NYSE:MTH

Stock Analysis Report

Executive Summary

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

Snowflake

Fundamentals

Excellent balance sheet with acceptable 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


Market Performance


7 Day Return

3.2%

MTH

2.0%

US Consumer Durables

0.07%

US Market


1 Year Return

125.6%

MTH

44.5%

US Consumer Durables

8.9%

US Market

Return vs Industry: MTH exceeded the US Consumer Durables industry which returned 44.5% over the past year.

Return vs Market: MTH exceeded the US Market which returned 8.9% over the past year.


Shareholder returns

MTHIndustryMarket
7 Day3.2%2.0%0.07%
30 Day6.8%7.2%-0.3%
90 Day38.0%15.5%-1.6%
1 Year125.6%125.6%46.5%44.5%11.3%8.9%
3 Year132.4%132.4%35.1%28.8%46.3%36.8%
5 Year94.5%94.5%39.2%30.2%62.1%44.3%

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?

30.8%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: MTH ($75.07) is trading below our estimate of fair value ($108.53)

Significantly Below Fair Value: MTH is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: MTH is poor value based on its PE Ratio (14.2x) compared to the Consumer Durables industry average (13.3x).

PE vs Market: MTH is good value based on its PE Ratio (14.2x) compared to the US market (17.8x).


Price to Earnings Growth Ratio

PEG Ratio: MTH is poor value based on its PEG Ratio (1.8x)


Price to Book Ratio

PB vs Industry: MTH is overvalued based on its PB Ratio (1.6x) compared to the US Consumer Durables industry average (1.6x).


Next Steps

Future Growth

How is Meritage Homes forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?

8.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: MTH's forecast earnings growth (8.1% per year) is above the savings rate (2.7%).

Earnings vs Market: MTH's earnings (8.1% per year) are forecast to grow slower than the US market (14.5% per year).

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

Revenue vs Market: MTH's revenue (5.4% per year) is forecast to grow slower than the US market (7.2% per year).

High Growth Revenue: MTH's revenue (5.4% 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?

9.7%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: MTH's earnings have grown by 9.7% per year over the past 5 years.

Accelerating Growth: MTH's earnings growth over the past year (17.1%) exceeds its 5-year average (9.7% per year).

Earnings vs Industry: MTH earnings growth over the past year (17.1%) exceeded the Consumer Durables industry 13.5%.


Return on Equity

High ROE: MTH's Return on Equity (11.4%) is considered low.


Return on Assets

ROA vs Industry: MTH's Return on Assets is below or equal to the Consumer Durables industry average last year.


Return on Capital Employed

ROCE Improving: MTH's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is Meritage Homes's financial position?


Financial Position Analysis

Short Term Liabilities: MTH's short term assets ($3.3B) exceeds its short term liabilities ($294.4M)

Long Term Liabilities: MTH's short term assets (3.3B) exceeds its long term liabilities (1.4B)


Debt to Equity History and Analysis

Debt Level: MTH's debt to equity ratio (72.7%) is considered high

Reducing Debt: MTH's debt to equity ratio has reduced from 90.3% to 72.7% over the past 5 years.

Debt Coverage: MTH's debt is well covered by operating cash flow (29.5%).

Interest Coverage: MTH's interest payments on its debt are well covered by EBIT (34.7x coverage).


Balance Sheet

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

Debt Coverage by Assets: MTH's debt is covered by short term assets (assets are 2.539180x debt).


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%1.4%markettop25%3.7%industryaverage1.9%forecastin3Years0%

Current dividend yield vs market & industry


Stability and Growth of Payments

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

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

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

What is the CEO of Meritage Homes's salary, the management and board of directors tenure and is there insider trading?

5.0yrs

Average management tenure


CEO

Steve Hilton (58yo)

22.8yrs

Tenure

US$7,900,183

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 ($USD7.90M) is about average for companies of similar size in the US market ($USD5.11M).

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


Management Age and Tenure

5.0yrs

Average Tenure

45yo

Average Age

Experienced Management: MTH's management team is considered experienced (5 years average tenure).


Board Age and Tenure

12.5yrs

Average Tenure

58yo

Average Age

Experienced Board: MTH's board of directors are seasoned and experienced ( 12.5 years average tenure).


Insider Trading

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


Recent Insider Transactions

SellUS$1,023,93917 Sep 19
Raymond Oppel
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares15,000
Max PriceUS$68.26
SellUS$6,767,81312 Sep 19
Steven Hilton
EntityIndividual
Role
Chief Executive Officer
Chairman & CEO
Shares100,000
Max PriceUS$68.45
SellUS$497,16206 Sep 19
Gerald Haddock
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares7,500
Max PriceUS$66.29
SellUS$390,64326 Aug 19
Raymond Oppel
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares6,000
Max PriceUS$65.11
SellUS$1,094,82206 Aug 19
Peter Ax
EntityIndividual
Role
Lead Director
Lead Independent Director
Shares17,100
Max PriceUS$64.02
SellUS$36,481,33405 Aug 19
Steven Hilton
EntityIndividual
Role
Chief Executive Officer
Chairman & CEO
Shares579,026
Max PriceUS$63.31
SellUS$1,015,70305 Aug 19
Raymond Oppel
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares16,000
Max PriceUS$63.97
SellUS$26,560,74331 Jul 19
Steven Hilton
EntityIndividual
Role
Chief Executive Officer
Chairman & CEO
Shares420,974
Max PriceUS$64.16
SellUS$314,35031 Jul 19
Gerald Haddock
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares5,000
Max PriceUS$62.87
SellUS$252,72031 Jul 19
Raymond Oppel
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares4,000
Max PriceUS$63.18
SellUS$511,29131 Jul 19
C. White
EntityIndividual
Role
Chief Legal Officer
General Counsel
Shares7,946
Max PriceUS$64.35
SellUS$268,97529 Apr 19
Hilla Sferruzza
EntityIndividual
Role
Chief Financial Officer
CFO & Executive VP
Shares5,300
Max PriceUS$50.75
SellUS$152,25029 Apr 19
Phillippe Lord
EntityIndividual
Role
Chief Operating Officer
COO & Executive VP
Shares3,000
Max PriceUS$50.75
SellUS$99,96808 Mar 19
Phillippe Lord
EntityIndividual
Role
Chief Operating Officer
COO & Executive VP
Shares2,272
Max PriceUS$44.00
SellUS$189,40006 Feb 19
Gerald Haddock
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares5,000
Max PriceUS$37.88
SellUS$878,86506 Feb 19
C. White
EntityIndividual
Role
Chief Legal Officer
General Counsel
Shares19,500
Max PriceUS$45.07
BuyUS$379,04008 Nov 18
Dana Bradford
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares10,000
Max PriceUS$37.94

Ownership Breakdown


Management Team

  • Steve Hilton (58yo)

    Chairman & CEO

    • Tenure: 22.8yrs
    • Compensation: US$7.90m
  • Tim White (58yo)

    General Counsel

    • Tenure: 14yrs
    • Compensation: US$2.26m
  • Brent Anderson

    Vice President of Investor Relations

    • Tenure: 0yrs
  • Richard Harvey

    President of Texas Region Operations

    • Tenure: 13.3yrs
  • Hilla Sferruzza (43yo)

    CFO & Executive VP

    • Tenure: 3.5yrs
    • Compensation: US$2.73m
  • Clint Szubinski

    President of South Region

    • Tenure: 1.7yrs
  • Phillippe Lord (45yo)

    COO & Executive VP

    • Tenure: 4.5yrs
    • Compensation: US$4.41m
  • Chris Ryan

    President of Florida Division

    • Tenure: 2.5yrs
  • Jay Thrower

    South Region President

    • Tenure: 5.4yrs
  • Javier Feliciano (45yo)

    Chief Human Resources Officer & Executive VP

    • Tenure: 0yrs
    • Compensation: US$1.09m

Board Members

  • Steve Hilton (58yo)

    Chairman & CEO

    • Tenure: 22.8yrs
    • Compensation: US$7.90m
  • Gerald Haddock (71yo)

    Independent Director

    • Tenure: 14.8yrs
    • Compensation: US$301.25k
  • Peter Ax (60yo)

    Lead Independent Director

    • Tenure: 17yrs
    • Compensation: US$351.25k
  • Ray Oppel (62yo)

    Independent Director

    • Tenure: 21.8yrs
    • Compensation: US$296.25k
  • Deb Henretta (58yo)

    Independent Director

    • Tenure: 3.6yrs
    • Compensation: US$291.25k
  • Dana Bradford (54yo)

    Independent Director

    • Tenure: 10.2yrs
    • Compensation: US$301.25k
  • Michael Odell (55yo)

    Independent Director

    • Tenure: 7.8yrs
    • Compensation: US$296.25k
  • Joe Keough (49yo)

    Independent Director

    • Tenure: 0.3yrs

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$2.874b
  • Shares outstanding: 38.28m
  • 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 co ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/22 23:37
End of Day Share Price2019/10/22 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.