Overall MHO gets a fundamental rating of 5 out of 10. We evaluated MHO against 60 industry peers in the Household Durables industry. While MHO has a great profitability rating, there are some minor concerns on its financial health. MHO is valued quite cheap, but it does not seem to be growing. These ratings could make MHO a good candidate for value investing.

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1. Profitability

2. Health

3. Growth

4. Valuation

5. Dividend

1. Profitability

1.1 Basic Checks

MHO had positive earnings in the past year.
In the past year MHO had a positive cash flow from operations.
MHO had positive earnings in 4 of the past 5 years.
The reported operating cash flow has been mixed in the past 5 years: MHO reported negative operating cash flow in multiple years.

1.2 Ratios

With an excellent Return On Assets value of 9.91%, MHO belongs to the best of the industry, outperforming 85.00% of the companies in the same industry.
MHO has a better Return On Equity (15.00%) than 70.00% of its industry peers.
With a decent Return On Invested Capital value of 10.40%, MHO is doing good in the industry, outperforming 66.67% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for MHO is above the industry average of 9.70%.

		Industry Rank	Sector Rank
ROA	9.91%
ROE	15%
ROIC	10.4%

ROA(3y)12.39%

ROA(5y)11.7%

ROE(3y)20.45%

ROE(5y)20.97%

ROIC(3y)13.5%

ROIC(5y)13.06%

1.3 Margins

MHO has a Profit Margin of 10.56%. This is amongst the best in the industry. MHO outperforms 86.67% of its industry peers.
MHO's Profit Margin has improved in the last couple of years.
MHO has a better Operating Margin (13.31%) than 81.67% of its industry peers.
MHO's Operating Margin has improved in the last couple of years.
MHO has a Gross Margin of 24.72%. This is comparable to the rest of the industry: MHO outperforms 46.67% of its industry peers.
MHO's Gross Margin has improved in the last couple of years.

		Industry Rank	Sector Rank
OM	13.31%
PM (TTM)	10.56%
GM	24.72%

OM growth 3Y4.25%

OM growth 5Y15.33%

PM growth 3Y5.7%

PM growth 5Y19.65%

GM growth 3Y3.13%

GM growth 5Y6.12%

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ROA

ROE

ROIC

Operating and Profit Margin

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2. Health

2.1 Basic Checks

MHO has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
There is no outstanding debt for MHO. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.

2.2 Solvency

MHO has an Altman-Z score of 4.52. This indicates that MHO is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 4.52, MHO is in the better half of the industry, outperforming 76.67% of the companies in the same industry.
MHO has a debt to FCF ratio of 3.82. This is a good value and a sign of high solvency as MHO would need 3.82 years to pay back of all of its debts.
MHO has a Debt to FCF ratio (3.82) which is comparable to the rest of the industry.
A Debt/Equity ratio of 0.29 indicates that MHO is not too dependend on debt financing.
MHO's Debt to Equity ratio of 0.29 is in line compared to the rest of the industry. MHO outperforms 53.33% of its industry peers.

		Industry Rank	Sector Rank
Debt/Equity	0.29
Debt/FCF	3.82
Altman-Z	4.52

ROIC/WACC1.16

WACC8.94%

2.3 Liquidity

A Current Ratio of 11.16 indicates that MHO has no problem at all paying its short term obligations.
MHO has a Current ratio of 11.16. This is amongst the best in the industry. MHO outperforms 96.67% of its industry peers.
A Quick Ratio of 1.98 indicates that MHO should not have too much problems paying its short term obligations.
MHO has a Quick ratio of 1.98. This is amongst the best in the industry. MHO outperforms 83.33% of its industry peers.

		Industry Rank	Sector Rank
Current Ratio	11.16
Quick Ratio	1.98

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WACC

Debt/Equity

How to determine the health of a company

Altman-Z score

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3. Growth

3.1 Past

MHO shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -16.59%.
The Earnings Per Share has been growing by 14.26% on average over the past years. This is quite good.

EPS 1Y (TTM)-16.59%

EPS 3Y-2.56%

EPS 5Y14.26%

EPS Q2Q%-16.99%

Revenue 1Y (TTM)N/A

Revenue growth 3YN/A

Revenue growth 5YN/A

Sales Q2Q%-4.81%

3.2 Future

MHO is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 0.11% yearly.
The Revenue is expected to decrease by -4.11% on average over the next years.

EPS Next Y-10.17%

EPS Next 2Y0.11%

EPS Next 3YN/A

EPS Next 5YN/A

Revenue Next Year-6.06%

Revenue Next 2Y-4.11%

Revenue Next 3YN/A

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.

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4. Valuation

4.1 Price/Earnings Ratio

A Price/Earnings ratio of 8.05 indicates a reasonable valuation of MHO.
Based on the Price/Earnings ratio, MHO is valued cheaply inside the industry as 85.00% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of MHO to the average of the S&P500 Index (28.60), we can say MHO is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 8.96, the valuation of MHO can be described as reasonable.
Compared to the rest of the industry, the Price/Forward Earnings ratio of MHO indicates a rather cheap valuation: MHO is cheaper than 91.67% of the companies listed in the same industry.
MHO's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 25.83.

		Industry Rank	Sector Rank
PE	8.05
Fwd PE	8.96

4.2 Price Multiples

86.67% of the companies in the same industry are more expensive than MHO, based on the Enterprise Value to EBITDA ratio.
MHO's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. MHO is cheaper than 66.67% of the companies in the same industry.