📈 Price History

Ratio Health

— Excellent

— Good

— Average

— Poor

By Category

📊 Sector Averages

About

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.

Key Ratios Snapshot

📈 Growth Pattern

⚡ Latest Quarter —

See full financials →

📊 Quick Scorecard

Loading…

⭐ Superinvestors Holding MTH

View All Superinvestors →

Manager	Shares	Value	% of Fund	Period
Steve Cohen Point72 Asset Management	251.3K	$15.5M	0.02%	Mar 2026

SEC Form 13F data. 45-day lag from quarter end.

🔍 Concall Decoded

🎙 Management Tone Tracker Cautious ~ Volatile 4 quarters analysed

Q2 2025

Confident Specific

Management led with pride in team efforts and specific metrics (3,914 orders, 4.3 absorption, 312 communities, 4,170 deliveries, 21.4% adjusted margin) while acknowledging tougher selling conditions and consumer hesitancy. They emphasised their agile SPEC strategy and long-term demographic tailwinds.

Q3 2025

Cautious

Management repeatedly described market conditions as 'softer than expected' and noted 'lack of consumer confidence' and 'increased hesitancy'. They expressed confidence in long-term demographics but avoided any upbeat projections, instead focusing on controlling what they can (starts, land spend, costs).

Q4 2025

Cautious

Management repeatedly used phrases like 'much softer than anticipated market conditions', 'affordability challenges persisted', 'buyer confidence deteriorated', and 'uncertainty'. They stressed intentional restraint on incentives and strategic land terminations, while expressing cautious optimism about the spring selling season but not committing to a recovery timeline.

Q1 2026 latest

Cautious

Management repeatedly highlighted headwinds from winter storms, the Iran conflict, and fragile consumer confidence. They used phrases like 'choppy waters,' 'current uncertainty,' and 'cautiously optimistic' while lowering full-year guidance and acknowledging that 'capturing demand will require higher than anticipated use of incentives.'

Guidance Reliability Pending · <3Q data

Investor Lens

The investment thesis is weaker in the near term: Q1 missed expectations, full-year guidance was lowered, and margin pressure persisted due to elevated incentives and higher-cost land vintages. However, the company's aggressive community count growth (19% YoY) and commitment to returning capital through buybacks (at a 6% discount to book) and dividends provide a floor. Management's confidence in a 2027 margin recovery and their ability to hold margins at ~18% is a key watch item. The fast-cycle spec model continues to differentiate, keeping cancellation rates low. Next quarter, focus on whether Q2 guidance (3,650-3,900 closings) is achieved and if March/April sales momentum sustains. Long-term, the thesis hinges on demand normalizing to allow absorptions to rise and incentives to decline, enabling a return to the 22.5%+ gross margin target. The balance sheet remains fortress-like, providing flexibility to weather further macro shocks.

AI-generated concall tone analysis · Updated 2026-06-08 · Not investment advice

🎙 Management Tone Cautious ~ Volatile 4 quarters Full tone analysis in Intelligence →

📊 MIXED Q1 FY2026: Revenue $1.1B, EPS $0.82, community count up 19% YoY

Revenue & Profitability

Home closing revenue was $1.1 billion, down 17% year-over-year, with diluted EPS of $0.82, a 51% decline from $1.69 in Q1 2025. Gross margin fell 400 basis points to 17.5%. The company returned $162 million to shareholders via buybacks ($130 million) and dividends ($32 million), and ended the quarter with $767 million cash and net debt-to-cap of 17.4%.

Outlook

Management sees long-term demand supported by favorable demographics and an undersupply of affordable homes, but near-term conditions are challenging due to inflation, rising interest rates, and geopolitical events (Iran conflict). Consumer confidence remains fragile, though pent-up demand is expected to materialize when macroeconomic conditions stabilize. The company is cautiously optimistic about a potential margin floor forming as industry inventory levels decline.

Growth Drivers

Growth is driven by increasing community count (up 19% YoY to 345 at March 31, 2026, with a full-year target of 5%-10% growth). The company is shifting geographic mix toward lower-ASP East region markets. Faster cycle times and reduced spec inventory (14 specs per store, lowest since early 2022) support volume without pressuring margins further. New communities performed in line with expectations.

Balance Sheet & CapEx

Land spend was $326 million in Q1, down 30% year-over-year, with the company reiterating its full-year 2026 land acquisition and development spend forecast of up to $2 billion. Investments in back-office automation and AI are targeted to improve SG&A efficiency toward the long-term goal of 9.5% of revenue. The company is selectively adding off-balance-sheet land structures but retains a cautious approach.

Margins

Q1 2026 gross margin was 17.5%, down 400 bps year-over-year due to higher incentives, elevated lot costs (from 2022-2024 vintages), and lost leverage, partially offset by 5% year-over-year direct cost savings and faster cycle times. The company expects some margin relief starting at the tail end of 2027 from lower-cost land. Q2 2026 gross margin is guided to around 18%, with further improvement expected in the second half of 2026 as volume increases.

Key Risks

Key risks include persistent inflation, rising interest rates, and the geopolitical impact of the Iran conflict, which have hurt consumer confidence and increased incentives. The company's margin is pressured by higher-cost land vintages from 2022-2024, and there is potential for further cost inflation in lumber and oil. Weather events (e.g., winter storms) disrupted sales in Q1. The fragile consumer psychology could delay a demand recovery.

Generated by AI · Q1 2026 results · Not investment advice

✓ 📞 Earnings Call Transcripts (5 quarters) submit a missing quarter

🔍

🔎 See cross-company document search → ?

📞 Earnings Call Transcripts (5)

Q2 2026 Q2 2026 2026-07-30

Q2 2026 saw a 14% revenue decline and 33% lower EPS year-over-year amid softer demand and affordability pressures, but operational discipline led to improved cycle times and a 9% increase in community count. Guidance for 2026 was reaffirmed, with a strategic shift toward first move-up buyers underway.

Q1 2026 Q1 2026 2026-04-23

Q1 2026 saw lower sales and revenue due to macro headwinds, but record community count and disciplined capital allocation supported strong backlog conversion and shareholder returns. Margins declined but are expected to stabilize, with cautious optimism for the remainder of 2026.

Q4 2025 Q4 2025 2026-01-29

Q4 2025 saw lower revenue and margins due to affordability challenges and higher incentives, but strong capital returns and cost controls supported results. 2026 guidance is flat, with focus on share buybacks, community growth, and margin recovery as market conditions stabilize.

Q3 2025 Q3 2025 2025-10-29

Q3 2025 saw lower revenue and margins amid soft demand and high incentives, but strong backlog conversion, community count growth, and disciplined capital returns. Guidance for Q4 anticipates stable closings and continued margin pressure, with long-term margin recovery tied to improved market conditions.

Q2 2025 Q2 2025 2025-07-24

Q2 2025 saw resilient sales and record community count growth despite market headwinds, with revenue and margins pressured by incentives and higher costs. Capital was reallocated from land to shareholder returns, and double-digit community growth is expected through 2026.

📊 Analysis Methodology

This comprehensive investment analysis was conducted using The Finmagine™ Stock Analysis & Ranking Methodology, a proprietary framework that systematically evaluates stocks across five critical dimensions: Financial Health, Growth Prospects, Competitive Positioning, Management Quality, and Valuation.

🎯

Discover Our Proven Investment Framework Learn how we analyze and rank stocks using advanced quantitative models, multi-dimensional scoring systems, and dynamic discriminatory ranking techniques that have guided successful investment decisions across market cycles.

📊 Explore The Finmagine™ Methodology

A comprehensive, bias-free framework for analyzing and ranking stocks by Financial Strength, Growth Potential, Competitive Edge, Management Quality, and Value.

⚠️ Important Disclaimers — Please read without fail.

Investment Risk:
Investing in securities, including US equities and ETFs, involves inherent risks including the potential loss of principal. All investments are subject to market fluctuations, economic conditions, regulatory changes, and other factors that may affect their value. Past performance is not indicative of future results. This analysis is provided for informational and educational purposes only and should not be construed as investment advice under any circumstances.

No Investment Recommendation:
This analysis does not constitute, nor should it be interpreted as, an offer, solicitation, or recommendation to buy, sell, or hold any securities or financial products. Investors are strongly advised to conduct their own independent research and due diligence and to consult with a licensed financial advisor or an SEC-registered investment adviser before making any investment decisions, taking into account their individual financial situation, risk tolerance, and investment objectives.

Not SEC-Registered:
Finmagine is not registered as an investment adviser with the U.S. Securities and Exchange Commission (SEC) or any state securities authority. Nothing on this platform constitutes investment advice as defined under the Investment Advisers Act of 1940.

Conflict of Interest Disclosure:
The author and/or analyst may currently hold or have previously held positions in the securities discussed. Any such positions are not intended to influence the objectivity or independence of the analysis. This research is produced independently and is not sponsored, endorsed, or commissioned by any company or institution.

Information Sources:
The analysis is based on publicly available information including SEC filings (10-K, 10-Q), annual reports, management commentary, and publicly available financial data. Information is believed to be accurate as of the date of publication but may be subject to change without notice. Readers are encouraged to independently verify all information before acting upon it.

Forward-Looking Statements:
This analysis may contain forward-looking statements, forecasts, or projections that are inherently subject to risks, uncertainties, and assumptions. Actual results may differ materially from those expressed or implied. Finmagine does not undertake any obligation to update such statements in the future.

Limitation of Liability:
The content is provided "as is" without any warranties, express or implied. Finmagine expressly disclaims any liability for errors, omissions, or any losses incurred as a result of reliance on the information provided. Readers assume full responsibility for their investment decisions.