Virginia Retirement Systems Invest in Meritage Homes Co.

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The company’s mission is to build exceptional homes and communities in prime locations for a wide range of homebuyers and to create long-term value for its stakeholders. The VRS investment is part of Meritage Homes ($NYSE:MTH)’ goal to continue to grow its presence in the homebuilding industry. Meritage Homes has a strong focus on quality and innovation, offering a wide variety of floor plans, options, and features. The company is also committed to energy efficiency, with many of their homes certified to exceed the standards set by the U.S. Environmental Protection Agency.

In addition to its commitment to quality and energy efficiency, Meritage Homes has also been recognized for its customer service. With the additional funds, Meritage Homes will have the ability to further expand their presence in the homebuilding sector.

Market Price

On Monday, Virginia Retirement Systems (VRS) announced an investment in Meritage Homes Co. (MERITAGE HOMES), a leading homebuilder in the United States. MERITAGE HOMES’ stock opened at $171.2 per share and closed at $171.1, down 1.1% from its prior closing price of $173.0. This slight decline was likely due to the news of the investment, and the long-term prospects for MERITAGE HOMES remain promising. VRS’s decision to invest in the homebuilder is an indication of its confidence in the company’s ability to deliver strong returns going forward. Live Quote…

About the Company

Income Snapshot

Below shows the total revenue, net income and net margin for Meritage Homes. More…

Cash Flow Snapshot

Below shows the cash from operations, investing and financing for Meritage Homes. More…

Balance Sheet Snapshot

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

Key Ratios Snapshot

Some of the financial key ratios for Meritage Homes are shown below. More…

Analysis

At GoodWhale, we analyzed the fundamentals of MERITAGE HOMES to better understand its economic health. Our Star Chart showed that MERITAGE HOMES had an impressive 8/10 health score due to its robust cashflows and debt management. This shows that MERITAGE HOMES is well-equipped to handle any economic downturn without the risk of bankruptcy. Additionally, our research found that MERITAGE HOMES is strong in asset, growth, and profitability, and medium in dividend. We classified them as a ‘gorilla’ – a type of company we deem to have achieved stable and high revenue or earning growth due to their strong competitive advantage. Investors looking to invest in a reliable company with a strong economic standing may have a close look at MERITAGE HOMES. We believe that they would be a good fit for anyone looking for a secure and profitable long-term investment. 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

Virginia Retirement Systems ET AL made an investment in Meritage Homes Co. (MER). The investment analysis of MER suggests that the company is well-poised to take advantage of the current housing cycle. The company has strong fundamentals, including an increasing level of incoming orders, strong backlog of homes, and a large portfolio of market-leading designs.

Additionally, Meritage Homes has made significant investments in digital capabilities that have enabled them to better serve their customers. Their strategic focus on expanding existing markets, increasing their presence in new markets, and optimizing their pricing strategy further supports their investment potential. Overall, the investment in MER provides investors with attractive long-term growth potential.