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.
21.28%
-0.36
38.88%
S&P 500
25.41%
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
0.77
EV to EBIT
9.53
EV to EBITDA
9.10
EV to Capital Employed
0.81
EV to Sales
0.87
PEG Ratio
NA
Dividend Yield
1.60%
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
Mildly Bearish
Moving Averages
Bearish (Daily)
KST
Bearish
Mildly Bullish
Dow Theory
Mildly Bullish
No Trend
OBV
Mildly Bullish
Mildly Bearish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend4What is working for the Company
DIVIDEND PAYOUT RATIO(Y)
Highest at 58.85%
DIVIDEND PER SHARE(HY)
Highest at USD 20.69
-34What is not working for the Company
INTEREST(9M)
At USD 0.59 MM has Grown at inf%
ROCE(HY)
Lowest at 7.49%
DEBT-EQUITY RATIO
(HY)
Highest at 22.29 %
INVENTORY TURNOVER RATIO(HY)
Lowest at 0.75 times
RAW MATERIAL COST(Y)
Grown by 21.93% (YoY
NET SALES(Q)
Lowest at USD 1,123.47 MM
OPERATING PROFIT(Q)
Lowest at USD 70.69 MM
OPERATING PROFIT MARGIN(Q)
Lowest at 6.29 %
PRE-TAX PROFIT(Q)
Lowest at USD 72.52 MM
NET PROFIT(Q)
Lowest at USD 55.31 MM
EPS(Q)
Lowest at USD 0.82
Here's what is working for Meritage Homes Corp.
Dividend per share
Highest at USD 20.69 and Grown
In each year in the last five yearsMOJO Watch
Company is distributing higher dividend from profits generated
DPS (USD)
Dividend Payout Ratio
Highest at 58.85% and Grown
In each year in the last five yearsMOJO Watch
Company is distributing higher proportion of profits generated as dividend
DPR (%)
Here's what is not working for Meritage Homes Corp.
Interest
At USD 0.59 MM has Grown at inf%
over previous Semi-Annual periodMOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (USD MM)
Pre-Tax Profit
At USD 72.52 MM has Fallen at -54.72%
Year on Year (YoY)MOJO Watch
Near term Pre-Tax Profit trend is very negative
Pre-Tax Profit (USD MM)
Net Profit
At USD 55.31 MM has Fallen at -54.96%
Year on Year (YoY)MOJO Watch
Near term Net Profit trend is very negative
Net Profit (USD MM)
Debt-Equity Ratio
Highest at 22.29 % 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 0.75 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
Net Sales
Lowest at USD 1,123.47 MM
in the last five periodsMOJO Watch
Near term sales trend is negative
Net Sales (USD MM)
Net Sales
Fallen at -17.67%
Year on Year (YoY)MOJO Watch
Near term sales trend is negative
Net Sales (USD MM)
Operating Profit
Lowest at USD 70.69 MM
in the last five periodsMOJO Watch
Near term Operating Profit trend is negative
Operating Profit (USD MM)
Operating Profit Margin
Lowest at 6.29 %
in the last five periodsMOJO Watch
Company's profit margin has deteriorated
Operating Profit to Sales
Pre-Tax Profit
Lowest at USD 72.52 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 55.31 MM
in the last five periodsMOJO Watch
Near term Net Profit trend is negative
Net Profit (USD MM)
EPS
Lowest at USD 0.82
in the last five periodsMOJO Watch
Declining profitability; company has created lower earnings for shareholders
EPS (USD)
Raw Material Cost
Grown by 21.93% (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
InfinHub Market Technologies FZ-LLC, Building-2, Unit 112, Dubai Internet City, Dubai, United Arab Emirates
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