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Meritage Homes has the Financial Strength Rank of 8. It shows strong financial strength and is unlikely to fall into distressed situations.
Good Sign:
Meritage Homes Corp shows strong financial strength.
GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is rated on a scale of 1 to 10 and is based on these factors:
1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.
2. Debt to revenue ratio. The lower, the better.
3. Altman Z-Score.
4. Other debt related ratios.
A higher score indicates a stronger financial position, with companies rated 7 or above considered financially stable and unlikely to face distress. Conversely, a score of 3 or below suggests potential financial difficulties, indicating a higher risk of distress.
Meritage Homes's Interest Coverage for the quarter that ended in Jun. 2026 was 52.71.
Meritage Homes's debt to revenue ratio for the quarter that ended in Jun. 2026 was 0.33.
As of today, Meritage Homes's Altman Z-Score is 4.03.
Meritage Homes (NYSE:MTH) Financial Strength Explanation
The rank is rated on a scale of 1 to 10. A higher score indicates a stronger financial position, with companies rated 7 or above considered financially stable and unlikely to face distress. Conversely, a score of 3 or below suggests potential financial difficulties, indicating a higher risk of distress.
Meritage Homes has the Financial Strength Rank of 8. It shows strong financial strength and is unlikely to fall into distressed situations.
Meritage Homes Financial Strength Related Terms
MTH vs SKY, CVCO, MHO: Financial Strength Comparison
For the Residential Construction subindustry, Meritage Homes's Financial Strength, along with its competitors' market caps and Financial Strength 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 Financial Strength vs Homebuilding & Construction Industry
For the Homebuilding & Construction industry and Consumer Cyclical sector, Meritage Homes's Financial Strength distribution charts can be found below:
* The bar in red indicates where Meritage Homes's Financial Strength falls into.
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:
Z-Score model is an accurate forecaster of failure up to two years prior to distress. It can be considered the assessment of the distress of industrial corporations.
The zones of discrimination were as such:
When Z-Score is less than 1.81, it is in Distress Zones.
When Z-Score is greater than 2.99, it is in Safe Zones.
When Z-Score is between 1.81 and 2.99, it is in Grey Zones.
Meritage Homes has a Z-score of 4.03, indicating it is in Safe Zones. This implies the Z-Score is strong.
Good Sign:
Altman Z-score of 4.03 is strong.
* 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 (MTH) has a Financial Strength of 8 as of Jun. 2026. The financial strength rank measures the strength of a company's balance sheet based on revenue and debt. View historical data on Meritage Homes and its competitors. This is 14% above median its historical median of 7.00. Over the past decade, Meritage Homes' Financial Strength has ranged from 5.00 to 8.00.
Is Meritage Homes' Financial Strength too high?
Meritage Homes' current Financial Strength of 8 is 14% above median its 10-year median of 7.00. Over the past 10 years, this metric has ranged from a low of 5.00 to a high of 8.00. 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' Financial Strength compare to SKY and CVCO?
Meritage Homes' Financial Strength of 8 can be compared against companies in the Homebuilding & Construction industry. Historically, Meritage Homes' own Financial Strength has ranged from 5.00 to 8.00 over the past decade. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Financial Strength for a Homebuilding & Construction company?
A good Financial Strength depends on the Homebuilding & Construction industry context. However, Financial Strength 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 Financial Strength mean?
A high Financial Strength can signal that a stock is expensive relative to its fundamentals. The financial strength rank measures the strength of a company's balance sheet based on revenue and debt. View historical data on Meritage Homes and its competitors. Meritage Homes's current Financial Strength is 8, which is 14% above median its own 10-year median of 7.00. 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 Financial Strength is 8, which is 14% above median its 10-year median of 7.00. 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 Financial Strength calculated?
Financial Strength is calculated from a company's financial statements. For Meritage Homes (MTH), the current Financial Strength is 8 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:
Financial Strength: 8 (14% above median its 10-year median of 7.00)
GF Value™: $69.96 vs. price of $73.62 (5.2% above fair value)
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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