Focused on building reliable datasets, financial models, and research tools for value-minded investors. Committed to turning complex data into practical guidance for value-investing and long-term wealth.
Dr. Charlie Tian is the founder and CEO of GuruFocus.com, a leading global investment research platform established in 2004. With a Ph.D. in physics, Dr. Tian transitioned from science to finance, applying a data-driven, disciplined approach to value investing.
Return on Retained Earnings (RORE) is an indicator of a company's growth potential, it shows how much a company earns by reinvesting its retained earnings, i.e. profits after dividend payments.
Meritage Homes's 10-Year RORE % for the quarter that ended in Jun. 2026 was 4.37%.
The industry rank for Meritage Homes's 10-Year RORE % or its related term are showing as below:
FRA:MEY's 10-Year RORE % is ranked worse than 52.78% of 72
companies
in the Homebuilding & Construction industry
Industry Median: 5.235
vs FRA:MEY: 4.37
Meritage Homes (FRA:MEY) 10-Year RORE % Explanation
Return on Retained Earnings (RORE) is important to investors because it reveals a company's efficiency and growth potential. A higher RORE indicates a higher return. A high RORE indicates that the company should reinvest profits into the business. A lower RORE suggests that the company should distribute profits to shareholders by paying out dividends, since those dollars aren't generating much additional growth for the company.
There are a several different ways to arrive at the Return on Retained Earnings. The simplest way to calculate it is by using published information on Earnings per Share (EPS) and Dividend per Share (DPS) over a selected period. Here, 10-year period is chosen.
Be Aware
Please keep in mind that the RORE is relative to the nature of the business and its competitors. If another company in the same sector is producing a lower return on retained earnings, it doesn’t necessarily mean it’s a bad investment. It may just suggest the company is older and no longer in a high growth stage. At such a stage in the business cycle, it would be expected to see a lower RORE and higher dividend payout.
Meritage Homes 10-Year RORE % Related Terms
Meritage Homes 10-Year RORE % Historical Data
* Premium members only.
The historical data trend for Meritage Homes's 10-Year RORE % 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 SKY, CVCO, MHO: 10-Year RORE % Comparison
For the Residential Construction subindustry, Meritage Homes's 10-Year RORE %, along with its competitors' market caps and 10-Year RORE % 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 10-Year RORE % vs Homebuilding & Construction Industry
For the Homebuilding & Construction industry and Consumer Cyclical sector, Meritage Homes's 10-Year RORE % distribution charts can be found below:
* The bar in red indicates where Meritage Homes's 10-Year RORE % 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 10-Year RORE %, the most recent and first period EPS (Diluted) is the trailing twelve months (TTM) data ended in Jun. 2026 and 10-year before.
Meritage Homes (FRA:MEY) has a 10-Year RORE % of 4.37 as of Jun. 2026. 10-Year RORE % shows how much a company earns by reinvesting its retained earnings in 10-year. View historical data on Meritage Homes and its competitors. According to the industry distribution chart, Meritage Homes ranks #38 out of 72 companies in the Homebuilding & Construction industry, placing it in the top 52.8%.
Is Meritage Homes' 10-Year RORE % too high?
Meritage Homes' current 10-Year RORE % is 4.37. The Homebuilding & Construction industry median 10-Year RORE % is 5.24. Meritage Homes' value of 4.37 is 16.5% below this industry median. Based on the distribution chart, Meritage Homes ranks #38 out of 72 companies in the Homebuilding & Construction industry, which is below the industry midpoint. Overall, Meritage Homes has a GF Score™ of 83/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Meritage Homes' 10-Year RORE % compare to SKY and CVCO?
According to the Homebuilding & Construction industry distribution chart, Meritage Homes ranks #38 out of 72 companies for 10-Year RORE %. This places Meritage Homes in the lower half of its industry. The industry median 10-Year RORE % is 5.24. Meritage Homes' value of 4.37 is 16.5% 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 10-Year RORE % for a Homebuilding & Construction company?
The median 10-Year RORE % among Homebuilding & Construction companies is 5.24, based on 72 companies in the industry. Companies in the top quartile (top 25%) have a 10-Year RORE % significantly above this median, while those in the bottom quartile fall well below. However, 10-Year RORE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Meritage Homes's current 10-Year RORE % of 4.37 is 16.5% 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 10-Year RORE % mean?
A high 10-Year RORE % can signal that a stock is expensive relative to its fundamentals. 10-Year RORE % shows how much a company earns by reinvesting its retained earnings in 10-year. View historical data on Meritage Homes and its competitors. For the Homebuilding & Construction industry, the median 10-Year RORE % is 5.24 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Meritage Homes's current 10-Year RORE % is 4.37. 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 €60.50, compared to a current price of €61.00 — trading 0.8% above its estimated fair value. The current 10-Year RORE % is 4.37 and 16.5% below the Homebuilding & Construction industry median of 5.24. Meritage Homes' overall GF Score™ is 83/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is 10-Year RORE % calculated?
10-Year RORE % is calculated from a company's financial statements. For Meritage Homes (FRA:MEY), the current 10-Year RORE % is 4.37 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 (FRA:MEY) Overvalued in 2026?
Based on GuruFocus' analysis, Meritage Homes stock appears to be overvalued.
The current stock price of €61.00 is trading 0.8% above its estimated GF Value™ of €60.50.
GuruFocus considers Meritage Homes to be Fairly Valued.
Key valuation signals for FRA:MEY:
10-Year RORE %: 4.37
GF Value™: €60.50 vs. price of €61.00 (0.8% above fair value)
Industry Position: 16.5% below the Homebuilding & Construction median (#38 of 72)
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.
83GF Score
Get the complete analysis for FRA:MEY
10-Year RORE % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
FRA:MEY has been successfully added to your 
