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50.08 (1y: +66%)
Market Cap 1.82 B P/E(ttm) 15.40
Enterprise Value 2.27 B P/B 2.60
MTH- NYSE (USA)
Meritage Homes Corporation
  • Currently 1/5
Business Predictability Rank: 1-Star
Back Testing Results:
Average gain of all 1-Star stocks: 1.1% per year.
% of Stocks that are in still loss if held for 10yrs: 45%.
Read more:
What is Predictability Rank?
Performances of real portfolio
Top Ranked Predictable Companies
$50.08
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GuruFocus Financial Strength Rank measures how strong a companyย’s financial situation is. It is based on these factors

1. The debt burden that the company has as measured by its Interest coverage (current year).
2. Debt to revenue ratio. The lower, the better
3. Altman Z-score.

A company ranks high with financial strength is likely to withstand any business slowdowns and recessions.

Financial Strength : 7/10

vs
industry		 vs
history
Cash to Debt 0.355
MTH's Cash to Debt is ranked lower than
62% of the 258 Companies
in the Global Residential Construction industry.

( Industry Median: 2.14 vs. MTH: 0.355 )
MTH' s 10-Year Cash to Debt Range
Min: 0.01   Max: 0.67
Current: 0.36
0.01
0.67
Equity to Asset 0.441
MTH's Equity to Asset is ranked lower than
64% of the 258 Companies
in the Global Residential Construction industry.

( Industry Median: 0.49 vs. MTH: 0.441 )
MTH' s 10-Year Equity to Asset Range
Min: 0.32   Max: 0.44
Current: 0.44
0.32
0.44
Interest Coverage 2.3
MTH's Interest Coverage is ranked lower than
64% of the 258 Companies
in the Global Residential Construction industry.

( Industry Median: 338.80 vs. MTH: 2.3 )
MTH' s 10-Year Interest Coverage Range
Min: 0   Max: 10450
Current: 2.3
0
10450
F-Score: 6
Z-Score: 2.29
M-Score: -1.61
GuruFocus Profitability Rank ranks how profitable a company is and how likely the companyย’s business will stay that way. It is based on these factors:

1. Operating Margin
2. Trend of the Operating Margin (5-year average). The company with an uptrend profit margin has a higher rank.
ย•ย•3. Consistency of the profitability
4. Piotroski F-Score
5. Predictability Rankย•

The maximum rank is 10. A rank of 7 or higher means a higher profitability and may stay that way. A rank of 3 or lower indicates that the company has had trouble to make a profit.

Profitability Rank is not directly related to the Financial Strength Rank. But if a company is consistently profitable, its financial strength will be stronger.

Profitability & Growth : 6/10

vs
industry		 vs
history
Operating margin (%) 4.60
MTH's Operating margin (%) is ranked higher than
66% of the 258 Companies
in the Global Residential Construction industry.

( Industry Median: 3.60 vs. MTH: 4.60 )
MTH' s 10-Year Operating margin (%) Range
Min: -15.9   Max: 16.3
Current: 4.6
-15.9
16.3
Net-margin (%) 8.8
MTH's Net-margin (%) is ranked higher than
67% of the 258 Companies
in the Global Residential Construction industry.

( Industry Median: 2.10 vs. MTH: 8.8 )
MTH' s 10-Year Net-margin (%) Range
Min: -19.2   Max: 8.8
Current: 8.8
-19.2
8.8
ROE (%) 15.1
MTH's ROE (%) is ranked higher than
67% of the 258 Companies
in the Global Residential Construction industry.

( Industry Median: 4.00 vs. MTH: 15.1 )
MTH' s 10-Year ROE (%) Range
Min: -55.4   Max: 30
Current: 15.1
-55.4
30
ROA (%) 6.7
MTH's ROA (%) is ranked higher than
66% of the 258 Companies
in the Global Residential Construction industry.

( Industry Median: 1.60 vs. MTH: 6.7 )
MTH' s 10-Year ROA (%) Range
Min: -22   Max: 13.4
Current: 6.7
-22
13.4
Revenue Growth (%) 2.3
MTH's Revenue Growth (%) is ranked higher than
83% of the 258 Companies
in the Global Residential Construction industry.

( Industry Median: -2.10 vs. MTH: 2.3 )
MTH' s 10-Year Revenue Growth (%) Range
Min: -29.8   Max: 31.6
Current: 2.3
-29.8
31.6
ยป MTH's 10-Y Financials

Financials


Revenue & Net Income
Cash & Debt
Oprt. Cash Flow & Free Cash Flow

» Details

Guru Trades
Q2 2012

MTH Guru Trades in Q2 2012

Ken Heebner 315,000 sh (+96.88%)
Steven Cohen Sold Out
Jim Simons Sold Out
Arnold Schneider 1,188,127 sh (-7.04%)
Chuck Royce 1,300 sh (-98.97%)
» More
Q3 2012

MTH Guru Trades in Q3 2012

John Keeley 268,500 sh (New)
Steven Cohen 21,795 sh (New)
Ken Heebner 345,000 sh (+9.52%)
Chuck Royce Sold Out
Arnold Schneider 977,987 sh (-17.69%)
» More
Q4 2012

MTH Guru Trades in Q4 2012

John Keeley 550,000 sh (+104.84%)
Arnold Schneider 982,922 sh (+0.5%)
Ken Heebner 345,000 sh (unchged)
Steven Cohen Sold Out
» More
Q1 2013

MTH Guru Trades in Q1 2013

Paul Tudor Jones 4,800 sh (New)
Steven Cohen 5,529 sh (New)
John Keeley 579,500 sh (+5.36%)
Ken Heebner 345,000 sh (unchged)
Arnold Schneider 761,922 sh (-22.48%)
» More
» Details

Insider Trades

Latest Guru Trades with MTH

GuruDate Trades Impact to Portfolio Price Range * (?) Current Price Change from Average Current Shares
John Keeley 2012-12-31 Add 104.84%0.24%$33.38 - $41.75 $ 50.0834%550000
John Keeley 2012-09-30 New Buy0.23%$33.19 - $42.25 $ 50.0837%268500
George Soros 2011-06-30 Sold Out $21.06 - $26.05 $ 50.08114%0
George Soros 2011-03-31 New Buy$22.2 - $27.34 $ 50.08105%14000
George Soros 2010-06-30 Sold Out $16.26 - $25.1 $ 50.08143%0
George Soros 2010-03-31 New Buy$19.33 - $23.54 $ 50.08132%13700
Premium More recent guru trades are included for Premium Members only!!

Ratios

vs
industry		 vs
history
P/E(ttm) 15.50
MTH's P/E(ttm) is ranked higher than
57% of the 258 Companies
in the Global Residential Construction industry.

( Industry Median: 24.72 vs. MTH: 15.50 )
MTH' s 10-Year P/E(ttm) Range
Min: 2.47   Max: 123.15
Current: 15.5
2.47
123.15
P/B 2.60
MTH's P/B is ranked lower than
74% of the 258 Companies
in the Global Residential Construction industry.

( Industry Median: 1.22 vs. MTH: 2.60 )
MTH' s 10-Year P/B Range
Min: 0.28   Max: 3.97
Current: 2.6
0.28
3.97
P/S 1.30
MTH's P/S is ranked lower than
71% of the 258 Companies
in the Global Residential Construction industry.

( Industry Median: 0.65 vs. MTH: 1.30 )
MTH' s 10-Year P/S Range
Min: 0.09   Max: 1.43
Current: 1.3
0.09
1.43
EV-to-EBIT 30.3
MTH's EV-to-EBIT is ranked higher than
87% of the 258 Companies
in the Global Residential Construction industry.

( Industry Median: 17.56 vs. MTH: 30.3 )
MTH' s 10-Year EV-to-EBIT Range
Min: 2.5   Max: 602.5
Current: 30.3
2.5
602.5
Shiller P/E 1269.1
MTH's Shiller P/E is ranked higher than
92% of the 258 Companies
in the Global Residential Construction industry.

( Industry Median: 24.05 vs. MTH: 1269.1 )
MTH' s 10-Year Shiller P/E Range
Min: 2.39   Max: 130.59
Current: 1269.1
2.39
130.59

Valuation & Return

vs
industry		 vs
history
Price/Tangible Book 2.6
MTH's Price/Tangible Book is ranked higher than
84% of the 258 Companies
in the Global Residential Construction industry.

( Industry Median: 1.30 vs. MTH: 2.6 )
MTH' s 10-Year Price/Tangible Book Range
Min: 0.5   Max: 3.6
Current: 2.6
0.5
3.6
Price/DCF (Projected) 3.1
MTH's Price/DCF (Projected) is ranked higher than
91% of the 258 Companies
in the Global Residential Construction industry.

( Industry Median: 1.10 vs. MTH: 3.1 )
MTH' s 10-Year Price/DCF (Projected) Range
Min: 0.6   Max: 10
Current: 3.1
0.6
10
Price/Median PS Value 2.8
MTH's Price/Median PS Value is ranked higher than
96% of the 258 Companies
in the Global Residential Construction industry.

( Industry Median: 0.80 vs. MTH: 2.8 )
MTH' s 10-Year Price/Median PS Value Range
Min: 0.3   Max: 2.1
Current: 2.8
0.3
2.1
Price/Graham Number 1.3
MTH's Price/Graham Number is ranked higher than
90% of the 258 Companies
in the Global Residential Construction industry.

( Industry Median: 1.10 vs. MTH: 1.3 )
MTH' s 10-Year Price/Graham Number Range
Min: 0.6   Max: 2.5
Current: 1.3
0.6
2.5
Earnings Yield (Greenblatt) 3.30
MTH's Earnings Yield (Greenblatt) is ranked lower than
72% of the 258 Companies
in the Global Residential Construction industry.

( Industry Median: 4.00 vs. MTH: 3.30 )
MTH' s 10-Year Earnings Yield (Greenblatt) Range
Min: 0.2   Max: 39.3
Current: 3.3
0.2
39.3
Forward Rate of Return (Yacktman) 4.31
MTH's Forward Rate of Return (Yacktman) is ranked higher than
68% of the 258 Companies
in the Global Residential Construction industry.

( Industry Median: 4.68 vs. MTH: 4.31 )
MTH' s 10-Year Forward Rate of Return (Yacktman) Range
Min: 0.9   Max: 63.4
Current: 4.31
0.9
63.4

Business Description

Meritage Homes Corporation was incorporated in 1988 as a real estate investment trust in the State of Maryland. Through its successors, it commenced homebuilding operations in 1985. It is a designer and builder of single-family attached and detached homes in the historically high-growth regions of the southern and western United States, based on the number of home closings. It offers first-time, move-up, luxury and active adult homes to its targeted customer base. The Company has operations in three regions: West, Central and East, which are comprised of seven metropolitan areas in Arizona, Texas, California, Nevada, Colorado and Florida and North Carolina. Its homebuilding and marketing activities are conducted under the name of Meritage Homes in each of its markets, except for Arizona, where it also operates under the name of Monterey Homes, and in Texas, where it also operate as Legacy Homes and Monterey Homes. The Company participates in several joint ventures with independent third parties relating to the purchase and development of land. It has less than a controlling interest in its joint ventures. It typically enters into these joint ventures with other homebuilders, land sellers or other real estate investors to provide it and the other joint venture partners with a means of accessing larger parcels and lot positions, expanding its market opportunities, managing its risk profile and leveraging its capital base. The Company acts as the general contractor for its projects and typically hire subcontractors on a project-by-project or reasonable geographic-proximity basis to complete construction at a fixed price. It usually enters into agreements with subcontractors and materials suppliers on an individual basis after receiving competitive bids. Occasionally, it enters into longer-term contracts with subcontractors and suppliers if it could obtain more favorable terms to minimize construction costs. The Company's project managers and field superintendents coordinate and supervise the activities of subcontractors and suppliers, subject the development and construction work to quality and cost controls, and monitor compliance with zoning and building codes. At December 31, 2011, it was actively selling homes in 157 communities, with base prices ranging from approximately $103,000 to $673,000. The housing industry is highly competitive. The Company competes for sales in each of its markets with national, regional and local developers and homebuilders, existing home resales and, to a lesser extent, condominiums and available rental housing. Some of its competitors have greater financial resources or lower costs than it does. Competition among both small and large residential homebuilders is based on a number of interrelated factors, including location, reputation, amenities, design, quality and price. Competition among existing home sellers is currently mainly based on price. The Company is subject to a number of local, state, a
Company Website
SEC Reports
Industry: Residential Construction
Compare:MDC, TOL, DWAHY, DITFY, PHM
ยป More Articles for MTH

Headlines

Articles On GuruFocus.com
WEEKLY CFO SELLS HIGHLIGHT: SBAC, XOXO, MTH, FICO, SGEN, OAS Sep 03 2012 
The Housing Industry: State of Affairs - RYL, PHM, KBH, LEN, MTH Jul 12 2011 
Meritage Homes Corp. (MTH) Exec VP - COO Steven M Davis sells 16,000 Shares Mar 08 2011 
Meritage Homes Corp. (MTH) Exec VP - COO Steven M Davis sells 3,301 Shares Feb 15 2011 
Meritage Homes Corp. (MTH) CEO Steven J Hilton sells 10,492 Shares Feb 15 2011 
Meritage Homes Corp. (MTH) Executive VP - CFO Larry Wayne Seay sells 5,638 Shares Feb 15 2011 
Meritage Homes Corp. Reports Operating Results (10-Q) Nov 04 2010 
Meritage Homes Corp. Reports Operating Results (10-Q) Aug 04 2010 
Meritage Homes Corp. Reports Operating Results (10-Q) May 06 2010 
Meritage Homes Corp. (MTH) Executive VP - CFO Larry Wayne Seay sells 36,000 Shares Mar 15 2010 

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