Meritage Homes Corporation
$67.11
+0.090%Meritage Homes Corporation, together with its subsidiaries, 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 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.
At a Glance
Live SnapshotIntrinsic Alpha Methodology
Thesis Lenses
Signal
High confidenceValuation multiple is compressed (P/E 10.5).
Valuation inputs: P/E 10.5, earnings yield +9.5%, momentum +0.1%.
If multiples stay elevated while momentum fades, downside repricing risk rises.
Driver
High confidenceReturn profile is soft (ROE +8.7%, ROIC +5.9%).
Profitability stack: net margin +7.7%, ROE +8.7%, ROIC +5.9%.
Quality deterioration often appears in margins before it shows up in headline EPS.
Risk
High confidenceRisk profile is balanced but has notable pressure points to monitor.
Risk factors: liabilities/assets +32.1%, momentum +0.1%, net margin +7.7%.
Higher leverage with weak momentum and thin margins can amplify drawdown severity.
Meritage Homes Corporation Market vs Earnings Trajectory
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Meritage Homes Corporation Fair Value Envelope
Meritage Homes Corporation Profit Bridge
Profitability Analysis
Gross Margin
Thin margins leave little room for error. Cost management and pricing strategy are critical.
Operating Margin
Acceptable margins but limited operational leverage. Operating expense control is important.
Net Profit Margin
Moderate profitability with room for improvement. Monitor interest expenses and tax efficiency.
Effective Tax Rate
Moderate tax rate typical for most corporations. Represents standard tax burden on profits.
Profitability Insight
Efficient profit conversion: Minimal margin compression from gross to net indicates lean operations and favorable tax/interest environment.
Meritage Homes Corporation Cash Conversion Engine
Cash Flow Quality Analysis
FCF Conversion Rate
Weak cash conversion. Significant portion of earnings not converting to cash—review working capital trends and capital intensity.
CapEx Intensity
Moderate capital requirements typical of many stable businesses. Healthy balance between reinvestment and cash generation.
FCF Growth Trend
Strong FCF growth demonstrates improving cash generation and business momentum. Positive signal for sustainability.
Working Capital Impact
Significant working capital drain. Growth may be consuming cash through inventory buildup or receivables extension—monitor closely.
Cash Flow Quality Insight
Working capital strain: Significant cash tied up in operations. Monitor receivables collection, inventory turns, and payment terms to optimize cash conversion cycle.
Meritage Homes Corporation Funding & Solvency Profile
Financial Health Analysis
Current Ratio
Excellent liquidity position. The company can easily cover its short-term obligations with substantial cushion.
Debt-to-Equity Ratio
Conservative capital structure. The company relies primarily on equity financing, indicating low financial risk.
Working Capital
Strong working capital position provides significant operational flexibility and financial cushion.
Asset Composition
Capital-intensive business with significant long-term investments in property, equipment, or intangibles.
Financial Health Insight
Strong financial foundation: Excellent liquidity combined with conservative leverage suggests the company is well-positioned to weather economic uncertainties and fund growth opportunities.
Meritage Homes Corporation Street Expectations Map
Wall Street analysts project that MTH stock may rise significantly over the coming 12 months. The consensus 1-year price target stands at 83.25, with estimates ranging from a low of 77.00 to a high of 90.00.
The consensus 1-year price target stands at 83.25, with estimates ranging from a low of 77.00 to a high of 90.00.
Analyst Consensus Analysis
Upside Potential
Strong upside potential. Consensus indicates attractive return opportunity with favorable risk-reward profile.
Analyst Agreement
High analyst agreement. Narrow target range indicates strong consensus on valuation, suggesting clear investment thesis and predictable outlook.
Analyst Conviction
Strong buy conviction: High upside with tight consensus suggests compelling investment opportunity backed by analyst confidence.
Market Sentiment Insight
Rare opportunity: Exceptional upside potential with strong analyst consensus creates a compelling setup. The combination of significant price target premium and tight agreement suggests high-conviction undervaluation that may attract institutional capital.
Meritage Homes Corporation Insider Positioning
During the last 12 months, insiders have purchased $419K and sold $1.58M worth of MTH shares, resulting in $1.16M of net selling activity.
3 Months
0
0.00
1.3K
79.07K
-79K
-$79K
3-6 Months
0
0.00
11.0K
860.43K
-860K
-$860K
6-9 Months
0
0.00
0
0.00
+0
+$0
9-12 Months
6.2K
418.64K
8.1K
639.43K
-221K
-$221K
Top Buyers
Keough Joseph
Director
$265K
Arriola Dennis V
Director
$154K
Top Sellers
Lord Phillippe
Director, Officer: Chief Executive Officer
$956K
Hilton Steven J
Director, Officer: Executive Chairman
$322K
Sasser Alison
Officer: Svp - Chief Accounting Officer
$145K
Clinton Malissia
Officer: Evp - Gen. Counsel, Secretary
$83K
Woffinden Austin M
Officer: Evp, Corp. Ops & Strategy
$72K
Insider Activity Analysis
Net Insider Sentiment
Strong bearish signal with $1.16M net selling. Heavy insider selling may indicate concerns about valuation or near-term prospects.
Buy/Sell Ratio
Weak buy/sell ratio. Selling significantly exceeds buying—monitor for potential fundamental concerns.
Recent Trend (3 Months)
Heavy recent selling activity. Recent insider sales notably exceed purchases—may warrant investigation into company developments.
Insider Participation
5 insider sellers vs. 2 buyers. Widespread selling across multiple insiders may signal concerns.
Insider Activity Insight
Multiple red flags: Heavy selling, numerous sellers, and continued recent selling create a concerning pattern. Investigate fundamental drivers and consider whether company guidance or industry conditions have deteriorated.
mth Dividend History
Learning Layer
Related Guides
Build conviction on MTH by pairing this stock hub with focused valuation guides.
Research Paths
Snapshot
Start with context, operating signals, and key market metrics.
Value Model
Stress test fair value across bear, base, and bull assumptions.
Statements
Validate revenue quality, margins, and balance sheet durability.
Earnings Call
Read management commentary and compare it with reported outcomes.
Dividends
Check payout sustainability and long-term distribution behavior.
Analyst Expectations
Review consensus spread and where estimate risk is concentrated.