Meritage HomesFRA:MEY +1.55%79 EBITDA Margin % is 6.98% as of Mar. 2026, which is 39% below its 10-year median of 11.50. 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. Among 91 Homebuilding & Construction companies, Meritage Homes ranks better than 50.55% on this metric.
EBITDA Margin % is calculated as EBITDA divided by its Revenue. Meritage Homes's EBITDA for the
three
months ended in Mar. 2026 was €68 Mil. Meritage Homes's Revenue for the
three
months ended in Mar. 2026 was €973 Mil. Therefore, Meritage Homes's EBITDA margin for the quarter that ended in Mar. 2026 was 6.98%.
Meritage Homes (FRA:MEY) EBITDA Margin % Explanation
EBITDA Margin % is the ratio of EBITDA divided by net sales or Revenue. It is an performance metric measuring company's operating profitability. EBITDA Margin takes depreciation and amortization, interest expense and tax into account, which makes it easy to compare the relative profitability of companies of different sizes in the same industry.
Meritage Homes EBITDA Margin % Related Terms
Meritage Homes EBITDA Margin % Historical Data
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The historical data trend for Meritage Homes's EBITDA Margin % 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 CVCO, SKY, MHO: EBITDA Margin % Comparison
For the Residential Construction subindustry, Meritage Homes's EBITDA Margin %, along with its competitors' market caps and EBITDA Margin % 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 EBITDA Margin % vs Homebuilding & Construction Industry
For the Homebuilding & Construction industry and Consumer Cyclical sector, Meritage Homes's EBITDA Margin % distribution charts can be found below:
* The bar in red indicates where Meritage Homes's EBITDA Margin % 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 EBITDA Margin % of 6.98% as of Mar. 2026. EBITDA Margin is the ratio of EBITDA divided by net sales or Revenue, usually presented in percent. View historical data on Meritage Homes and its competitors. This is 39% below median its historical median of 11.50. Over the past decade, Meritage Homes' EBITDA Margin % has ranged from 7.83 to 20.86. According to the industry distribution chart, Meritage Homes ranks #45 out of 91 companies in the Homebuilding & Construction industry, placing it in the top 49.5%.
Is Meritage Homes' EBITDA Margin % too high?
Meritage Homes' current EBITDA Margin % of 6.98% is 39% below median its 10-year median of 11.50. Over the past 10 years, this metric has ranged from a low of 7.83 to a high of 20.86. The Homebuilding & Construction industry median EBITDA Margin % is 9.16. Meritage Homes' value of 6.98% is 23.8% below this industry median. Based on the distribution chart, Meritage Homes ranks #45 out of 91 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 Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Meritage Homes' EBITDA Margin % compare to CVCO and SKY?
According to the Homebuilding & Construction industry distribution chart, Meritage Homes ranks #45 out of 91 companies for EBITDA Margin %. This puts Meritage Homes in the upper half of its industry. The industry median EBITDA Margin % is 9.16. Meritage Homes' value of 6.98% is 23.8% below this benchmark. Historically, Meritage Homes' own EBITDA Margin % has ranged from 7.83 to 20.86 over the past decade. While the company's 10-year median is 11.50 vs. the industry median of 9.16, 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 EBITDA Margin % for a Homebuilding & Construction company?
The median EBITDA Margin % among Homebuilding & Construction companies is 9.16, based on 91 companies in the industry. Companies in the top quartile (top 25%) have a EBITDA Margin % significantly above this median, while those in the bottom quartile fall well below. However, EBITDA Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Meritage Homes's current EBITDA Margin % of 6.98% is 23.8% 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 EBITDA Margin % mean?
A high EBITDA Margin % can signal that a stock is expensive relative to its fundamentals. EBITDA Margin is the ratio of EBITDA divided by net sales or Revenue, usually presented in percent. View historical data on Meritage Homes and its competitors. For the Homebuilding & Construction industry, the median EBITDA Margin % is 9.16 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Meritage Homes's current EBITDA Margin % is 6.98%, which is 39% below median its own 10-year median of 11.50. 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 EBITDA Margin % is 6.98%, which is 39% below median its 10-year median of 11.50 and 23.8% below the Homebuilding & Construction industry median of 9.16. 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 EBITDA Margin % calculated?
EBITDA Margin % is calculated from a company's financial statements. For Meritage Homes (FRA:MEY), the current EBITDA Margin % is 6.98% 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:
EBITDA Margin %: 6.98% (39% below median its 10-year median of 11.50)
GF Value™: €54.84 vs. price of €65.50 (19.4% above fair value)
Industry Position: 23.8% below the Homebuilding & Construction median (#45 of 91)
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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EBITDA Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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