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Meritage Homes Corporation (MTH) Fair Value & Analysis

Consumer Cyclical · US · Market cap $4.6B

MH Meritage Homes Corporation logo Meritage Homes Corporation MTH · US
Price$75.60
Fair Value$103.38
Upside+36.7%
Quality56/100
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Evidence: High Range $63.05 – $164.59

Fair value as of: Jun 24, 2026

From 26 valuation models · updated 8 days ago

Share price +20.2% over the past month.

Price vs Fair Value (12 months)

$78.67 $54.27 Fair Value $103.38 Jul 2025 Jul 2026

12‑month range $54.27 – $78.67 · fair‑value band $63.05 – $164.59 · the $75.60 price screens below the $103.38 fair value. As of Jun 24, 2026.

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Analysis

Meritage Homes Corporation (MTH) currently trades at $75.60, while our model-based Fair Value estimate is $103.38 — implying the stock looks roughly 36.7% undervalued today. We read business quality at 56/100 (solid quality), in the Consumer Cyclical sector. Bull case: trading below our estimate, it may offer upside if the fundamentals hold. Bear case: a low price can be a value trap when quality is weak or the data is thin (evidence: high) — always confirm before acting.

Over the trailing twelve months, Meritage Homes Corporation generated revenue of $5.6B at a net margin of 6.9%. Revenue declined 17.7% year over year. It earns a return on equity of 7.5%. Net debt stands at $1.1B. Fundamentals as of Jun 24, 2026

Key figures & financial health

Revenue (TTM) $5.6B
Revenue growth (YoY) -17.7%
Net margin 6.9%
Return on equity 7.5%
Free cash flow $92.6M FY2025
P/E ratio 12.4
More key figures
Operating margin 5.8%
EPS (TTM) $5.48
Dividend yield 2.6%
EPS growth (YoY) -51.5%
Net debt $1.1B FY2025

Figures from reported company fundamentals (EODHD) · as of Jun 24, 2026. TTM = trailing twelve months.

About the company

Meritage Homes Corporation, together with its subsidiaries, designs and builds single-family attached and detached homes in the United States. The company operates through two segments: Homebuilding and Financial Services. It acquires and develops land; and constructs, markets, and sells homes for entry-level and first move-up buyers in Arizona, California, Colorado, Utah, Texas, Alabama, Florida, Georgia, Mississippi, North Carolina, South Carolina, and Tennessee. The company also provides title and escrow, mortgage, insurance, title insurance, and closing/settlement services to its homebuyers. Meritage Homes Corporation was founded in 1985 and is based in Scottsdale, Arizona.

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Meritage Homes Corporation reported revenue of $5.9B in FY2025 versus $5.1B in FY2021, a compound +3.3%/yr. Reported net income was $453M in FY2025, compounding −11.5%/yr from FY2021.

Revenue +3.3%/yr
FY21 $5.1B
FY22 $6.3B
FY23 $6.1B
FY24 $6.4B
FY25 $5.9B
Net income −11.5%/yr
FY21 $737M
FY22 $992M
FY23 $739M
FY24 $786M
FY25 $453M

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Recent news

External third-party headlines (Yahoo Finance, Reuters and others) — not an editorial selection, not financial advice.

Similar stocks

6 more Residential Construction stocks, each showing price versus our Fair Value estimate (as of Jun 24, 2026).

Stock Price Fair Value vs Fair Value
D.R. Horton, Inc D1HI34 R$810.00 R$845.83 +4%
PulteGroup, Inc PHM $118.49 $129.42 +9%
Lennar Corporation LEN $87.44 $142.47 +63%
NVR, Inc NVR $6,353 $8,059 +27%
Toll Brothers, Inc TOL $138.90 $127.31 -8%
Sekisui House, Ltd SKHSY $19.88 $35.50 +79%

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Frequently asked questions

Is Meritage Homes Corporation (MTH) undervalued?
As of Jun 24, 2026, our model estimates a fair value of $103.38 versus a price of $75.60 — about +37% (undervalued). Model-based estimate, not financial advice.
What is the fair value of MTH?
Our model-based fair value for Meritage Homes Corporation is $103.38 (as of Jun 24, 2026), built from audited fundamentals. The current price is $75.60.
What is the quality score of MTH?
Meritage Homes Corporation has a Quality Score of 56/100, measuring profitability, growth and balance-sheet strength from non-valuation factors.
What is the revenue of Meritage Homes Corporation (MTH)?
Meritage Homes Corporation reported trailing-twelve-month revenue of about $5.6B (latest available figure, as of Jun 24, 2026).
What is the net profit margin of MTH?
The net profit margin of Meritage Homes Corporation is about 6.9%, meaning it keeps roughly 6.9% of revenue as net income. Based on the latest reported figures.
Does Meritage Homes Corporation pay a dividend?
Meritage Homes Corporation currently shows a dividend yield of about 2.58% relative to its recent price (as of Jun 24, 2026).

How we calculate Fair Value

Each company is valued through a stack of independent intrinsic-value models (DCF variants, residual-income, multiples and more), blended into one family-balanced consensus and weighted by how much trustworthy data backs it. A separate quality layer scores the fundamentals. Every input is real reported data — nothing guessed.

Educational research only · not financial advice · no buy/sell recommendation. Model-based estimates are not certainties; their reliability depends on data quality and assumptions.