Meritage Homes (FRA:MEY) ROCE %: 4.15% (As of Mar. 2026)

What is Meritage Homes ROCE %?

Meritage Homes FRA:MEY +9.16% 79 ROCE % is 4.15% as of Mar. 2026. GuruFocus rates FRA:MEY with a GF Score™ of 79/100 and a GF Value™ of €59.18 (Modestly Overvalued). The stock has 10 warning signs investors should review.

ROCE % measures how well a company generates profits from its capital. It is calculated as EBIT divided by Capital Employed, where Capital Employed is calculated as Total Assets minus Total Current Liabilities. Meritage Homes's annualized ROCE % for the quarter that ended in Mar. 2026 was 4.15%.

Meritage Homes (FRA:MEY) ROCE % Explanation

ROCE % can be especially useful when comparing the performance of capital-intensive companies. Unlike ROE %, which indicates the profitability of Shareholders Equity, ROCE % also considers long-term debt in Capital Employed. This can be helpful when analyzing companies with significant debt, as the result is neutralized by taking debt into consideration.

Generally speaking, a higher ROCE % indicates a stonger profitability for a company. Moreover, it is important to look at the ratio from a long term perspective. Investors tend to favor companies with stable and rising ROCE % trend over those with volatile ones.

Meritage Homes ROCE % Related Terms

Meritage Homes ROCE % Historical Data

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The historical data trend for Meritage Homes's ROCE % 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.

Meritage Homes ROCE % Chart

Meritage Homes Annual Data

Trend

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Dec24

Dec25

ROCE %

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25.67

28.16

17.23

16.64

8.09

Meritage Homes Quarterly Data
	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24	Jun24	Sep24	Dec24	Mar25	Jun25	Sep25	Dec25	Mar26
ROCE %	Get a 7-Day Free Trial															9.22	10.44	7.06	5.77	4.15

79GF Score

Meritage Homes Corp FRA:MEY

ROCE % is just one metric. See GF Score™, valuation, warning signs, and more.

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Meritage Homes ROCE % Calculation

Meritage Homes's annualized ROCE % for the fiscal year that ended in Dec. 2025 is calculated as:

ROCE %	=	EBIT	/	( (Capital Employed	+	Capital Employed)	/ count )
		(A: Dec. 2025 )		(A: Dec. 2024 )		(A: Dec. 2025 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(A: Dec. 2025 )		(A: Dec. 2024 )		(A: Dec. 2025 )
	=	499.248	/	( ( (6840.335 - 569.834)	+	(6509.433 - 435.918) )	/ 2 )
	=	499.248	/	( (6270.501	+	6073.515)	/ 2 )
	=	499.248	/	6172.008
	=	8.09 %

Meritage Homes's ROCE % of for the quarter that ended in Mar. 2026 is calculated as:

ROCE %	=	EBIT ⁽¹⁾	/	( (Capital Employed	+	Capital Employed)	/ count )
		(Q: Mar. 2026 )		(Q: Dec. 2025 )		(Q: Mar. 2026 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(Q: Mar. 2026 )		(Q: Dec. 2025 )		(Q: Mar. 2026 )
	=	252.964	/	( ( (6509.433 - 435.918)	+	(6534.739 - 408.968) )	/ 2 )
	=	252.964	/	( ( 6073.515	+	6125.771 )	/ 2 )
	=	252.964	/	6099.643
	=	4.15 %

(1) Note: The EBIT data used here is four times the quarterly (Mar. 2026) EBIT data.

Frequently Asked Questions Learn more about ROCE % →

What does a ROCE % of 4.15% mean?

Meritage Homes (FRA:MEY) has a ROCE % of 4.15% as of Mar. 2026.

Is Meritage Homes' ROCE % too high?

Meritage Homes' current ROCE % is 4.15%. The Homebuilding & Construction industry median ROCE % is 8.02. Meritage Homes' value of 4.15% is 48.3% below this industry median. 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' ROCE % compare to CVCO and SKY?

Meritage Homes' ROCE % of 4.15% can be compared against companies in the Homebuilding & Construction industry. The industry median ROCE % is 8.02. Meritage Homes' value of 4.15% is 48.3% below this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.

What is a good ROCE % for a Homebuilding & Construction company?

The median ROCE % among Homebuilding & Construction companies is 8.02, based on 95 companies in the industry. Companies in the top quartile (top 25%) have a ROCE % significantly above this median, while those in the bottom quartile fall well below. However, ROCE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Meritage Homes's current ROCE % of 4.15% is 48.3% 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 ROCE % mean?

A high ROCE % can signal that a stock is expensive relative to its fundamentals. For the Homebuilding & Construction industry, the median ROCE % is 8.02 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Meritage Homes's current ROCE % is 4.15%. 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 €59.18, compared to a current price of €71.50 — trading 20.8% above its estimated fair value. The current ROCE % is 4.15% and 48.3% below the Homebuilding & Construction industry median of 8.02. 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 ROCE % calculated?

ROCE % is calculated from a company's financial statements. For Meritage Homes (FRA:MEY), the current ROCE % is 4.15% 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 €71.50 is trading 20.8% above its estimated GF Value™ of €59.18. GuruFocus considers Meritage Homes to be Modestly Overvalued.

Key valuation signals for FRA:MEY:

ROCE %: 4.15%
GF Value™: €59.18 vs. price of €71.50 (20.8% above fair value)
GF Score™: 79/100 with 10 warning signs
Industry Position: 48.3% below the Homebuilding & Construction median

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 Business Description

Industry Consumer Cyclical Homebuilding & Construction

Comparable Companies CVCO SKY MHO TMHC KBH IBP GRBK DFH LGIH BZH DHI PHM LEN NVR TSE:1928 TOL TSE:1911 LSE:BTRW LSE:PSN TSE:1808

Other Exchanges MTH:USA

Address 18655 North Claret Drive, Suite 400, Scottsdale, AZ, USA, 85255

Website https://www.meritagehomes.com

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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ROCE % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

€71.50

Price

€59.18

GF Value

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