M/I HOMES INC (MHO) Stock Fundamental Analysis
NYSE:MHO - New York Stock Exchange, Inc. - US55305B1017 - Common Stock - Currency: USD
Taking everything into account, MHO scores 6 out of 10 in our fundamental rating. MHO was compared to 64 industry peers in the Household Durables industry. Both the health and profitability get an excellent rating, making MHO a very profitable company, without any liquidiy or solvency issues. MHO may be a bit undervalued, certainly considering the very reasonable score on growth With these ratings, MHO could be worth investigating further for value and quality investing!.
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 each of the past 5 years.
Of the past 5 years MHO 4 years had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 11.71%, MHO belongs to the top of the industry, outperforming 85.94% of the companies in the same industry.
MHO has a Return On Equity of 17.86%. This is in the better half of the industry: MHO outperforms 79.69% of its industry peers.
MHO has a Return On Invested Capital of 12.25%. This is in the better half of the industry: MHO outperforms 76.56% of its industry peers.
The Average Return On Invested Capital over the past 3 years for MHO is above the industry average of 10.34%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.71% | ||
| ROE | 17.86% | ||
| ROIC | 12.25% |
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 12.11%. This is amongst the best in the industry. MHO outperforms 89.06% of its industry peers.
In the last couple of years the Profit Margin of MHO has grown nicely.
With an excellent Operating Margin value of 15.19%, MHO belongs to the best of the industry, outperforming 87.50% of the companies in the same industry.
MHO's Operating Margin has improved in the last couple of years.
The Gross Margin of MHO (26.35%) is comparable to the rest of the industry.
MHO's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 15.19% | ||
| PM (TTM) | 12.11% | ||
| GM | 26.35% |
OM growth 3Y4.25%
OM growth 5Y15.33%
PM growth 3Y5.7%
PM growth 5Y19.65%
GM growth 3Y3.13%
GM growth 5Y6.12%
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.
The number of shares outstanding for MHO has been reduced compared to 1 year ago.
The number of shares outstanding for MHO has been reduced compared to 5 years ago.
MHO has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 4.45 indicates that MHO is not in any danger for bankruptcy at the moment.
With a decent Altman-Z score value of 4.45, MHO is doing good in the industry, outperforming 76.56% of the companies in the same industry.
MHO has a debt to FCF ratio of 7.73. This is a slightly negative value and a sign of low solvency as MHO would need 7.73 years to pay back of all of its debts.
With a Debt to FCF ratio value of 7.73, MHO perfoms like the industry average, outperforming 57.81% of the companies in the same industry.
A Debt/Equity ratio of 0.31 indicates that MHO is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.31, MHO is in line with its industry, outperforming 50.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.31 | ||
| Debt/FCF | 7.73 | ||
| Altman-Z | 4.45 |
ROIC/WACC1.26
WACC9.69%
2.3 Liquidity
MHO has a Current Ratio of 10.86. This indicates that MHO is financially healthy and has no problem in meeting its short term obligations.
Looking at the Current ratio, with a value of 10.86, MHO belongs to the top of the industry, outperforming 96.88% of the companies in the same industry.
MHO has a Quick Ratio of 2.12. This indicates that MHO is financially healthy and has no problem in meeting its short term obligations.
With an excellent Quick ratio value of 2.12, MHO belongs to the best of the industry, outperforming 87.50% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 10.86 | ||
| Quick Ratio | 2.12 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 8.80% over the past year.
Measured over the past years, MHO shows a very strong growth in Earnings Per Share. The EPS has been growing by 33.72% on average per year.
MHO shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 8.69%.
MHO shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 12.50% yearly.
EPS 1Y (TTM)8.8%
EPS 3Y14.04%
EPS 5Y33.72%
EPS Q2Q%-16.74%
Revenue 1Y (TTM)8.69%
Revenue growth 3Y6.34%
Revenue growth 5Y12.5%
Sales Q2Q%-6.75%
3.2 Future
The Earnings Per Share is expected to decrease by -4.85% on average over the next years.
MHO is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 0.59% yearly.
EPS Next Y-12.9%
EPS Next 2Y-4.85%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-2.5%
Revenue Next 2Y0.59%
Revenue Next 3YN/A
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
The Price/Earnings ratio is 6.17, which indicates a rather cheap valuation of MHO.
Based on the Price/Earnings ratio, MHO is valued cheaply inside the industry as 89.06% of the companies are valued more expensively.
MHO is valuated cheaply when we compare the Price/Earnings ratio to 27.21, which is the current average of the S&P500 Index.
MHO is valuated cheaply with a Price/Forward Earnings ratio of 6.54.
Based on the Price/Forward Earnings ratio, MHO is valued cheaper than 90.63% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of MHO to the average of the S&P500 Index (21.70), we can say MHO is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.17 | ||
| Fwd PE | 6.54 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, MHO is valued cheaper than 96.88% of the companies in the same industry.
MHO's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 26.17 | ||
| EV/EBITDA | 4.57 |
4.3 Compensation for Growth
MHO has an outstanding profitability rating, which may justify a higher PE ratio.
MHO's earnings are expected to decrease with -4.85% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)0.18
EPS Next 2Y-4.85%
EPS Next 3YN/A
5. Dividend
5.1 Amount
No dividends for MHO!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
116.63
+4.51 (+4.02%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryHousehold Durables
Earnings (Last)
Earnings (Next)
Inst Owners96.66%
Inst Owner Change-0.52%
Ins Owners2.37%
Ins Owner Change11.75%
Market Cap3.12B
Analysts85.71
Price Target161.84 (38.76%)
Short Float %3.3%
Short Ratio3.7
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DP0%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-4.41%
Min EPS beat(2)-5.31%
Max EPS beat(2)-3.52%
EPS beat(4)2
Avg EPS beat(4)0.96%
Min EPS beat(4)-5.31%
Max EPS beat(4)10.38%
EPS beat(8)5
Avg EPS beat(8)9.39%
EPS beat(12)9
Avg EPS beat(12)15.84%
EPS beat(16)12
Avg EPS beat(16)14.78%
Revenue beat(2)1
Avg Revenue beat(2)-5.82%
Min Revenue beat(2)-13.77%
Max Revenue beat(2)2.14%
Revenue beat(4)3
Avg Revenue beat(4)-1.71%
Min Revenue beat(4)-13.77%
Max Revenue beat(4)3.91%
Revenue beat(8)5
Avg Revenue beat(8)-0.43%
Revenue beat(12)7
Avg Revenue beat(12)2.86%
Revenue beat(16)9
Avg Revenue beat(16)1.75%
PT rev (1m)0%
PT rev (3m)-5.56%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0.91%
EPS NY rev (1m)0%
EPS NY rev (3m)-7.8%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-4.5%
Revenue NY rev (1m)-3.04%
Revenue NY rev (3m)-8.79%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.17 | ||
| Fwd PE | 6.54 | ||
| P/S | 0.7 | ||
| P/FCF | 26.17 | ||
| P/OCF | 24.24 | ||
| P/B | 1.04 | ||
| P/tB | 1.04 | ||
| EV/EBITDA | 4.57 |
EPS(TTM)18.91
EY16.21%
EPS(NY)17.85
Fwd EY15.3%
FCF(TTM)4.46
FCFY3.82%
OCF(TTM)4.81
OCFY4.13%
SpS165.57
BVpS112.26
TBVpS111.65
PEG (NY)N/A
PEG (5Y)0.18
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.71% | ||
| ROE | 17.86% | ||
| ROCE | 15.97% | ||
| ROIC | 12.25% | ||
| ROICexc | 15.02% | ||
| ROICexgc | 15.9% | ||
| OM | 15.19% | ||
| PM (TTM) | 12.11% | ||
| GM | 26.35% | ||
| FCFM | 2.69% |
ROA(3y)12.39%
ROA(5y)11.7%
ROE(3y)20.45%
ROE(5y)20.97%
ROIC(3y)13.5%
ROIC(5y)13.06%
ROICexc(3y)16.19%
ROICexc(5y)15.2%
ROICexgc(3y)16.79%
ROICexgc(5y)15.85%
ROCE(3y)17.59%
ROCE(5y)17.02%
ROICexcg growth 3Y1.84%
ROICexcg growth 5Y16.09%
ROICexc growth 3Y2.49%
ROICexc growth 5Y16.51%
OM growth 3Y4.25%
OM growth 5Y15.33%
PM growth 3Y5.7%
PM growth 5Y19.65%
GM growth 3Y3.13%
GM growth 5Y6.12%
F-Score6
Asset Turnover0.97
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.31 | ||
| Debt/FCF | 7.73 | ||
| Debt/EBITDA | 1.34 | ||
| Cap/Depr | 60.23% | ||
| Cap/Sales | 0.21% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 18.69% | ||
| Profit Quality | 22.23% | ||
| Current Ratio | 10.86 | ||
| Quick Ratio | 2.12 | ||
| Altman-Z | 4.45 |
F-Score6
WACC9.69%
ROIC/WACC1.26
Cap/Depr(3y)52.66%
Cap/Depr(5y)82.58%
Cap/Sales(3y)0.18%
Cap/Sales(5y)0.32%
Profit Quality(3y)61.14%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)8.8%
EPS 3Y14.04%
EPS 5Y33.72%
EPS Q2Q%-16.74%
EPS Next Y-12.9%
EPS Next 2Y-4.85%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)8.69%
Revenue growth 3Y6.34%
Revenue growth 5Y12.5%
Sales Q2Q%-6.75%
Revenue Next Year-2.5%
Revenue Next 2Y0.59%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y7.63%
EBIT growth 3Y10.86%
EBIT growth 5Y29.74%
EBIT Next Year-9.68%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-66.48%
FCF growth 3YN/A
FCF growth 5Y22.9%
OCF growth 1Y-64.82%
OCF growth 3YN/A
OCF growth 5Y22.33%