NYSE:MHO

Stock Analysis Report

Executive Summary

M/I Homes, Inc., together with its subsidiaries, operates as a builder of single-family homes in Ohio, Indiana, Illinois, Michigan, Minnesota, North Carolina, Florida, and Texas, the United States.


Snowflake Analysis

Very undervalued with proven track record.


Similar Companies

Share Price & News

How has M/I Homes's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: MHO's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

43.9%

MHO

26.6%

US Consumer Durables

12.5%

US Market


1 Year Return

-31.1%

MHO

-19.9%

US Consumer Durables

-12.7%

US Market

Return vs Industry: MHO underperformed the US Consumer Durables industry which returned -19.9% over the past year.

Return vs Market: MHO underperformed the US Market which returned -12.7% over the past year.


Shareholder returns

MHOIndustryMarket
7 Day43.9%26.6%12.5%
30 Day-50.6%-29.5%-14.7%
90 Day-53.3%-33.3%-21.5%
1 Year-31.1%-31.1%-18.8%-19.9%-10.9%-12.7%
3 Year-23.9%-23.9%-20.6%-24.3%12.6%5.4%
5 Year-25.7%-25.7%-16.3%-21.9%31.9%17.5%

Price Volatility Vs. Market

How volatile is M/I Homes's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is M/I Homes undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: MHO ($18.38) is trading below our estimate of fair value ($247.67)

Significantly Below Fair Value: MHO is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: MHO is good value based on its PE Ratio (4x) compared to the Consumer Durables industry average (7.7x).

PE vs Market: MHO is good value based on its PE Ratio (4x) compared to the US market (13x).


Price to Earnings Growth Ratio

PEG Ratio: MHO is good value based on its PEG Ratio (0.4x)


Price to Book Ratio

PB vs Industry: MHO is good value based on its PB Ratio (0.5x) compared to the US Consumer Durables industry average (0.8x).


Next Steps

Future Growth

How is M/I Homes forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

9.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: MHO's forecast earnings growth (9.5% per year) is above the savings rate (1.7%).

Earnings vs Market: MHO's earnings (9.5% per year) are forecast to grow slower than the US market (12.3% per year).

High Growth Earnings: MHO's earnings are forecast to grow, but not significantly.

Revenue vs Market: MHO's revenue (5.1% per year) is forecast to grow slower than the US market (7.3% per year).

High Growth Revenue: MHO's revenue (5.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if MHO's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has M/I Homes performed over the past 5 years?

24.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: MHO has high quality earnings.

Growing Profit Margin: MHO's current net profit margins (5.1%) are higher than last year (4.7%).


Past Earnings Growth Analysis

Earnings Trend: MHO's earnings have grown significantly by 24.3% per year over the past 5 years.

Accelerating Growth: MHO's earnings growth over the past year (18.5%) is below its 5-year average (24.3% per year).

Earnings vs Industry: MHO earnings growth over the past year (18.5%) exceeded the Consumer Durables industry 9.8%.


Return on Equity

High ROE: MHO's Return on Equity (12.7%) is considered low.


Next Steps

Financial Health

How is M/I Homes's financial position?


Financial Position Analysis

Short Term Liabilities: MHO's short term assets ($2.0B) exceed its short term liabilities ($337.2M).

Long Term Liabilities: MHO's short term assets ($2.0B) exceed its long term liabilities ($764.9M).


Debt to Equity History and Analysis

Debt Level: MHO's debt to equity ratio (75.2%) is considered high.

Reducing Debt: MHO's debt to equity ratio has reduced from 90.3% to 75.2% over the past 5 years.

Debt Coverage: MHO's debt is not well covered by operating cash flow (8.7%).

Interest Coverage: MHO's interest payments on its debt are well covered by EBIT (10.7x coverage).


Balance Sheet

Inventory Level: MHO has a high level of physical assets or inventory.

Debt Coverage by Assets: MHO's debt is covered by short term assets (assets are 2.6x debt).


Next Steps

Dividend

What is M/I Homes's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate MHO's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate MHO's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if MHO's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if MHO's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: MHO is not paying a notable dividend for the US market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of MHO's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

16.2yrs

Average management tenure


CEO

Bob Schottenstein (66yo)

16.17s

Tenure

US$5,252,080

Compensation

Mr. Robert H. Schottenstein, Bob, served as an Independent Director of Installed Building Products, Inc. since April 22, 2014 until March 18, 2020. He has been the Chief Executive Officer of M/I Homes, Inc ...


CEO Compensation Analysis

Compensation vs Market: Bob's total compensation ($USD5.25M) is above average for companies of similar size in the US market ($USD2.17M).

Compensation vs Earnings: Bob's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Robert Schottenstein
Chairman16.17yrsUS$5.25m0.22% $1.1m
Phillip Creek
Executive VP18.17yrsUS$2.75m0.092% $484.7k
J. Mason
Executive VP13.33yrsUS$1.89mno data
Kevin Hake
Senior VP of Finance & Business Development and Treasurerno datano datano data
Paul Rosen
Senior Vice President21yrsno datano data
Fred Sikorski
Region President of Columbus3.92yrsno datano data
Ronald Martin
Region President of Detroit Division3.67yrsno datano data
Thomas Jacobs
Region President4.17yrsno datano data
Ann Marie Hunker
VP & Corporate Controller16.92yrsno data0.00035% $1.8k
Derek Klutch
President & CEO of M/I Financial3.33yrsno datano data

16.2yrs

Average Tenure

62yo

Average Age

Experienced Management: MHO's management team is seasoned and experienced (16.2 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Robert Schottenstein
Chairman16.17yrsUS$5.25m0.22% $1.1m
Phillip Creek
Executive VP18.17yrsUS$2.75m0.092% $484.7k
J. Mason
Executive VP13.33yrsUS$1.89mno data
William Carter
Independent Director7.83yrsUS$218.47kno data
Michael Glimcher
Independent Director7.17yrsUS$183.47kno data
Friedrich K. Böhm
Lead Independent Director6.33yrsUS$223.47k0.12% $614.0k
Norman Traeger
Independent Director23.17yrsUS$198.47k0.058% $303.8k
Nancy Kramer
Independent director4.67yrsUS$183.47kno data
Elizabeth Ingram
Independent Director1yrno datano data

7.8yrs

Average Tenure

65yo

Average Age

Experienced Board: MHO's board of directors are considered experienced (7.8 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: MHO insiders have only sold shares in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

M/I Homes, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: M/I Homes, Inc.
  • Ticker: MHO
  • Exchange: NYSE
  • Founded: 1976
  • Industry: Homebuilding
  • Sector: Consumer Durables
  • Market Cap: US$525.274m
  • Shares outstanding: 28.58m
  • Website: https://www.mihomes.com

Number of Employees


Location

  • M/I Homes, Inc.
  • 3 Easton Oval
  • Suite 500
  • Columbus
  • Ohio
  • 43219
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
MHONYSE (New York Stock Exchange)YesCommon SharesUSUSDNov 1993
MSADB (Deutsche Boerse AG)YesCommon SharesDEEURNov 1993

Biography

M/I Homes, Inc., together with its subsidiaries, operates as a builder of single-family homes in Ohio, Indiana, Illinois, Michigan, Minnesota, North Carolina, Florida, and Texas, the United States. The company operates through Northern Homebuilding, Southern Homebuilding, and Financial Services segments. It designs, constructs, markets, and sells single-family homes and attached townhomes to first-time, millennial, move-up, empty-nester, and luxury buyers under the M/I Homes and Showcase Collection brand names, as well as Hans Hagen brand is used in older communities. The company also purchases undeveloped land to develop into developed lots for the construction of single-family homes, as well as for sale to others. In addition, it originates and sells mortgages; and serves as a title insurance agent by providing title insurance policies, examination, and closing services to purchasers of its homes. The company was formerly known as M/I Schottenstein Homes, Inc. and changed its name to M/I Homes, Inc. in January 2004. M/I Homes, Inc. was founded in 1976 and is based in Columbus, Ohio. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/03/30 00:32
End of Day Share Price2020/03/27 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.