M/I HOMES INC (MHO) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:MHO - US55305B1017 - Common Stock
134.335 USD
+0.89 (+0.66%)
We assign a fundamental rating of 6 out of 10 to MHO. MHO was compared to 60 industry peers in the Household Durables industry. MHO gets an excellent profitability rating and is at the same time showing great financial health properties. MHO is cheap, but on the other hand it scores bad on growth. These ratings could make MHO a good candidate for value 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.
- In the past 5 years MHO has always been profitable.
- Of the past 5 years MHO 4 years had a positive operating cash flow.
1.2 Ratios
- MHO has a better Return On Assets (9.91%) than 85.00% of its industry peers.
- MHO's Return On Equity of 15.00% is fine compared to the rest of the industry. MHO outperforms 70.00% of its industry peers.
- Looking at the Return On Invested Capital, with a value of 10.40%, MHO is in the better half of 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 9.71%.
| 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
- With an excellent Profit Margin value of 10.56%, MHO belongs to the best of the industry, outperforming 86.67% of the companies in the same industry.
- In the last couple of years the Profit Margin of MHO has grown nicely.
- MHO has a better Operating Margin (13.31%) than 81.67% of its industry peers.
- In the last couple of years the Operating Margin of MHO has grown nicely.
- 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.
- In the last couple of years the Gross Margin of MHO has grown nicely.
| 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%
2. Health
2.1 Basic Checks
- With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), MHO is creating some value.
- MHO has less shares outstanding than it did 1 year ago.
- MHO has less shares outstanding than it did 5 years ago.
- MHO has a worse debt/assets ratio than last year.
2.2 Solvency
- MHO has an Altman-Z score of 4.53. This indicates that MHO is financially healthy and has little risk of bankruptcy at the moment.
- With a decent Altman-Z score value of 4.53, MHO is doing good in the industry, outperforming 76.67% of the companies in the same industry.
- The Debt to FCF ratio of MHO is 3.82, which is a good value as it means it would take MHO, 3.82 years of fcf income to pay off all of its debts.
- With a Debt to FCF ratio value of 3.82, MHO perfoms like the industry average, outperforming 60.00% of the companies in the same industry.
- MHO has a Debt/Equity ratio of 0.29. This is a healthy value indicating a solid balance between debt and equity.
- 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 | 4.53 |
ROIC/WACC1.16
WACC8.95%
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.
- MHO has a Quick Ratio of 1.98. This is a normal value and indicates that MHO is financially healthy and should not expect problems in meeting its short term obligations.
- The Quick ratio of MHO (1.98) is better than 83.33% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 11.16 | ||
| Quick Ratio | 1.98 |
3. Growth
3.1 Past
- MHO shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -7.61%.
- 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 a small growth in Revenue. In the last year, the Revenue has grown by 4.77%.
- Measured over the past years, MHO shows a quite strong growth in Revenue. The Revenue has been growing by 12.50% on average per year.
EPS 1Y (TTM)-7.61%
EPS 3Y14.04%
EPS 5Y33.72%
EPS Q2Q%-19.02%
Revenue 1Y (TTM)4.77%
Revenue growth 3Y6.34%
Revenue growth 5Y12.5%
Sales Q2Q%-0.97%
3.2 Future
- Based on estimates for the next years, MHO will show a decrease in Earnings Per Share. The EPS will decrease by -5.80% on average per year.
- Based on estimates for the next years, MHO will show a decrease in Revenue. The Revenue will decrease by -3.39% on average per year.
EPS Next Y-17.33%
EPS Next 2Y-13.44%
EPS Next 3Y-5.8%
EPS Next 5YN/A
Revenue Next Year-1.95%
Revenue Next 2Y-4.03%
Revenue Next 3Y-3.39%
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.
- 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 7.79 indicates a rather cheap valuation of MHO.
- Based on the Price/Earnings ratio, MHO is valued cheaper than 86.67% of the companies in the same industry.
- Compared to an average S&P500 Price/Earnings ratio of 27.21, MHO is valued rather cheaply.
- With a Price/Forward Earnings ratio of 9.10, the valuation of MHO can be described as very reasonable.
- MHO's Price/Forward Earnings ratio is rather cheap when compared to the industry. MHO is cheaper than 93.33% of the companies in the same industry.
- The average S&P500 Price/Forward Earnings ratio is at 25.98. MHO is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.79 | ||
| Fwd PE | 9.1 |
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.
- Based on the Price/Free Cash Flow ratio, MHO is valued a bit cheaper than the industry average as 66.67% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.45 | ||
| EV/EBITDA | 6.02 |
4.3 Compensation for Growth
- The excellent profitability rating of MHO may justify a higher PE ratio.
- A cheap valuation may be justified as MHO's earnings are expected to decrease with -5.80% in the coming years.
PEG (NY)N/A
PEG (5Y)0.23
EPS Next 2Y-13.44%
EPS Next 3Y-5.8%
5. Dividend
5.1 Amount
- No dividends for MHO!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
M/I HOMES INC / MHO FAQ
What is the ChartMill fundamental rating of M/I HOMES INC (MHO) stock?
ChartMill assigns a fundamental rating of 6 / 10 to MHO.
Can you provide the valuation status for M/I HOMES INC?
ChartMill assigns a valuation rating of 7 / 10 to M/I HOMES INC (MHO). This can be considered as Undervalued.
How profitable is M/I HOMES INC (MHO) stock?
M/I HOMES INC (MHO) has a profitability rating of 8 / 10.
What is the financial health of M/I HOMES INC (MHO) stock?
The financial health rating of M/I HOMES INC (MHO) is 7 / 10.
What is the earnings growth outlook for M/I HOMES INC?
The Earnings per Share (EPS) of M/I HOMES INC (MHO) is expected to decline by -17.33% in the next year.