Meritage Homes (MTH) Stock Fundamentals, Analysis & Risk Signals

Health score, price, valuation, risk signals, and key metrics at a glance.

Meritage Homes

NYSE•Consumer Cyclical•Residential Construction

$63.96-1.82(-0.03%)Pre-market

Market Cap

$4.16B

P/E

12.6x

P/S

0.8x

P/B

0.8x

Meritage Homes Corporation, together with its subsidiaries, designs and builds single-family attached and detached homes in the United States. The company operates through two segments: Homebuilding and Financial Services. It acquires and develops land; and constructs, markets, and sells homes for entry-level and first move-up buyers in Arizona, California, Colorado, Utah, Texas, Alabama, Florida, Georgia, Mississippi, North Carolina, South Carolina, and Tennessee. The company also provides title and escrow, mortgage, insurance, title insurance, and closing/settlement services to its homebuyers. Meritage Homes Corporation was founded in 1985 and is based in Scottsdale, Arizona.

How this company scores

AverageMetricSide Score: 48/100

Strongest: Balance Sheet & Red Flags (23/25); weakest: Growth (3/25).

Profitability11/25

Growth3/25

Balance Sheet & Red Flags23/25

Cash & Earnings Quality11/25

Strengths

Low leverageInterest easily coveredNet cash positionImproving margins

Valuation vs. 5-year range

Today's multiple positioned against its own trailing range — a visual premium/discount check.

P/E · 12.6x5y range 2.7x – 12.6x

Currently above its 20-quarter median.

P/S · 0.8x5y range 0.5x – 1.2x

Currently near its 20-quarter median.

P/B · 0.8x5y range 0.7x – 1.5x

Watch items

Data-driven signals worth keeping an eye on across the last 8 quarters

High Risk

Margin Pressure

Red Flag

Operating margins dropped 42.0% over recent quarters — a sharp decline suggesting serious cost or pricing challenges.

Earnings Quality

Red Flag

Free cash flow has been negative in 4 of the last 8 quarters — earnings are not translating to cash.

Price & Volume

Market Cap $4.16B

Metrics at a Glance

as of June 2026

Revenue & Profit

Revenue, EBITDA, operating income, net income, EPS, and shares

TTM Revenue: $5.30B
Q. Revenue: $1.39B
TTM EBITDA: $438.42M
TTM Op. Income: $414.29M
Q. Op. Income: $122.91M
TTM Net Income: $329.27M
Q. Net Income: $90.63M
EPS: $1.38
Shares Out.: $65.79M

$5.30B in TTM revenue declined 13.6% YoY, reaching $1.39B last quarter. TTM EBITDA of $438.42M and TTM operating income of $414.29M show growth is flowing through to the bottom line. TTM net income of $329.27M means revenue is converting into profit. Across the last 8 quarters, TTM revenue has fallen for 7 consecutive quarters — a weakening trend.

Margins

Gross, EBITDA, operating, and net margin trends

Gross Margin: 18.3%
EBITDA Margin: 9.3%
Op. Margin: 8.9%
Net Margin: 6.5%

Op. margin of 8.9% is down 2.7% YoY — costs are rising relative to revenue. Net margin at 6.5% and gross margin of 18.3% show how much of each revenue dollar survives to profit. Across the last 8 quarters, operating margin has risen for 2 consecutive quarters — an improving trend.

Price Ratios

P/E, P/S, P/B, EV/EBITDA, FCF yield, and earnings yield

P/E Ratio: 12.6x
P/S Ratio: 0.8x
P/B Ratio: 0.8x

At 12.6x P/E, the stock trades below typical market levels. P/S of 0.8x and P/B of 0.8x provide additional context. Use the growth and margin sections to judge whether the multiple is justified. Across the last 8 quarters, P/E has risen for 6 consecutive quarters — a weakening trend.

Assets & Liabilities

Total assets, cash, debt, book value, and leverage

Total Assets: $7.55B
Cash: $807.27M
Long-Term Debt: $575.00M
Book Value: $5.06B
D/E Ratio: 0.1
Debt/EBITDA: 4.5

With $7.55B in assets and $575.00M in long-term debt, D/E is 0.1and book value is $5.06B — a conservative capital structure with a cushion to weather downturns. Across the last 8 quarters, debt/equity has risen for 2 consecutive quarters — a weakening trend.

Cash Flow

Operating cash flow, free cash flow, FCF margin, and earnings quality

Op. Cash Flow: $189.47M
TTM Free Cash Flow: $414.70M
FCF Margin: 7.8%
FCF / Net Income: 1.3

TTM FCF of $414.70M on $189.47M in operating cash flow. The FCF / Net Income ratio of 1.3x means free cash flow covers net income — earnings are backed by cash. Across the last 8 quarters, free cash flow has risen for 3 consecutive quarters — an improving trend.