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Meritage HomesMTH +1.00%79 Net-Net Working Capital is $19.28 as of Jun. 2026. 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 35 Homebuilding & Construction companies, Meritage Homes ranks better than 71.43% on this metric.
In calculating the Net-Net Working Capital (NNWC), Benjamin Graham assumed that a company's accounts receivable is only worth 75% its value, its inventory is only worth 50% of its value, but its liabilities have to be paid in full. In addition, Graham believed that preferred stock belongs on the liability side of the balance sheet, not as part of capital and surplus. This is a conservative way of estimating the company's value.
Meritage Homes's Net-Net Working Capital for the quarter that ended in Jun. 2026 was $19.28.
The industry rank for Meritage Homes's Net-Net Working Capital or its related term are showing as below:
MTH's Price-to-Net-Net-Working-Capital is ranked better than 71.43% of 35
companies
in the Homebuilding & Construction industry
Industry Median: 7.12
vs MTH: 3.82
Meritage Homes (NYSE:MTH) Net-Net Working Capital Explanation
One research study, covering the years 1970 through 1983 showed that portfolios picked at the beginning of each year, and held for one year, returned 29.4 percent, on average, over the 13-year period, compared to 11.5 percent for the S&P 500 Index. Other studies of Graham's strategy produced similar results.
Benjamin Graham looked for companies whose market values were less than two-thirds of their net-net value. They are collected under our Net-Net screener.
Meritage Homes Net-Net Working Capital Related Terms
Meritage Homes Net-Net Working Capital Historical Data
* Premium members only.
The historical data trend for Meritage Homes's Net-Net Working Capital 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.
MTH vs SKY, CVCO, MHO: Net-Net Working Capital Comparison
For the Residential Construction subindustry, Meritage Homes's Price-to-Net-Net-Working-Capital, along with its competitors' market caps and Price-to-Net-Net-Working-Capital 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 Price-to-Net-Net-Working-Capital vs Homebuilding & Construction Industry
For the Homebuilding & Construction industry and Consumer Cyclical sector, Meritage Homes's Price-to-Net-Net-Working-Capital distribution charts can be found below:
* The bar in red indicates where Meritage Homes's Price-to-Net-Net-Working-Capital 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.
In calculating the Net-Net Working Capital (NNWC), Benjamin Graham assumed that a company's accounts receivable is only worth 75% its value, its inventory is only worth 50% of its value, but its liabilities have to be paid in full.
In addition, Graham believed that preferred stock belongs on the liability side of the balance sheet, not as part of capital and surplus. In "Security Analysis", preferred stock is dubbed "an imperfect creditorship position" that is best placed on the balance sheet alongside funded debt.
This is a conservative way of estimating the company's value.
What does a Net-Net Working Capital of $19.28 mean?
Meritage Homes (MTH) has a Net-Net Working Capital of $19.28 as of Jun. 2026. Ben Graham defined net-net working capital as the per-share sum of cash, 75% of receivables and 50% of inventory less total liabilities. View historical data on Meritage Homes According to the industry distribution chart, Meritage Homes ranks #10 out of 35 companies in the Homebuilding & Construction industry, placing it in the top 28.6%.
Is Meritage Homes' Net-Net Working Capital too high?
Meritage Homes' current Net-Net Working Capital is $19.28. The Homebuilding & Construction industry median Net-Net Working Capital is 7.12. Meritage Homes' value of $19.28 is 170.8% above this industry median. Based on the distribution chart, Meritage Homes ranks #10 out of 35 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' Net-Net Working Capital compare to SKY and CVCO?
According to the Homebuilding & Construction industry distribution chart, Meritage Homes ranks #10 out of 35 companies for Net-Net Working Capital. This puts Meritage Homes in the upper half of its industry. The industry median Net-Net Working Capital is 7.12. Meritage Homes' value of $19.28 is 170.8% above this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Net-Net Working Capital for a Homebuilding & Construction company?
The median Net-Net Working Capital among Homebuilding & Construction companies is 7.12, based on 35 companies in the industry. Companies in the top quartile (top 25%) have a Net-Net Working Capital significantly above this median, while those in the bottom quartile fall well below. However, Net-Net Working Capital should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Meritage Homes's current Net-Net Working Capital of $19.28 is 170.8% above 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 Net-Net Working Capital mean?
A high Net-Net Working Capital can signal that a stock is expensive relative to its fundamentals. Ben Graham defined net-net working capital as the per-share sum of cash, 75% of receivables and 50% of inventory less total liabilities. View historical data on Meritage Homes For the Homebuilding & Construction industry, the median Net-Net Working Capital is 7.12 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Meritage Homes's current Net-Net Working Capital is $19.28. 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 Net-Net Working Capital is $19.28 and 170.8% above the Homebuilding & Construction industry median of 7.12. 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 Net-Net Working Capital calculated?
Net-Net Working Capital is calculated from a company's financial statements. For Meritage Homes (MTH), the current Net-Net Working Capital is $19.28 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:
Net-Net Working Capital: $19.28
GF Value™: $69.96 vs. price of $73.62 (5.2% above fair value)
Industry Position: 170.8% above the Homebuilding & Construction median (#10 of 35)
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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