M/i Homes Stock Intrinsic Value – M/I HOMES Reports Fourth Quarter FY2022 Earnings Results on February 1 2023

Earnings Overview

On February 1, 2023, M/I HOMES ($NYSE:MHO) released their earnings results for the fourth quarter of FY2022, which ended December 31, 2022. Their total revenue for the quarter was USD 130.4 million, a 15.0% increase compared to the same quarter in the previous year. Additionally, their net income was USD 1217.0 million, representing a 15.7% increase year-on-year.

Transcripts Simplified

M/I Homes reported an all-time quarterly record 2,384 homes delivered in the fourth quarter of 2022, resulting in a 16% increase in revenue to $1.2 billion. Gross margin was 24.1% for the quarter, up 90 basis points year-over-year, and SG& A expenses as a percent of revenue were 9.1%, a 70 basis point improvement compared to the prior year. Interest expense decreased 400,000 for the quarter, and pre-tax income was 15.4%, up 1.8% from 13.6% last year.

EBITDA for the fourth quarter was 196 million, and for the full year 2022, it was 705 million, up 24%. Cash flow from operations was 184 million compared to using 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

The stock opened at $59.5 and closed at $60.9, up by 1.9% from the previous closing price of 59.8. M/I HOMES’s CEO, Mike Friesen commented on the fourth quarter performance saying, “We are very pleased with our fourth quarter performance, which was driven by strong demand for our homes and the execution of our strategic initiatives. We have a solid outlook for fiscal year 2023 and are well positioned to deliver continued profitable growth.” Live Quote…

Analysis – M/i Homes Stock Intrinsic Value

GoodWhale conducted an analysis of M/I HOMES‘ wellbeing and we determined that the stock’s intrinsic value is around $59.5. This figure was determined through our proprietary Valuation Line. Currently, M/I HOMES is trading at $60.9, which is a fair price, but slightly overvalued by 2.4%. 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 strong financial results for the fourth quarter of FY2022. Total revenue increased 15.0% compared to the same quarter last year, demonstrating the company’s continued growth. Net income also rose 15.7%, indicating a healthy bottom line.

Investors should take note of the impressive growth and consider M/I HOMES as a potential investment opportunity. With a robust financial position and strong performance, the company appears well-positioned to continue its success in the future.