Meritage Stock Analysis, Valuation (NYSE:MTH)

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$44.4 $0.95 (2.09%) MTH stock closing price Jun 18, 2018 (Closing)

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 2.8/5

Amigobulls MTH stock analysis uses latest quarter 2018 Q1 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?

  • The company saw a significant growth in revenue with a 5 year CAGR of 20.
  • The price to earnings multiple of 10.1 is attractive when compared with the sector average PE ratio of 19.7.
  • The lower PS ratio 0.5 for MTH stock versus Construction sector average of 1 is a positive for the company.

Should you sell MTH stock?

  • Operating cash flows are negative.
  • The company has negative Free Cash Flows (FCF), with a negative FCF margin of -3.2.

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.