Company Analysis Meritage Homes Corporation
1. Summary
Advantages
- Price (196.08 $) is less than fair price (222.47 $)
- Current debt level 16.72% is below 100% and has decreased over 5 years from 38.87%.
Disadvantages
- Dividends (1.02%) are below the sector average (1.55%).
- The stock's return over the last year (-5.67%) is lower than the sector average (5.02%).
- The company's current efficiency (ROE=16.02%) is lower than the sector average (ROE=20.55%)
Similar companies
2. Share price and performance
2.1. Share price
2.2. News
2.3. Market efficiency
| Meritage Homes Corporation | Industrials | Index | |
|---|---|---|---|
| 7 days | -8.4% | -6.1% | -1.7% |
| 90 days | -18.6% | -9.4% | 4.4% |
| 1 year | -5.7% | 5% | 25.5% |
MTH vs Sector: Meritage Homes Corporation has significantly underperformed the "Industrials" sector by -10.69% over the past year.
MTH vs Market: Meritage Homes Corporation has significantly underperformed the market by -31.13% over the past year.
Stable price: MTH is not significantly more volatile than the rest of the market on "New York Stock Exchange" over the last 3 months, with typical variations of +/- 5% per week.
Long period: MTH with weekly volatility of -0.109% over the past year.
3. Summary of the report
4. Fundamental Analysis
4.1. Stock price and price forecast
Below fair price: The current price (196.08 $) is lower than the fair price (222.47 $).
Price not significantly lower than the fair price: The current price (196.08 $) is slightly lower than the fair price by 13.5%.
4.2. P/E
P/E vs Sector: The company's P/E (8.71) is lower than that of the sector as a whole (34.54).
P/E vs Market: The company's P/E (8.71) is lower than that of the market as a whole (47.35).
4.2.1 P/E Similar companies
4.3. P/BV
P/BV vs Sector: The company's P/BV (1.39) is lower than that of the sector as a whole (5.48).
P/BV vs Market: The company's P/BV (1.39) is lower than that of the market as a whole (22.69).
4.3.1 P/BV Similar companies
4.4. P/S
P/S vs Sector: The company's P/S indicator (1.05) is lower than that of the sector as a whole (3.27).
P/S vs Market: The company's P/S indicator (1.05) is lower than that of the market as a whole (15.16).
4.4.1 P/S Similar companies
4.5. EV/Ebitda
EV/Ebitda vs Sector: The company's EV/Ebitda (5.17) is lower than that of the sector as a whole (14.5).
EV/Ebitda vs Market: The company's EV/Ebitda (5.17) is lower than that of the market as a whole (17.77).
5. Profitability
5.1. Profitability and revenue
5.2. Earnings per share - EPS
5.3. Past profitability Net Income
Yield Trend: Rising and has grown by 39.17% over the last 5 years.
Earnings Slowdown: The last year's return (0%) is below the 5-year average return (39.17%).
Profitability vs Sector: The return for the last year (0%) is lower than the return for the sector (14.9%).
5.4. ROE
ROE vs Sector: The company's ROE (16.02%) is lower than that of the sector as a whole (20.55%).
ROE vs Market: The company's ROE (16.02%) is lower than that of the market as a whole (17.13%).
5.5. ROA
ROA vs Sector: The company's ROA (11.63%) is higher than that of the sector as a whole (6.9%).
ROA vs Market: The company's ROA (11.63%) is higher than that of the market as a whole (6.51%).
5.6. ROIC
ROIC vs Sector: The company's ROIC (20.89%) is higher than that of the sector as a whole (12.43%).
ROIC vs Market: The company's ROIC (20.89%) is higher than that of the market as a whole (9.31%).
7. Dividends
7.1. Dividend yield vs Market
Low yield: The dividend yield of the company 1.02% is below the average for the sector '1.55%.
7.2. Stability and increase in payments
Dividend stability: The company's dividend yield 1.02% has been steadily paid over the past 7 years, DSI=0.86.
Weak dividend growth: The company's dividend yield 1.02% has been growing weakly or stagnant over the past 5 years. Growth over only 1 year.
7.3. Payout percentage
Dividend Coverage: Current payments from income (5.35%) are at an uncomfortable level.
8. Insider trades
8.1. Insider trading
Insider Buying Exceeds insider sales by 100% over the last 3 months.
8.2. Latest transactions
| Transaction date | Insider | Type | Price | Volume | Quantity |
|---|---|---|---|---|---|
| 13.03.2024 | Lord Phillippe Chief Executive Officer |
Sale | 162.79 | 406 975 | 2 500 |
| 29.10.2021 | WHITE C TIMOTHY EVP - Gen. Counsel, Secretary |
Sale | 110.08 | 1 436 980 | 13 054 |
| 29.10.2021 | AX PETER L Director |
Sale | 112.26 | 561 300 | 5 000 |
| 16.08.2021 | Szubinski Clinton EVP - Chief Operating Officer |
Sale | 114.75 | 100 406 | 875 |
| 10.03.2021 | Sferruzza Hilla Chief Financial Officer |
Sale | 90 | 318 600 | 3 540 |
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