Latest Ratios: P/E Ratio 12.2x · EV/EBITDA 11.3x · ROE 8.8%. (1996–2025 historical series)
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $5.2B | $4.7B | $5.6B | $6.5B | $3.4B | $4.7B | $3.2B | $2.4B | $1.5B | $2.2B | $1.5B |
| Enterprise Value | $6.3B | $5.8B | $6.4B | $6.6B | $3.7B | $5.2B | $3.5B | $3.1B | $2.5B | $3.3B | $2.5B |
| P/E Ratio → | 12.24 | 10.28 | 7.17 | 8.74 | 3.45 | 6.32 | 7.53 | 9.52 | 6.58 | 15.01 | 9.80 |
| P/S Ratio | 0.89 | 0.80 | 0.88 | 1.05 | 0.54 | 0.91 | 0.71 | 0.65 | 0.42 | 0.67 | 0.49 |
| P/B Ratio | 1.07 | 0.90 | 1.10 | 1.40 | 0.87 | 1.53 | 1.36 | 1.20 | 0.87 | 1.37 | 1.04 |
| P/FCF | 56.51 | 50.34 | — | 20.35 | 9.04 | — | 6.24 | 7.37 | 6.54 | — | — |
| P/OCF | 44.22 | 39.39 | — | 18.16 | 8.44 | — | 6.01 | 6.85 | 5.70 | — | — |
P/E links to full P/E history page with 30-year chart
Enterprise-value multiples — capital-structure-neutral measures of total business value
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 0.99 | 1.00 | 1.07 | 0.59 | 1.02 | 0.78 | 0.86 | 0.71 | 1.01 | 0.81 |
| EV / EBITDA | 11.28 | 10.26 | 6.48 | 7.11 | 2.85 | 5.25 | 6.01 | 9.18 | 8.14 | 12.30 | 10.59 |
| EV / EBIT | 11.81 | 10.74 | 6.66 | 7.31 | 2.90 | 5.39 | 6.35 | 9.99 | 8.92 | 13.12 | 11.36 |
| EV / FCF | — | 62.38 | — | 20.79 | 9.87 | — | 6.89 | 9.75 | 10.90 | — | — |
Margins and return-on-capital ratios measuring operating efficiency
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 19.7% | 19.7% | 25.0% | 24.7% | 28.7% | 28.0% | 22.2% | 19.3% | 18.7% | 18.4% | 18.3% |
| Operating Margin | 9.2% | 9.2% | 15.0% | 14.7% | 20.4% | 18.9% | 12.3% | 8.6% | 7.9% | 7.7% | 7.2% |
| Net Profit Margin | 7.7% | 7.7% | 12.3% | 12.0% | 15.8% | 14.3% | 9.4% | 6.8% | 6.4% | 4.4% | 4.9% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 8.8% | 8.8% | 16.1% | 17.3% | 28.4% | 27.4% | 19.6% | 13.5% | 13.8% | 9.6% | 11.2% |
| ROA | 6.1% | 6.1% | 11.6% | 12.2% | 18.7% | 17.0% | 11.7% | 7.4% | 6.9% | 4.7% | 5.4% |
| ROIC | 6.6% | 6.6% | 13.5% | 15.0% | 24.5% | 23.1% | 15.3% | 8.6% | 7.8% | 7.3% | 7.2% |
| ROCE | 7.9% | 7.9% | 15.6% | 16.6% | 27.3% | 25.2% | 17.1% | 10.4% | 9.4% | 9.2% | 8.8% |
Solvency and debt-coverage ratios — lower is generally safer
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 0.36 | 0.36 | 0.27 | 0.23 | 0.30 | 0.39 | 0.46 | 0.55 | 0.76 | 0.81 | 0.79 |
| Debt / EBITDA | 3.36 | 3.36 | 1.41 | 1.15 | 0.89 | 1.19 | 1.84 | 3.17 | 4.27 | 4.82 | 4.82 |
| Net Debt / Equity | — | 0.21 | 0.14 | 0.03 | 0.08 | 0.19 | 0.14 | 0.39 | 0.58 | 0.71 | 0.70 |
| Net Debt / EBITDA | 1.98 | 1.98 | 0.75 | 0.15 | 0.24 | 0.57 | 0.57 | 2.24 | 3.26 | 4.18 | 4.25 |
| Debt / FCF | — | 12.04 | — | 0.44 | 0.82 | — | 0.65 | 2.38 | 4.36 | — | — |
| Interest Coverage | — | — | — | — | 31381.59 | 3052.13 | 254.47 | 37.60 | 356.08 | 64.77 | 42.15 |
Short-term solvency ratios and asset-utilisation metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 12.12 | 12.12 | 11.44 | 9.38 | 8.98 | 8.46 | 8.28 | 1.31 | 9.51 | 8.55 | 7.97 |
| Quick Ratio | 1.81 | 1.81 | 1.84 | 2.03 | 1.88 | 1.41 | 2.03 | -6.55 | 1.32 | 0.87 | 0.85 |
| Cash Ratio | 1.30 | 1.30 | 1.09 | 1.44 | 1.40 | 1.14 | 1.68 | 0.92 | 0.93 | 0.48 | 0.39 |
| Asset Turnover | — | 0.77 | 0.89 | 0.97 | 1.09 | 1.07 | 1.16 | 1.08 | 1.05 | 1.00 | 1.05 |
| Inventory Turnover | 0.76 | 0.76 | 0.84 | 0.98 | 1.03 | 0.97 | 1.26 | 1.08 | 1.05 | 0.97 | 1.03 |
| Days Sales Outstanding | — | 19.13 | 14.63 | 15.88 | 12.47 | 10.47 | 7.99 | 8.81 | 7.99 | 8.93 | 8.44 |
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | 2.2% | 2.6% | 1.9% | 0.6% | — | — | — | — | — | — | — |
| Payout Ratio | 26.7% | 26.7% | 13.8% | 5.4% | — | — | — | — | — | — | — |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 8.2% | 9.7% | 13.9% | 11.4% | 29.0% | 15.8% | 13.3% | 10.5% | 15.2% | 6.7% | 10.2% |
| FCF Yield | 1.8% | 2.0% | — | 4.9% | 11.1% | — | 16.0% | 13.6% | 15.3% | — | — |
| Buyback Yield | 5.6% | 6.3% | 2.2% | 0.9% | 3.2% | 1.3% | 2.2% | 0.7% | 6.7% | 0.0% | 0.0% |
| Total Shareholder Yield | 7.8% | 8.9% | 4.2% | 1.5% | 3.2% | 1.3% | 2.2% | 0.7% | 6.7% | 0.0% | 0.0% |
| Shares Outstanding | — | $71M | $73M | $74M | $74M | $76M | $77M | $78M | $81M | $84M | $85M |
Inventory absorption and margin erosion
Based on reported figures, MTH trades at a forward P/E of 17.06, which appears elevated relative to its TTM P/E of 13.31, suggesting that the market is pricing in a significant contraction in near-term earnings as the company navigates a cooling residential construction environment.
The current valuation multiples imply a market expectation of earnings volatility that may be disconnected from the company's underlying asset strength. Investors should monitor whether the forward P/E premium is justified by potential margin recovery or if it reflects an overly optimistic outlook on absorption rates in the Sunbelt.
As reported in financial statements, ROIC has trended downward from 4.2% in 2024Q2 to 0.8% in 2026Q1, indicating that the company is struggling to generate meaningful returns on its invested capital as the spec-heavy business model faces persistent pressure from rising inventory costs and slowing demand.
The sharp decline in ROIC suggests that the company's capital allocation strategy is currently failing to keep pace with the cyclical downturn. This trend warrants further investigation into whether the current land-banking strategy is effectively deploying capital or if it is merely inflating the asset base without corresponding returns.
According to recent SEC filings, the cash conversion cycle has expanded significantly to 603 days in 2026Q1, up from 335 days in 2023Q4, highlighting a substantial deterioration in working capital efficiency as inventory turnover slows across the company's spec-built home portfolio.
The ballooning DIO metric suggests that the company is holding finished inventory for longer periods, which ties up liquidity and increases the risk of future impairment charges. This operational inefficiency appears to be a structural consequence of the spec-heavy model during periods of reduced buyer absorption.
Based on reported figures, MTH maintains a highly conservative debt-to-equity ratio of 0.35% as of 2026Q1, providing a significant financial cushion that distinguishes the company from more leveraged peers in the residential construction sector who face higher refinancing risks in the current interest rate environment.
While the low leverage is a clear strength, it also raises questions about whether the company is under-utilizing its balance sheet to drive growth. Investors should monitor if management intends to deploy this excess capacity for strategic acquisitions or if the conservative stance is a permanent defensive posture.
The P/E ratio is frequently misapplied to MTH, as it obscures the impact of cyclical land impairments and mortgage rate buy-downs that artificially depress earnings, making the company appear more expensive than its underlying operational cash flow generation would suggest to a fundamental analyst.
Instead of relying on P/E, investors should focus on Price-to-Book or EV/EBITDA, which better account for the company's significant land assets and low debt profile. Using P/E in a cyclical, capital-intensive industry like homebuilding often leads to poor entry points during the bottom of the cycle.
Includes 30+ ratios · 30 years · Updated daily
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Quick answers to the most common questions about buying MTH stock.
Meritage Homes Corporation's current P/E ratio is 12.2x. The historical average is 18.6x. This places it at the 81th percentile of its historical range.
Meritage Homes Corporation's current EV/EBITDA is 11.3x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 9.1x.
Meritage Homes Corporation's return on equity (ROE) is 8.8%. The historical average is 14.9%.
Based on historical data, Meritage Homes Corporation is trading at a P/E of 12.2x. This is at the 81th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
Meritage Homes Corporation's current dividend yield is 2.18% with a payout ratio of 26.7%.
Meritage Homes Corporation has 19.7% gross margin and 9.2% operating margin.
Meritage Homes Corporation's Debt/EBITDA ratio is 3.4x, indicating high leverage. A ratio between 2-4x is manageable but warrants monitoring.