📊 MTH Key Takeaways
Is MTH a Good Investment? Thesis Analysis
Meritage Homes demonstrates solid operational execution with 13.6% revenue growth and strong gross margins of 30.9%, but concerning net income decline of 42.4% YoY raises red flags about cost control and profitability sustainability. The balance sheet remains healthy with low leverage (0.05x debt/equity) and substantial cash, though weak free cash flow conversion (3.4% FCF margin) and declining earnings per share suggest operational challenges that warrant caution.
Why Buy MTH? Key Strengths
- Strong revenue growth of 13.6% YoY demonstrates robust market demand in residential construction
- Excellent gross margin of 30.9% shows effective cost management at production level
- Conservative balance sheet with low debt-to-equity ratio of 0.05x and $775.2M cash provides financial flexibility
- Healthy operating margin of 21.7% indicates core business profitability despite income pressures
MTH Investment Risks to Consider
- Severe net income decline of 42.4% YoY despite revenue growth suggests margin compression from higher operating expenses or tax impacts
- Diluted EPS declined 40.8% YoY, indicating significant earnings deterioration on a per-share basis
- Weak free cash flow conversion at only 3.4% FCF margin relative to revenue raises concerns about working capital management and cash generation quality
- Operating cash flow of only $118.3M relative to $453M net income suggests potential earnings quality issues or high non-cash charges
Key Metrics to Watch
- Net profit margin trend - critical to understand if 42.4% decline is cyclical or structural
- Operating cash flow to net income ratio - assess sustainability of reported earnings
- Gross margin stability - monitor for input cost inflation impacts in residential construction
- Debt levels and covenant compliance - ensure leverage remains manageable if earnings pressures persist
MTH Financial Metrics
💡 AI Analyst Insight
The relatively thin 3.4% FCF margin may limit capital allocation flexibility. The current ratio below 1.0x warrants monitoring of short-term liquidity.
MTH Profitability Ratios
MTH vs Default Sector
How Meritage Homes CORP compares to Default sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is MTH Overvalued or Undervalued?
Based on fundamental analysis, Meritage Homes CORP has mixed fundamental signals relative to the Default sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
MTH Balance Sheet & Liquidity
MTH 5-Year Financial Trend & Growth Analysis
5-Year Trend Summary: Meritage Homes CORP's revenue has remained relatively flat over the 5-year period, with a 0% decline. The most recent EPS of $9.96 reflects profitable operations.
MTH Growth Metrics (YoY)
MTH Quarterly Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q2 2022 | $1.3B | $131.8M | $4.36 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
MTH Capital Allocation
MTH SEC 10-K & 10-Q Filing Analysis
Access official SEC EDGAR filings for Meritage Homes CORP (CIK: 0000833079)
📋 Recent SEC Filings
❓ Frequently Asked Questions about MTH
What is the AI rating for MTH?
Meritage Homes CORP (MTH) has an AI rating of HOLD with 62% confidence, based on fundamental analysis of SEC EDGAR filings.
What are MTH's key strengths?
Claude: Strong revenue growth of 13.6% YoY demonstrates robust market demand in residential construction. Excellent gross margin of 30.9% shows effective cost management at production level.
What are the risks of investing in MTH?
Claude: Severe net income decline of 42.4% YoY despite revenue growth suggests margin compression from higher operating expenses or tax impacts. Diluted EPS declined 40.8% YoY, indicating significant earnings deterioration on a per-share basis.
What is MTH's revenue and growth?
Meritage Homes CORP reported revenue of $2.7B.
Does MTH pay dividends?
Meritage Homes CORP pays dividends, with $121.1M distributed to shareholders in the trailing twelve months.
Where can I find MTH SEC filings?
Official SEC filings for Meritage Homes CORP (CIK: 0000833079) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is MTH's EPS?
Meritage Homes CORP has a diluted EPS of $6.35.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is MTH a good stock to buy right now?
Based on our AI fundamental analysis in April 2026, Meritage Homes CORP has a HOLD rating with 62% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.
Is MTH stock overvalued or undervalued?
Valuation metrics for MTH: ROE of 8.7% (sector avg: 15%), net margin of 16.8% (sector avg: 12%). Compare these metrics with sector averages to assess valuation.
Should I buy MTH stock in 2026?
Our dual AI analysis gives Meritage Homes CORP a combined HOLD rating for 2026. Revenue is data pending, with profitability above sector average. Always conduct your own research.
What is MTH's free cash flow?
Meritage Homes CORP's operating cash flow is $118.3M, with capital expenditures of $25.7M. FCF margin is 3.4%.
How does MTH compare to other Default stocks?
Vs Default sector averages: Net margin 16.8% (avg: 12%), ROE 8.7% (avg: 15%), current ratio N/A (avg: 1.8).