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Meritage HomesFRA:MEY 81 Return-on-Tangible-Asset is 2.93% as of Mar. 2026, which is 69% below its 10-year median of 9.51. GuruFocus rates FRA:MEY with a GF Score™ of 81/100 and a GF Value™ of €58.31 (Fairly Valued). The stock has 6 warning signs investors should review. Among 95 Homebuilding & Construction companies, Meritage Homes ranks better than 67.37% on this metric.
Return-on-Tangible-Asset is calculated as Net Income divided by its average total tangible assets. Total tangible assets equals to Total Assets minus Intangible Assets. Meritage Homes's annualizedNet Income for the quarter that ended in Mar. 2026 was €191 Mil. Meritage Homes's average total tangible assets for the quarter that ended in Mar. 2026 was €6,522 Mil. Therefore, Meritage Homes's annualized Return-on-Tangible-Asset for the quarter that ended in Mar. 2026 was 2.93%.
The historical rank and industry rank for Meritage Homes's Return-on-Tangible-Asset or its related term are showing as below:
FRA:MEY'
s Return-on-Tangible-Asset Range Over the Past 10 Years
Min: 4.72 Med: 9.51 Max: 18.76
Current: 5.02
During the past 13 years, Meritage Homes's highest Return-on-Tangible-Asset was 18.76%. The lowest was 4.72%. And the median was 9.51%.
FRA:MEY's Return-on-Tangible-Asset is ranked better than 67.37% of 95
companies
in the Homebuilding & Construction industry
Industry Median: 3.44
vs FRA:MEY: 5.02
Meritage Homes (FRA:MEY) Return-on-Tangible-Asset Explanation
Return-on-Tangible-Asset measures the rate of return on the average total tangible assets (total assets minus intangible assets). Tangible means physical in nature. Intangible Assets are assets that are not physical in nature, and typically "derive their value from legal or intellectual rights." Return-on-Tangible-Asset measures a firm's efficiency at generating profits from its tangible assets. It shows how well a company uses what it has to generate earnings. Return-on-Tangible-Assets can vary drastically across industries. Therefore, Return-on-Tangible-Asset should not be used to compare companies in different industries.
Be Aware
Like ROE and ROA, Return-on-Tangible-Asset is calculated with only 12 months data. Fluctuations in the companys earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective. Return-on-Tangible-Asset can be affected by events such as stock buyback or issuance, and by a companys tax rate and its interest payment. Return-on-Tangible-Asset may not reflect the true earning power of the assets. A more accurate measurement is ROC % (ROC).
Many analysts argue the higher return the better. Buffett states that really high Return-on-Tangible-Asset may indicate vulnerability in the durability of the competitive advantage.
Meritage Homes Return-on-Tangible-Asset Related Terms
Meritage Homes Return-on-Tangible-Asset Historical Data
* Premium members only.
The historical data trend for Meritage Homes's Return-on-Tangible-Asset 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 IBP, SKY, CVCO: Return-on-Tangible-Asset Comparison
For the Residential Construction subindustry, Meritage Homes's Return-on-Tangible-Asset, along with its competitors' market caps and Return-on-Tangible-Asset 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 Return-on-Tangible-Asset vs Homebuilding & Construction Industry
For the Homebuilding & Construction industry and Consumer Cyclical sector, Meritage Homes's Return-on-Tangible-Asset distribution charts can be found below:
* The bar in red indicates where Meritage Homes's Return-on-Tangible-Asset 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 the calculation of annual Return-on-Tangible-Asset, the net income of the last fiscal year and the average total tangible assets over the fiscal year are used. In calculating the quarterly data,
the Net Income data used here is four times the quarterly (Mar. 2026) net income data.
What does a Return-on-Tangible-Asset of 2.93% mean?
Meritage Homes (FRA:MEY) has a Return-on-Tangible-Asset of 2.93% as of Mar. 2026. Return on tangible assets is the ratio of current-period net income to average two-period tangible assets. View historical data on Meritage Homes and its competitors. This is 69% below median its historical median of 9.51. Over the past decade, Meritage Homes' Return-on-Tangible-Asset has ranged from 4.72 to 18.76. According to the industry distribution chart, Meritage Homes ranks #31 out of 95 companies in the Homebuilding & Construction industry, placing it in the top 32.6%.
Is Meritage Homes' Return-on-Tangible-Asset too high?
Meritage Homes' current Return-on-Tangible-Asset of 2.93% is 69% below median its 10-year median of 9.51. Over the past 10 years, this metric has ranged from a low of 4.72 to a high of 18.76. The Homebuilding & Construction industry median Return-on-Tangible-Asset is 3.44. Meritage Homes' value of 2.93% is 14.8% below this industry median. Based on the distribution chart, Meritage Homes ranks #31 out of 95 companies in the Homebuilding & Construction industry, which is above the industry midpoint. Overall, Meritage Homes has a GF Score™ of 81/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Meritage Homes' Return-on-Tangible-Asset compare to IBP and SKY?
According to the Homebuilding & Construction industry distribution chart, Meritage Homes ranks #31 out of 95 companies for Return-on-Tangible-Asset. This puts Meritage Homes in the upper half of its industry. The industry median Return-on-Tangible-Asset is 3.44. Meritage Homes' value of 2.93% is 14.8% below this benchmark. Historically, Meritage Homes' own Return-on-Tangible-Asset has ranged from 4.72 to 18.76 over the past decade. While the company's 10-year median is 9.51 vs. the industry median of 3.44, Meritage Homes has consistently been below 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 Return-on-Tangible-Asset for a Homebuilding & Construction company?
The median Return-on-Tangible-Asset among Homebuilding & Construction companies is 3.44, based on 95 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Asset significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Asset should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Meritage Homes's current Return-on-Tangible-Asset of 2.93% is 14.8% below 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 Return-on-Tangible-Asset mean?
A high Return-on-Tangible-Asset can signal that a stock is expensive relative to its fundamentals. Return on tangible assets is the ratio of current-period net income to average two-period tangible assets. View historical data on Meritage Homes and its competitors. For the Homebuilding & Construction industry, the median Return-on-Tangible-Asset is 3.44 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Meritage Homes's current Return-on-Tangible-Asset is 2.93%, which is 69% below median its own 10-year median of 9.51. 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 Fairly Valued. The stock's GF Value™ is €58.31, compared to a current price of €62.00 — trading 6.3% above its estimated fair value. The current Return-on-Tangible-Asset is 2.93%, which is 69% below median its 10-year median of 9.51 and 14.8% below the Homebuilding & Construction industry median of 3.44. Meritage Homes' overall GF Score™ is 81/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Return-on-Tangible-Asset calculated?
Return-on-Tangible-Asset is calculated from a company's financial statements. For Meritage Homes (FRA:MEY), the current Return-on-Tangible-Asset is 2.93% 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 €62.00 is trading 6.3% above its estimated GF Value™ of €58.31.
GuruFocus considers Meritage Homes to be Fairly Valued.
Key valuation signals for FRA:MEY:
Return-on-Tangible-Asset: 2.93% (69% below median its 10-year median of 9.51)
GF Value™: €58.31 vs. price of €62.00 (6.3% above fair value)
Industry Position: 14.8% below the Homebuilding & Construction median (#31 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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Return-on-Tangible-Asset is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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