Meritage Homes Corporation (MTH) Financial Ratios
30 years of historical data (1996–2025) · Consumer Cyclical · Residential Construction
EV/EBITDA
↑
10.97
↑+72% vs avg
5yr avg: 6.39
30Y Low2.8·High31.2
P/FCF
↑
54.65
↑+106% vs avg
5yr avg: 26.58
30Y Low1.9·High65.8
P/B Ratio
↓
1.03
↓-11% vs avg
5yr avg: 1.16
30Y Low0.5·High3.0
ROE
↓
8.8%
↑-55% vs avg
5yr avg: 19.6%
30Y Low-46%·High40%
Debt/EBITDA
↑
3.36
↑+110% vs avg
5yr avg: 1.60
30Y Low0.9·High15.5
Percentile shows where the current value sits in 30-year historical distribution. Sparklines show 5-year trend.
MTH Valuation Multiples
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
Meritage Homes Corporation trades at 11.8x earnings, 65% above its 5-year average of 7.2x, sitting at the 81st percentile of its historical range. Compared to the Consumer Cyclical sector median P/E of 21.2x, the stock trades at a discount of 44%. On a free-cash-flow basis, the stock trades at 54.7x P/FCF, 106% above the 5-year average of 26.6x.
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $5.1B | $4.7B | $5.6B | $6.5B | $3.4B | $4.7B | $3.2B | $2.4B | $1.5B | $2.2B | $1.5B |
| Enterprise Value | $6.2B | $5.8B | $6.4B | $6.6B | $3.7B | $5.2B | $3.5B | $3.1B | $2.5B | $3.3B | $2.5B |
| P/E Ratio → | 11.83 | 10.28 | 7.17 | 8.74 | 3.45 | 6.32 | 7.53 | 9.52 | 6.58 | 15.01 | 9.80 |
| P/S Ratio | 0.86 | 0.80 | 0.88 | 1.05 | 0.54 | 0.91 | 0.71 | 0.65 | 0.42 | 0.67 | 0.49 |
| P/B Ratio | 1.03 | 0.90 | 1.10 | 1.40 | 0.87 | 1.53 | 1.36 | 1.20 | 0.87 | 1.37 | 1.04 |
| P/FCF | 54.65 | 50.34 | — | 20.35 | 9.04 | — | 6.24 | 7.37 | 6.54 | — | — |
| P/OCF | 42.77 | 39.39 | — | 18.16 | 8.44 | — | 6.01 | 6.85 | 5.70 | — | — |
P/E links to full P/E history page with 30-year chart
MTH EV Ratios
Enterprise-value multiples — capital-structure-neutral measures of total business value
Meritage Homes Corporation's enterprise value stands at 11.0x EBITDA, 72% above its 5-year average of 6.4x. The Consumer Cyclical sector median is 12.2x, placing the stock at a 10% discount on an enterprise-value basis.
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 0.99 | 1.00 | 1.07 | 0.59 | 1.02 | 0.78 | 0.86 | 0.71 | 1.01 | 0.81 |
| EV / EBITDA | 10.97 | 10.26 | 6.48 | 7.11 | 2.85 | 5.25 | 6.01 | 9.18 | 8.14 | 12.30 | 10.59 |
| EV / EBIT | 11.49 | 10.74 | 6.66 | 7.31 | 2.90 | 5.39 | 6.35 | 9.99 | 8.92 | 13.12 | 11.36 |
| EV / FCF | — | 62.38 | — | 20.79 | 9.87 | — | 6.89 | 9.75 | 10.90 | — | — |
MTH Profitability
Margins and return-on-capital ratios measuring operating efficiency
Meritage Homes Corporation earns an operating margin of 9.2%, above the Consumer Cyclical sector average of 2.0%. Operating margins have compressed from 14.7% to 9.2% over the past 3 years, signaling potential cost pressures or competitive headwinds. ROE of 8.8% is modest. ROIC of 6.6% represents adequate returns on invested capital versus a sector median of 5.2%.
Margins
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 19.7% | 19.7% | 25.0% | 24.7% | 28.7% | 28.0% | 22.2% | 19.3% | 18.7% | 18.4% | 18.3% |
| Operating Margin | 9.2% | 9.2% | 15.0% | 14.7% | 20.4% | 18.9% | 12.3% | 8.6% | 7.9% | 7.7% | 7.2% |
| Net Profit Margin | 7.7% | 7.7% | 12.3% | 12.0% | 15.8% | 14.3% | 9.4% | 6.8% | 6.4% | 4.4% | 4.9% |
Return on Capital
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 8.8% | 8.8% | 16.1% | 17.3% | 28.4% | 27.4% | 19.6% | 13.5% | 13.8% | 9.6% | 11.2% |
| ROA | 6.1% | 6.1% | 11.6% | 12.2% | 18.7% | 17.0% | 11.7% | 7.4% | 6.9% | 4.7% | 5.4% |
| ROIC | 6.6% | 6.6% | 13.5% | 15.0% | 24.5% | 23.1% | 15.3% | 8.6% | 7.8% | 7.3% | 7.2% |
| ROCE | 7.9% | 7.9% | 15.6% | 16.6% | 27.3% | 25.2% | 17.1% | 10.4% | 9.4% | 9.2% | 8.8% |
MTH Leverage & Debt
Solvency and debt-coverage ratios — lower is generally safer
Meritage Homes Corporation carries a Debt/EBITDA ratio of 3.4x, which is moderately leveraged (30% below the sector average of 4.8x). Net debt stands at $1.1B ($1.9B total debt minus $775M cash).
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 0.36 | 0.36 | 0.27 | 0.23 | 0.30 | 0.39 | 0.46 | 0.55 | 0.76 | 0.81 | 0.79 |
| Debt / EBITDA | 3.36 | 3.36 | 1.41 | 1.15 | 0.89 | 1.19 | 1.84 | 3.17 | 4.27 | 4.82 | 4.82 |
| Net Debt / Equity | — | 0.21 | 0.14 | 0.03 | 0.08 | 0.19 | 0.14 | 0.39 | 0.58 | 0.71 | 0.70 |
| Net Debt / EBITDA | 1.98 | 1.98 | 0.75 | 0.15 | 0.24 | 0.57 | 0.57 | 2.24 | 3.26 | 4.18 | 4.25 |
| Debt / FCF | — | 12.04 | — | 0.44 | 0.82 | — | 0.65 | 2.38 | 4.36 | — | — |
| Interest Coverage | — | — | — | — | 31381.59 | 3052.13 | 254.47 | 37.60 | 356.08 | 64.77 | 42.15 |
MTH Liquidity & Efficiency
Short-term solvency ratios and asset-utilisation metrics
Meritage Homes Corporation's current ratio of 12.12x is well above the 1.0 safety threshold, indicating strong short-term liquidity with ample room to cover current liabilities. The quick ratio of 1.81x is notably lower than the current ratio, indicating a significant portion of current assets is tied up in inventory. The current ratio has improved from 9.38x to 12.12x over the past 3 years.
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 12.12 | 12.12 | 11.44 | 9.38 | 8.98 | 8.46 | 8.28 | 1.31 | 9.51 | 8.55 | 7.97 |
| Quick Ratio | 1.81 | 1.81 | 1.84 | 2.03 | 1.88 | 1.41 | 2.03 | -6.55 | 1.32 | 0.87 | 0.85 |
| Cash Ratio | 1.30 | 1.30 | 1.09 | 1.44 | 1.40 | 1.14 | 1.68 | 0.92 | 0.93 | 0.48 | 0.39 |
| Asset Turnover | — | 0.77 | 0.89 | 0.97 | 1.09 | 1.07 | 1.16 | 1.08 | 1.05 | 1.00 | 1.05 |
| Inventory Turnover | 0.76 | 0.76 | 0.84 | 0.98 | 1.03 | 0.97 | 1.26 | 1.08 | 1.05 | 0.97 | 1.03 |
| Days Sales Outstanding | — | 19.13 | 14.63 | 15.88 | 12.47 | 10.47 | 7.99 | 8.81 | 7.99 | 8.93 | 8.44 |
MTH Shareholder Yields
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Meritage Homes Corporation returns 8.1% to shareholders annually — split between a 2.3% dividend yield and 5.8% buyback yield. The payout ratio of 26.7% is conservative, leaving significant room for dividend growth or reinvestment. The earnings yield of 8.5% (inverse of P/E) provides a useful comparison to bond yields when assessing the stock's relative attractiveness to fixed income.
Dividends
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | 2.3% | 2.6% | 1.9% | 0.6% | — | — | — | — | — | — | — |
| Payout Ratio | 26.7% | 26.7% | 13.8% | 5.4% | — | — | — | — | — | — | — |
Total Shareholder Return Metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 8.5% | 9.7% | 13.9% | 11.4% | 29.0% | 15.8% | 13.3% | 10.5% | 15.2% | 6.7% | 10.2% |
| FCF Yield | 1.8% | 2.0% | — | 4.9% | 11.1% | — | 16.0% | 13.6% | 15.3% | — | — |
| Buyback Yield | 5.8% | 6.3% | 2.2% | 0.9% | 3.2% | 1.3% | 2.2% | 0.7% | 6.7% | 0.0% | 0.0% |
| Total Shareholder Yield | 8.1% | 8.9% | 4.2% | 1.5% | 3.2% | 1.3% | 2.2% | 0.7% | 6.7% | 0.0% | 0.0% |
| Shares Outstanding | — | $71M | $73M | $74M | $74M | $76M | $77M | $78M | $81M | $84M | $85M |
Peer Comparison
Compare MTH with 10 similar companies in its peer group
| Company | Market Cap | P/E | EV/EBITDA | P/FCF | Gross Margin | Op Margin | ROE | ROIC | Debt/EBITDA |
|---|---|---|---|---|---|---|---|---|---|
 MTHYou | $5B | 11.8 | 11.0 | 54.7 | 19.7% | 9.2% | 8.8% | 6.6% | 3.4 |
 DHI | $46B | 13.6 | 10.8 | 13.9 | 23.7% | 12.9% | 14.2% | 12.1% | 1.3 |
 LEN | $22B | 11.2 | 8.6 | 790.5 | 9.9% | 8.0% | 8.3% | 7.9% | 2.2 |
 PHM | $24B | 11.4 | 8.0 | 14.0 | 26.4% | 17.3% | 17.7% | 17.2% | 0.8 |
 NVR | $18B | 14.9 | 9.6 | 16.4 | 23.0% | 16.2% | 33.2% | 43.8% | 0.7 |
 TOL | $15B | 11.5 | 9.1 | 14.4 | 26.0% | 15.7% | 16.9% | 13.4% | 1.6 |
 KBH | $3B | 8.8 | 8.7 | 11.8 | 18.9% | 8.4% | 10.8% | 7.4% | 3.1 |
 TPH | $4B | 17.3 | 11.7 | 31.1 | 22.0% | 9.7% | 7.2% | 7.2% | 3.5 |
 TMHC | $7B | 9.2 | 7.2 | 8.3 | 23.0% | 14.0% | 12.8% | 11.0% | 2.1 |
 SKY | $5B | 22.8 | 15.6 | 17.0 | 26.4% | 9.5% | 13.7% | 17.6% | 0.4 |
 CVCO | $5B | 25.1 | 17.5 | 19.9 | 23.5% | 10.2% | 17.6% | 21.0% | 0.1 |
| Consumer Cyclical Median | — | 21.2 | 12.2 | 15.6 | 36.2% | 2.0% | 5.3% | 5.2% | 4.8 |
Peer selection based on competitive and market overlap. Compare multiple stocks →
Download Financial Ratios Data
Includes 30+ ratios · 30 years · Updated daily
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MTH — Frequently Asked Questions
Quick answers to the most common questions about buying MTH stock.
What is Meritage Homes Corporation's P/E ratio?
Meritage Homes Corporation's current P/E ratio is 11.8x. The historical average is 18.6x. This places it at the 81th percentile of its historical range.
What is Meritage Homes Corporation's EV/EBITDA?
Meritage Homes Corporation's current EV/EBITDA is 11.0x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 9.1x.
What is Meritage Homes Corporation's ROE?
Meritage Homes Corporation's return on equity (ROE) is 8.8%. The historical average is 14.9%.
Is MTH stock overvalued?
Based on historical data, Meritage Homes Corporation is trading at a P/E of 11.8x. This is at the 81th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
What is Meritage Homes Corporation's dividend yield?
Meritage Homes Corporation's current dividend yield is 2.26% with a payout ratio of 26.7%.
What are Meritage Homes Corporation's profit margins?
Meritage Homes Corporation has 19.7% gross margin and 9.2% operating margin.
How much debt does Meritage Homes Corporation have?
Meritage Homes Corporation's Debt/EBITDA ratio is 3.4x, indicating high leverage. A ratio between 2-4x is manageable but warrants monitoring.