Meritage Homes (FRA:MEY) Inventory Turnover: 0.16 (As of Mar. 2026)

What is Meritage Homes Inventory Turnover?

Meritage Homes FRA:MEY 80 Inventory Turnover is 0.16 as of Mar. 2026. GuruFocus rates FRA:MEY with a GF Score™ of 80/100 and a GF Value™ of €58.98 (Modestly Overvalued). The stock has 6 warning signs investors should review.

Inventory Turnover measures how fast the company turns over its inventory within a year. It is calculated as Cost of Goods Sold divided by Total Inventories. Meritage Homes's Cost of Goods Sold for the three months ended in Mar. 2026 was €802 Mil. Meritage Homes's Average Total Inventories for the quarter that ended in Mar. 2026 was €5,135 Mil. Meritage Homes's Inventory Turnover for the quarter that ended in Mar. 2026 was 0.16.

Days Inventory indicates the number of days of goods in sales that a company has in the inventory. Meritage Homes's Days Inventory for the three months ended in Mar. 2026 was 584.19.

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 quarter that ended in Mar. 2026 was 5.28.

Meritage Homes (FRA:MEY) Inventory Turnover Explanation

Inventory Turnover measures how fast the company turns over its inventory within a year. A higher Inventory Turnover means the company has light inventory. Therefore the company spends less money on storage, write downs, and obsolete inventory. If the inventory is too light, it may affect sales because the company may not have enough to meet demand.

1. Days Inventory indicates the number of days of goods in sales that a company has in the inventory.

Meritage Homes's Days Inventory for the three months ended in Mar. 2026 is calculated as:

Days Inventory	=	Average Total Inventories (Q: Mar. 2026 )	/	Cost of Goods Sold (Q: Mar. 2026 )	*	Days in Period
	=	5135.0975	/	802.095	*	365 / 4
	=	584.19

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 quarter that ended in Mar. 2026 is calculated as

Inventory-to-Revenue	=	Average Total Inventories (Q: Mar. 2026 )	/	Revenue (Q: Mar. 2026 )
	=	5135.0975	/	972.519
	=	5.28

* 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

Usually retailers pile up their inventories at holiday seasons to meet the stronger demand. Therefore, the inventory of a particular quarter of a year should not be used to calculate Inventory Turnover. An average inventory is a better indication.

Meritage Homes Inventory Turnover Related Terms

Meritage Homes Inventory Turnover Historical Data

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The historical data trend for Meritage Homes's Inventory Turnover can be seen below:

Meritage Homes Inventory Turnover Chart

Meritage Homes Annual Data

Trend

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Dec24

Dec25

Inventory Turnover

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1.18

1.14

1.00

0.93

0.76

Meritage Homes Quarterly Data
	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24	Jun24	Sep24	Dec24	Mar25	Jun25	Sep25	Dec25	Mar26
Inventory Turnover	Get a 7-Day Free Trial															0.18	0.21	0.19	0.20	0.16

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Meritage Homes Inventory Turnover Calculation

Meritage Homes's Inventory Turnover for the fiscal year that ended in Dec. 2025 is calculated as

	Inventory Turnover (A: Dec. 2025 )
=	Cost of Goods Sold	/	Average Total Inventories
=	Cost of Goods Sold (A: Dec. 2025 )	/ (	(Total Inventories (A: Dec. 2024 )	+	Total Inventories (A: Dec. 2025 ))	/	count )
=	4017.21	/ (	(5470.98	+	5113)	/	2 )
=	4017.21	/	5291.99
=	0.76

Meritage Homes's Inventory Turnover for the quarter that ended in Mar. 2026 is calculated as

	Inventory Turnover (Q: Mar. 2026 )
=	Cost of Goods Sold	/	Average Total Inventories
=	Cost of Goods Sold (Q: Mar. 2026 )	/ (	(Total Inventories (Q: Dec. 2025 )	+	Total Inventories (Q: Mar. 2026 ))	/	count )
=	802.095	/ (	(5113	+	5157.195)	/	2 )
=	802.095	/	5135.0975
=	0.16

Frequently Asked Questions Learn more about Inventory Turnover →

What does a Inventory Turnover of 0.16 mean?

Meritage Homes (FRA:MEY) has a Inventory Turnover of 0.16 as of Mar. 2026. Inventory turnover equals current-period cost of goods sold divided by average two-period total inventories. View historical data on Meritage Homes and its competitors.

Is Meritage Homes' Inventory Turnover too high?

Meritage Homes' current Inventory Turnover is 0.16. Overall, Meritage Homes has a GF Score™ of 80/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.

How does Meritage Homes' Inventory Turnover compare to IBP and SKY?

Meritage Homes' Inventory Turnover of 0.16 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 Inventory Turnover for a Homebuilding & Construction company?

A good Inventory Turnover depends on the Homebuilding & Construction industry context. However, Inventory Turnover 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 Inventory Turnover mean?

A high Inventory Turnover can signal that a stock is expensive relative to its fundamentals. Inventory turnover equals current-period cost of goods sold divided by average two-period total inventories. View historical data on Meritage Homes and its competitors. Meritage Homes's current Inventory Turnover is 0.16. 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 €58.98, compared to a current price of €64.50 — trading 9.4% above its estimated fair value. The current Inventory Turnover is 0.16. Meritage Homes' overall GF Score™ is 80/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.

How is Inventory Turnover calculated?

Inventory Turnover is calculated from a company's financial statements. For Meritage Homes (FRA:MEY), the current Inventory Turnover is 0.16 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 €64.50 is trading 9.4% above its estimated GF Value™ of €58.98. GuruFocus considers Meritage Homes to be Modestly Overvalued.

Key valuation signals for FRA:MEY:

Inventory Turnover: 0.16
GF Value™: €58.98 vs. price of €64.50 (9.4% above fair value)
GF Score™: 80/100 with 6 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

Industry Consumer Cyclical Homebuilding & Construction

Comparable Companies IBP SKY CVCO TMHC MHO KBH GRBK DFH LGIH HOV DHI PHM LEN NVR TOL TSE:1928 LSE:BTRW TSE:1911 LSE:PSN TSE:1808

Other Exchanges MTH:USA

Address 18655 North Claret Drive, Suite 400, Scottsdale, AZ, USA, 85255

Website https://www.meritagehomes.com

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.

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€64.50

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€58.98

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