Meritage Stock Analysis, Valuation (NYSE:MTH)

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$46.25 $0.95 (2.01%) MTH stock closing price Feb 20, 2018 (Closing)
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Meritage
Updated on : Feb 20, 2018
previous close
MTH 46.3 (0%)
S&P 500 2716.3 (0%)
Closing Price On: Feb 20, 2018
stock rating
RATING: ★★★★★★★★★★ (0/5)
Industry :
Building-Residential-Commercial
Sector :
Construction
5 Quarter Revenue
Revenue Growth
2017-Q4
$million
%
YOY GROWTH
Compared to the industry
Long Term Growth
5 Year CAGR:
22.1%
Operating Profit
Operating Margin:
7.5%
Sector Average:
7.8%
5 Quarter Net Profit
Net Margins
2017-Q4
%
LTM Margin
Compared to the industry
Cash Flow
Operating cash flow:
$87.3M
Net Income:
$35.6M
PROS      CONS
Long Term Growth
Cash Flow
PE Valuation
PS Valuation
Rating: ★★★★★★★★★★ (0/5)
Relative Valuation
MTH PS :
0.6
Industry PS :
1
Sector:   Construction.   *PE adjusted for one time items.
Other Metrics
Return on Invested Capital:
5.4%
Return on Equity:
9.6%
Free Cash Flow Margin:
8.6%
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Meritage Stock Analysis

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Watch the robo advisor video of Meritage stock analysis on Amigobulls. This video puts forward our latest analysis highlighting the pros and cons for MTH stock.

Note: Amigobulls stock rating is our opinion based on the historical performance of the company's fundamentals. It is not indicative of the future performance of the stock.

Meritage Homes Corp Stock Rating 3/5

Amigobulls MTH stock analysis uses latest quarter 2017 Q4 financial data like Meritage revenue growth, profit margins and cash flows. Meritage valuation analysis is based on relative valuation multiples like PE ratio and price to sales ratio. Meritage stock rating is our opinion about the business fundamentals of the company.

Should you buy MTH stock?

  • Long term revenue growth has been strong with a 5 year compounded annual growth of 22.1%.
  • The operating cash flow looks good at 2.5 times the net income.
  • The Meritage stock currently trades at a price to earnings ratio of 11.9. We rate this as a positive, compared to the industry average of 20.9.
  • MTH stock is trading at a favorable price to sales multiple of 0.6 as against the Building-Residential-Commercial industry average multiple of 1.

Should you sell MTH stock?

Comments on this video and Meritage stock

Amigobulls Meritage stock analysis helps investors in understanding how the company's fundamentals have performed in the last few quarters. The fundamentals of a company are vital to identify long-term investment opportunities.

While doing a study of the company financials, Meritage revenue growth and profit or net income are two main metrics which help in identifying whether MTH stock is overvalued or undervalued. Along with fundamentals, investors can utilize technical analysis to get a better idea about the price trend of Meritage stock.