NYSE:MTH

Stock Analysis Report

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Executive Summary

Meritage Homes Corporation designs and builds single-family homes in the United States.


Snowflake Analysis

Excellent balance sheet with solid track record.


Similar Companies

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

0.2%

MTH

0.3%

US Consumer Durables

1.9%

US Market


1 Year Return

38.4%

MTH

2.5%

US Consumer Durables

4.3%

US Market

Return vs Industry: MTH exceeded the US Consumer Durables industry which returned 2.5% over the past year.

Return vs Market: MTH exceeded the US Market which returned 4.3% over the past year.


Shareholder returns

MTHIndustryMarket
7 Day0.2%0.3%1.9%
30 Day3.8%1.5%2.7%
90 Day137.7%66.1%26.4%
1 Year38.4%38.4%3.8%2.5%6.5%4.3%
3 Year74.4%74.4%-5.5%-9.8%35.1%26.2%
5 Year54.6%54.6%9.9%3.4%67.0%48.4%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Meritage Homes undervalued compared to its fair value and its price relative to the market?

9.45x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: MTH ($73.33) is trading above our estimate of fair value ($56.73)

Significantly Below Fair Value: MTH is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: MTH is good value based on its PE Ratio (9.4x) compared to the Consumer Durables industry average (10.5x).

PE vs Market: MTH is good value based on its PE Ratio (9.4x) compared to the US market (16.4x).


Price to Earnings Growth Ratio

PEG Ratio: MTH's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: MTH is overvalued based on its PB Ratio (1.4x) compared to the US Consumer Durables industry average (1.2x).


Next Steps

Future Growth

How is Meritage Homes forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?

-0.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: MTH's earnings are forecast to decline over the next 3 years (-0.2% per year).

Earnings vs Market: MTH's earnings are forecast to decline over the next 3 years (-0.2% per year).

High Growth Earnings: MTH's earnings are forecast to decline over the next 3 years.

Revenue vs Market: MTH's revenue (1% per year) is forecast to grow slower than the US market (9.3% per year).

High Growth Revenue: MTH's revenue (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 MTH's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Meritage Homes performed over the past 5 years?

15.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: MTH has high quality earnings.

Growing Profit Margin: MTH's current net profit margins (7.7%) are higher than last year (6%).


Past Earnings Growth Analysis

Earnings Trend: MTH's earnings have grown by 15.4% per year over the past 5 years.

Accelerating Growth: MTH's earnings growth over the past year (41.5%) exceeds its 5-year average (15.4% per year).

Earnings vs Industry: MTH earnings growth over the past year (41.5%) exceeded the Consumer Durables industry 10.2%.


Return on Equity

High ROE: MTH's Return on Equity (14.8%) is considered low.


Next Steps

Financial Health

How is Meritage Homes's financial position?


Financial Position Analysis

Short Term Liabilities: MTH's short term assets ($3.8B) exceed its short term liabilities ($346.7M).

Long Term Liabilities: MTH's short term assets ($3.8B) exceed its long term liabilities ($1.6B).


Debt to Equity History and Analysis

Debt Level: MTH's debt to equity ratio (75.8%) is considered high.

Reducing Debt: MTH's debt to equity ratio has reduced from 85.3% to 75.8% over the past 5 years.

Debt Coverage: MTH's debt is well covered by operating cash flow (23.7%).

Interest Coverage: MTH's interest payments on its debt are well covered by EBIT (85x coverage).


Balance Sheet


Next Steps

Dividend

What is Meritage Homes's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

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

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


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of MTH'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?

5.3yrs

Average management tenure


CEO

Steve Hilton (59yo)

23.58yrs

Tenure

US$9,195,591

Compensation

Mr. Steven J. Hilton, also known as Steve, co-founded Meritage Homes Corporation in 1985 and has also been its Chairman and Chief Executive Officer since May 18, 2006. Mr. Hilton served as the Co-Chairman ...


CEO Compensation Analysis

Compensation vs Market: Steve's total compensation ($USD9.20M) is above average for companies of similar size in the US market ($USD5.86M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Steven Hilton
Chairman & CEO23.58yrsUS$9.20m1.23% $33.8m
Hilla Sferruzza
CFO & Executive VP4.25yrsUS$3.11m0.074% $2.0m
Phillippe Lord
COO & Executive VP5.25yrsUS$5.07m0.11% $2.9m
C. White
General Counsel14.75yrsUS$2.66m0.11% $3.0m
Javier Feliciano
Chief Human Resources Officer & Executive VP4.67yrsUS$1.21m0.040% $1.1m
Brent Anderson
Vice President of Investor Relationsno datano datano data
Christopher Ryan
President of Florida Division3.25yrsno datano data
Richard Harvey
President of Texas Region Operations14yrsno datano data
Clint Szubinski
President of South Region2.42yrsno datano data
James Thrower
South Region President6.17yrsno datano data

5.3yrs

Average Tenure

46yo

Average Age

Experienced Management: MTH's management team is seasoned and experienced (5.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Steven Hilton
Chairman & CEO23.58yrsUS$9.20m1.23% $33.8m
Gerald Haddock
Independent Director15.5yrsUS$272.41k0.032% $880.0k
Peter Ax
Lead Independent Director17.75yrsUS$322.41k0.081% $2.2m
Raymond Oppel
Independent Director22.58yrsUS$262.41k0.053% $1.5m
Deborah Henretta
Independent Director4.33yrsUS$262.41k0.038% $1.0m
Dana Bradford
Independent Director10.92yrsUS$272.41k0.16% $4.3m
Michael Odell
Independent Director8.58yrsUS$272.41k0.073% $2.0m
P. Kelly Mooney
Independent Director0.33yrno datano data
Joseph Keough
Independent Director1.08yrsUS$267.06kno data

10.9yrs

Average Tenure

59yo

Average Age

Experienced Board: MTH's board of directors are seasoned and experienced ( 10.9 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: MTH 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

Meritage Homes Corporation's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Meritage Homes Corporation
  • Ticker: MTH
  • Exchange: NYSE
  • Founded: 1985
  • Industry: Homebuilding
  • Sector: Consumer Durables
  • Market Cap: US$2.757b
  • Shares outstanding: 37.60m
  • Website: https://www.meritagehomes.com

Number of Employees


Location

  • Meritage Homes Corporation
  • 8800 East Raintree Drive
  • Suite 300
  • Scottsdale
  • Arizona
  • 85260
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
MTHNYSE (New York Stock Exchange)YesCommon StockUSUSDJul 1988
MEYDB (Deutsche Boerse AG)YesCommon StockDEEURJul 1988

Biography

Meritage Homes Corporation 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 luxury homes under the Monterey Homes brand name; and 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. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/07/01 23:58
End of Day Share Price2020/07/01 00:00
Earnings2020/03/31
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.