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Meritage HomesMTH -0.95%78 Cash-to-Debt is 0.44 as of Jun. 2026, which is at its 10-year median of 0.44. GuruFocus rates MTH with a GF Score™ of 78/100 and a GF Value™ of $70.35 (Fairly Valued). The stock has 5 warning signs investors should review. Among 91 Homebuilding & Construction companies, Meritage Homes ranks better than 56.04% on this metric.
Cash to Debt Ratio measures the financial strength of a company. It is calculated as a company's cash, cash equivalents, and marketable securities divide by its debt. Meritage Homes's cash to debt ratio for the quarter that ended in Jun. 2026 was 0.44.
If Cash to Debt ratio is less than 1, the company cannot pay off its debt using the cash in hand. Here we can see, Meritage Homescouldn't pay off its debt using the cash in hand for the quarter that ended in Jun. 2026.
The historical rank and industry rank for Meritage Homes's Cash-to-Debt or its related term are showing as below:
MTH'
s Cash-to-Debt Range Over the Past 10 Years
Min: 0.07 Med: 0.44 Max: 0.99
Current: 0.44
During the past 13 years, Meritage Homes's highest Cash to Debt Ratio was 0.99. The lowest was 0.07. And the median was 0.44.
MTH's Cash-to-Debt is ranked better than 56.04% of 91
companies
in the Homebuilding & Construction industry
Industry Median: 0.36
vs MTH: 0.44
Meritage Homes (NYSE:MTH) Cash-to-Debt Explanation
If Cash to Debt ratio is greater than 1, the company can pay off its debt using the cash in hand. If it is smaller than 1, it means the company has more debt than the cash in hands. In this case, it is important to look the the company's Interest Coverage. Ben Graham requires that a company must have an Interest Coverage of at least 5.
Meritage Homes Cash-to-Debt Related Terms
Meritage Homes Cash-to-Debt Historical Data
* Premium members only.
The historical data trend for Meritage Homes's Cash-to-Debt 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.
Note: An indication of "No Debt" does not necessarily mean that the company has no debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.
For the Residential Construction subindustry, Meritage Homes's Cash-to-Debt, along with its competitors' market caps and Cash-to-Debt 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-to-Debt vs Homebuilding & Construction Industry
For the Homebuilding & Construction industry and Consumer Cyclical sector, Meritage Homes's Cash-to-Debt distribution charts can be found below:
* The bar in red indicates where Meritage Homes's Cash-to-Debt falls into.
* 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 (MTH) has a Cash-to-Debt of 0.44 as of Jun. 2026. This is near median its historical median of 0.44. Over the past decade, Meritage Homes' Cash-to-Debt has ranged from 0.07 to 0.99. According to the industry distribution chart, Meritage Homes ranks #40 out of 91 companies in the Homebuilding & Construction industry, placing it in the top 44%.
Is Meritage Homes' Cash-to-Debt too high?
Meritage Homes' current Cash-to-Debt of 0.44 is near median its 10-year median of 0.44. Over the past 10 years, this metric has ranged from a low of 0.07 to a high of 0.99. The Homebuilding & Construction industry median Cash-to-Debt is 0.36. Meritage Homes' value of 0.44 is 22.2% above this industry median. Based on the distribution chart, Meritage Homes ranks #40 out of 91 companies in the Homebuilding & Construction industry, which is above the industry midpoint. Overall, Meritage Homes has a GF Score™ of 78/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Meritage Homes' Cash-to-Debt compare to CVCO and SKY?
According to the Homebuilding & Construction industry distribution chart, Meritage Homes ranks #40 out of 91 companies for Cash-to-Debt. This puts Meritage Homes in the upper half of its industry. The industry median Cash-to-Debt is 0.36. Meritage Homes' value of 0.44 is 22.2% above this benchmark. Historically, Meritage Homes' own Cash-to-Debt has ranged from 0.07 to 0.99 over the past decade. While the company's 10-year median is 0.44 vs. the industry median of 0.36, Meritage Homes has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Cash-to-Debt for a Homebuilding & Construction company?
The median Cash-to-Debt among Homebuilding & Construction companies is 0.36, based on 91 companies in the industry. Companies in the top quartile (top 25%) have a Cash-to-Debt significantly above this median, while those in the bottom quartile fall well below. However, Cash-to-Debt should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Meritage Homes's current Cash-to-Debt of 0.44 is 22.2% 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-to-Debt mean?
A high Cash-to-Debt can signal that a stock is expensive relative to its fundamentals. For the Homebuilding & Construction industry, the median Cash-to-Debt is 0.36 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Meritage Homes's current Cash-to-Debt is 0.44, which is near median its own 10-year median of 0.44. 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 (MTH) is currently considered Fairly Valued. The stock's GF Value™ is $70.35, compared to a current price of $63.82 — trading 9.3% below its estimated fair value. The current Cash-to-Debt is 0.44, which is near median its 10-year median of 0.44 and 22.2% above the Homebuilding & Construction industry median of 0.36. Meritage Homes' overall GF Score™ is 78/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Cash-to-Debt calculated?
Cash-to-Debt is calculated from a company's financial statements. For Meritage Homes (MTH), the current Cash-to-Debt is 0.44 as of Jun. 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 (MTH) Overvalued in 2026?
Based on GuruFocus' analysis, Meritage Homes stock appears to be undervalued.
The current stock price of $63.82 is trading 9.3% below its estimated GF Value™ of $70.35.
GuruFocus considers Meritage Homes to be Fairly Valued.
Key valuation signals for MTH:
Cash-to-Debt: 0.44 (near median its 10-year median of 0.44)
GF Value™: $70.35 vs. price of $63.82 (9.3% below fair value)
Industry Position: 22.2% above the Homebuilding & Construction median (#40 of 91)
No single metric tells the full story. See the MTH 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.
78GF Score
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