Meritage HomesFRA:MEY +0.70%81 Quick Ratio is 2.57 as of Mar. 2026, which is 48% above its 10-year median of 1.74. GuruFocus rates FRA:MEY with a GF Score™ of 81/100 and a GF Value™ of €58.31 (Modestly Overvalued). The stock has 11 warning signs investors should review. Among 95 Homebuilding & Construction companies, Meritage Homes ranks better than 86.32% on this metric.
The quick ratio measures a company's ability to meet its short-term obligations with its most liquid assets. It is calculated as a company's Total Current Assets excludes Total Inventories divides by its Total Current Liabilities. Meritage Homes's quick ratio for the quarter that ended in Mar. 2026 was 2.57.
Meritage Homes has a quick ratio of 2.57. It generally indicates good short-term financial strength.
The historical rank and industry rank for Meritage Homes's Quick Ratio or its related term are showing as below:
FRA:MEY'
s Quick Ratio Range Over the Past 10 Years
Min: 0.81 Med: 1.74 Max: 2.65
Current: 2.57
During the past 13 years, Meritage Homes's highest Quick Ratio was 2.65. The lowest was 0.81. And the median was 1.74.
FRA:MEY's Quick Ratio is ranked better than 86.32% of 95
companies
in the Homebuilding & Construction industry
Industry Median: 0.79
vs FRA:MEY: 2.57
Meritage Homes (FRA:MEY) Quick Ratio Explanation
The quick ratio is more conservative than the Current Ratio because it excludes inventories from current assets. The ratio derives its name presumably from the fact that assets such as cash and marketable securities are quick sources of cash. Inventories generally take time to be converted into cash, and if they have to be sold quickly, the company may have to accept a lower price than book value of these inventories. As a result, they are justifiably excluded from assets that are ready sources of immediate cash.
In general, low or decreasing quick ratios generally suggest that a company is over-leveraged, struggling to maintain or grow sales, paying bills too quickly or collecting receivables too slowly. On the other hand, a high or increasing quick ratio generally indicates that a company is experiencing solid top-line growth, quickly converting receivables into cash, and easily able to cover its financial obligations. Such companies often have faster inventory turnover and cash conversion cycles.
The higher the quick ratio, the better the company's liquidity position.
Meritage Homes Quick Ratio Related Terms
Meritage Homes Quick Ratio Historical Data
* Premium members only.
The historical data trend for Meritage Homes's Quick Ratio 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.
For the Residential Construction subindustry, Meritage Homes's Quick Ratio, along with its competitors' market caps and Quick Ratio 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 Quick Ratio vs Homebuilding & Construction Industry
For the Homebuilding & Construction industry and Consumer Cyclical sector, Meritage Homes's Quick Ratio distribution charts can be found below:
* The bar in red indicates where Meritage Homes's Quick Ratio falls into.
The quick ratio measures a company's ability to meet its short-term obligations with its most liquid assets. For this reason, the ratio excludes inventories from current assets.
Meritage Homes's Quick Ratio for the fiscal year that ended in Dec. 2025 is calculated as
* 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 Quick Ratio of 2.57 as of Mar. 2026. Quick ratio is the ratio of current assets less inventory to current liabilities. View historical data on Meritage Homes and its competitors. This is 48% above median its historical median of 1.74. Over the past decade, Meritage Homes' Quick Ratio has ranged from 0.81 to 2.65. According to the industry distribution chart, Meritage Homes ranks #13 out of 95 companies in the Homebuilding & Construction industry, placing it in the top 13.7%.
Is Meritage Homes' Quick Ratio too high?
Meritage Homes' current Quick Ratio of 2.57 is 48% above median its 10-year median of 1.74. Over the past 10 years, this metric has ranged from a low of 0.81 to a high of 2.65. The Homebuilding & Construction industry median Quick Ratio is 0.79. Meritage Homes' value of 2.57 is 225.3% above this industry median. Based on the distribution chart, Meritage Homes ranks #13 out of 95 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 81/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Meritage Homes' Quick Ratio compare to IBP and SKY?
According to the Homebuilding & Construction industry distribution chart, Meritage Homes ranks #13 out of 95 companies for Quick Ratio. This places Meritage Homes in the top 14% of its industry — outperforming the majority of peers. The industry median Quick Ratio is 0.79. Meritage Homes' value of 2.57 is 225.3% above this benchmark. Historically, Meritage Homes' own Quick Ratio has ranged from 0.81 to 2.65 over the past decade. While the company's 10-year median is 1.74 vs. the industry median of 0.79, 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 Quick Ratio for a Homebuilding & Construction company?
The median Quick Ratio among Homebuilding & Construction companies is 0.79, based on 95 companies in the industry. Companies in the top quartile (top 25%) have a Quick Ratio significantly above this median, while those in the bottom quartile fall well below. However, Quick Ratio should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Meritage Homes's current Quick Ratio of 2.57 is 225.3% 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 Quick Ratio mean?
A high Quick Ratio can signal that a stock is expensive relative to its fundamentals. Quick ratio is the ratio of current assets less inventory to current liabilities. View historical data on Meritage Homes and its competitors. For the Homebuilding & Construction industry, the median Quick Ratio is 0.79 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Meritage Homes's current Quick Ratio is 2.57, which is 48% above median its own 10-year median of 1.74. 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 €58.31, compared to a current price of €72.00 — trading 23.5% above its estimated fair value. The current Quick Ratio is 2.57, which is 48% above median its 10-year median of 1.74 and 225.3% above the Homebuilding & Construction industry median of 0.79. Meritage Homes' overall GF Score™ is 81/100 with 11 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Quick Ratio calculated?
Quick Ratio is calculated from a company's financial statements. For Meritage Homes (FRA:MEY), the current Quick Ratio is 2.57 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 €72.00 is trading 23.5% above its estimated GF Value™ of €58.31.
GuruFocus considers Meritage Homes to be Modestly Overvalued.
Key valuation signals for FRA:MEY:
Quick Ratio: 2.57 (48% above median its 10-year median of 1.74)
GF Value™: €58.31 vs. price of €72.00 (23.5% above fair value)
Industry Position: 225.3% above the Homebuilding & Construction median (#13 of 95)
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.
81GF Score
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