A Business at a Glance
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Meritage Homes CORP
MTH
$5.2B
Mkt Cap
$72.95
+1.91%
Meritage Homes CORP (MTH) has a current P/E ratio of 11.5, compared to its historical median P/E of 7.9. The stock is currently considered Expensive based on its historical valuation range.
Meritage Homes CORP (MTH) has a 5-year average return on invested capital (ROIC) of 19.5%. This indicates strong capital allocation and a potential competitive advantage.
Meritage Homes CORP (MTH) has a market capitalization of $4.9B. It is classified as a mid-cap stock.
Yes, Meritage Homes CORP (MTH) pays a dividend with a trailing twelve-month yield of 2.51%. The company also returns capital through share buybacks, with a buyback yield of 7.81%.
Based on historical P/E analysis, Meritage Homes CORP (MTH) appears expensive. The current P/E of 11.5 is 46% above its historical median of 7.9. The estimated fair value CAGR (P/E method) is 19.7%.
Meritage Homes CORP (MTH) operates in the Operative Builders industry, within the Industrials sector.
Meritage Homes CORP (MTH) reported annual revenue of $5.8 billion in its most recent fiscal year, based on SEC EDGAR filings.
PART I Item 1. Business The Company Meritage Homes Corporation ("Meritage Homes") is a leading designer and builder of single-family attached and detached homes. We primarily build in long-term high-growth markets of the United States and offer a variety of entry-level and first move-up homes. We have operations in three regions: West, Central and East, which are comprised of twelve states: Arizona, California, Colorado, Utah, Tennessee, Texas, Alabama, Florida, Georgia, Mississippi, North Carolina, and South Carolina. These three regions are our principal homebuilding reporting segments. We also operate a financial services segment, which offers title and escrow, mortgage, and insurance services to our homebuyers. Carefree Title Agency, Inc. ("Carefree Title"), our wholly-owned title company, provides title insurance and closing/settlement services to our homebuyers in certain states.
| Metric | TTM | FY2025 | FY2024 | FY2023 | FY2022 | FY2021 |
|---|---|---|---|---|---|---|
| Revenue | 0 | 5.8B | 6.4B | 6.1B | 6.3B | 5.1B |
| Net Income | 386M | 453M | 786M | 739M | 992M | 737M |
| EPS | $5.54 | $6.35 | $10.72 | $9.96 | $13.37 | $9.65 |
| Free Cash Flow | 238M | 93M | -256M | 317M | 378M | -178M |
| ROIC | 0.0% | 8.5% | 15.2% | 19.6% | 29.4% | 24.9% |
| Gross Margin | - | 19.5% | 24.9% | 24.6% | 28.5% | 27.7% |
| Debt/Equity | 0.35 | 0.35 | 0.26 | 0.22 | 0.29 | 0.38 |
| Dividends/Share | $1.83 | $1.70 | $1.50 | $0.53 | $0.00 | - |
| Operating Income | 0 | 585M | 1.0B | 949M | 1.3B | 955M |
| Operating Margin | 0.0% | 10.0% | 15.8% | 15.5% | 20.6% | 18.7% |
| ROE | 7.6% | 8.8% | 15.3% | 16.0% | 25.1% | 24.2% |
| Shares Outstanding | 67M | 71M | 73M | 74M | 74M | 76M |
| Metric | |||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Income Statement | |||||||||||||
| Revenue | 2.2B | 2.6B | 3.0B | 3.2B | 3.5B | 3.7B | 4.5B | 5.1B | 6.3B | 6.1B | 6.4B | 5.8B | 0 |
| Gross Margin | 20.9% | 19.0% | 17.5% | 17.6% | 18.0% | 18.6% | 21.9% | 27.7% | 28.5% | 24.6% | 24.9% | 19.5% | N/A |
| R&D | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| SG&A | 105M | 113M | 124M | 124M | 138M | 146M | 159M | 181M | 193M | 232M | 231M | 212M | 206M |
| EBIT | 225M | 205M | 223M | 251M | 284M | 311M | 536M | 955M | 1.3B | 949M | 1.0B | 585M | 0 |
| Op. Margin | 10.3% | 8.0% | 7.4% | 7.8% | 8.1% | 8.5% | 12.0% | 18.7% | 20.6% | 15.5% | 15.8% | 10.0% | 0.0% |
| Net Income | 142M | 129M | 150M | 143M | 227M | 250M | 423M | 737M | 992M | 739M | 786M | 453M | 386M |
| Net Margin | 6.6% | 5.0% | 4.9% | 4.4% | 6.5% | 6.8% | 9.4% | 14.4% | 15.8% | 12.1% | 12.4% | 7.8% | 0.0% |
| Non-Recurring | 0 | 0 | 0 | 0 | 0 | 0 | 25M | 2.1M | 200K | 0 | 0 | 18M | 18M |
| Returns on Capital | |||||||||||||
| ROIC | 9.2% | 9.0% | 8.6% | 7.4% | 9.5% | 10.9% | 22.7% | 24.9% | 29.4% | 19.6% | 15.2% | 8.5% | 0.0% |
| ROE | 14.6% | 10.9% | 11.2% | 9.6% | 13.2% | 12.6% | 18.0% | 24.2% | 25.1% | 16.0% | 15.3% | 8.8% | 7.6% |
| ROA | 6.6% | 5.2% | 5.4% | 4.7% | 6.8% | 7.3% | 11.0% | 15.3% | 17.2% | 11.6% | 11.0% | 6.1% | 5.1% |
| Cash Flow | |||||||||||||
| Op. Cash Flow | -211M | -3.3M | -103M | -87M | 262M | 347M | 530M | -152M | 405M | 356M | -228M | 118M | 262M |
| Free Cash Flow | -232M | -19M | -120M | -105M | 229M | 322M | 510M | -178M | 378M | 317M | -256M | 93M | 238M |
| Owner Earnings | -235M | -33M | -133M | -116M | 218M | 299M | 479M | -198M | 358M | 308M | -279M | 73M | 218M |
| CapEx | 21M | 16M | 17M | 18M | 33M | 24M | 20M | 26M | 27M | 38M | 29M | 26M | 24M |
| Maint. CapEx | 12M | 14M | 16M | 17M | 27M | 28M | 31M | 26M | 25M | 25M | 26M | 25M | 25M |
| Growth CapEx | 9.2M | 1.9M | 684K | 1.4M | 6.4M | 0 | 0 | 0 | 2.2M | 13M | 2.7M | 437K | 0 |
| D&A | 12M | 14M | 16M | 17M | 27M | 28M | 31M | 26M | 25M | 25M | 26M | 25M | 25M |
| CapEx/OCF | N/A | N/A | N/A | N/A | 12.7% | 7.0% | 3.8% | N/A | 6.7% | 10.7% | N/A | 21.7% | 9.3% |
| Capital Allocation | |||||||||||||
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 40M | 109M | 121M | 122M |
| Dividend Yield | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | 0.9% | 1.8% | 2.4% | 2.5% |
| Share Buybacks | 0 | 0 | 0 | 0 | 100M | 16M | 70M | 61M | 109M | 59M | 126M | 295M | 380M |
| Buyback Yield | N/A | N/A | N/A | N/A | 7.1% | 0.7% | 2.2% | 1.4% | 3.5% | 1.0% | 2.3% | 6.2% | 7.8% |
| Stock-Based Comp | 12M | 16M | 14M | 12M | 17M | 20M | 20M | 20M | 22M | 23M | 26M | 20M | 19M |
| Debt Repayment | 10M | 23M | 21M | 127M | 175M | 306M | 0 | 318M | 0 | 151M | 251M | 5.1M | 5.1M |
| Balance Sheet | |||||||||||||
| Net Debt | 801M | -78M | 963M | 136M | 687M | 380M | -471M | -77M | -572M | -834M | 33M | 279M | 1.0B |
| Cash & Equiv. | 103M | 262M | 132M | 171M | 311M | 319M | 746M | 618M | 862M | 921M | 652M | 775M | 767M |
| Long-Term Debt | 0 | 200M | 0 | 300M | 1.3B | 996M | 997M | 1.1B | 1.1B | 995M | 1.3B | 1.8B | N/A |
| Debt/Equity | 0.82 | 0.16 | 0.77 | 0.19 | 0.76 | 0.52 | 0.43 | 0.38 | 0.29 | 0.22 | 0.26 | 0.35 | 0.35 |
| Interest Coverage | 43.5 | 12.9 | 43.2 | 65.2 | 361.8 | 37.2 | 246.1 | 3003.6 | 31447.8 | N/A | N/A | N/A | N/A |
| Equity | 1.1B | 1.3B | 1.4B | 1.6B | 1.7B | 2.0B | 2.3B | 3.0B | 3.9B | 4.6B | 5.1B | 5.2B | 5.1B |
| Total Assets | 2.3B | 2.7B | 2.9B | 3.3B | 3.4B | 3.4B | 3.9B | 4.8B | 5.8B | 6.4B | 7.2B | 7.6B | 7.6B |
| Total Liabilities | 1.2B | 1.4B | 1.5B | 1.7B | 1.6B | 1.4B | 1.5B | 1.8B | 1.8B | 1.7B | 2.0B | 2.4B | 2.5B |
| Intangibles | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Retained Earnings | 570M | 699M | 849M | 992M | 1.2B | 1.5B | 1.9B | 2.6B | 3.6B | 4.3B | 5.0B | 5.2B | 5.1B |
| Working Capital | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Current Assets | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Current Liabilities | 154M | 161M | 171M | 181M | 178M | 226M | 296M | 337M | 361M | 425M | 452M | 388M | 409M |
| Per Share Data | |||||||||||||
| EPS | 1.73 | 1.55 | 1.78 | 1.71 | 2.79 | 3.21 | 5.50 | 9.65 | 13.37 | 9.96 | 10.72 | 6.35 | 5.54 |
| Owner EPS | -2.86 | -0.40 | -1.58 | -1.38 | 2.68 | 3.85 | 6.23 | -2.59 | 4.83 | 4.15 | -3.81 | 1.03 | 3.27 |
| Book Value | 13.49 | 15.11 | 16.87 | 18.77 | 21.12 | 25.38 | 30.49 | 39.82 | 53.22 | 62.18 | 70.11 | 72.83 | 76.37 |
| Cash Flow/Share | -2.57 | -0.04 | -1.23 | -1.04 | 3.22 | 4.46 | 6.89 | -1.99 | 5.46 | 4.79 | -3.10 | 1.66 | 6.15 |
| Dividends/Share | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | 0.00 | 0.53 | 1.50 | 1.70 | 1.83 |
| Shares Out. | 82.2M | 83.3M | 84.2M | 84.0M | 81.5M | 77.8M | 77.0M | 76.5M | 74.2M | 74.2M | 73.3M | 71.3M | 66.7M |
| Valuation | |||||||||||||
| P/E Ratio | 9.7 | 10.6 | 9.4 | 14.3 | 6.2 | 9.0 | 7.4 | 5.8 | 3.2 | 8.4 | 7.0 | 10.4 | 13.2 |
| P/FCF | N/A | N/A | N/A | N/A | 6.2 | 7.0 | 6.1 | N/A | 8.3 | 19.5 | N/A | 51.1 | 20.5 |
| EV/EBIT | 9.4 | 9.5 | 10.2 | 11.9 | 7.4 | 8.5 | 4.9 | 4.4 | 2.0 | 5.6 | 5.5 | 8.6 | N/A |
| Price/Book | 1.2 | 1.1 | 1.0 | 1.3 | 0.8 | 1.1 | 1.3 | 1.4 | 0.8 | 1.3 | 1.1 | 0.9 | 1.0 |
| Price/Sales | 0.7 | 0.6 | 0.5 | 0.5 | 0.5 | 0.6 | 0.6 | 0.7 | 0.5 | 0.7 | 1.0 | 0.9 | N/A |
| FCF Yield | -16.9% | -1.4% | -8.5% | -5.1% | 16.2% | 14.3% | 16.4% | -4.2% | 12.1% | 5.1% | -4.7% | 2.0% | 4.9% |
| Market Cap | 1.4B | 1.4B | 1.4B | 2.0B | 1.4B | 2.3B | 3.1B | 4.3B | 3.1B | 6.2B | 5.5B | 4.7B | 4.9B |
| Avg. Price | 19.22 | 19.49 | 16.41 | 19.64 | 20.46 | 26.46 | 36.58 | 47.30 | 40.25 | 59.98 | 84.25 | 69.78 | 72.95 |
| Year-End Price | 16.74 | 16.34 | 16.75 | 24.35 | 17.38 | 28.98 | 40.45 | 56.01 | 42.22 | 83.45 | 74.62 | 66.30 | 72.95 |
Meritage Homes CORP passes 4 of 9 quality checks, suggesting mixed fundamentals.
Meritage Homes CORP trades at 11.5x trailing earnings, compared to its 15-year median P/E of 7.9x, suggesting it is currently Expensive relative to its historical range. On a free-cash-flow basis, the stock trades at 52.6x vs a median of 7.6x. The company's 5-year average ROIC is 19.5% with a gross margin of 25.0%. Total shareholder yield (dividends + buybacks) is 10.3%. At current prices, the estimated annualized return to fair value is +0.1%.
Meritage Homes CORP (MTH) has a net profit margin of 7.8%. This is a modest margin.
Meritage Homes CORP (MTH) generated $93 million in free cash flow in its most recent fiscal year. Positive free cash flow supports dividends, buybacks, and debt reduction.
Meritage Homes CORP (MTH) has a debt-to-equity ratio of 0.35. This indicates a conservatively financed balance sheet.
Meritage Homes CORP (MTH) reported earnings per share (EPS) of $6.35 in its most recent fiscal year.
Meritage Homes CORP (MTH) has a return on equity (ROE) of 8.8%. This indicates moderate shareholder returns.
Meritage Homes CORP (MTH) has a 5-year average gross margin of 25.0%. This lower margin is typical of capital-intensive or commodity businesses.
The Ledger Terminal provides 17 years of financial data for Meritage Homes CORP (MTH), sourced directly from SEC EDGAR filings. This includes income statements, balance sheets, cash flow statements, and key financial ratios.
Meritage Homes CORP (MTH) has a book value per share of $72.83, based on its most recent annual SEC filing.
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