Meritage Stock Analysis, Valuation (NYSE:MTH)

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$41.9 $0.3 (0.71%) MTH stock closing price Aug 17, 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 3.4/5

Amigobulls MTH stock analysis uses latest quarter 2018 Q2 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 TTM operating margin was good at 9.66 for Meritage.
  • The Meritage stock currently trades at a price to earnings ratio of 8.9, compared to the sector average of 19.8. We rate this as a positive.
  • When compared with the Construction sector average PS ratio of 0.8, the price-to-sales ratio of 0.5 for MTH stock is attractive.

Should you sell MTH stock?

  • The company has an operating cash flow which is 0.1282 times the net income. This is not a healthy sign.
  • The company has a negative free cash flow margin of -0.3.

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.