Detailed financial statements for Meritage Homes Corporation (MTH): income statement, balance sheet and cash-flow summary. Track margins, debt, liquidity and profitability trends year over year: ten fiscal years free and up to 20 with Premium.
Meritage Homes Corporation, alongside its associated companies, focuses on the design and construction of single-family residences throughout the United States. The enterprise operates primarily through two distinct divisions: home construction and financial services. Its core business involves acquiring and developing land, followed by the building, marketing, and selling of homes, predominantly targeting first-time buyers and those seeking their initial upgrade.
Analysis Summary
Meritage Homes Corporation reported revenue of $5.86B in the most recent fiscal year, growing at a 5-year CAGR of 5.4%. Net income reached $453.0M, with a 1.4% 5-year CAGR.
Trailing-twelve-month margins: gross margin 18.9%, operating margin 8.4%, net margin 6.0%. Free cash flow grew at -28.9% CAGR over 5 years.
At $62.02 (closing price, October 28, 2026), MTH trades at a P/E of 12.97 and an ROE of 6.38%. Market capitalisation stands at $4.0B.
Balance sheet quality for MTH: current ratio of 12.1, net debt of $1.11B. A debt-to-equity below 1.0 typically signals conservative capital structure, while a current ratio above 1.5 indicates comfortable short-term liquidity.
Cash flow quality is below average: free cash flow of $92.6M represents 20% conversion of reported net income. High conversion (above 90%) suggests earnings translate cleanly into cash; lower conversion may indicate working capital tightness or accounting timing differences.
Income Statement (10y)
| Year | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|---|---|---|---|---|
| Revenue | $3.04B | $3.24B | $3.53B | $3.67B | $4.50B | $5.14B | $6.29B | $6.14B | $6.40B | $5.86B |
| Cost of Revenue | $2.48B | $2.65B | $2.87B | $2.96B | $3.50B | $3.70B | $4.49B | $4.62B | $4.80B | $4.69B |
| Gross Profit | $556.9M | $595.3M | $659.9M | $707.5M | $1.00B | $1.44B | $1.80B | $1.52B | $1.60B | $1.15B |
| Research & Development | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Selling, General & Admin | $338.9M | $345.7M | $380.4M | $392.8M | $446.9M | $466.9M | $516.2M | $616.6M | $639.9M | $211.8M |
| Operating Expenses | $338.9M | $345.7M | $380.4M | $392.8M | $446.9M | $466.9M | $516.2M | $616.6M | $639.9M | $616.2M |
| Operating Income | $218.0M | $249.6M | $279.5M | $314.7M | $554.0M | $970.6M | $1.29B | $902.4M | $958.3M | $537.5M |
| EBITDA | $234.0M | $266.3M | $306.5M | $342.6M | $585.0M | $981.4M | $1.31B | $974.8M | $1.03B | $609.9M |
| Interest Expense | $5.2M | $3.9M | $785,000 | $8.4M | $2.2M | $318,000 | $41,000 | 0 | 0 | 0 |
| Pre-tax Income | $218.1M | $247.5M | $283.3M | $302.9M | $533.6M | $954.8M | $1.29B | $949.4M | $1.00B | $584.6M |
| Income Tax | $68.5M | $104.3M | $55.9M | $53.3M | $110.1M | $217.4M | $297.1M | $210.7M | $216.7M | $131.6M |
| Net Income | $149.5M | $143.3M | $227.3M | $249.7M | $423.5M | $737.4M | $992.2M | $738.7M | $786.2M | $453.0M |
| EPS | $1.87 | $1.78 | $2.83 | $3.27 | $5.62 | $9.81 | $13.52 | $10.09 | $10.85 | $6.40 |
| EPS (Diluted) | $1.77 | $1.71 | $2.79 | $3.21 | $5.50 | $9.65 | $13.37 | $9.97 | $10.72 | $6.40 |
| Shares Outstanding (Diluted) | 85.2 M | 84.5 M | 81.5 M | 77.8 M | 77.0 M | 76.5 M | 74.2 M | 74.1 M | 73.3 M | 70.8 M |
Income Statement (Quarterly)
| Year | 2025-Q3 | 2025-Q4 | 2026-Q1 | 2026-Q2 |
|---|---|---|---|---|
| Revenue | $1.42B | $1.44B | $1.12B | $1.47B |
| Gross Profit | $271.6M | $235.3M | $196.2M | $328.2M |
| Operating Income | $120.1M | $86.3M | $65.3M | $184.0M |
| EBITDA | $134.2M | $109.8M | $78.5M | $182.3M |
| Net Income | $99.3M | $84.0M | $55.3M | $90.6M |
| EPS | $1.40 | $1.21 | $0.82 | $1.37 |
| EPS (Diluted) | $1.39 | $1.20 | $0.82 | $1.37 |
Balance Sheet (10y)
| Year | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|---|---|---|---|---|
| Cash & Equivalents | $131.7M | $170.7M | $311.5M | $319.5M | $745.6M | $618.3M | $861.6M | $921.2M | $651.6M | $775.2M |
| Short-term Investments | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Receivables | $70.4M | $79.3M | $77.3M | $88.5M | $98.6M | $147.5M | $215.0M | $267.0M | $256.3M | $307.0M |
| Inventory | $2.42B | $2.73B | $2.74B | $2.74B | $2.78B | $3.83B | $4.36B | $4.72B | $5.73B | $5.99B |
| Total Current Assets | $2.71B | $3.04B | $3.18B | $458.9M | $3.68B | $4.60B | $5.51B | $6.02B | $6.83B | $7.24B |
| Property, Plant & Equipment | $33.2M | $33.6M | $54.6M | $50.6M | $38.9M | $58.4M | $38.6M | $49.0M | $47.3M | $103.6M |
| Goodwill | $33.0M | $33.0M | $33.0M | 0 | 0 | $33.0M | $33.0M | $33.0M | $33.0M | $33.0M |
| Intangible Assets | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Total Assets | $2.89B | $3.25B | $3.37B | $3.40B | $3.86B | $4.82B | $5.77B | $6.35B | $7.16B | $7.65B |
| Accounts Payable | $140.7M | $140.5M | $128.2M | $155.0M | $175.2M | $216.0M | $273.3M | $271.6M | $212.5M | $200.7M |
| Short-term Debt | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | $60.5M |
| Total Current Liabilities | $339.9M | $355.7M | $334.7M | $349.0M | $444.4M | $543.5M | $613.5M | $641.6M | $596.7M | $597.6M |
| Long-term Debt | $1.11B | $1.28B | $1.31B | $1.02B | $1.02B | $1.16B | $1.15B | $1.01B | $1.34B | $1.83B |
| Total Liabilities | $1.47B | $1.67B | $1.64B | $1.42B | $1.52B | $1.76B | $1.82B | $1.74B | $2.02B | $2.46B |
| Retained Earnings | $848.6M | $991.8M | $1.22B | $1.47B | $1.89B | $2.63B | $3.62B | $4.32B | $5.00B | $5.19B |
| Total Equity | $1.42B | $1.58B | $1.72B | $1.97B | $2.35B | $3.04B | $3.95B | $4.61B | $5.14B | $5.20B |
| Total Debt | $1.13B | $1.28B | $1.31B | $1.09B | $1.08B | $1.19B | $1.17B | $1.06B | $1.39B | $1.89B |
| Net Debt | $995.6M | $1.11B | $998.6M | $768.0M | $331.0M | $567.9M | $311.9M | $141.0M | $740.1M | $1.11B |
| Working Capital | $2.37B | $2.69B | $2.85B | $109.8M | $3.24B | $4.06B | $4.90B | $5.38B | $6.23B | $6.65B |
Balance Sheet (Quarterly)
| Year | 2025-Q3 | 2025-Q4 | 2026-Q1 | 2026-Q2 |
|---|---|---|---|---|
| Cash & Equivalents | $728.9M | $775.2M | $766.6M | $807.3M |
| Total Assets | $7.76B | $7.65B | $7.55B | $7.55B |
| Total Liabilities | $2.47B | $2.46B | $2.46B | $2.50B |
| Total Equity | $5.29B | $5.20B | $5.09B | $5.06B |
| Total Debt | $1.89B | $1.89B | $1.90B | $1.85B |
Cash Flow (10y)
| Year | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|---|---|---|---|---|
| Net Income | $149.5M | $143.3M | $227.3M | $249.7M | $423.5M | $737.4M | $992.2M | $738.7M | $786.2M | $453.0M |
| Depreciation & Amortization | $16.0M | $16.7M | $27.0M | $27.9M | $31.1M | $26.2M | $24.7M | $25.3M | $26.0M | $25.3M |
| Stock-based Compensation | $13.7M | $12.1M | $17.2M | $19.6M | $20.0M | $20.1M | $22.3M | $22.5M | $25.8M | $19.7M |
| Change in Working Capital | -$291.1M | -$284.1M | -$22.2M | $33.2M | $42.3M | -$951.4M | -$644.7M | -$436.5M | -$1.08B | -$438.7M |
| Operating Cash Flow | -$103.4M | -$87.1M | $262.2M | $346.8M | $530.4M | -$152.1M | $405.3M | $355.6M | -$227.6M | $118.3M |
| Capital Expenditure | -$16.7M | -$18.1M | -$33.4M | -$24.4M | -$19.9M | -$25.7M | -$27.0M | -$38.2M | -$28.7M | -$25.7M |
| Acquisitions | -$7.2M | -$670,000 | -$808,000 | -$1.1M | -$5,000 | -$1.7M | -$5.8M | -$6.0M | -$18.5M | -$32.7M |
| Stock Repurchased | 0 | 0 | -$100.0M | -$16.0M | -$69.6M | -$61.0M | -$109.3M | -$59.1M | -$125.9M | -$295.0M |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -$39.5M | -$108.6M | -$121.1M |
| Free Cash Flow | -$120.1M | -$105.2M | $228.8M | $322.4M | $510.4M | -$177.8M | $378.3M | $317.4M | -$256.2M | $92.6M |
Cash Flow (Quarterly)
| Year | 2025-Q3 | 2025-Q4 | 2026-Q1 | 2026-Q2 |
|---|---|---|---|---|
| Operating Cash Flow | -$96.5M | $243.7M | $101.3M | $189.5M |
| Capital Expenditure | -$7.8M | -$5.6M | -$4.3M | -$5.6M |
| Free Cash Flow | -$104.3M | $238.1M | $97.0M | $183.9M |
| Dividends Paid | -$30.3M | -$29.3M | -$32.0M | -$31.3M |
| Stock-based Compensation | $4.9M | $4.9M | $5.9M | 0 |
Growth & Margins (10y)
| Year | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|---|---|---|---|---|
| Revenue Growth (YoY) | +6.6% | +8.9% | +3.9% | +22.8% | +14.2% | +22.4% | -2.4% | +4.2% | -8.4% | |
| Net Income Growth (YoY) | -4.2% | +58.7% | +9.8% | +69.6% | +74.1% | +34.5% | -25.5% | +6.4% | -42.4% | |
| EPS Growth (YoY) | -4.8% | +59.3% | +15.5% | +71.6% | +74.6% | +37.8% | -25.4% | +7.5% | -41.0% | |
| Shares Change (YoY) | -0.8% | -3.6% | -4.5% | -1.0% | -0.7% | -3.0% | -0.1% | -1.1% | -3.4% | |
| FCF Growth (YoY) | +12.4% | +317.4% | +40.9% | +58.3% | -134.8% | +312.8% | -16.1% | -180.7% | +136.1% | |
| Gross Margin | 18.3% | 18.4% | 18.7% | 19.3% | 22.2% | 28.0% | 28.7% | 24.7% | 25.0% | 19.7% |
| Operating Margin | 7.2% | 7.7% | 7.9% | 8.6% | 12.3% | 18.9% | 20.4% | 14.7% | 15.0% | 9.2% |
| EBITDA Margin | 7.7% | 8.2% | 8.7% | 9.3% | 13.0% | 19.1% | 20.9% | 15.9% | 16.1% | 10.4% |
| Net Margin | 4.9% | 4.4% | 6.4% | 6.8% | 9.4% | 14.3% | 15.8% | 12.0% | 12.3% | 7.7% |
| FCF Margin | -3.9% | -3.2% | 6.5% | 8.8% | 11.3% | -3.5% | 6.0% | 5.2% | -4.0% | 1.6% |
| Effective Tax Rate | 31.4% | 42.1% | 19.7% | 17.6% | 20.6% | 22.8% | 23.0% | 22.2% | 21.6% | 22.5% |
Per-Share Data (10y)
| Year | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|---|---|---|---|---|
| FCF Per Share | $-1.41 | $-1.25 | $2.81 | $4.15 | $6.63 | $-2.32 | $5.10 | $4.28 | $-3.49 | $1.31 |
| Dividends Per Share | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | $0.53 | $1.48 | $1.71 |
| Shares Outstanding (Basic) | 80.0 M | 80.6 M | 80.2 M | 76.2 M | 75.4 M | 75.2 M | 73.4 M | 73.2 M | 72.5 M | 70.8 M |
What to look at in Consumer Cyclical companies
- 5y avg operating margin (Cycle average) — Look at the cycle average, not the current year (peak or trough).
- Inventory turnover (>=4x/year) — Healthy retail rotates inventory fast. A drop signals weak demand.
- 5y avg ROIC (>=12%) — Cyclicals with avg ROIC >12% are structural winners.
- Net debt / EBITDA (peak) (<3x trough) — In cyclicals debt kills in recessions.
- Current Ratio (>1.5x) — Survives 12-18 months without operating cash.
- Altman Z-Score (>2.99 safe) — Bankruptcy model — key in cyclicals sensitive to recessions.
Profitability
| Return on Equity | 6.38% |
| Return on Invested Capital | 5.12% |
| Return on Assets | 4.36% |
| Gross Margin | 18.91% |
| Operating Margin | 8.36% |
| Net Margin | 6.04% |
Financial Health
| Debt / Equity | 0.37 |
| Current Ratio | 11.04 |
| Piotroski F-Score | 4 |
| Altman Z-Score | 4.13 |
Key Ratios (10y)
| Year | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|---|---|---|---|---|
| P/E | 9.30 | 14.38 | 6.48 | 9.33 | 7.37 | 6.22 | 3.41 | 8.63 | 7.09 | 10.28 |
| P/B | 0.98 | 1.31 | 0.86 | 1.18 | 1.33 | 1.51 | 0.86 | 1.38 | 1.08 | 0.90 |
| P/S | 0.46 | 0.64 | 0.42 | 0.64 | 0.69 | 0.89 | 0.54 | 1.04 | 0.87 | 0.80 |
| Gross Margin | 18.3% | 18.4% | 18.7% | 19.3% | 22.2% | 28.0% | 28.7% | 24.7% | 25.0% | 19.7% |
| Operating Margin | 7.2% | 7.7% | 7.9% | 8.6% | 12.3% | 18.9% | 20.4% | 14.7% | 15.0% | 9.2% |
| Net Margin | 4.9% | 4.4% | 6.4% | 6.8% | 9.4% | 14.3% | 15.8% | 12.0% | 12.3% | 7.7% |
Related companies: CVCO · EAT · SKY · ABG · MHO · KBH
Explore sector: Consumer Cyclical · Residential Construction
More sections of MTH: Overview · Valuation · Statistics · Estimates · Technical · Ownership · News · Events
Discover more: Weekly Radar: the S&P 500 through the Buffett and Lynch methods · Companies that pass the Buffett method today · Companies that pass the Lynch method today · Stocks that pass Graham's defensive investor test today · Investment Academy — learn to analyze stocks