Meritage Homes Intrinsic Value Calculation – MERITAGE HOMES Reports Q2 FY2023 Earnings Results on July 27
August 5, 2023
🌥️Earnings Overview
Meritage Homes ($NYSE:MTH) reported their second quarter FY2023 earnings results on July 27 2023, for the period ending June 30 2023. Total revenue for the quarter was USD 1567.8 million, which was a 10.5% year-over-year increase. Net income however decreased 25.3% from the same period in the previous year, to USD 186.8 million.
Stock Price
On July 27, MERITAGE HOMES reported its financial results for the second quarter of FY2023. On the same day, the stock opened at $141.7 and closed at $138.4, showing a 1.6% decrease from the prior closing price of 140.7. This dip in stock performance is an indication that investors had a less than ideal response to the quarterly report. Despite the drop in share price, MERITAGE HOMES still had a number of positives to report. The company saw higher net income and revenue growth compared to the same period last year.
Additionally, the company continued to make progress on their strategic initiatives, such as expanding their home building network in order to increase market share. In spite of these promising results, investors remain cautious due to ongoing macroeconomic and geopolitical uncertainty. MERITAGE HOMES will need to continue to demonstrate strong financial performance and build investor confidence if they want their stock price to recover and continue to grow. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Meritage Homes. More…
| Total Revenues | Net Income | Net Margin |
| 6.44k | 842.99 | 13.1% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Meritage Homes. More…
| Operations | Investing | Financing |
| 967.98 | -36.17 | -40.72 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Meritage Homes. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 6.07k | 1.82k | 115.55 |
Key Ratios Snapshot
Some of the financial key ratios for Meritage Homes are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 16.9% | 37.3% | 16.7% |
| FCF Margin | ROE | ROA |
| 14.5% | 16.2% | 11.1% |
Analysis – Meritage Homes Intrinsic Value Calculation
GoodWhale’s analysis of MERITAGE HOMES‘ wellbeing reveals that the fair value of MERITAGE HOMES share is around $120.2, as calculated by our proprietary Valuation Line. This is based on key performance measures such as earnings, sales, and cash flow. At the current market price of $138.4, MERITAGE HOMES stock is showing an overvaluation of 15.2%, suggesting that investors may want to take a closer look at the company’s fundamentals before investing in the stock. More…
Peers
Beazer Homes USA Inc is a privately held company that is the tenth largest homebuilder in the United States. Skyline Champion Corp is a publicly traded company and the fifth largest builder in the United States. Taylor Morrison Home Corp is a publicly traded company and is the seventh largest homebuilder in the United States.
– Beazer Homes USA Inc ($NYSE:BZH)
Beazer Homes USA Inc is one of the largest homebuilders in the United States. The company has a market cap of 311.19M as of 2022 and a return on equity of 15.8%. Beazer Homes builds and sells single-family homes, townhomes, and condominiums in the United States. The company was founded in 1985 and is headquartered in Atlanta, Georgia.
– Skyline Champion Corp ($NYSE:SKY)
Skyline Champion Corporation is an American publicly traded company and one of the largest manufacturers of manufactured homes, modular homes, and park model RVs in North America. The company is headquartered in Elkhart, Indiana.
As of 2022, Skyline Champion Corporation has a market capitalization of 3.08 billion and a return on equity of 30.7%. The company’s primary business is the design, production, and sale of manufactured homes, modular homes, and park model RVs. Skyline Champion Corporation operates in three segments: Factory-Built Housing, Modular Buildings, and Park Models.
– Taylor Morrison Home Corp ($NYSE:TMHC)
Taylor Morrison Home Corporation is a homebuilder and land developer in the United States. The Company’s segments include Homebuilding and Financial Services. The Homebuilding segment builds and sells single-family detached and attached homes designed primarily for the entry-level and first move-up markets. This segment also provides mortgage banking and title services to homebuyers in its communities. The Financial Services segment provides mortgage banking and title services to third-party homebuyers in communities where it does not build homes, as well as to homebuyers of Taylor Morrison homes. The Company operates in Arizona, California, Colorado, Florida, Georgia, Illinois, North Carolina and Texas.
Summary
MERITAGE HOMES reported a 10.5% increase in total revenue for the second quarter of FY2023, with revenue reaching USD 1567.8 million. Net income however, dropped 25.3% from the previous year to USD 186.8 million. Investors should take into consideration that the current quarter’s performance is impacted by the pandemic, as well as other economic factors. Over the next few months, investors should monitor MERITAGE HOMES’ financial results with regard to revenue and net income growth, and gauge the company’s future outlook for potential investing opportunities.
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