Meritage Homes Corp

Consumer Discretionary
Homebuilding
www.meritagehomes.com

Earnings Score

Market Cap $6.53B
PE 8
Debt $NaN
Cash $831.56M
EV $NaN
FCF -$260.68M

Earnings

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Sales & Net Margins

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Earnings	$812.39M
EBIT	$1.04B
ROE	16%
ROA	15%
FCF	-$260.68M
Equity	$5.03B
Growth Stability	100%
PE	8.04
PEG	0.29
PB	1.3
P/FCF	-25.07
Price/Cash	0.13
Earnings CAGR	31%
FCF CAGR	4%
Equity CAGR	17%
Earnings Stability	0.92
Earnings Growth YoY	-12%

Earnings Growth QoQ	-15%
Earnings CAGR 5Y	27%
FCF CAGR 5Y	3%
Equity CAGR 5Y	24%
FCF CAGR 3Y	-4%
Equity CAGR 3Y	20%
Market Cap	$6.53B
Dividend Yield	1%
Payout Ratio	11%
Assets	$7.10B
Cash	$831.56M
Shares Outstanding	36.18M
Earnings Score	95%
Shares Growth 3y	-1%
Equity Growth QoQ	3%
Equity Growth YoY	14%

Assets & ROA

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Stockholders Equity & ROE

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Meritage Homes Corp is an American residential construction company that primarily builds single-family and active adult housing communities across the western, southern, and southeastern parts of the United States. Meritage Homes has a homebuilding presence in over 25 metro markets and has expanded its presence in Texas, Florida, Georgia, and the Carolinas. The company is considered one of the industry's leading energy-efficient homebuilders. Meritage completes approximately 6,000 home orders annually, and the majority of its revenue is derived from move-up single-family homes, followed by active adult housing communities.

SEC Filings

Direct access to Meritage Homes Corp (MTH) Annual Reports (10K) and Quarterly Reports (10Q) from the SEC website.

2024
- 10-Q Sep 30
- 10-Q Jun 30
- 10-Q Mar 31
2023
- 10-K Dec 31
- 10-Q Sep 30
- 10-Q Jun 30
- 10-Q Mar 31
2022
- 10-K Dec 31
- 10-Q Sep 30
- 10-Q Jun 30
- 10-Q Mar 31

Sector Comparison

How does Meritage Homes Corp compare to its competitors?

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Peter Lynch's Chart

This chart shows the current pricing of Meritage Homes Corp compared to its past. The addition of the earnings trend line provides further insights into the company's earnings power.

CAGR 31%

Stability 92%

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Meritage Homes Corp Discounted Cash Flow

Fully customizable DCF calculator online for Meritage Homes Corp.

Years

Calculation mode

= -$3.4B

	0	1	2	3	4	5	6	7	8	9	10	TV
fcf	-$261M	-$271M	-$282M	-$293M	-$304M	-$316M	-$329M	-$341M	-$355M	-$369M	-$383M	-$3.8B
DCF		-$246M	-$233M	-$220M	-$208M	-$196M	-$185M	-$175M	-$166M	-$156M	-$148M	-$1.5B
Value	-$3.4B

Competitiveness and MOAT

High margins render the company resilient under dire circumstances, hence able to drive competitors out or acquire them. ROE and ROA measure the average flow generated by each invested dollar. Their marginal value is a forecast of future growth, and it is considered by Buffett and Munger the most important single indicator.

Years	12/2014	12/2015	12/2016	12/2017	12/2018	12/2019	12/2020	12/2021	12/2022	12/2023	TTM
Net Margins	-	-	-	-	-	-	-	-	-	-	-
ROA	-	7%	8%	8%	8%	9%	14%	20%	22%	15%	15%
ROE	-	10%	11%	9%	13%	13%	18%	24%	25%	16%	16%

Safety and Stability

Being debt the number one cause of investment losses and company death, the ratio Debt/FCF is of utmost importance to guarantee safety. On the other hand the Graham’s stability measures the drawdown of earnings, hence indicating the reliability of the flow generated by the company.

Years	12/2014	12/2015	12/2016	12/2017	12/2018	12/2019	12/2020	12/2021	12/2022	12/2023	TTM
Debt over FCF	-	-	-	-	-	-	-	-	-	-	-
Debt over Equity	-	-	-	-	-	-	-	-	-	-	-
Growth Stability	-	-	-	100%	100%	100%	100%	100%	100%	100%	100%

Neutral Debt/FCF ratio (-)

Net Margins are at a level that is not too high nor too low. They are not a competitive advantage but they are not a competitive disadvantage either.

Neutral Debt/Equity ratio (-)

The company has a balance between equity and debt that is not too good nor too bad.

Good Graham’s Stability (100%)

The company has a good stability in its earnings, which is a sign of a good competitive advantage.

Growth

Growth can be dangerous when forecasting, simply projecting the current growth is in general wrong. A company passes through multiple phases, from being young and unprofitable, to the first periods of profitability and high growth, until it arrives at a period of regime with limited growth. Identifying in which phase the company is in may help forecasting.

Years	12/2014	12/2015	12/2016	12/2017	12/2018	12/2019	12/2020	12/2021	12/2022	12/2023	CAGR 5Y
Revenue YoY growth	-	-	-	-	-	-	-	-	-	-	-
Earnings YoY growth	-	-9%	16%	-4%	59%	10%	70%	74%	35%	-26%	27%
Equity YoY growth	-	13%	13%	11%	9%	15%	19%	30%	30%	17%	24%
FCF YoY growth	-	-92%	518%	-12%	-317%	41%	58%	-135%	-313%	-16%	3%