MERITAGE HOMES CORP (MTH) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:MTH - US59001A1025 - Common Stock
71.96 USD
-0.61 (-0.84%)
71 USD
-0.96 (-1.33%)
Taking everything into account, MTH scores 5 out of 10 in our fundamental rating. MTH was compared to 61 industry peers in the Household Durables industry. MTH has only an average score on both its financial health and profitability. MTH has a valuation in line with the averages, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
MTH had positive earnings in the past year.
MTH had a negative operating cash flow in the past year.
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.
1.2 Ratios
With a decent Return On Assets value of 6.98%, MTH is doing good in the industry, outperforming 65.57% of the companies in the same industry.
MTH has a Return On Equity (10.24%) which is in line with its industry peers.
Looking at the Return On Invested Capital, with a value of 7.67%, MTH is in line with its industry, outperforming 55.74% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for MTH is significantly above the industry average of 9.73%.
The last Return On Invested Capital (7.67%) for MTH is well below the 3 year average (15.00%), which needs to be investigated, but indicates that MTH had better years and this may not be a problem.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.98% | ||
| ROE | 10.24% | ||
| ROIC | 7.67% |
ROA(3y)13.26%
ROA(5y)13.22%
ROE(3y)18.81%
ROE(5y)19.74%
ROIC(3y)15%
ROIC(5y)15.05%
1.3 Margins
MTH's Profit Margin of 8.96% is fine compared to the rest of the industry. MTH outperforms 77.05% of its industry peers.
In the last couple of years the Profit Margin of MTH has grown nicely.
MTH has a better Operating Margin (11.56%) than 73.77% of its industry peers.
In the last couple of years the Operating Margin of MTH has grown nicely.
MTH's Gross Margin of 14.69% is on the low side compared to the rest of the industry. MTH is outperformed by 90.16% of its industry peers.
MTH's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 11.56% | ||
| PM (TTM) | 8.96% | ||
| GM | 14.69% |
OM growth 3Y-5.81%
OM growth 5Y13.51%
PM growth 3Y-5.01%
PM growth 5Y12.55%
GM growth 3Y-5.75%
GM growth 5Y9.07%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so MTH is still creating some value.
The number of shares outstanding for MTH has been reduced compared to 1 year ago.
MTH has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, MTH has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 4.27 indicates that MTH is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 4.27, MTH is in the better half of the industry, outperforming 72.13% of the companies in the same industry.
A Debt/Equity ratio of 0.35 indicates that MTH is not too dependend on debt financing.
MTH has a Debt to Equity ratio (0.35) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.35 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 4.27 |
ROIC/WACC0.85
WACC9.02%
2.3 Liquidity
A Current Ratio of 11.20 indicates that MTH has no problem at all paying its short term obligations.
With an excellent Current ratio value of 11.20, MTH belongs to the best of the industry, outperforming 98.36% of the companies in the same industry.
MTH has a Quick Ratio of 1.64. This is a normal value and indicates that MTH is financially healthy and should not expect problems in meeting its short term obligations.
The Quick ratio of MTH (1.64) is better than 72.13% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 11.2 | ||
| Quick Ratio | 1.64 |
3. Growth
3.1 Past
MTH shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -32.28%.
The Earnings Per Share has been growing by 26.87% on average over the past years. This is a very strong growth
Looking at the last year, MTH shows a decrease in Revenue. The Revenue has decreased by -6.06% in the last year.
MTH shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 11.77% yearly.
EPS 1Y (TTM)-32.28%
EPS 3Y3.55%
EPS 5Y26.87%
EPS Q2Q%-47.94%
Revenue 1Y (TTM)-6.06%
Revenue growth 3Y7.54%
Revenue growth 5Y11.77%
Sales Q2Q%-10.81%
3.2 Future
The Earnings Per Share is expected to decrease by -7.54% on average over the next years.
MTH is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.23% yearly.
EPS Next Y-36.48%
EPS Next 2Y-18.3%
EPS Next 3Y-7.54%
EPS Next 5YN/A
Revenue Next Year-6.55%
Revenue Next 2Y-0.66%
Revenue Next 3Y2.23%
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.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 9.62, the valuation of MTH can be described as reasonable.
Based on the Price/Earnings ratio, MTH is valued a bit cheaper than 73.77% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 26.56. MTH is valued rather cheaply when compared to this.
A Price/Forward Earnings ratio of 10.06 indicates a reasonable valuation of MTH.
Based on the Price/Forward Earnings ratio, MTH is valued a bit cheaper than the industry average as 78.69% of the companies are valued more expensively.
MTH is valuated cheaply when we compare the Price/Forward Earnings ratio to 23.79, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.62 | ||
| Fwd PE | 10.06 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of MTH is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 8.52 |
4.3 Compensation for Growth
MTH has a very decent profitability rating, which may justify a higher PE ratio.
A cheap valuation may be justified as MTH's earnings are expected to decrease with -7.54% in the coming years.
PEG (NY)N/A
PEG (5Y)0.36
EPS Next 2Y-18.3%
EPS Next 3Y-7.54%
5. Dividend
5.1 Amount
MTH has a Yearly Dividend Yield of 2.37%. Purely for dividend investing, there may be better candidates out there.
MTH's Dividend Yield is rather good when compared to the industry average which is at 1.16. MTH pays more dividend than 83.61% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 1.87, MTH pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.37% |
5.2 History
On average, the dividend of MTH grows each year by 175.81%, which is quite nice.
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)175.81%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
21.92% of the earnings are spent on dividend by MTH. This is a low number and sustainable payout ratio.
DP21.92%
EPS Next 2Y-18.3%
EPS Next 3Y-7.54%
71.96
-0.61 (-0.84%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryHousehold Durables
Earnings (Last)
Earnings (Next)
Inst Owners103.21%
Inst Owner Change-0.85%
Ins Owners2.27%
Ins Owner Change0.27%
Market Cap5.07B
Revenue(TTM)6.04B
Net Income(TTM)541.63M
Analysts72.5
Price Target81.21 (12.85%)
Short Float %5.52%
Short Ratio4.44
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.37% |
Yearly Dividend1.5
Dividend Growth(5Y)175.81%
DP21.92%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-6.26%
Min EPS beat(2)-15.68%
Max EPS beat(2)3.16%
EPS beat(4)1
Avg EPS beat(4)-4.79%
Min EPS beat(4)-15.68%
Max EPS beat(4)3.16%
EPS beat(8)5
Avg EPS beat(8)6.64%
EPS beat(12)9
Avg EPS beat(12)12.03%
EPS beat(16)13
Avg EPS beat(16)12.02%
Revenue beat(2)1
Avg Revenue beat(2)-1.21%
Min Revenue beat(2)-4.5%
Max Revenue beat(2)2.09%
Revenue beat(4)3
Avg Revenue beat(4)0.12%
Min Revenue beat(4)-4.5%
Max Revenue beat(4)2.09%
Revenue beat(8)7
Avg Revenue beat(8)3.44%
Revenue beat(12)11
Avg Revenue beat(12)5.76%
Revenue beat(16)12
Avg Revenue beat(16)3.98%
PT rev (1m)-3.45%
PT rev (3m)-10.52%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-15.74%
EPS NY rev (1m)-2.13%
EPS NY rev (3m)-6.88%
Revenue NQ rev (1m)-0.65%
Revenue NQ rev (3m)-4.51%
Revenue NY rev (1m)-0.7%
Revenue NY rev (3m)-2.14%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.62 | ||
| Fwd PE | 10.06 | ||
| P/S | 0.84 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 0.96 | ||
| P/tB | 0.97 | ||
| EV/EBITDA | 8.52 |
EPS(TTM)7.48
EY10.39%
EPS(NY)7.15
Fwd EY9.94%
FCF(TTM)-3.59
FCFYN/A
OCF(TTM)-3.19
OCFYN/A
SpS85.83
BVpS75.1
TBVpS74.22
PEG (NY)N/A
PEG (5Y)0.36
Graham Number112.42
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.98% | ||
| ROE | 10.24% | ||
| ROCE | 9.81% | ||
| ROIC | 7.67% | ||
| ROICexc | 8.54% | ||
| ROICexgc | 8.9% | ||
| OM | 11.56% | ||
| PM (TTM) | 8.96% | ||
| GM | 14.69% | ||
| FCFM | N/A |
ROA(3y)13.26%
ROA(5y)13.22%
ROE(3y)18.81%
ROE(5y)19.74%
ROIC(3y)15%
ROIC(5y)15.05%
ROICexc(3y)17.65%
ROICexc(5y)17.95%
ROICexgc(3y)18.2%
ROICexgc(5y)18.52%
ROCE(3y)19.2%
ROCE(5y)19.27%
ROICexgc growth 3Y-13.71%
ROICexgc growth 5Y9%
ROICexc growth 3Y-13.77%
ROICexc growth 5Y8.56%
OM growth 3Y-5.81%
OM growth 5Y13.51%
PM growth 3Y-5.01%
PM growth 5Y12.55%
GM growth 3Y-5.75%
GM growth 5Y9.07%
F-Score3
Asset Turnover0.78
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.35 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 2.53 | ||
| Cap/Depr | 109.62% | ||
| Cap/Sales | 0.46% | ||
| Interest Coverage | N/A | ||
| Cash Conversion | N/A | ||
| Profit Quality | N/A | ||
| Current Ratio | 11.2 | ||
| Quick Ratio | 1.64 | ||
| Altman-Z | 4.27 |
F-Score3
WACC9.02%
ROIC/WACC0.85
Cap/Depr(3y)123.38%
Cap/Depr(5y)106.42%
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)-32.28%
EPS 3Y3.55%
EPS 5Y26.87%
EPS Q2Q%-47.94%
EPS Next Y-36.48%
EPS Next 2Y-18.3%
EPS Next 3Y-7.54%
EPS Next 5YN/A
Revenue 1Y (TTM)-6.06%
Revenue growth 3Y7.54%
Revenue growth 5Y11.77%
Sales Q2Q%-10.81%
Revenue Next Year-6.55%
Revenue Next 2Y-0.66%
Revenue Next 3Y2.23%
Revenue Next 5YN/A
EBIT growth 1Y-33.05%
EBIT growth 3Y1.3%
EBIT growth 5Y26.86%
EBIT Next Year-16.3%
EBIT Next 3Y0.71%
EBIT Next 5YN/A
FCF growth 1Y-125.35%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-121.73%
OCF growth 3YN/A
OCF growth 5YN/A
MERITAGE HOMES CORP / MTH FAQ
What is the fundamental rating for MTH stock?
ChartMill assigns a fundamental rating of 5 / 10 to MTH.
Can you provide the valuation status for MERITAGE HOMES CORP?
ChartMill assigns a valuation rating of 5 / 10 to MERITAGE HOMES CORP (MTH). This can be considered as Fairly Valued.
How profitable is MERITAGE HOMES CORP (MTH) stock?
MERITAGE HOMES CORP (MTH) has a profitability rating of 6 / 10.
Can you provide the financial health for MTH stock?
The financial health rating of MERITAGE HOMES CORP (MTH) is 6 / 10.
What is the earnings growth outlook for MERITAGE HOMES CORP?
The Earnings per Share (EPS) of MERITAGE HOMES CORP (MTH) is expected to decline by -36.48% in the next year.