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Meritage HomesFRA:MEY 81 5-Year Yield-on-Cost % is 2.54 as of Jul. 26, 2026, which is 83% above its 10-year median of 1.39. 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 53 Homebuilding & Construction companies, Meritage Homes ranks worse than 75.47% on this metric.
Meritage Homes's yield on cost for the quarter that ended in Mar. 2026 was 2.54.
The historical rank and industry rank for Meritage Homes's 5-Year Yield-on-Cost % or its related term are showing as below:
FRA:MEY'
s 5-Year Yield-on-Cost % Range Over the Past 10 Years
Min: 0.2 Med: 1.39 Max: 2.99
Current: 2.54
During the past 13 years, Meritage Homes's highest Yield on Cost was 2.99. The lowest was 0.20. And the median was 1.39.
FRA:MEY's 5-Year Yield-on-Cost % is ranked worse than 75.47% of 53
companies
in the Homebuilding & Construction industry
Industry Median: 4.21
vs FRA:MEY: 2.54
Meritage Homes (FRA:MEY) 5-Year Yield-on-Cost % Explanation
Of course the risk here is that the company may not raise its dividends as it did before. The key is to select the companies that can consistently raise its dividends. Usually companies with long history of raising dividends tend to do so.
Meritage Homes 5-Year Yield-on-Cost % Related Terms
FRA:MEY vs SKY, CVCO, MHO: 5-Year Yield-on-Cost % Comparison
For the Residential Construction subindustry, Meritage Homes's 5-Year Yield-on-Cost %, along with its competitors' market caps and 5-Year Yield-on-Cost % 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 5-Year Yield-on-Cost % vs Homebuilding & Construction Industry
For the Homebuilding & Construction industry and Consumer Cyclical sector, Meritage Homes's 5-Year Yield-on-Cost % distribution charts can be found below:
* The bar in red indicates where Meritage Homes's 5-Year Yield-on-Cost % falls into.
Dividend Yield % and dividend growth of a stock is an important factor for income investors. But if company A raises its dividend constantly faster than company B, company A's future dividend yield might be much higher than Company B's even if their yields are the same now and their stock prices do not change.
Yield on Cost assumes that you buy and the stock today, and hold it for 5 years. If the company raises it dividends at the same rate as it did over the past 5 years, the dividends investors receive annually in 5 years relative to the stock price today.
Therefore, Yield-on-Cost of Meritage Homes is calculated as
Meritage Homes (FRA:MEY) has a 5-Year Yield-on-Cost % of 2.54 as of Jul. 26, 2026. 5-Year Yield on Cost measures the expected yield based on a company's current yield and 5-year dividend growth. View historical data on Meritage Homes and its competitors. This is 83% above median its historical median of 1.39. Over the past decade, Meritage Homes' 5-Year Yield-on-Cost % has ranged from 0.20 to 2.99. According to the industry distribution chart, Meritage Homes ranks #40 out of 53 companies in the Homebuilding & Construction industry, placing it in the top 75.5%.
Is Meritage Homes' 5-Year Yield-on-Cost % too high?
Meritage Homes' current 5-Year Yield-on-Cost % of 2.54 is 83% above median its 10-year median of 1.39. Over the past 10 years, this metric has ranged from a low of 0.20 to a high of 2.99. The Homebuilding & Construction industry median 5-Year Yield-on-Cost % is 4.21. Meritage Homes' value of 2.54 is 39.7% below this industry median. Based on the distribution chart, Meritage Homes ranks #40 out of 53 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 Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Meritage Homes' 5-Year Yield-on-Cost % compare to SKY and CVCO?
According to the Homebuilding & Construction industry distribution chart, Meritage Homes ranks #40 out of 53 companies for 5-Year Yield-on-Cost %. This places Meritage Homes in the lower half of its industry. The industry median 5-Year Yield-on-Cost % is 4.21. Meritage Homes' value of 2.54 is 39.7% below this benchmark. Historically, Meritage Homes' own 5-Year Yield-on-Cost % has ranged from 0.20 to 2.99 over the past decade. While the company's 10-year median is 1.39 vs. the industry median of 4.21, 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 5-Year Yield-on-Cost % for a Homebuilding & Construction company?
The median 5-Year Yield-on-Cost % among Homebuilding & Construction companies is 4.21, based on 53 companies in the industry. Companies in the top quartile (top 25%) have a 5-Year Yield-on-Cost % significantly above this median, while those in the bottom quartile fall well below. However, 5-Year Yield-on-Cost % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Meritage Homes's current 5-Year Yield-on-Cost % of 2.54 is 39.7% 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 5-Year Yield-on-Cost % mean?
A high 5-Year Yield-on-Cost % can signal that a stock is expensive relative to its fundamentals. 5-Year Yield on Cost measures the expected yield based on a company's current yield and 5-year dividend growth. View historical data on Meritage Homes and its competitors. For the Homebuilding & Construction industry, the median 5-Year Yield-on-Cost % is 4.21 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Meritage Homes's current 5-Year Yield-on-Cost % is 2.54, which is 83% above median its own 10-year median of 1.39. 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 5-Year Yield-on-Cost % is 2.54, which is 83% above median its 10-year median of 1.39 and 39.7% below the Homebuilding & Construction industry median of 4.21. 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 5-Year Yield-on-Cost % calculated?
5-Year Yield-on-Cost % is calculated from a company's financial statements. For Meritage Homes (FRA:MEY), the current 5-Year Yield-on-Cost % is 2.54 as of Jul. 26, 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:
5-Year Yield-on-Cost %: 2.54 (83% above median its 10-year median of 1.39)
GF Value™: €58.31 vs. price of €62.00 (6.3% above fair value)
Industry Position: 39.7% below the Homebuilding & Construction median (#40 of 53)
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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