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3-Year Return on Invested Incremental Capital (3-Year ROIIC %) measures the change in earnings as a percentage of change in investment over 3-year.
Meritage Homes's 3-Year ROIIC % for the quarter that ended in Dec. 2025 was -28.41%. High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.
The industry rank for Meritage Homes's 3-Year ROIIC % or its related term are showing as below:
FRA:MEY's 3-Year ROIIC % is ranked worse than 80% of 90
companies
in the Homebuilding & Construction industry
Industry Median: -1.11
vs FRA:MEY: -28.41
Meritage Homes (FRA:MEY) 3-Year ROIIC % Explanation
Return on Incremental Invested Capital (ROIIC) is an extension of Return on Investment Capital (ROIC). ROIC % tells investors how efficiently that profitability is earned per dollar of company capital. ROIIC narrows the focus even further and shows how profitable each additional unit of capital investment could be. ROIIC % is a more powerful metric than ROIC because it measures how much money the company can generate going forward on future capital investments.
High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.
Be Aware
It's important to keep in mind that when tracking ROIIC, the metric is better suited to forecasting the trend of future returns rather than measuring current return on investment.
Meritage Homes 3-Year ROIIC % Related Terms
Meritage Homes 3-Year ROIIC % Historical Data
* Premium members only.
The historical data trend for Meritage Homes's 3-Year ROIIC % 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: 3-Year ROIIC % Comparison
For the Residential Construction subindustry, Meritage Homes's 3-Year ROIIC %, along with its competitors' market caps and 3-Year ROIIC % 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 3-Year ROIIC % vs Homebuilding & Construction Industry
For the Homebuilding & Construction industry and Consumer Cyclical sector, Meritage Homes's 3-Year ROIIC % distribution charts can be found below:
* The bar in red indicates where Meritage Homes's 3-Year ROIIC % 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.
** Annual data of NOPAT and Invested Capital was used to calculate 3-Year ROIIC %.
*** Please be aware that the ROIIC (Return on Invested Capital) calculations are based on company-level data using the primary share class. The calculated data provided is for demonstration purposes and may slightly differ from the results displayed in the title due to potential variations caused by currency exchange rate differences throughout the year.
Meritage Homes (FRA:MEY) has a 3-Year ROIIC % of -28.41 as of Dec. 2025. 3-Year ROIIC % measures the change in earnings as a percentage of change in investment over 3-year. View historical data on Meritage Homes and its competitors. According to the industry distribution chart, Meritage Homes ranks #72 out of 90 companies in the Homebuilding & Construction industry, placing it in the top 80%.
Is Meritage Homes' 3-Year ROIIC % too high?
Meritage Homes' current 3-Year ROIIC % is -28.41. Based on the distribution chart, Meritage Homes ranks #72 out of 90 companies in the Homebuilding & Construction industry, which is in the bottom quartile 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' 3-Year ROIIC % compare to IBP and SKY?
According to the Homebuilding & Construction industry distribution chart, Meritage Homes ranks #72 out of 90 companies for 3-Year ROIIC %. This places Meritage Homes in the lower half of its industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good 3-Year ROIIC % for a Homebuilding & Construction company?
A good 3-Year ROIIC % depends on the Homebuilding & Construction industry context. However, 3-Year ROIIC % 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 3-Year ROIIC % mean?
A high 3-Year ROIIC % can signal that a stock is expensive relative to its fundamentals. 3-Year ROIIC % measures the change in earnings as a percentage of change in investment over 3-year. View historical data on Meritage Homes and its competitors. Meritage Homes's current 3-Year ROIIC % is -28.41. 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 €58.28, compared to a current price of €66.00 — trading 13.2% above its estimated fair value. The current 3-Year ROIIC % is -28.41. 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 3-Year ROIIC % calculated?
3-Year ROIIC % is calculated from a company's financial statements. For Meritage Homes (FRA:MEY), the current 3-Year ROIIC % is -28.41 as of Dec. 2025. 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 €66.00 is trading 13.2% above its estimated GF Value™ of €58.28.
GuruFocus considers Meritage Homes to be Modestly Overvalued.
Key valuation signals for FRA:MEY:
3-Year ROIIC %: -28.41
GF Value™: €58.28 vs. price of €66.00 (13.2% above fair value)
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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3-Year ROIIC % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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