Meritage Homes's Days Sales Outstanding for the
three
months ended in Mar. 2026 was 0.
Meritage Homes's Days Inventory for the
three
months ended in Mar. 2026 was 584.19.
Meritage Homes's Days Payable for the
three
months ended in Mar. 2026 was 19.59.
Therefore, Meritage Homes's Cash Conversion Cycle (CCC) for the
three
months ended in Mar. 2026 was 564.60.
Meritage Homes (FRA:MEY) Cash Conversion Cycle Explanation
Generally, the lower this number is, the better for the company. Although it should be combined with other metrics (such as ROE % and ROA %), it can be especially useful for comparing close competitors, because the company with the lowest CCC is often the one with better management.
Be Aware
CCC is most effective with retail-type companies, which have inventories that are sold to customers. Consulting businesses, software companies and insurance companies are all examples of companies for whom this metric is meaningless.
The CCC is one of several tools that can help you evaluate management, especially if it is calculated for several consecutive time periods and for several competitors. Decreasing or steady CCCs are good, while rising ones should motivate you to dig a bit deeper.
Meritage Homes Cash Conversion Cycle Related Terms
Meritage Homes Cash Conversion Cycle Historical Data
* Premium members only.
The historical data trend for Meritage Homes's Cash Conversion Cycle can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
FRA:MEY vs IBP, SKY, CVCO: Cash Conversion Cycle Comparison
For the Residential Construction subindustry, Meritage Homes's Cash Conversion Cycle, along with its competitors' market caps and Cash Conversion Cycle data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Meritage Homes Cash Conversion Cycle vs Homebuilding & Construction Industry
For the Homebuilding & Construction industry and Consumer Cyclical sector, Meritage Homes's Cash Conversion Cycle distribution charts can be found below:
* The bar in red indicates where Meritage Homes's Cash Conversion Cycle falls into.
Cash Conversion Cycle (CCC) measures how fast a company can convert cash on hand into even more cash on hand. This metric looks at the amount of time needed to sell inventory, the amount of time needed to collect receivables and the length of time the company is afforded to pay its bills without incurring penalties.
Cash Conversion Cycle is one of several measures of management effectiveness.
Meritage Homes's Cash Conversion Cycle for the fiscal year that ended in Dec. 2025 is calculated as
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Meritage Homes (FRA:MEY) has a Cash Conversion Cycle of 564.60 as of Mar. 2026. Cash conversion cycle equals sum of days inventory and days sales outstanding less days payable. View historical data on Meritage Homes and its competitors.
Is Meritage Homes' Cash Conversion Cycle too high?
Meritage Homes' current Cash Conversion Cycle is 564.60. The Homebuilding & Construction industry median Cash Conversion Cycle is 273.39. Meritage Homes' value of 564.60 is 106.5% above this industry median. Overall, Meritage Homes has a GF Score™ of 80/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Meritage Homes' Cash Conversion Cycle compare to IBP and SKY?
Meritage Homes' Cash Conversion Cycle of 564.60 can be compared against companies in the Homebuilding & Construction industry. The industry median Cash Conversion Cycle is 273.39. Meritage Homes' value of 564.60 is 106.5% above this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Cash Conversion Cycle for a Homebuilding & Construction company?
The median Cash Conversion Cycle among Homebuilding & Construction companies is 273.39, based on 91 companies in the industry. Companies in the top quartile (top 25%) have a Cash Conversion Cycle significantly above this median, while those in the bottom quartile fall well below. However, Cash Conversion Cycle should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Meritage Homes's current Cash Conversion Cycle of 564.60 is 106.5% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Cash Conversion Cycle mean?
A high Cash Conversion Cycle can signal that a stock is expensive relative to its fundamentals. Cash conversion cycle equals sum of days inventory and days sales outstanding less days payable. View historical data on Meritage Homes and its competitors. For the Homebuilding & Construction industry, the median Cash Conversion Cycle is 273.39 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Meritage Homes's current Cash Conversion Cycle is 564.60. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Meritage Homes stock overvalued right now?
Based on GuruFocus' analysis, Meritage Homes (FRA:MEY) is currently considered Modestly Overvalued. The stock's GF Value™ is €58.23, compared to a current price of €70.50 — trading 21.1% above its estimated fair value. The current Cash Conversion Cycle is 564.60 and 106.5% above the Homebuilding & Construction industry median of 273.39. Meritage Homes' overall GF Score™ is 80/100 with 10 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Cash Conversion Cycle calculated?
Cash Conversion Cycle is calculated from a company's financial statements. For Meritage Homes (FRA:MEY), the current Cash Conversion Cycle is 564.60 as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Meritage Homes (FRA:MEY) Overvalued in 2026?
Based on GuruFocus' analysis, Meritage Homes stock appears to be overvalued.
The current stock price of €70.50 is trading 21.1% above its estimated GF Value™ of €58.23.
GuruFocus considers Meritage Homes to be Modestly Overvalued.
Key valuation signals for FRA:MEY:
Cash Conversion Cycle: 564.60
GF Value™: €58.23 vs. price of €70.50 (21.1% above fair value)
Industry Position: 106.5% above the Homebuilding & Construction median
No single metric tells the full story. See the FRA:MEY stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Meritage Homes Corp is engaged as a designer and builder of single-family attached and detached homes. It has operations in three regions: West, Central, and East, comprising twelve states: Arizona, California, Colorado, Utah, Tennessee, Texas, Alabama, Florida, Georgia, Mississippi, North Carolina, and South Carolina. The company operates with two principal business segments: homebuilding and financial services. The homebuilding segments are engaged in the business of acquiring and developing land, constructing homes, marketing and selling those homes, and providing warranty and customer services, and the financial services segment offers title and escrow, mortgage, and insurance services. The company generates key revenue from the Homebuilding segment.
80GF Score
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