Meritage HomesFRA:MEY +1.55%79 OCF Margin % is 9.01% as of Mar. 2026, which is 130% above its 10-year median of 3.91. 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 52.75% on this metric.
The historical rank and industry rank for Meritage Homes's OCF Margin % or its related term are showing as below:
FRA:MEY'
s OCF Margin % Range Over the Past 10 Years
Min: -3.56 Med: 3.91 Max: 11.77
Current: 4.67
During the past 13 years, the highest OCF Margin % of Meritage Homes was 11.77%. The lowest was -3.56%. And the median was 3.91%.
FRA:MEY's OCF Margin % is ranked better than 52.75% of 91
companies
in the Homebuilding & Construction industry
Industry Median: 4.23
vs FRA:MEY: 4.67
Meritage Homes OCF Margin % Related Terms
Meritage Homes OCF Margin % Historical Data
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The historical data trend for Meritage Homes's OCF 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: OCF Margin % Comparison
For the Residential Construction subindustry, Meritage Homes's OCF Margin %, along with its competitors' market caps and OCF 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 OCF Margin % vs Homebuilding & Construction Industry
For the Homebuilding & Construction industry and Consumer Cyclical sector, Meritage Homes's OCF Margin % distribution charts can be found below:
* The bar in red indicates where Meritage Homes's OCF 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 OCF Margin % of 9.01% as of Mar. 2026. OCF Margin is the ratio of Cash Flow from Operations to Total Revenue. View historical data on Meritage Homes and its competitors. This is 130% above median its historical median of 3.91. According to the industry distribution chart, Meritage Homes ranks #43 out of 91 companies in the Homebuilding & Construction industry, placing it in the top 47.3%.
Is Meritage Homes' OCF Margin % too high?
Meritage Homes' current OCF Margin % of 9.01% is 130% above median its 10-year median of 3.91. The Homebuilding & Construction industry median OCF Margin % is 4.23. Meritage Homes' value of 9.01% is 113% above this industry median. Based on the distribution chart, Meritage Homes ranks #43 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' OCF Margin % compare to CVCO and SKY?
According to the Homebuilding & Construction industry distribution chart, Meritage Homes ranks #43 out of 91 companies for OCF Margin %. This puts Meritage Homes in the upper half of its industry. The industry median OCF Margin % is 4.23. Meritage Homes' value of 9.01% is 113% above this benchmark. While the company's 10-year median is 3.91 vs. the industry median of 4.23, Meritage Homes has consistently been above 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 OCF Margin % for a Homebuilding & Construction company?
The median OCF Margin % among Homebuilding & Construction companies is 4.23, based on 91 companies in the industry. Companies in the top quartile (top 25%) have a OCF Margin % significantly above this median, while those in the bottom quartile fall well below. However, OCF Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Meritage Homes's current OCF Margin % of 9.01% is 113% 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 OCF Margin % mean?
A high OCF Margin % can signal that a stock is expensive relative to its fundamentals. OCF Margin is the ratio of Cash Flow from Operations to Total Revenue. View historical data on Meritage Homes and its competitors. For the Homebuilding & Construction industry, the median OCF Margin % is 4.23 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Meritage Homes's current OCF Margin % is 9.01%, which is 130% above median its own 10-year median of 3.91. 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 OCF Margin % is 9.01%, which is 130% above median its 10-year median of 3.91 and 113% above the Homebuilding & Construction industry median of 4.23. 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 OCF Margin % calculated?
OCF Margin % is calculated from a company's financial statements. For Meritage Homes (FRA:MEY), the current OCF Margin % is 9.01% 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:
OCF Margin %: 9.01% (130% above median its 10-year median of 3.91)
GF Value™: €54.84 vs. price of €65.50 (19.4% above fair value)
Industry Position: 113% above the Homebuilding & Construction median (#43 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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