Meritage HomesFRA:MEY +0.71%79 Days Inventory is 584.19 as of Mar. 2026, which is 71% above its 10-year median of 340.95. GuruFocus rates FRA:MEY with a GF Score™ of 79/100 and a GF Value™ of €58.25 (Modestly Overvalued). The stock has 10 warning signs investors should review. Among 86 Homebuilding & Construction companies, Meritage Homes ranks worse than 66.28% on this metric.
Days Inventory is also known as Days Sales of Inventory (DSI). Meritage Homes's Average Total Inventories for the
three
months ended in Mar. 2026 was €5,135 Mil. Meritage Homes's Cost of Goods Sold for the
three
months ended in Mar. 2026 was €802 Mil.
Hence, Meritage Homes's Days Inventory for the
three
months ended in Mar. 2026 was 584.19.
The historical rank and industry rank for Meritage Homes's Days Inventory or its related term are showing as below:
FRA:MEY'
s Days Inventory Range Over the Past 10 Years
Min: 285.48 Med: 340.95 Max: 477.06
Current: 477.06
During the past 13 years, Meritage Homes's highest Days Inventory was 477.06. The lowest was 285.48. And the median was 340.95.
FRA:MEY's Days Inventory is ranked worse than 66.28% of 86
companies
in the Homebuilding & Construction industry
Industry Median: 307.385
vs FRA:MEY: 477.06
Meritage Homes's Days Inventory
increased
from Mar. 2025 (502.89) to Mar. 2026 (584.19).
It might indicate that Meritage Homes's sales slowed down.
Inventory Turnover measures how fast the company turns over its inventory within a year.
Meritage Homes's Inventory Turnover for the
three
months ended in Mar. 2026 was 0.16.
Inventory-to-Revenue determines the ability of a company to manage their inventory levels. It measures the percentage of Inventories the company currently has on hand to support the current amount of Revenue.
Meritage Homes's Inventory-to-Revenue for the
three
months ended in Mar. 2026 was 5.28.
Meritage Homes (FRA:MEY) Days Inventory Explanation
Days Inventory indicates the liquidity of the inventory. Generally, a lower Days Inventory is preferred as it indicates a shorter duration to clear off the inventory. An increase of the ratio may indicate the company's sales slowed. Similar ratios related to Days Inventory are:
1. Inventory Turnover measures how fast the company turns over its inventory within a year.
Meritage Homes's Inventory Turnover for the
three
months ended in Mar. 2026 is calculated as
2. Inventory-to-Revenue determines the ability of a company to manage their inventory levels. It measures the percentage of Inventories the company currently has on hand to support the current amount of Revenue.
Meritage Homes's Inventory to Revenue for the
three
months ended in Mar. 2026 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.
Be Aware
A lot of business are seasonable. It makes more sense to compare Days Inventory from the same period in the previous year instead of from the previous quarter.
Meritage Homes Days Inventory Related Terms
Meritage Homes Days Inventory Historical Data
* Premium members only.
The historical data trend for Meritage Homes's Days Inventory 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: Days Inventory Comparison
For the Residential Construction subindustry, Meritage Homes's Days Inventory, along with its competitors' market caps and Days Inventory 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 Days Inventory vs Homebuilding & Construction Industry
For the Homebuilding & Construction industry and Consumer Cyclical sector, Meritage Homes's Days Inventory distribution charts can be found below:
* The bar in red indicates where Meritage Homes's Days Inventory 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 (FRA:MEY) has a Days Inventory of 584.19 as of Mar. 2026. Days inventory represents the average amount of days a company holds inventory before selling it. View historical data on Meritage Homes and its competitors. This is 71% above median its historical median of 340.95. Over the past decade, Meritage Homes' Days Inventory has ranged from 285.48 to 477.06. According to the industry distribution chart, Meritage Homes ranks #57 out of 86 companies in the Homebuilding & Construction industry, placing it in the top 66.3%.
Is Meritage Homes' Days Inventory too high?
Meritage Homes' current Days Inventory of 584.19 is 71% above median its 10-year median of 340.95. Over the past 10 years, this metric has ranged from a low of 285.48 to a high of 477.06. The Homebuilding & Construction industry median Days Inventory is 307.39. Meritage Homes' value of 584.19 is 90.1% above this industry median. Based on the distribution chart, Meritage Homes ranks #57 out of 86 companies in the Homebuilding & Construction industry, which is below the industry midpoint. Overall, Meritage Homes has a GF Score™ of 79/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Meritage Homes' Days Inventory compare to IBP and SKY?
According to the Homebuilding & Construction industry distribution chart, Meritage Homes ranks #57 out of 86 companies for Days Inventory. This places Meritage Homes in the lower half of its industry. The industry median Days Inventory is 307.39. Meritage Homes' value of 584.19 is 90.1% above this benchmark. Historically, Meritage Homes' own Days Inventory has ranged from 285.48 to 477.06 over the past decade. While the company's 10-year median is 340.95 vs. the industry median of 307.39, 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 Days Inventory for a Homebuilding & Construction company?
The median Days Inventory among Homebuilding & Construction companies is 307.39, based on 86 companies in the industry. Companies in the top quartile (top 25%) have a Days Inventory significantly above this median, while those in the bottom quartile fall well below. However, Days Inventory should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Meritage Homes's current Days Inventory of 584.19 is 90.1% 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 Days Inventory mean?
A high Days Inventory can signal that a stock is expensive relative to its fundamentals. Days inventory represents the average amount of days a company holds inventory before selling it. View historical data on Meritage Homes and its competitors. For the Homebuilding & Construction industry, the median Days Inventory is 307.39 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Meritage Homes's current Days Inventory is 584.19, which is 71% above median its own 10-year median of 340.95. 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 €58.25, compared to a current price of €71.00 — trading 21.9% above its estimated fair value. The current Days Inventory is 584.19, which is 71% above median its 10-year median of 340.95 and 90.1% above the Homebuilding & Construction industry median of 307.39. Meritage Homes' overall GF Score™ is 79/100 with 10 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Days Inventory calculated?
Days Inventory is calculated from a company's financial statements. For Meritage Homes (FRA:MEY), the current Days Inventory is 584.19 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 €71.00 is trading 21.9% above its estimated GF Value™ of €58.25.
GuruFocus considers Meritage Homes to be Modestly Overvalued.
Key valuation signals for FRA:MEY:
Days Inventory: 584.19 (71% above median its 10-year median of 340.95)
GF Value™: €58.25 vs. price of €71.00 (21.9% above fair value)
Industry Position: 90.1% above the Homebuilding & Construction median (#57 of 86)
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.
79GF Score
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