Meritage Homes Corporation (MTH)
For informational purposes only. Not financial advice. Analysis by Sedat ANAK, Founder & Editor-in-Chief | AI-powered analysis. Data sourced from SEC filings and institutional-grade financial providers. Editorially reviewed. Not financial advice.
Meritage Homes Corporation (MTH) trades at $80.42 with AI Score 73/100 (Grade A). Meritage Homes Corporation designs and builds single-family homes in the United States, targeting first-time and first move-up buyers. Market cap: $5.37B, Sector: Consumer cyclical.
Price live · AI analysis from May 9, 2026MTH stock analysis for 2026: Analysts have set a consensus price target of $96.33 for Meritage Homes Corporation, suggesting 19.8% upside from the current price of $80.42. The AI MoonshotScore is 73/100, indicating a bullish outlook. Key factors: analyst coverage, AI-driven quantitative scoring.
MTH: 1/1 perspectives are bullish.
How is this calculated? →Meritage Homes Corporation (MTH) Consumer Business Overview
Meritage Homes Corporation, a residential construction company, focuses on designing and building single-family homes for first-time and move-up buyers across multiple states. With a presence in key markets and integrated financial services, Meritage competes in the cyclical housing sector, balancing growth and profitability.
What Is the Investment Thesis for MTH?
Meritage Homes Corporation presents a compelling investment case based on its strategic focus on first-time and move-up buyers in high-growth markets. With a P/E ratio of 10.2 and a dividend yield of 2.72%, the company offers a blend of value and income. Key growth catalysts include expansion into new markets and continued demand for housing. The company's Financial Services segment enhances profitability by providing ancillary services. However, investors should be aware of potential risks such as fluctuations in interest rates and economic downturns, which could impact housing demand. The company's beta of 1.51 indicates higher volatility compared to the market. Overall, Meritage Homes' strategic positioning and integrated business model support a positive outlook, contingent on macroeconomic conditions and effective execution.
Based on FMP financials and quantitative analysis
MTH Key Highlights
- Market Cap of $5.37B reflects Meritage Homes' significant presence in the residential construction market.
- P/E Ratio of 10.2 suggests the company may be undervalued compared to its earnings.
- Profit Margin of 6.9% indicates the company's ability to generate profit from its revenue.
- Gross Margin of 18.7% demonstrates the company's efficiency in managing production costs.
- Dividend Yield of 2.72% provides investors with a steady income stream.
Who Are MTH's Competitors?
MTH is benchmarked below against 8 industry peers on price, market cap, and our AI MoonshotScore.
| Company | Price | Change | Market Cap | AI Score |
|---|---|---|---|---|
| EAT Brinker International, Inc. | $175.26 | -1.38% | $7.52B | 93 |
| SKY Champion Homes, Inc. | $82.94 | -2.71% | $4.55B | 86 |
| CVCO Cavco Industries, Inc. | $585.92 | -2.14% | $4.52B | 89 |
| ABG Asbury Automotive Group, Inc. | $205.90 | +0.24% | $3.83B | 73 |
| TPH Tri Pointe Homes, Inc. | $46.95 | -0.04% | $4.00B | 46 |
| NNRHF Neinor Homes, S.A. | $16.01 | +0.00% | $1.58B | 55 |
| ASNXF Asante Incorporated | $12.13 | -15.17% | $118.55M | 55 |
| BKGFF The Berkeley Group Holdings plc | $47.00 | +2.17% | $4.33B | 52 |
AI Score by Stock Expert AI · Price data: FMP / Yahoo Finance
What Are MTH's Key Strengths?
- Strong brand recognition in key markets.
- Integrated Financial Services segment.
- Focus on energy-efficient homes.
- Strategic land acquisition capabilities.
What Are MTH's Weaknesses?
- Exposure to cyclicality of the housing market.
- Dependence on economic conditions and interest rates.
- Geographic concentration in certain states.
- Vulnerability to supply chain disruptions and rising construction costs.
What Could Drive MTH Stock Higher?
- Potential interest rate cuts by the Federal Reserve could stimulate housing demand.
- Continued population growth in key markets such as Texas and Florida.
- Increasing demand for energy-efficient homes due to rising energy costs.
- Strategic land acquisitions in high-growth areas.
What Are the Key Risks for MTH?
- Economic downturn or recession could negatively impact housing demand.
- Rising interest rates could increase mortgage costs and reduce affordability.
- Supply chain disruptions and rising construction costs could impact profitability.
- Increased competition from other homebuilders could erode market share.
What Are the Growth Opportunities for MTH?
- Expansion into New Markets: Meritage Homes has the opportunity to expand its operations into new geographic markets, particularly in regions with strong population growth and favorable economic conditions. This expansion could drive revenue growth and increase the company's market share. The U.S. housing market is projected to reach $1.2 trillion in 2026, providing ample opportunity for Meritage to capture a larger share through strategic expansion. Timeline: Ongoing.
- Focus on Energy-Efficient Homes: With increasing consumer awareness of environmental issues and rising energy costs, Meritage Homes can capitalize on the demand for energy-efficient homes. By incorporating sustainable building practices and energy-saving technologies, the company can attract environmentally conscious buyers and differentiate itself from competitors. The green building market is expected to reach $363.5 billion by 2027. Timeline: Ongoing.
- Enhancement of Financial Services Segment: Meritage Homes can further enhance its Financial Services segment by offering a wider range of services and products to its homebuyers. This could include mortgage financing, insurance products, and other related services. By providing a one-stop-shop for homebuyers, the company can increase customer satisfaction and generate additional revenue. The mortgage origination market is estimated at $1.6 trillion in 2026. Timeline: Ongoing.
- Strategic Land Acquisition: Acquiring land in strategic locations is crucial for Meritage Homes' growth. By securing land in areas with high demand and limited supply, the company can ensure a steady pipeline of building opportunities and maintain its competitive advantage. The land acquisition market in the U.S. is valued at approximately $200 billion annually. Timeline: Ongoing.
- Leveraging Technology: Meritage Homes can leverage technology to improve its operational efficiency and enhance the customer experience. This could include implementing advanced construction technologies, utilizing data analytics to optimize pricing and marketing strategies, and developing user-friendly online platforms for homebuyers. The construction technology market is projected to reach $15.7 billion by 2026. Timeline: Ongoing.
What Opportunities Does MTH Have?
- Expansion into new geographic markets.
- Increased demand for energy-efficient homes.
- Further development of the Financial Services segment.
- Leveraging technology to improve operational efficiency.
What Threats Does MTH Face?
- Economic downturns and recessions.
- Rising interest rates and mortgage costs.
- Increased competition from other homebuilders.
- Changes in government regulations and policies.
What Are MTH's Competitive Advantages?
- Established brand reputation in key markets.
- Integrated Financial Services segment provides a competitive advantage.
- Focus on energy-efficient homes appeals to environmentally conscious buyers.
- Strategic land acquisition ensures a steady pipeline of building opportunities.
What Does MTH Do?
Meritage Homes Corporation, founded in 1985 and headquartered in Scottsdale, Arizona, is a leading homebuilder in the United States. The company operates through two primary segments: Homebuilding and Financial Services. The Homebuilding segment is involved in the acquisition and development of land, as well as the construction, marketing, and sale of single-family homes. Meritage targets first-time and first move-up buyers, offering a range of home designs and communities. The Financial Services segment provides title insurance and closing/settlement services to its homebuyers, streamlining the purchasing process. Meritage Homes operates in several states, including Texas, Arizona, California, Colorado, Florida, North Carolina, South Carolina, Georgia, and Tennessee, under the Meritage Homes brand. The company has established a significant presence in these markets by focusing on energy-efficient homes and innovative designs. Meritage Homes differentiates itself through its commitment to building quality homes and providing comprehensive services to its customers, contributing to its market position in the residential construction industry.
What Products and Services Does MTH Offer?
- Designs and builds single-family homes in the United States.
- Acquires and develops land for residential construction.
- Markets and sells homes to first-time and move-up buyers.
- Offers title insurance services to homebuyers.
- Provides closing and settlement services.
- Operates in multiple states, including Texas, Arizona, and Florida.
How Does MTH Make Money?
- Generates revenue from the sale of single-family homes.
- Earns fees from providing title insurance and closing services.
- Acquires and develops land for residential construction.
- Manages construction costs to maintain profitability.
What Industry Does MTH Operate In?
Meritage Homes operates within the residential construction industry, which is influenced by factors such as interest rates, economic growth, and demographic trends. The market is characterized by intense competition among national and regional homebuilders. Meritage Homes differentiates itself through its focus on energy-efficient homes and integrated financial services. The industry is currently experiencing growth due to increasing demand for housing, particularly among first-time and move-up buyers. However, the industry is also facing challenges such as rising construction costs and supply chain disruptions. Competitors like CVCO: Cavco Industries, Inc. and TPH: Tri Pointe Homes, Inc. also vie for market share.
Who Are MTH's Key Customers?
- First-time homebuyers seeking affordable housing.
- Move-up buyers looking for larger or more luxurious homes.
- Individuals and families seeking homes in specific geographic locations.
- Customers who value energy-efficient and sustainable homes.
FY2026 estForward Outlook
Wall Street analysts project Meritage Homes Corporation revenue of about $5.48B for fiscal 2026, with EPS near $4.99. The estimate reflects 7 contributing analysts.
ROE 7%Key Financial Metrics
Return on equity for Meritage Homes Corporation stands at 7.4%, a gauge of how efficiently it converts shareholder capital into profit. Return on assets is 5.1%, showing how much profit it generates from its asset base. MTH trades at a trailing price-to-earnings ratio of 10.16, below the Consumer Cyclical sector average of ~39x. Its free cash flow yield is 4.3%, a gauge of the cash the business throws off relative to its market value. A current ratio of 5.24 indicates the company holds enough short-term assets to cover its near-term obligations. Its earnings yield is 7.0%, the inverse of the P/E and a quick read on earnings relative to price.
F-Score 5/9Financial Health
Meritage Homes Corporation's Piotroski F-Score is 5/9, a 9-point checklist of profitability, leverage and efficiency — a middling fundamental profile. Its Altman Z-Score of 3.37 places it in the safe zone, indicating low near-term bankruptcy risk.
MTH Valuation & Market Position
With a $5.37B market cap, Meritage Homes Corporation sits in the mid-cap segment of the market. Relative to its peer group, MTH's quantitative score of 73/100 is roughly in line with the peer average of 77/100.
MTH Financials
Fundamental Snapshot
Based on FMP financials and quantitative analysis · FY 2025
Bull Case vs Bear Case
Bull Case
- Recent insider buying suggests confidence in Meritage's future performance, indicating that leadership believes in the company's growth potential.
- Community sentiment has shifted positively as discussions around housing demand increase, especially in the face of rising interest rates.
- The company's strategic focus on energy-efficient homes aligns with current market trends, appealing to environmentally conscious buyers.
- Meritage's recent expansion into new markets has generated buzz, showcasing their adaptability and commitment to growth.
Bear Case
- Concerns about rising mortgage rates have led to a cautious sentiment among investors, impacting the overall housing market outlook.
- Recent discussions in the community highlight worries about supply chain issues affecting construction timelines and costs.
- Competitive pressures from other homebuilders could impact Meritage's market share, as buyers have more options than ever.
- Economic uncertainty and potential recession fears may dampen consumer confidence, leading to decreased demand for new homes.
AI-generated arguments based on insider flow, news sentiment and technicals — not financial advice · March 2026
MTH Latest News
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MTH Analyst Consensus
Consensus Rating
Aggregated Buy/Hold/Sell recommendations from Benzinga, Yahoo Finance, and Finnhub for MTH.
Price Targets
Consensus target: $96.33
MTH MoonshotScore
What does this score mean?
The MoonshotScore rates MTH's growth potential on a scale of 0-100 across multiple factors including innovation, market disruption, financial health, and momentum.
Latest Meritage Homes Corporation Analysis
Leadership: Phillippe Lord
CEO
Phillippe Lord serves as the CEO of Meritage Homes Corporation. His background includes extensive experience in the homebuilding industry, with a proven track record of driving growth and improving operational efficiency. Prior to his role as CEO, he held various leadership positions within Meritage Homes, contributing to the company's strategic direction and market expansion. He has a strong understanding of the residential construction market and a commitment to delivering value to shareholders.
Track Record: Under Phillippe Lord's leadership, Meritage Homes has focused on expanding its market presence and enhancing its product offerings. He has overseen the company's strategic initiatives to target first-time and move-up buyers, as well as its commitment to building energy-efficient homes. His tenure has been marked by a focus on operational excellence and financial performance.
Meritage Homes Corporation Consumer Cyclical Stock: Key Questions Answered
What does Meritage Homes Corporation do?
Meritage Homes Corporation designs, builds, and sells single-family homes in the United States, primarily targeting first-time and move-up buyers. The company operates through its Homebuilding segment, which focuses on land acquisition, development, and construction, and its Financial Services segment, which provides title insurance and closing services. Meritage Homes differentiates itself through its focus on energy-efficient homes and strategic presence in high-growth markets, contributing to its position as a leading homebuilder in the residential construction industry.
What do analysts say about MTH stock?
Analyst consensus on Meritage Homes Corporation (MTH) reflects a generally positive outlook, driven by the company's strategic focus on high-growth markets and its commitment to energy-efficient construction. Key valuation metrics, such as the P/E ratio of 10.2, suggest potential undervaluation compared to its earnings. Growth considerations include the company's ability to expand into new markets and capitalize on increasing demand for housing. However, analysts also caution about potential risks, such as economic downturns and rising interest rates, which could impact housing demand.
What are the main risks for MTH?
Meritage Homes Corporation faces several key risks, including the cyclical nature of the housing market, which is sensitive to economic conditions and interest rate fluctuations. Rising interest rates could increase mortgage costs and reduce affordability, negatively impacting housing demand. Supply chain disruptions and rising construction costs could also impact profitability. Additionally, increased competition from other homebuilders could erode market share. Effective risk management and strategic adaptation are crucial for Meritage Homes to navigate these challenges.
What are the key factors to evaluate for MTH?
Meritage Homes Corporation (MTH) holds an AI score of 73/100 (high). P/E: 10.2x vs the S&P 500's ~20-25x. Analysts target $96.33 (+20%). Not financial advice.
How frequently does MTH data refresh on this page?
MTH prices update in real time during U.S. market hours. Fundamentals refresh after quarterly filings; analyst ratings and AI insights update daily; news is aggregated continuously.
What has driven MTH's recent stock price performance?
Meritage Homes Corporation (MTH) moves on earnings results, analyst revisions, sector rotation, and market sentiment. Notable catalyst: Strong brand recognition in key markets. See the News tab for the latest drivers. Past performance does not predict future results.
Should investors consider MTH overvalued or undervalued right now?
Meritage Homes Corporation (MTH) trades at 10.2x earnings. Analysts target $96.33 (+20%) — upside seen. Compare P/E, P/S, and EV/EBITDA against sector peers for a full view.
What research should beginners do before buying MTH?
Before investing in Meritage Homes Corporation (MTH), research these four areas: (1) the company's revenue model and competitive position (see Company Overview), (2) financial health through revenue growth, margins, and cash flow (see MoonshotScore), (3) what Wall Street analysts recommend and their price targets (see Analyst tab), and (4) specific risk factors that could impact the stock (see Risk Factors section).
Disclaimer: This content is for informational purposes only and does not constitute investment advice. Always do your own research and consult a financial advisor.
Official Resources
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- Information is based on available data and may be subject to change.
- Investment decisions should be based on individual risk tolerance and due diligence.