Meritage Homes (FRA:MEY) Moat Score: 4/10 (As of Jul. 06, 2026)


FRA:MEY Meritage Homes Corp FRA:MEY
80 GF Score
Price €70.50
GF Value €58.25
Valuation Modestly Overvalued
! 10 Warning Signs
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What is Meritage Homes Moat Score?

Meritage Homes FRA:MEY 80 Moat Score is 4 as of Jul. 06, 2026. GuruFocus rates FRA:MEY with a GF Score™ of 80/100 and a GF Value™ of €58.25 (Modestly Overvalued). The stock has 10 warning signs investors should review. Among 102 Homebuilding & Construction companies, Meritage Homes ranks better than 84.31% on this metric.

Meritage Homes has the Moat Score of 4, which implies that the company might have Narrow Moat - Discernible but modest moat.

Meritage Homes has Narrow Moat: Meritage Homes has a discernible moat due to its strong brand and economies of scale in homebuilding. However, the competitive and cyclical nature of the housing market limits its moat to a modest level.

Moat Score is a ranking system developed by GuruFocus to assess a company's ability to sustain a competitive advantage, rated on a scale from 0 to 10. It takes into account key factors such as market leadership, cost advantages, network effects, customer switching costs, and more.

The company's Moat Score is based on these criteria:

1. Market leadership and sustainable market share
2. Network effects and significant customer switching costs
3. Valuable intellectual property and patents
4. Strong brand strength and deep customer loyalty
5. Durable cost advantages (e.g., economies of scale, proprietary technology)
6. Significant regulatory barriers and exclusive licenses
7. Superior distribution network
8. Strong and sustainable pricing power
9. Consistent and impactful innovation and R&D capabilities

Based on the research, GuruFocus believes Meritage Homes might have Narrow Moat - Discernible but modest moat.

Meritage Homes  (FRA:MEY) Moat Score Explanation

The Moat Score ranges from 0 to 10, with 10 as the highest. GuruFocus divided Moat Score into following 8 categories:

Moat Score Moat Level
10Wide Moat - Exceptionally dominant and durable wide moat
8 - 9Wide Moat - Clear and robust wide moat
7Wide Moat - Entry-level wide moat, clearly possessing durable advantages
6Narrow Moat - Strong narrow moat, clearly distinguishable but not wide
5Narrow Moat - Solid narrow moat
4Narrow Moat - Discernible but modest moat
1 - 3No Moat - Very weak/transient advantages
0No Moat - No discernible moat

Meritage Homes Moat Score Related Terms

FRA:MEY vs IBP, SKY, CVCO: Moat Score Comparison

For the Residential Construction subindustry, Meritage Homes's Moat Score, along with its competitors' market caps and Moat Score 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 Moat Score vs Homebuilding & Construction Industry

For the Homebuilding & Construction industry and Consumer Cyclical sector, Meritage Homes's Moat Score distribution charts can be found below:

* The bar in red indicates where Meritage Homes's Moat Score falls into.


FRA:MEY
80GF Score
Meritage Homes Corp FRA:MEY
Moat Score is just one metric. See GF Score™, valuation, warning signs, and more.
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Frequently Asked Questions Learn more about Moat Score →
What does a Moat Score of 4 mean?
Meritage Homes (FRA:MEY) has a Moat Score of 4 as of Jul. 06, 2026. Moat Score is a ranking system developed by GuruFocus to assess a company's ability to sustain a competitive advantage, rated on a scale from 0 to 10. It takes into account key factors such as market leadership, cost advantages, network effects, customer switching costs, and more. According to the industry distribution chart, Meritage Homes ranks #16 out of 102 companies in the Homebuilding & Construction industry, placing it in the top 15.7%.
Is Meritage Homes' Moat Score too high?
Meritage Homes' current Moat Score is 4. Based on the distribution chart, Meritage Homes ranks #16 out of 102 companies in the Homebuilding & Construction industry, which is in the top quartile — a strong position relative to peers. 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' Moat Score compare to IBP and SKY?
According to the Homebuilding & Construction industry distribution chart, Meritage Homes ranks #16 out of 102 companies for Moat Score. This places Meritage Homes in the top 16% of its industry — outperforming the majority of peers. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Moat Score for a Homebuilding & Construction company?
A good Moat Score depends on the Homebuilding & Construction industry context. However, Moat Score 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 Moat Score mean?
A high Moat Score can signal that a stock is expensive relative to its fundamentals. Moat Score is a ranking system developed by GuruFocus to assess a company's ability to sustain a competitive advantage, rated on a scale from 0 to 10. It takes into account key factors such as market leadership, cost advantages, network effects, customer switching costs, and more. Meritage Homes's current Moat Score is 4. 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 €70.50 — trading 21% above its estimated fair value. The current Moat Score is 4. Meritage Homes' overall GF Score™ is 80/100 with 10 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Moat Score calculated?
Moat Score is calculated from a company's financial statements. For Meritage Homes (FRA:MEY), the current Moat Score is 4 as of Jul. 06, 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 €70.50 is trading 21% above its estimated GF Value™ of €58.25. GuruFocus considers Meritage Homes to be Modestly Overvalued.

Key valuation signals for FRA:MEY:

  • Moat Score: 4
  • GF Value™: €58.25 vs. price of €70.50 (21% above fair value)
  • GF Score™: 80/100 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.
80GF Score

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

€70.50
Price
€58.25
GF Value