Meritage Homes Corporation

Valuation Analysis

About the Company

Meritage Homes Corporation, together with its subsidiaries, designs and builds single-family attached and detached homes in the United States. The company operates through two segments: Homebuilding and Financial Services. It acquires and develops land; and constructs, markets, and sells homes for entry-level and first move-up buyers in Arizona, California, Colorado, Utah, Texas, Alabama, Florida, Georgia, Mississippi, North Carolina, South Carolina, and Tennessee. The company also provides title and escrow, mortgage, insurance, title insurance, and closing/settlement services to its homebuyers. Meritage Homes Corporation was founded in 1985 and is based in Scottsdale, Arizona.

Meritage Homes Corporation Stock at a Glance

Meritage Homes Corporation (MTH) is currently trading at $74.44 with a market capitalization of $5B. The trailing P/E ratio stands at 13.58x, with a forward P/E of 11.4x. The 52-week range spans from $58.03 to $84.74; the current price is 12.2% below the yearly high. Year-over-year revenue growth stands at -17.7%. The net profit margin stands at 6.86%.

💰 Dividend

Meritage Homes Corporation pays an annual dividend of $1.92 per share, representing a yield of 2.58%. The payout ratio stands at 32.3%.

📊 Analyst Rating

9 analysts rate Meritage Homes Corporation (MTH) on consensus: Buy. The average price target is $77.78, implying +4.48% from the current price. Analyst price targets range from $58.00 to $90.00.

Meritage Homes Corporation: The Investment Case in Detail

Meritage Homes Corporation (MTH) operates in the Consumer Cyclical — specifically Residential Construction — and is headquartered in United States. Below is a structured read of the investment case built directly from the latest fundamentals, valuation multiples, analyst positioning and smart-money flows. Each section translates raw numbers into the investment logic they imply, so you can decide whether the risk/reward fits your portfolio.

The Bull Case

Our valuation screen flags the stock as undervalued relative to its fundamentals — multiples are running below where the cash flow profile would normally justify.

The Bear Case

Revenue is contracting at -17.7% year-over-year — until that trend reverses, valuation is exposed to further downgrades.

Valuation in Context

With a PEG ratio of 0.54, the price-to-earnings multiple is actually below the company's growth rate — classic value-meets-growth territory that Peter Lynch would have called a 'GARP' opportunity.

What to Watch Next

• The forward P/E of 11.4x is meaningfully below the trailing 13.58x — analysts expect earnings to step up; the next earnings release is the test.

Investment Thesis: Strengths & Weaknesses

Technical Snapshot

The price is in a transition zone relative to the moving averages — no clear signal.

Risk Profile

The data points to market-like volatility, elevated short interest (6.99%).

Trading Data

💵 Dividend Info

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