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Meritage HomesMTH +1.00%79 Debt-to-Equity is 0.37 as of Jun. 2026, which is 12% below its 10-year median of 0.42. GuruFocus rates MTH with a GF Score™ of 79/100 and a GF Value™ of $69.96 (Fairly Valued). The stock has 5 warning signs investors should review. Among 89 Homebuilding & Construction companies, Meritage Homes ranks better than 60.67% on this metric.
A high debt to equity ratio generally means that a company has been aggressive in financing its growth with debt. This can result in volatile earnings as a result of the additional interest expense.
The historical rank and industry rank for Meritage Homes's Debt-to-Equity or its related term are showing as below:
MTH'
s Debt-to-Equity Range Over the Past 10 Years
Min: 0.22 Med: 0.42 Max: 0.91
Current: 0.37
During the past 13 years, the highest Debt-to-Equity Ratio of Meritage Homes was 0.91. The lowest was 0.22. And the median was 0.42.
MTH's Debt-to-Equity is ranked better than 60.67% of 89
companies
in the Homebuilding & Construction industry
Industry Median: 0.67
vs MTH: 0.37
Because a company can increase its ROE % by having more financial leverage, it is important to watch the leverage ratio when investing in high ROE % companies.
Meritage Homes Debt-to-Equity Related Terms
Meritage Homes Debt-to-Equity Historical Data
* Premium members only.
The historical data trend for Meritage Homes's Debt-to-Equity 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.
For the Residential Construction subindustry, Meritage Homes's Debt-to-Equity, along with its competitors' market caps and Debt-to-Equity 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 Debt-to-Equity vs Homebuilding & Construction Industry
For the Homebuilding & Construction industry and Consumer Cyclical sector, Meritage Homes's Debt-to-Equity distribution charts can be found below:
* The bar in red indicates where Meritage Homes's Debt-to-Equity 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 Debt-to-Equity of 0.37 as of Jun. 2026. Debt-to-Equity ratio represents the ratio of total debt to total company equity. View historical data on Meritage Homes and its competitors. This is 12% below median its historical median of 0.42. Over the past decade, Meritage Homes' Debt-to-Equity has ranged from 0.22 to 0.91. According to the industry distribution chart, Meritage Homes ranks #35 out of 89 companies in the Homebuilding & Construction industry, placing it in the top 39.3%.
Is Meritage Homes' Debt-to-Equity too high?
Meritage Homes' current Debt-to-Equity of 0.37 is 12% below median its 10-year median of 0.42. Over the past 10 years, this metric has ranged from a low of 0.22 to a high of 0.91. The Homebuilding & Construction industry median Debt-to-Equity is 0.67. Meritage Homes' value of 0.37 is 44.8% below this industry median. Based on the distribution chart, Meritage Homes ranks #35 out of 89 companies in the Homebuilding & Construction industry, which is above the industry midpoint. Overall, Meritage Homes has a GF Score™ of 79/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Meritage Homes' Debt-to-Equity compare to SKY and CVCO?
According to the Homebuilding & Construction industry distribution chart, Meritage Homes ranks #35 out of 89 companies for Debt-to-Equity. This puts Meritage Homes in the upper half of its industry. The industry median Debt-to-Equity is 0.67. Meritage Homes' value of 0.37 is 44.8% below this benchmark. Historically, Meritage Homes' own Debt-to-Equity has ranged from 0.22 to 0.91 over the past decade. While the company's 10-year median is 0.42 vs. the industry median of 0.67, Meritage Homes has consistently been below 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 Debt-to-Equity for a Homebuilding & Construction company?
The median Debt-to-Equity among Homebuilding & Construction companies is 0.67, based on 89 companies in the industry. Companies in the top quartile (top 25%) have a Debt-to-Equity significantly above this median, while those in the bottom quartile fall well below. However, Debt-to-Equity should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Meritage Homes's current Debt-to-Equity of 0.37 is 44.8% below 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 Debt-to-Equity mean?
A high Debt-to-Equity can signal that a stock is expensive relative to its fundamentals. Debt-to-Equity ratio represents the ratio of total debt to total company equity. View historical data on Meritage Homes and its competitors. For the Homebuilding & Construction industry, the median Debt-to-Equity is 0.67 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Meritage Homes's current Debt-to-Equity is 0.37, which is 12% below median its own 10-year median of 0.42. 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 $69.96, compared to a current price of $73.62 — trading 5.2% above its estimated fair value. The current Debt-to-Equity is 0.37, which is 12% below median its 10-year median of 0.42 and 44.8% below the Homebuilding & Construction industry median of 0.67. Meritage Homes' overall GF Score™ is 79/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Debt-to-Equity calculated?
Debt-to-Equity is calculated from a company's financial statements. For Meritage Homes (MTH), the current Debt-to-Equity is 0.37 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 overvalued.
The current stock price of $73.62 is trading 5.2% above its estimated GF Value™ of $69.96.
GuruFocus considers Meritage Homes to be Fairly Valued.
Key valuation signals for MTH:
Debt-to-Equity: 0.37 (12% below median its 10-year median of 0.42)
GF Value™: $69.96 vs. price of $73.62 (5.2% above fair value)
Industry Position: 44.8% below the Homebuilding & Construction median (#35 of 89)
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.
79GF Score
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