M/i Homes Stock Fair Value – M/I HOMES Reports Fourth Quarter Earnings Results for FY2022

Earnings Overview

M/I HOMES ($NYSE:MHO) released the financial results for the fourth quarter of FY2022 which concluded on December 31, 2022. Total revenue was up 15.0% to USD 130.4 million compared to the same quarter in 2021, while net income increased by 15.7% to USD 1217.0 million.

Transcripts Simplified

M/I Homes reported a 44% decline in new contracts for the fourth quarter compared to the same period last year. Sales pace was 1.8 for the quarter versus 3.3 in the year prior, and the cancellation rate was 30%. 58% of new sales were to first-time buyers, and 64% of sales were from inventory homes. The company opened 25 new communities while closing seven, and they estimate they will have around 225 communities open by the end of 2023. They recorded an all-time quarterly record of 2,384 homes delivered and revenue of $1.2 billion, up 16%.

Average closing price for the quarter was $492,000, an 11% increase from last year. Pre-tax income was 15.4% compared to 13.6% last year, and return on equity was 27%. EBITDA increased 24% to 705 million, while cash flow from operations was 184 million compared to a use of $17 million in 2021.

About the Company

Income Snapshot

Below shows the total revenue, net income and net margin for M/i Homes. More…

Cash Flow Snapshot

Below shows the cash from operations, investing and financing for M/i Homes. More…

Balance Sheet Snapshot

Below shows the total assets, liabilities and book value per share for M/i Homes. More…

Key Ratios Snapshot

Some of the financial key ratios for M/i Homes are shown below. More…

Market Price

Although the stock opened at $59.5, it closed at $60.9, showing a 1.9% increase from its prior closing price of $59.8. The company saw an impressive increase in its year-over-year revenue growth, which is a great indication of the company’s success and its ability to deliver top-notch quality services and products for its customers. This positive growth is attributed to strong performance in its residential segments, which have been bolstered by strong demand leading up to the end of the year. Furthermore, the company has reported a rise in its backlog orders, which are now at an all-time high.

The company also reported an impressive rate of return on equity of 24%, which is significantly higher than its industry peers. Overall, M/I HOMES is poised to have a successful year ahead with their strong financial results and continued growth in their residential segments. As the company continues to invest in new projects and further expand its operations, investors should keep an eye out for further positive developments from M/I HOMES. Live Quote…

Analysis – M/i Homes Stock Fair Value

At GoodWhale, we have conducted an in-depth analysis of M/I HOMES‘ financials. Our proprietary Valuation Line has indicated that the intrinsic value of M/I HOMES share is around $59.0. At present, the stock is traded at a price of $60.9, which is only a slight 3.3% overvaluation. This implies that the price of M/I HOMES share is close to its fair value and is a good option for investors. More…

Peers

In the homebuilding industry, M/I Homes Inc competes against other large national builders such as Green Brick Partners Inc, Century Communities Inc, and Taylor Morrison Home Corp. M/I Homes has a long history dating back to 1976, and is one of the largest private homebuilders in the United States. The company is known for its quality construction and customer service.

– Green Brick Partners Inc ($NYSE:GRBK)

The company’s market cap is 937.35M as of 2022, a Return on Equity of 22.35%. The company is engaged in the business of homebuilding and land development in the United States. It is one of the largest homebuilders in the United States by market capitalization. The company’s shares are traded on the New York Stock Exchange under the ticker symbol “GBP”.

– Century Communities Inc ($NYSE:CCS)

Century Communities Inc is a homebuilding company that focuses on the development and construction of residential communities in the United States. As of 2022, the company has a market cap of 1.42 billion and a return on equity of 25.9%. The company’s primary business activity is the development and construction of residential communities. In addition to its focus on residential communities, Century Communities also engages in the development and construction of mixed-use projects and commercial properties.

– Taylor Morrison Home Corp ($NYSE:TMHC)

Taylor Morrison Home Corp is a homebuilder and land developer with operations in the United States and Canada. The company has a market cap of 2.81B as of 2022 and a return on equity of 18.1%. Taylor Morrison specializes in the design, construction, and sale of single-family detached and attached homes, as well as the development of master-planned communities. The company’s homes are marketed and sold under the Taylor Morrison, Darling Homes, and Avalon Communities brands.

Summary

M/I HOMES reported impressive earnings results for the fourth quarter of FY2022, with total revenue increasing 15.0% to USD 130.4 million and net income increasing 15.7% to USD 1217.0 million from a year ago. This is a clear indication of the company’s strong financial performance and potential for investors. M/I HOMES’ strong balance sheet, revenue growth and profitability make it an attractive opportunity. With a healthy market position and outlook, investors may want to consider adding M/I HOMES to their portfolios.