Meritage Homes Corporation (MTH) 10-Year Financial Performance & Capital Metrics

MTH • • Industrial / General

Consumer CyclicalHomebuildersTraditional Site-Built HomebuildersEntry-Level & First-Time Buyer Specialists

AboutMeritage 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.Show more

Revenue $6.4B +4.2%
EBITDA $984M +6.1%
Net Income $786M +6.4%
EPS (Diluted) 10.72 +7.6%
Gross Margin 24.99% +1.0%
EBITDA Margin 15.39% +1.8%
Operating Margin 14.99% +1.9%
Net Margin 12.29% +2.1%
ROE 16.12% -6.6%
ROIC 13.52% -10.0%
Debt/Equity 0.27 +17.5%
Interest Coverage -

Technical Analysis

Key Insights

Based on financial data analysis

✓Strengths

✓Excellent 3Y average ROE of 20.6%
✓Strong 5Y profit CAGR of 25.8%
✓Strong 5Y sales CAGR of 11.8%
✓Healthy 5Y average net margin of 12.8%
✓Trading at only 1.1x book value

✗Weaknesses

✗Negative free cash flow

Price & Volume

Loading chart...

Growth Metrics

Revenue CAGR

10Y11.36%

5Y11.77%

3Y7.54%

TTM-6.2%

Profit (Net Income) CAGR

10Y18.65%

5Y25.79%

3Y2.16%

TTM-33.33%

EPS CAGR

10Y20.01%

5Y27.27%

3Y3.59%

TTM-32.19%

ROCE

10Y Avg14.96%

5Y Avg20.43%

3Y Avg19.88%

Latest15.61%

Peer Comparison

Entry-Level & First-Time Buyer Specialists

Name	Market Cap	Current Price	P/E Ratio	Revenue Growth 1Y	Net Margin	ROE	FCF Yield	Debt/Equity
MTHMeritage Homes Corporation	5.51B	78.25	7.30	4.18%	8.97%	10.24%		0.27
CCSCentury Communities, Inc.	2.03B	69.13	6.65	19.12%	5.16%	8.32%	4.27%	0.56
LGIHLGI Homes, Inc.	1.25B	54.27	6.54	-6.61%	5.93%	5.1%		0.75
DFHDream Finders Homes, Inc.	711.08M	20.30	6.32	18.75%	6.16%	18.53%		0.92

Profit & Loss

	Dec 2015	Dec 2016	Dec 2017	Dec 2018	Dec 2019	Dec 2020	Dec 2021	Dec 2022	Dec 2023	Dec 2024
Sales/Revenue+	2.58B	3.04B	3.24B	3.53B	3.67B	4.5B	5.14B	6.29B	6.14B	6.4B
Revenue Growth %	0.18%	0.18%	0.07%	0.09%	0.04%	0.23%	0.14%	0.22%	-0.02%	0.04%
Cost of Goods Sold+	2.06B	2.48B	2.65B	2.87B	2.96B	3.5B	3.7B	4.49B	4.62B	4.8B
COGS % of Revenue	0.8%	0.82%	0.82%	0.81%	0.81%	0.78%	0.72%	0.71%	0.75%	0.75%
Gross Profit+	514.58M	556.91M	595.25M	659.9M	707.49M	1B	1.44B	1.8B	1.52B	1.6B
Gross Margin %	0.2%	0.18%	0.18%	0.19%	0.19%	0.22%	0.28%	0.29%	0.25%	0.25%
Gross Profit Growth %	0.09%	0.08%	0.07%	0.11%	0.07%	0.41%	0.44%	0.25%	-0.16%	0.05%
Operating Expenses+	301.27M	338.89M	345.69M	380.38M	392.82M	446.92M	466.85M	516.25M	616.63M	639.92M
OpEx % of Revenue	0.12%	0.11%	0.11%	0.11%	0.11%	0.1%	0.09%	0.08%	0.1%	0.1%
Selling, General & Admin	301.27M	338.89M	345.69M	380.38M	392.82M	446.92M	466.85M	516.25M	616.63M	639.92M
SG&A % of Revenue	0.12%	0.11%	0.11%	0.11%	0.11%	0.1%	0.09%	0.08%	0.1%	0.1%
Research & Development	0	0	0	0	0	0	0	0	0	0
R&D % of Revenue	-	-	-	-	-	-	-	-	-	-
Other Operating Expenses	0	0	0	0	0	0	0	0	0	0
Operating Income+	213.31M	218.02M	249.57M	279.52M	314.67M	553.98M	970.58M	1.29B	902.39M	958.35M
Operating Margin %	0.08%	0.07%	0.08%	0.08%	0.09%	0.12%	0.19%	0.2%	0.15%	0.15%
Operating Income Growth %	0.01%	0.02%	0.14%	0.12%	0.13%	0.76%	0.75%	0.33%	-0.3%	0.06%
EBITDA+	227.55M	234M	266.27M	306.49M	342.6M	585.03M	996.82M	1.31B	927.72M	984.3M
EBITDA Margin %	0.09%	0.08%	0.08%	0.09%	0.09%	0.13%	0.19%	0.21%	0.15%	0.15%
EBITDA Growth %	0.02%	0.03%	0.14%	0.15%	0.12%	0.71%	0.7%	0.32%	-0.29%	0.06%
D&A (Non-Cash Add-back)	14.24M	15.98M	16.7M	26.97M	27.92M	31.05M	26.25M	24.75M	25.33M	25.96M
EBIT	213.31M	218.02M	249.57M	279.52M	314.67M	553.98M	970.58M	1.29B	902.39M	958.35M
Net Interest Income+	-15.96M	-5.17M	-3.85M	-785K	-8.37M	-2.18M	-318K	-41K	0	0
Interest Income	0	0	0	0	0	0	0	0	0	0
Interest Expense	15.96M	5.17M	3.85M	785K	8.37M	2.18M	318K	41K	0	0
Other Income/Expense	-23.85M	41K	-2.05M	3.73M	-11.73M	-20.41M	-15.74M	2.67M	47.04M	44.52M
Pretax Income+	189.46M	218.06M	247.52M	283.25M	302.94M	533.57M	954.83M	1.29B	949.43M	1B
Pretax Margin %	0.07%	0.07%	0.08%	0.08%	0.08%	0.12%	0.19%	0.2%	0.15%	0.16%
Income Tax+	60.73M	68.52M	104.26M	55.92M	53.28M	110.09M	217.39M	297.13M	210.68M	216.68M
Effective Tax Rate %	0.68%	0.69%	0.58%	0.8%	0.82%	0.79%	0.77%	0.77%	0.78%	0.78%
Net Income+	128.74M	149.54M	143.25M	227.33M	249.66M	423.48M	737.44M	992.19M	738.75M	786.19M
Net Margin %	0.05%	0.05%	0.04%	0.06%	0.07%	0.09%	0.14%	0.16%	0.12%	0.12%
Net Income Growth %	-0.09%	0.16%	-0.04%	0.59%	0.1%	0.7%	0.74%	0.35%	-0.26%	0.06%
Net Income (Continuing)	128.74M	149.54M	143.25M	227.33M	249.66M	423.48M	737.44M	992.19M	738.75M	786.19M
Discontinued Operations	0	0	0	0	0	0	0	0	0	0
Minority Interest	0	0	0	0	0	0	0	0	0	0
EPS (Diluted)+	1.55	1.78	1.71	2.79	3.21	5.50	9.65	13.37	9.97	10.72
EPS Growth %	-0.11%	0.15%	-0.04%	0.64%	0.15%	0.71%	0.75%	0.39%	-0.25%	0.08%
EPS (Basic)	1.63	1.87	1.78	2.84	3.28	5.62	9.81	13.52	10.09	10.85
Diluted Shares Outstanding	84.33M	85.17M	84.46M	81.46M	77.78M	76.97M	76.47M	74.2M	74.14M	73.33M
Basic Shares Outstanding	79.19M	79.95M	80.57M	80.21M	76.2M	75.44M	75.22M	73.39M	73.24M	72.48M
Dividend Payout Ratio	-	-	-	-	-	-	-	-	0.05%	0.14%

Balance Sheet

	Dec 2015	Dec 2016	Dec 2017	Dec 2018	Dec 2019	Dec 2020	Dec 2021	Dec 2022	Dec 2023	Dec 2024
Total Current Assets+	2.51B	2.71B	3.04B	3.18B	458.86M	3.68B	4.6B	5.51B	6.02B	6.83B
Cash & Short-Term Investments	262.21M	131.7M	170.75M	311.47M	319.47M	745.62M	618.34M	861.56M	921.23M	651.55M
Cash Only	262.21M	131.7M	170.75M	311.47M	319.47M	745.62M	618.34M	861.56M	921.23M	651.55M
Short-Term Investments	0	0	0	0	0	0	0	0	0	0
Accounts Receivable	57.3M	70.36M	79.32M	77.28M	88.49M	98.57M	147.55M	215.02M	266.97M	256.28M
Days Sales Outstanding	8.11	8.44	8.93	7.99	8.81	7.99	10.47	12.47	15.88	14.63
Inventory	2.1B	2.42B	2.73B	2.74B	2.74B	2.78B	3.83B	4.36B	4.72B	5.73B
Days Inventory Outstanding	370.91	355.78	376.82	348.96	338.47	289.68	377.73	354.35	373.06	435.92
Other Current Assets	0	0	35.86M	0	-2.74B	0	0	0	0	0
Total Non-Current Assets+	184.88M	179.01M	209.87M	182.7M	2.94B	182.63M	219.45M	260.53M	332.28M	333.64M
Property, Plant & Equipment	33.97M	33.2M	33.63M	54.6M	50.61M	38.93M	58.38M	38.63M	48.95M	47.28M
Fixed Asset Turnover	75.93x	91.61x	96.37x	64.63x	72.46x	115.61x	88.07x	162.86x	125.39x	135.24x
Goodwill	32.96M	32.96M	32.96M	32.96M	0	0	32.96M	0	0	0
Intangible Assets	0	0	0	0	0	0	0	0	0	0
Long-Term Investments	11.37M	17.1M	17.07M	17.48M	4.44M	4.35M	5.76M	11.75M	17.17M	28.73M
Other Non-Current Assets	47.43M	42.43M	91.05M	51.19M	2.86B	103.31M	70.78M	164.69M	218.58M	203.09M
Total Assets+	2.69B	2.89B	3.25B	3.37B	3.4B	3.86B	4.82B	5.77B	6.35B	7.16B
Asset Turnover	0.96x	1.05x	1.00x	1.05x	1.08x	1.16x	1.07x	1.09x	0.97x	0.89x
Asset Growth %	0.16%	0.07%	0.13%	0.04%	0.01%	0.14%	0.25%	0.2%	0.1%	0.13%
Total Current Liabilities+	303.8M	339.88M	355.65M	334.67M	349.03M	444.45M	595.9M	613.49M	641.62M	596.68M
Accounts Payable	106.44M	140.68M	140.52M	128.17M	155.02M	175.25M	216.01M	273.27M	271.65M	212.48M
Days Payables Outstanding	18.82	20.67	19.39	16.31	19.12	18.27	21.29	22.22	21.47	16.17
Short-Term Debt	0	0	0	0	0	0	26.17M	0	0	0
Deferred Revenue (Current)	1000K	1000K	1000K	1000K	1000K	1000K	0	1000K	1000K	1000K
Other Current Liabilities	146.17M	170.22M	-177.74M	138.74M	-34.23M	-28.25M	213.65M	0	0	0
Current Ratio	8.25x	7.97x	8.55x	9.51x	1.31x	8.28x	7.72x	8.98x	9.38x	11.44x
Quick Ratio	1.34x	0.85x	0.87x	1.32x	-6.55x	2.03x	1.29x	1.88x	2.03x	1.84x
Cash Conversion Cycle	360.2	343.56	366.36	340.65	328.16	279.4	366.92	344.6	367.47	434.38
Total Non-Current Liabilities+	1.13B	1.13B	1.32B	1.31B	1.08B	1.07B	1.18B	1.21B	1.1B	1.42B
Long-Term Debt	1.12B	1.11B	1.28B	1.31B	1.02B	1.02B	1.16B	1.15B	1.01B	1.34B
Capital Lease Obligations	0	0	0	0	34.23M	28.25M	0	22.78M	54.04M	55.83M
Deferred Tax Liabilities	-257.42M	-259.74M	-34.06M	-1.18B	0	0	10.89M	0	0	0
Other Non-Current Liabilities	171.91M	22.66M	250.11M	206.5M	-2.23M	-1.33M	7.21M	35.58M	37.36M	32.69M
Total Liabilities	1.43B	1.47B	1.67B	1.64B	1.42B	1.52B	1.77B	1.82B	1.74B	2.02B
Total Debt+	1.13B	1.13B	1.28B	1.31B	1.09B	1.08B	1.19B	1.17B	1.06B	1.39B
Net Debt	865.58M	995.61M	1.11B	998.59M	767.98M	330.97M	567.87M	311.87M	141.03M	740.15M
Debt / Equity	0.90x	0.79x	0.81x	0.76x	0.55x	0.46x	0.39x	0.30x	0.23x	0.27x
Debt / EBITDA	4.96x	4.82x	4.82x	4.27x	3.17x	1.84x	1.19x	0.89x	1.15x	1.41x
Net Debt / EBITDA	3.80x	4.25x	4.18x	3.26x	2.24x	0.57x	0.57x	0.24x	0.15x	0.75x
Interest Coverage	13.36x	42.15x	64.77x	356.08x	37.60x	254.47x	3052.13x	31381.59x	-	-
Total Equity+	1.26B	1.42B	1.58B	1.72B	1.97B	2.35B	3.04B	3.95B	4.61B	5.14B
Equity Growth %	0.13%	0.13%	0.11%	0.09%	0.15%	0.19%	0.3%	0.3%	0.17%	0.11%
Book Value per Share	14.93	16.69	18.67	21.12	25.38	30.50	39.81	53.23	62.21	70.11
Total Shareholders' Equity	1.26B	1.42B	1.58B	1.72B	1.97B	2.35B	3.04B	3.95B	4.61B	5.14B
Common Stock	397K	400K	403K	381K	382K	375K	373K	366K	364K	360K
Retained Earnings	699.05M	848.59M	991.84M	1.22B	1.47B	1.89B	2.63B	3.62B	4.32B	5B
Treasury Stock	0	0	0	0	0	0	0	0	0	0
Accumulated OCI	-39.5M	-47.85M	-57.16M	0	0	0	0	0	0	0
Minority Interest	0	0	0	0	0	0	0	0	0	0

Cash Flow

	Dec 2015	Dec 2016	Dec 2017	Dec 2018	Dec 2019	Dec 2020	Dec 2021	Dec 2022	Dec 2023	Dec 2024
Cash from Operations+	-3.33M	-103.4M	-87.13M	262.2M	346.82M	530.36M	-152.09M	405.27M	355.57M	-227.58M
Operating CF Margin %	-0%	-0.03%	-0.03%	0.07%	0.09%	0.12%	-0.03%	0.06%	0.06%	-0.04%
Operating CF Growth %	0.98%	-30.01%	0.16%	4.01%	0.32%	0.53%	-1.29%	3.66%	-0.12%	-1.64%
Net Income	128.74M	149.54M	143.25M	227.33M	249.66M	423.48M	737.44M	992.19M	738.75M	786.19M
Depreciation & Amortization	14.24M	15.98M	16.7M	26.97M	27.92M	31.05M	26.25M	24.75M	25.33M	25.96M
Stock-Based Compensation	15.78M	13.74M	12.06M	17.17M	19.61M	20M	20.07M	22.33M	22.51M	25.81M
Deferred Taxes	-2.04M	956K	19.69M	-2.74M	7.13M	-902K	18.48M	0	0	0
Other Non-Cash Items	11.42M	7.46M	5.23M	15.66M	9.27M	14.41M	-2.91M	10.67M	5.44M	13.33M
Working Capital Changes	-171.47M	-291.07M	-284.06M	-22.18M	33.23M	42.33M	-951.42M	-644.67M	-436.46M	-1.08B
Change in Receivables	-7.08M	-17.51M	-17.77M	3.04M	-42.65M	-88.94M	-65.11M	-102.95M	0	39.78M
Change in Inventory	-209.41M	-311.43M	-301.48M	-19.43M	3.62M	-40.09M	-948.05M	-624.52M	0	-979.25M
Change in Payables	31.88M	43.38M	8.13M	-376K	42.65M	88.94M	948.05M	76.98M	22.61M	0
Cash from Investing+	-16.49M	-20.11M	-17.07M	-33.53M	-13.49M	-18.23M	-26.82M	-32.29M	-43.62M	-44.07M
Capital Expenditures	-16.09M	-16.66M	-18.1M	-33.41M	-24.39M	-19.93M	-25.66M	-26.97M	-38.19M	-28.66M
CapEx % of Revenue	0.01%	0.01%	0.01%	0.01%	0.01%	0%	0%	0%	0.01%	0%
Acquisitions	-	-	-	-	-	-	-	-	-	-
Investments	-	-	-	-	-	-	-	-	-	-
Other Investing	86K	3.8M	1.69M	696K	12.01M	1.7M	551K	481K	560K	3.13M
Cash from Financing+	178.7M	-7M	143.25M	-87.95M	-325.33M	-85.97M	51.63M	-129.76M	-252.28M	1.98M
Debt Issued (Net)	-	-	-	-	-	-	-	-	-	-
Equity Issued (Net)	-	-	-	-	-	-	-	-	-	-
Dividends Paid	0	0	0	0	0	0	0	0	-39.53M	-108.59M
Share Repurchases	-	-	-	-	-	-	-	-	-	-
Other Financing	-963K	-724K	-4.09M	0	0	0	-6.1M	0	0	-78.87M
Net Change in Cash	-	-	-	-	-	-	-	-	-	-
Free Cash Flow+	-19.43M	-120.06M	-105.23M	228.78M	322.44M	510.43M	-177.76M	378.3M	317.38M	-256.23M
FCF Margin %	-0.01%	-0.04%	-0.03%	0.06%	0.09%	0.11%	-0.03%	0.06%	0.05%	-0.04%
FCF Growth %	0.92%	-5.18%	0.12%	3.17%	0.41%	0.58%	-1.35%	3.13%	-0.16%	-1.81%
FCF per Share	-0.23	-1.41	-1.25	2.81	4.15	6.63	-2.32	5.10	4.28	-3.49
FCF Conversion (FCF/Net Income)	-0.03x	-0.69x	-0.61x	1.15x	1.39x	1.25x	-0.21x	0.41x	0.48x	-0.29x
Interest Paid	0	0	0	0	0	355K	249K	2.28M	0	5.51M
Taxes Paid	0	0	0	0	64.66M	84.74M	221.1M	311.73M	0	207.61M

Key Ratios

Metric	2015	2016	2017	2018	2019	2020	2021	2022	2023	2024
Return on Equity (ROE)	10.87%	11.16%	9.56%	13.79%	13.51%	19.6%	27.35%	28.37%	17.26%	16.12%
Return on Invested Capital (ROIC)	7.87%	7.2%	7.33%	7.75%	8.64%	15.33%	23.14%	24.51%	15.02%	13.52%
Gross Margin	19.95%	18.31%	18.37%	18.7%	19.29%	22.24%	27.96%	28.65%	24.75%	24.99%
Net Margin	4.99%	4.92%	4.42%	6.44%	6.81%	9.41%	14.34%	15.77%	12.04%	12.29%
Debt / Equity	0.90x	0.79x	0.81x	0.76x	0.55x	0.46x	0.39x	0.30x	0.23x	0.27x
Interest Coverage	13.36x	42.15x	64.77x	356.08x	37.60x	254.47x	3052.13x	31381.59x	-	-
FCF Conversion	-0.03x	-0.69x	-0.61x	1.15x	1.39x	1.25x	-0.21x	0.41x	0.48x	-0.29x
Revenue Growth	18.34%	17.92%	6.55%	8.87%	3.92%	22.75%	14.22%	22.38%	-2.45%	4.18%

Revenue by Segment

	2015	2016	2017	2018	2019	2020	2021	2022	2023	2024
Real Estate	-	-	-	3.51B	3.65B	4.48B	5.12B	6.27B	6.11B	6.36B
Real Estate Growth	-	-	-	-	3.90%	22.78%	14.23%	22.43%	-2.48%	4.10%
Home Building	-	-	-	3.47B	3.6B	-	5.09B	6.21B	6.06B	6.34B
Home Building Growth	-	-	-	-	3.74%	-	-	21.84%	-2.43%	4.70%
Financial Service	-	-	-	15.16M	16.46M	19.1M	21.21M	23.48M	25.25M	31.16M
Financial Service Growth	-	-	-	-	8.57%	16.01%	11.05%	10.70%	7.56%	23.42%
Land	-	-	-	38.71M	45.85M	17.73M	25.24M	61.23M	56.23M	22.33M
Land Growth	-	-	-	-	18.46%	-61.33%	42.33%	142.62%	-8.17%	-60.29%
Homebuilding	-	-	-	-	-	4.46B	-	-	-	-
Homebuilding Growth	-	-	-	-	-	-	-	-	-	-
Homebuilding	2.57B	3.03B	3.23B	-	-	-	-	-	-	-
Homebuilding Growth	-	17.96%	6.52%	-	-	-	-	-	-	-

Revenue by Geography

	2015	2016	2017	2018	2019	2020	2021	2022	2023	2024

Frequently Asked Questions

Valuation & Price

Meritage Homes Corporation (MTH) has a price-to-earnings (P/E) ratio of 7.3x. This may indicate the stock is undervalued or faces growth challenges.

Growth & Financials

Meritage Homes Corporation (MTH) reported $6.04B in revenue for fiscal year 2024. This represents a 601% increase from $861.2M in 2011.

Meritage Homes Corporation (MTH) grew revenue by 4.2% over the past year. Growth has been modest.

Yes, Meritage Homes Corporation (MTH) is profitable, generating $541.6M in net income for fiscal year 2024 (12.3% net margin).

Dividend & Returns

Yes, Meritage Homes Corporation (MTH) pays a dividend with a yield of 1.89%. This makes it attractive for income-focused investors.

Meritage Homes Corporation (MTH) has a return on equity (ROE) of 16.1%. This is reasonable for most industries.

Meritage Homes Corporation (MTH) had negative free cash flow of $252.6M in fiscal year 2024, likely due to heavy capital investments.

US Stock Screener

...