Meritage Homes
Market Cap
US$3.1b
Last Updated
2021/01/18 00:11 UTC
Data Sources
Company Financials +
Executive Summary
Meritage Homes Corporation designs and builds single-family homes in the United States. More Details
Rewards
Risk Analysis
Snowflake Analysis
Solid track record with excellent balance sheet.
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 is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 7% a week.
Volatility Over Time: MTH's weekly volatility (7%) has been stable over the past year.
Market Performance
7 Day Return
2.3%
MTH
4.1%
US Consumer Durables
-1.0%
US Market
1 Year Return
24.4%
MTH
19.3%
US Consumer Durables
19.6%
US Market
Return vs Industry: MTH exceeded the US Consumer Durables industry which returned 19.3% over the past year.
Return vs Market: MTH exceeded the US Market which returned 19.6% over the past year.
Shareholder returns
| MTH | Industry | Market | |
|---|---|---|---|
| 7 Day | 2.3% | 4.1% | -1.0% |
| 30 Day | -6.4% | 0.09% | 2.3% |
| 90 Day | -25.4% | 2.2% | 13.1% |
| 1 Year | 24.4%24.4% | 20.8%19.3% | 22.3%19.6% |
| 3 Year | 57.3%57.3% | 12.9%8.8% | 45.3%35.7% |
| 5 Year | 191.7%191.7% | 85.5%73.3% | 124.8%99.8% |
Long-Term 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
2 weeks ago | Simply Wall St
What Can The Trends At Meritage Homes (NYSE:MTH) Tell Us About Their Returns?4 weeks ago | Simply Wall St
We Think Meritage Homes (NYSE:MTH) Can Manage Its Debt With Ease1 month ago | Simply Wall St
Did Business Growth Power Meritage Homes' (NYSE:MTH) Share Price Gain of 162%?Valuation
Is Meritage Homes undervalued compared to its fair value and its price relative to the market?
8.29x
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: MTH ($82.03) is trading above our estimate of fair value ($29.51)
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 (8.3x) compared to the US Consumer Durables industry average (14.8x).
PE vs Market: MTH is good value based on its PE Ratio (8.3x) compared to the US market (21x).
Price to Earnings Growth Ratio
PEG Ratio: MTH is good value based on its PEG Ratio (0.6x)
Price to Book Ratio
PB vs Industry: MTH is good value based on its PB Ratio (1.4x) compared to the US Consumer Durables industry average (1.8x).
Next Steps
Future Growth
How is Meritage Homes forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?
14.3%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: MTH's forecast earnings growth (14.3% per year) is above the savings rate (2%).
Earnings vs Market: MTH's earnings (14.3% per year) are forecast to grow slower than the US market (21.5% per year).
High Growth Earnings: MTH's earnings are forecast to grow, but not significantly.
Revenue vs Market: MTH's revenue (12.9% per year) is forecast to grow faster than the US market (10.3% per year).
High Growth Revenue: MTH's revenue (12.9% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: MTH's Return on Equity is forecast to be low in 3 years time (18.3%).
Next Steps
Past Performance
How has Meritage Homes performed over the past 5 years?
20.4%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: MTH has high quality earnings.
Growing Profit Margin: MTH's current net profit margins (8.9%) are higher than last year (6.3%).
Past Earnings Growth Analysis
Earnings Trend: MTH's earnings have grown significantly by 20.4% per year over the past 5 years.
Accelerating Growth: MTH's earnings growth over the past year (68.8%) exceeds its 5-year average (20.4% per year).
Earnings vs Industry: MTH earnings growth over the past year (68.8%) exceeded the Consumer Durables industry 26%.
Return on Equity
High ROE: MTH's Return on Equity (17%) 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 ($3.6B) exceed its short term liabilities ($412.4M).
Long Term Liabilities: MTH's short term assets ($3.6B) exceed its long term liabilities ($1.1B).
Debt to Equity History and Analysis
Debt Level: MTH's debt to equity ratio (46%) is considered high.
Reducing Debt: MTH's debt to equity ratio has reduced from 95.1% to 46% over the past 5 years.
Debt Coverage: MTH's debt is well covered by operating cash flow (54.6%).
Interest Coverage: MTH's interest payments on its debt are well covered by EBIT (208x 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?
5.2yrs
Average management tenure
CEO
Phillippe Lord (46 yo)
no data
Tenure
US$5,074,473
Compensation
Mr. Phillippe Lord serves as Chief Executive Officer at Meritage Homes Corporation since January 01, 2021. He had been Chief Operating Officer and Executive Vice President of Meritage Homes Corporation sin...
CEO Compensation Analysis
Compensation vs Market: Phillippe's total compensation ($USD5.07M) is about average for companies of similar size in the US market ($USD5.02M).
Compensation vs Earnings: Phillippe's compensation has been consistent with company performance over the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Executive Chairman | 24yrs | US$9.20m | 0.93% $ 28.7m | |
| Chief Executive Officer | no data | US$5.07m | 0.076% $ 2.3m | |
| CFO & Executive VP | 4.75yrs | US$3.11m | 0.056% $ 1.7m | |
| Executive VP & General Counsel | 15.25yrs | US$2.66m | 0.035% $ 1.1m | |
| Chief People Officer & Executive VP | 5.17yrs | US$1.21m | 0.022% $ 671.1k | |
| Executive VP & COO | no data | no data | 0.030% $ 913.9k | |
| Co-Chief Operating Officer | no data | no data | no data | |
| Vice President of Investor Relations | no data | no data | no data | |
| President of Florida Division | 3.75yrs | no data | no data | |
| President of Texas Region Operations | 14.5yrs | no data | no data | |
| South Region President | 6.67yrs | no data | no data | |
| President of Greenville-South Carolina Division | 3.5yrs | no data | no data |
5.2yrs
Average Tenure
46yo
Average Age
Experienced Management: MTH's management team is seasoned and experienced (5.2 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Executive Chairman | 24yrs | US$9.20m | 0.93% $ 28.7m | |
| Independent Director | 16yrs | US$272.41k | 0.015% $ 451.1k | |
| Lead Independent Director | 18.25yrs | US$322.41k | 0.070% $ 2.2m | |
| Independent Director | 23.08yrs | US$262.41k | 0.037% $ 1.1m | |
| Independent Director | 4.83yrs | US$262.41k | 0.038% $ 1.2m | |
| Independent Director | 11.42yrs | US$272.41k | 0.12% $ 3.6m | |
| Independent Director | 9.08yrs | US$272.41k | 0.073% $ 2.3m | |
| Independent Director | 0.83yr | no data | no data | |
| Independent Director | 1.58yrs | US$267.06k | no data |
11.4yrs
Average Tenure
59yo
Average Age
Experienced Board: MTH's board of directors are seasoned and experienced ( 11.4 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$3.085b
- Shares outstanding: 37.61m
- Website: https://www.meritagehomes.com
Number of Employees
Location
- Meritage Homes Corporation
- 8800 East Raintree Drive
- Suite 300
- Scottsdale
- Arizona
- 85260
- United States
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| MTH | NYSE (New York Stock Exchange) | Yes | Common Stock | US | USD | Jul 1988 |
| MEY | DB (Deutsche Boerse AG) | Yes | Common Stock | DE | EUR | Jul 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 co...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/01/18 00:11 |
| End of Day Share Price | 2021/01/15 00:00 |
| Earnings | 2020/09/30 |
| Annual Earnings | 2019/12/31 |
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.