📊 MTH Key Takeaways
Is Meritage Homes CORP (MTH) a Good Investment?
Meritage Homes demonstrates solid revenue growth of 13.6% YoY and maintains a conservative balance sheet with low leverage (0.05x D/E), strong cash generation, and $766.6M in liquidity. However, earnings-per-share declined 40.8% YoY despite revenue expansion, signaling severe margin compression and deteriorating profitability (2.0% net margin, 1.1% ROE), suggesting the company is gaining market share through price competition rather than operational excellence.
Meritage shows strong unit economics with high gross and operating margins, double‑digit revenue growth, and a fortress balance sheet with minimal leverage and substantial cash. However, a sharp YoY earnings decline and weak cash conversion indicate margin normalization and working‑capital intensity amid a cyclical housing backdrop. Await stabilization in earnings quality and cash flow before a more constructive stance.
Why Buy Meritage Homes CORP Stock? MTH Key Strengths
- Strong revenue growth of 13.6% YoY indicating market share gains
- Conservative capital structure with 0.05x debt-to-equity and robust 123.6x interest coverage
- Healthy free cash flow generation of $97M ($3.6B FCF margin) and substantial cash reserves of $766.6M
- Reasonable gross margin of 30.9% typical for the homebuilding sector
- High margins (gross 30.9%, operating 21.7%)
- Double‑digit revenue growth (+13.6% YoY)
- Low leverage (D/E 0.05x) and sizable cash ($775M)
MTH Stock Risks: Meritage Homes CORP Investment Risks
- Severe earnings decline with EPS down 40.8% YoY despite revenue growth signals margin deterioration and competitive pressure
- Extremely thin profitability with 2.0% net margin and 1.1% ROE indicates poor capital efficiency and vulnerability to industry downturns
- Operating margin of 2.7% leaves minimal cushion for cost inflation or demand shocks in a cyclical industry
- Quality of earnings concern: growth is not translating to bottom-line improvement, suggesting execution or demand weakness
- Large YoY decline in net income/EPS, signaling normalization or cost pressure
- Weak cash conversion (OCF << net income; FCF margin 3.4%)
- Housing cycle and rate sensitivity impacting orders, pricing, and cancellations
Key Metrics to Watch
- Operating margin trend and unit economics per home sold
- Net income trajectory and whether profitability stabilizes or continues deteriorating
- Gross margin sustainability amid potential material cost pressures
- Debt levels and cash burn if demand environment weakens
- Operating cash flow to net income (cash conversion)
- Gross margin (%) trend
Meritage Homes CORP (MTH) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The relatively thin 3.6% FCF margin may limit capital allocation flexibility. The current ratio below 1.0x warrants monitoring of short-term liquidity.
MTH Profit Margin, ROE & Profitability Analysis
MTH vs Market Sector: How Meritage Homes CORP Compares
How Meritage Homes CORP compares to Market sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Meritage Homes CORP Stock Overvalued? MTH Valuation Analysis 2026
Based on fundamental analysis, Meritage Homes CORP has mixed fundamental signals relative to the Market 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.
Meritage Homes CORP Balance Sheet: MTH Debt, Cash & Liquidity
MTH Revenue & Earnings Growth: 5-Year Financial Trend
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 Revenue Growth, EPS Growth & YoY Performance
MTH Quarterly Earnings & 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.
Meritage Homes CORP Dividends, Buybacks & Capital Allocation
MTH SEC Filings: Latest 10-K & 10-Q 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 a Combined AI Rating of HOLD from Claude (HOLD) and ChatGPT (HOLD) with 68% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are MTH's key strengths?
Claude: Strong revenue growth of 13.6% YoY indicating market share gains. Conservative capital structure with 0.05x debt-to-equity and robust 123.6x interest coverage. ChatGPT: High margins (gross 30.9%, operating 21.7%). Double‑digit revenue growth (+13.6% YoY).
What are the risks of investing in MTH?
Claude: Severe earnings decline with EPS down 40.8% YoY despite revenue growth signals margin deterioration and competitive pressure. Extremely thin profitability with 2.0% net margin and 1.1% ROE indicates poor capital efficiency and vulnerability to industry downturns. ChatGPT: Large YoY decline in net income/EPS, signaling normalization or cost pressure. Weak cash conversion (OCF << net income; FCF margin 3.4%).
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 $32.0M 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 $0.82.
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 May 2026, Meritage Homes CORP has a HOLD rating with 68% 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 1.1% (sector avg: 15%), net margin of 2.0% (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 at or below sector average. Always conduct your own research.
What is MTH's free cash flow?
Meritage Homes CORP's operating cash flow is $101.3M, with capital expenditures of $4.3M. FCF margin is 3.6%.
How does MTH compare to other Market stocks?
Vs Default sector averages: Net margin 2.0% (avg: 12%), ROE 1.1% (avg: 15%), current ratio N/A (avg: 1.8).