M/i Homes Stock Intrinsic Value – M/I Homes’ Rally Called ‘Speculative’ and ‘Built On Sand’
December 30, 2023
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Recently, this company has been the subject of speculation and criticism, with some calling its rally “speculative” and “built on sand”. The recent rally that M/I ($NYSE:MHO) Homes has experienced is seen to be based on an unstable foundation with some analysts going as far as to call it a bubble. Despite its positive performance, many investors fear that M/I Homes‘ growth is not based on lasting fundamentals and is speculative in nature. The current state of M/I Homes has been called unsustainable by some.
Furthermore, the company has been criticized for its lack of cash flow and its rising debt levels. Despite the uncertainty surrounding the future of M/I Homes, many investors remain hopeful that the company can sustain its current momentum and continue to grow in the long run.
Price History
On Friday, M/I HOMES stock opened at $138.4 and closed at $137.7, down by 0.8% from its prior closing price of 138.9. This was despite the company’s rally being called ‘speculative’ and ‘built on sand’ by some analysts. The drop in share prices has led to some investors questioning the sustainability of the rally. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for M/i Homes. More…
| Total Revenues | Net Income | Net Margin |
| 4.28k | 490.48 | 11.8% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for M/i Homes. More…
| Operations | Investing | Financing |
| 695.45 | -22.41 | -4.54 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for M/i Homes. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 4k | 1.58k | 87.1 |
Key Ratios Snapshot
Some of the financial key ratios for M/i Homes are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 14.1% | 32.2% | 14.5% |
| FCF Margin | ROE | ROA |
| 16.0% | 16.5% | 9.7% |
Analysis – M/i Homes Stock Intrinsic Value
At GoodWhale, we conducted a thorough analysis of M/I HOMES‘s fundamentals, and our proprietary Valuation Line has determined the intrinsic value of the company’s share to be around $67.7. This is significantly lower than the current market price of $137.7, resulting in a 103.3% overvaluation. This discrepancy suggests investors should take a closer look at the stock before making any decisions. More…
Peers
In the homebuilding industry, M/I Homes Inc competes against other large national builders such as Green Brick Partners Inc, Century Communities Inc, and Taylor Morrison Home Corp. M/I Homes has a long history dating back to 1976, and is one of the largest private homebuilders in the United States. The company is known for its quality construction and customer service.
– Green Brick Partners Inc ($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 is a homebuilder and real estate company based in the United States. Investors have recently been speculating that the company will experience a rally, but analysts are cautious. Analysts point out that M/I Homes has seen a decrease in new orders in the past year, along with declining margins and earnings.
Additionally, the construction market is highly competitive and rising cost of building materials and labor could prove to be a challenge. Moreover, the company has a large amount of debt, meaning it could be more vulnerable to economic downturns than many of its competitors. As a result, investors should do their due diligence and thoroughly research the company before investing.
