Meritage Homes (FRA:MEY) EBIT: €428 Mil (TTM As of Mar. 2026)


FRA:MEY Meritage Homes Corp FRA:MEY
79 GF Score
Price €65.50
GF Value €54.84
Valuation Modestly Overvalued
! 10 Warning Signs
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What is Meritage Homes EBIT?

Meritage Homes FRA:MEY +1.55% 79 EBIT is €428 Mil as of Mar. 2026. GuruFocus rates FRA:MEY with a GF Score™ of 79/100 and a GF Value™ of €54.84 (Modestly Overvalued). The stock has 10 warning signs investors should review.

Meritage Homes's earnings before interest and taxes (EBIT) for the three months ended in Mar. 2026 was €63 Mil. Its earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Mar. 2026 was €428 Mil.

EBIT or Operating Income is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. Meritage Homes's annualized ROC % for the quarter that ended in Mar. 2026 was 3.21%. Meritage Homes's annualized ROC (Joel Greenblatt) % for the quarter that ended in Mar. 2026 was 5.16%.

EBIT is also linked to Joel Greenblatt's definition of earnings yield. Meritage Homes's Earnings Yield (Joel Greenblatt) % for the quarter that ended in Mar. 2026 was 7.34%.


Meritage Homes  (FRA:MEY) EBIT Explanation

1. EBIT or Operating Income is linked to Return on Capital for both regular definition and Joel Greenblatt's definition.

Meritage Homes's annualized ROC % for the quarter that ended in Mar. 2026 is calculated as:

ROC % (Q: Mar. 2026 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Dec. 2025 ) + Invested Capital (Q: Mar. 2026 ))/ count )
=228.872 * ( 1 - 23.74% )/( (5419.399 + 5472.069)/ 2 )
=174.5377872/5445.734
=3.21 %

where

Invested Capital(Q: Dec. 2025 )
=Total Assets - Accounts Payable & Accrued Expense - Excess Cash
=Total Assets - Accounts Payable & Accrued Expense - ( Cash, Cash Equivalents, Marketable Securities - max(0, Total Current Liabilities - Total Current Assets+Cash, Cash Equivalents, Marketable Securities))
=6509.433 - 428.05 - ( 661.984 - max(0, 435.918 - 6185.866+661.984))
=5419.399

Invested Capital(Q: Mar. 2026 )
=Total Assets - Accounts Payable & Accrued Expense - Excess Cash
=Total Assets - Accounts Payable & Accrued Expense - ( Cash, Cash Equivalents, Marketable Securities - max(0, Total Current Liabilities - Total Current Assets+Cash, Cash Equivalents, Marketable Securities))
=6534.739 - 399.533 - ( 663.137 - max(0, 408.968 - 6207.123+663.137))
=5472.069

Note: The Operating Income data used here is four times the quarterly (Mar. 2026) data.

2. Joel Greenblatt's definition of Return on Capital:

Meritage Homes's annualized ROC (Joel Greenblatt) % for the quarter that ended in Mar. 2026 is calculated as:

ROC (Joel Greenblatt) %(Q: Mar. 2026 )
=EBIT/Average of (Net fixed Assets + Net Working Capital)
=EBIT/Average of (Property, Plant and Equipment+Net Working Capital)
     Q: Dec. 2025  Q: Mar. 2026
=EBIT/( ( (Property, Plant and Equipment + Net Working Capital) + (Property, Plant and Equipment + Net Working Capital) )/ count )
=252.964/( ( (39.837 + max(4825.824, 0)) + (39.845 + max(4892.02, 0)) )/ 2 )
=252.964/( ( 4865.661 + 4931.865 )/ 2 )
=252.964/4898.763
=5.16 %

where Working Capital is:

Working Capital(Q: Dec. 2025 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(0 + 5113 + 148.742) - (428.05 + 7.868 + 0)
=4825.824

Working Capital(Q: Mar. 2026 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(0 + 5157.195 + 143.793) - (399.533 + 9.435 + 0)
=4892.02

When net working capital is negative, 0 is used.

Note: The EBIT data used here is four times the quarterly (Mar. 2026) EBIT data.

3. It is also linked to Joel Greenblatt's definition of Earnings Yield:

Meritage Homes's Earnings Yield (Joel Greenblatt) % for today is calculated as:

Earnings Yield (Joel Greenblatt) %=EBIT (TTM)/Enterprise Value (Q: Mar. 2026 )
=427.967/5827.537
=7.34 %

* 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 EBIT Related Terms


Meritage Homes EBIT Historical Data

* Premium members only.

The historical data trend for Meritage Homes's EBIT 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.

Meritage Homes EBIT Chart

Meritage Homes Annual Data
Trend Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24 Dec25
EBIT
Get a 7-Day Free Trial Premium Member Only Premium Member Only 845.31 1,217.16 870.63 957.74 499.25

Meritage Homes Quarterly Data
Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25 Jun25 Sep25 Dec25 Mar26
EBIT Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 148.15 167.38 109.27 88.08 63.24

FRA:MEY vs CVCO, SKY, MHO: EBIT Comparison

For the Residential Construction subindustry, Meritage Homes's EV-to-EBIT, along with its competitors' market caps and EV-to-EBIT 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 EV-to-EBIT vs Homebuilding & Construction Industry

For the Homebuilding & Construction industry and Consumer Cyclical sector, Meritage Homes's EV-to-EBIT distribution charts can be found below:

* The bar in red indicates where Meritage Homes's EV-to-EBIT falls into.


FRA:MEY
79GF Score
Meritage Homes Corp FRA:MEY
EBIT is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Meritage Homes EBIT Calculation

EBIT, sometimes also called Earnings Before Interest and Taxes, is a measure of a firm's profit that includes all expenses except interest and income tax expenses. It is the difference between operating revenues and operating expenses. When a firm does not have non-operating income, then Operating Income is sometimes used as a synonym for EBIT and operating profit.

EBIT for the trailing twelve months (TTM) ended in Mar. 2026 adds up the quarterly data reported by the company within the most recent 12 months, which was €428 Mil.

* 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.

Frequently Asked Questions Learn more about EBIT →
What does a EBIT of €428 Mil mean?
Meritage Homes (FRA:MEY) has a EBIT of €428 Mil as of Mar. 2026. Earnings before interest and taxes is the difference between operating revenue and operating expenses. View historical data on Meritage Homes.
Is Meritage Homes' EBIT too high?
Meritage Homes' current EBIT is €428 Mil. 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' EBIT compare to CVCO and SKY?
Meritage Homes' EBIT of €428 Mil can be compared against companies in the Homebuilding & Construction industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good EBIT for a Homebuilding & Construction company?
A good EBIT depends on the Homebuilding & Construction industry context. However, EBIT should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high EBIT mean?
A high EBIT can signal that a stock is expensive relative to its fundamentals. Earnings before interest and taxes is the difference between operating revenue and operating expenses. View historical data on Meritage Homes. Meritage Homes's current EBIT is €428 Mil. 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 €54.84, compared to a current price of €65.50 — trading 19.4% above its estimated fair value. The current EBIT is €428 Mil. 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 EBIT calculated?
EBIT is calculated from a company's financial statements. For Meritage Homes (FRA:MEY), the current EBIT is €428 Mil 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 €65.50 is trading 19.4% above its estimated GF Value™ of €54.84. GuruFocus considers Meritage Homes to be Modestly Overvalued.

Key valuation signals for FRA:MEY:

  • EBIT: €428 Mil
  • GF Value™: €54.84 vs. price of €65.50 (19.4% above fair value)
  • GF Score™: 79/100 with 10 warning signs

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 Business Description

Other Exchanges MTH:USA
Address 18655 North Claret Drive, Suite 400, Scottsdale, AZ, USA, 85255
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

Get the complete analysis for FRA:MEY

EBIT is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

€65.50
Price
€54.84
GF Value