MTH

Meritage Homes Corporation

Fundamental data last updated:September 6, 2026

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company profile

SECTOR

Consumer Cyclical

industry

Residential Construction

Exchange

NYSE

County of HQ

US

Next Earnings Date

Pending Announcement

Business Summary

Meritage Homes Corporation, together with its subsidiaries, designs and builds single-family homes in the United States. The company operates through two segments, Homebuilding and Financial Services. It acquires and develops land; and constructs, markets, and sells homes for first-time and first move-up buyers. The company also offers title insurance and closing/settlement services to its homebuyers. It builds and sells homes in Texas, Arizona, California, Colorado, Florida, North Carolina, South Carolina, Georgia, and Tennessee under the Meritage Homes brand name. Meritage Homes Corporation was founded in 1985 and is based in Scottsdale, Arizona.

 


Analyze MTH on TradingView

VALUATION

P/E

11.47

Market Cap ($M USD)

$4.38B

Forward P/E

8.24

PEG

0.21

PRICE TO SALES

0.78

PRICE TO BOOK

0.87

EV / EBITDA

10.77

5-Year Average P/E

Free Cash Flow Yield

5.42%

DCF Value

$111.95

Graham Number

$98.67

Price to FCF

18.44

EV to FCF

22.81

Earnings Yield

8.72%

FCF Yield

5.42%

DIVIDEND

Yield

2.70%

Annual Payout

$1.77

Payout Ratio

31.70%

Consecutive Years of Dividend Growth

5-Year Dividend Growth Rate

Financial Health & Profitability

Earnings Per Share

$5.72

Next Year EPS Growth Estimate

$7.97

Next Year Revenue Growth Estimate

$6.42B

Return on Equity (ROE)

7.40%

FREE CASH FLOW

Operating Margin

8.08%

Debt-to-Equity

0.36

Piotroski F-Score

5

Altman Z-Score

3.11

Return on Invested Capital (ROIC)

6.17%

Current Ratio

5.24

Quick Ratio

-25.41

Net Debt to EBITDA

2.06

Interest Coverage

773.39

Gross Profit margin

18.68%

FCF PER SHARE

$3.53

REVENUE PER SHARE

$83.38

Analyze MTH on TradingView

Gainseekers Quantitative Analysis

Summary

MTH Meritage Homes Corporation appears to be significantly undervalued based on its DCF Value and Graham Number, suggesting the market may be mispricing this stock. The Forward P/E of 8.18 and an Earnings Yield of 8.78% indicate a compelling value proposition, especially for a company with a solid Altman Z-score of 3.09, which suggests financial stability. The stock’s current valuation metrics, combined with its robust earnings potential, paint a picture of a company that is both undervalued and financially sound. Investors looking for growth at a reasonable price might find this an attractive opportunity.

AI Exposure / Tech Reliance

Operating within the residential construction industry, MTH is positioned to leverage AI and modern tech to streamline operations and enhance efficiency. The adoption of smart building technologies and AI-driven project management tools could offer competitive advantages. However, the industry's traditional nature may slow rapid tech adoption.

The Bull Case

For value or GARP investors, MTH offers a compelling case with its strong ROIC of 6.17% and a respectable FCF Yield of 5.46%. The Piotroski F-Score of 5 indicates moderate financial strength, while an operating margin of 8.08% underscores efficient cost management. These metrics suggest that MTH has the pricing power and capital efficiency to generate consistent returns, making it an attractive buy for those seeking undervalued growth.

The Bear Case

Despite its strengths, MTH faces structural risks with a Price to FCF of 18.31, which may indicate overvaluation relative to its cash flow generation. The stock's proximity to its 52-week high, combined with a high EV to FCF ratio of 22.68, suggests potential overextension. Additionally, the negative earnings surprise hints at potential volatility in earnings performance, raising concerns about future growth consistency.

Market Sentiment & Smart Money

Short Interest %

Analyst Consensus

Buy

Average Analyst Price Target

$83.25

Institutional Ownership %

1-Year Beta

1.43

Insider Buying % (6 Mo)

Distance to 52-Week High

29.14%

Distance to 52-Week Low

11.57%

EARNINGS SURPRISE %

-11.89%

50-DAY SMA

$64.22

200-DAY SMA

$70.17

⚠️ Financial Disclaimer:
This content is for informational purposes only and is not financial advice. Information may be delayed or inaccurate. We may earn a commission from partner links.