ScoreWhy is Meritage Homes Corp. ?
1
With a fall in Net Sales of -4.03%, the company declared Very Negative results in Jun 25
- The company has declared negative results for the last 2 consecutive quarters
- OPERATING CASH FLOW(Y) Lowest at USD -217.58 MM
- ROCE(HY) Lowest at 12.58%
- DEBT-EQUITY RATIO (HY) Highest at 18.09 %
2
With ROE of 13.93%, it has a fair valuation with a 0.89 Price to Book Value
- The stock is trading at a fair value compared to its peers' average historical valuations
- Over the past year, while the stock has generated a return of -19.37%, its profits have fallen by -8.9%
3
Below par performance in long term as well as near term
- Along with generating -19.37% returns in the last 1 year, the stock has also underperformed S&P 500 in the last 3 years, 1 year and 3 months
Real-Time Research ReportHow much should you sell?
- All quantity irrespective of whether you are making profits or losses
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Furniture, Home Furnishing)
When to re-enter? - We will constantly monitor the company and review our call based on new data
Is Meritage Homes Corp. for you?
Medium Risk, Low Return
Absolute
Risk Adjusted
Volatility
Meritage Homes Corp.
-15.89%
-0.36
38.88%
S&P 500
14.9%
0.70
20.15%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
5.41%
EBIT Growth (5y)
0.51%
EBIT to Interest (avg)
100.00
Debt to EBITDA (avg)
0.49
Net Debt to Equity (avg)
0.17
Sales to Capital Employed (avg)
0.98
Tax Ratio
22.18%
Dividend Payout Ratio
27.09%
Pledged Shares
0
Institutional Holding
100.00%
ROCE (avg)
22.23%
ROE (avg)
19.80%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
9
Industry P/E
Price to Book Value
0.82
EV to EBIT
10.04
EV to EBITDA
9.59
EV to Capital Employed
0.86
EV to Sales
0.92
PEG Ratio
NA
Dividend Yield
1.86%
ROCE (Latest)
8.52%
ROE (Latest)
8.72%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Bearish
Bearish
RSI
No Signal
No Signal
Bollinger Bands
Bearish
Bearish
Moving Averages
Mildly Bullish (Daily)
KST
Bullish
Bearish
Dow Theory
Mildly Bearish
Mildly Bearish
OBV
No Trend
Mildly Bullish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend2What is working for the Company
DIVIDEND PAYOUT RATIO(Y)
Highest at 35.72%
DIVIDEND PER SHARE(HY)
Highest at USD 20.8
-27What is not working for the Company
ROCE(HY)
Lowest at 8.76%
DEBT-EQUITY RATIO
(HY)
Highest at 21.45 %
INVENTORY TURNOVER RATIO(HY)
Lowest at 0.78 times
RAW MATERIAL COST(Y)
Grown by 31.93% (YoY
DEBTORS TURNOVER RATIO(HY)
Lowest at 20.8 times
OPERATING PROFIT(Q)
Lowest at USD 93.02 MM
OPERATING PROFIT MARGIN(Q)
Lowest at 6.48 %
PRE-TAX PROFIT(Q)
Lowest at USD 103.13 MM
NET PROFIT(Q)
Lowest at USD 84.03 MM
EPS(Q)
Lowest at USD 1.2
Here's what is working for Meritage Homes Corp.
Dividend per share
Highest at USD 20.8
in the last five yearsMOJO Watch
Company is distributing higher dividend from profits generated
DPS (USD)
Dividend Payout Ratio
Highest at 35.72%
in the last five yearsMOJO Watch
Company is distributing higher proportion of profits generated as dividend
DPR (%)
Depreciation
Highest at USD 6.68 MM
in the last five periodsMOJO Watch
The expenditure on assets done by the company may have gone into operation
Depreciation (USD MM)
Here's what is not working for Meritage Homes Corp.
Pre-Tax Profit
At USD 103.13 MM has Fallen at -53.45%
Year on Year (YoY)MOJO Watch
Near term Pre-Tax Profit trend is very negative
Pre-Tax Profit (USD MM)
Net Profit
At USD 84.03 MM has Fallen at -51.33%
Year on Year (YoY)MOJO Watch
Near term Net Profit trend is very negative
Net Profit (USD MM)
Debt-Equity Ratio
Highest at 21.45 % and Grown
In each half year in the last five Semi-Annual periodsMOJO Watch
The company is borrowing more to fund its operations; it's liquidity situation may be stressed
Debt-Equity Ratio
Inventory Turnover Ratio
Lowest at 0.78 times and Fallen
In each half year in the last five Semi-Annual periodsMOJO Watch
Company's pace of selling inventory has slowed
Inventory Turnover Ratio
Operating Profit
Lowest at USD 93.02 MM
in the last five periodsMOJO Watch
Near term Operating Profit trend is negative
Operating Profit (USD MM)
Operating Profit Margin
Lowest at 6.48 %
in the last five periodsMOJO Watch
Company's profit margin has deteriorated
Operating Profit to Sales
Pre-Tax Profit
Lowest at USD 103.13 MM
in the last five periodsMOJO Watch
Near term Pre-Tax Profit trend is negative
Pre-Tax Profit (USD MM)
Net Profit
Lowest at USD 84.03 MM
in the last five periodsMOJO Watch
Near term Net Profit trend is negative
Net Profit (USD MM)
EPS
Lowest at USD 1.2
in the last five periodsMOJO Watch
Declining profitability; company has created lower earnings for shareholders
EPS (USD)
Debtors Turnover Ratio
Lowest at 20.8 times
in the last five Semi-Annual periodsMOJO Watch
Company's pace of selling Debtors has slowed
Debtors Turnover Ratio
Raw Material Cost
Grown by 31.93% (YoY)
MOJO Watch
The company's ability to pass on the cost of raw materials to customers has deteriorated; this may lead to a fall in profit margin
Raw Material Cost as a percentage of Sales
Non Operating Income
Highest at USD 0.16 MM
in the last five periodsMOJO Watch
Increased income from non business activities may not be sustainable
Non Operating income
InfinHub Market Technologies FZ-LLC, Building-2, Unit 112, Dubai Internet City, Dubai, United Arab Emirates
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