC9%
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 95.00% 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 76.67% 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. Growth

3.1 Past

  • MTH shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -41.02%.
  • MTH shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 2.78% yearly.
  • Looking at the last year, MTH shows a decrease in Revenue. The Revenue has decreased by -8.40% in the last year.
  • Measured over the past years, MTH shows a small growth in Revenue. The Revenue has been growing by 5.41% on average per year.
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

  • The Earnings Per Share is expected to grow by 14.53% on average over the next years. This is quite good.
  • Based on estimates for the next years, MTH will show a small growth in Revenue. The Revenue will grow by 3.96% on average per year.
EPS Next Y1.4%
EPS Next 2Y9.97%
EPS Next 3Y14.53%
EPS Next 5YN/A
Revenue Next Year-2.08%
Revenue Next 2Y3.81%
Revenue Next 3Y3.96%
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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Find the best growth stocksShow best growing peers

4

4. Valuation

4.1 Price/Earnings Ratio

  • With a Price/Earnings ratio of 11.80, the valuation of MTH can be described as very reasonable.
  • MTH's Price/Earnings ratio is a bit cheaper when compared to the industry. MTH is cheaper than 66.67% of the companies in the same industry.
  • MTH's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.05.
  • The Price/Forward Earnings ratio is 11.64, which indicates a very decent valuation of MTH.
  • Based on the Price/Forward Earnings ratio, MTH is valued a bit cheaper than 73.33% of the companies in the same industry.
  • When comparing the Price/Forward Earnings ratio of MTH to the average of the S&P500 Index (28.03), we can say MTH is valued rather cheaply.
Industry RankSector Rank
PE 11.8
Fwd PE 11.64
MTH Price Earnings VS Forward Price EarningsMTH Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30

4.2 Price Multiples

  • The rest of the industry has a similar Enterprise Value to EBITDA ratio as MTH.
  • Based on the Price/Free Cash Flow ratio, MTH is valued a bit more expensive than the industry average as 66.67% of the companies are valued more cheaply.
Industry RankSector Rank
P/FCF 54.92
EV/EBITDA 10.44
MTH Per share dataMTH EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 20 40 60 80

4.3 Compensation for Growth

  • The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates MTH does not grow enough to justify the current Price/Earnings ratio.
  • MTH's earnings are expected to grow with 14.53% in the coming years. This may justify a more expensive valuation.
PEG (NY)8.44
PEG (5Y)4.24
EPS Next 2Y9.97%
EPS Next 3Y14.53%

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

5

5. Dividend

5.1 Amount

  • With a Yearly Dividend Yield of 2.27%, MTH has a reasonable but not impressive dividend return.
  • MTH's Dividend Yield is rather good when compared to the industry average which is at 1.16. MTH pays more dividend than 81.67% of the companies in the same industry.
  • Compared to an average S&P500 Dividend Yield of 1.80, MTH pays a bit more dividend than the S&P500 average.
Industry RankSector Rank
Dividend Yield 2.27%

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.
  • The dividend of MTH decreased 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 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 2Y9.97%
EPS Next 3Y14.53%
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

More info and screens

Find the best dividend stocksShow peers with best dividend

MERITAGE HOMES CORP

NYSE:MTH (2/25/2026, 8:04:00 PM)

After market: 74.58 0 (0%)

74.58

-2.9 (-3.74%)

Chartmill FA Rating
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryHousehold Durables
Earnings (Last)01-28
Earnings (Next)04-21
Inst Owners103.25%
Inst Owner Change-2.19%
Ins Owners2.27%
Ins Owner Change-0.46%
Market Cap5.08B
Revenue(TTM)5.86B
Net Income(TTM)453.01M
Analysts71.25
Price Target82.19 (10.2%)
Short Float %4.43%
Short Ratio3.04
Dividend
Industry RankSector Rank
Dividend Yield 2.27%
Yearly Dividend1.73
Dividend Growth(5Y)221.91%
DP26.73%
Div Incr Years1
Div Non Decr Years1
Ex-DateN/A
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)-0.18%
PT rev (3m)1.71%
EPS NQ rev (1m)-20.57%
EPS NQ rev (3m)-25.25%
EPS NY rev (1m)-7.29%
EPS NY rev (3m)-11.9%
Revenue NQ rev (1m)-11.29%
Revenue NQ rev (3m)-13%
Revenue NY rev (1m)-6.11%
Revenue NY rev (3m)-8.93%
Valuation
Industry RankSector Rank
PE 11.8
Fwd PE 11.64
P/S 0.87
P/FCF 54.92
P/OCF 42.98
P/B 0.98
P/tB 0.98
EV/EBITDA 10.44
EPS(TTM)6.32
EY8.47%
EPS(NY)6.41
Fwd EY8.59%
FCF(TTM)1.36
FCFY1.82%
OCF(TTM)1.74
OCFY2.33%
SpS85.93
BVpS76.22
TBVpS76.22
PEG (NY)8.44
PEG (5Y)4.24
Graham Number104.11
Profitability
Industry RankSector Rank
ROA 5.94%
ROE 8.72%
ROCE 8.28%
ROIC 6.45%
ROICexc 7.25%
ROICexgc 7.46%
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)12.58%
ROICexgc(5y)16.75%
ROCE(3y)13.58%
ROCE(5y)17.77%
ROICexgc growth 3Y-32.47%
ROICexgc growth 5Y-14.3%
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 4.3
F-Score4
WACC9%
ROIC/WACC0.72
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 Y1.4%
EPS Next 2Y9.97%
EPS Next 3Y14.53%
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-2.08%
Revenue Next 2Y3.81%
Revenue Next 3Y3.96%
Revenue Next 5YN/A
EBIT growth 1Y-42.16%
EBIT growth 3Y-23.19%
EBIT growth 5Y1.85%
EBIT Next Year9.77%
EBIT Next 3YN/A
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 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%.