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Meritage Homes

DB:MEY
Snowflake Description

Excellent balance sheet with proven track record.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
MEY
DB
$3B
Market Cap
  1. Home
  2. DE
  3. Consumer Durables
Company description

Meritage Homes Corporation designs and builds single-family homes in the United States. The last earnings update was 17 days ago. More info.


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MEY Share Price and Events
7 Day Returns
2.4%
DB:MEY
-1.1%
DE Consumer Durables
0.1%
DE Market
1 Year Returns
92.1%
DB:MEY
2.9%
DE Consumer Durables
8.8%
DE Market
MEY Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Meritage Homes (MEY) 2.4% -1.6% 14.9% 92.1% 99.7% 108.6%
DE Consumer Durables -1.1% 3.5% 4.1% 2.9% -5.9% 11.6%
DE Market 0.1% 5.9% 15% 8.8% 14.5% 21%
1 Year Return vs Industry and Market
  • MEY outperformed the Consumer Durables industry which returned 2.9% over the past year.
  • MEY outperformed the Market in Germany which returned 8.8% over the past year.
Price Volatility
MEY
Industry
5yr Volatility vs Market
Related Companies

MEY Value

 Is Meritage Homes undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Meritage Homes to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Meritage Homes.

DB:MEY Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 7 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 6.7%
Perpetual Growth Rate 10-Year DE Government Bond Rate 0.2%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for DB:MEY
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year DE Govt Bond Rate 0.2%
Equity Risk Premium S&P Global 6%
Consumer Durables Unlevered Beta Simply Wall St/ S&P Global 0.81
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.815 (1 + (1- 21%) (50.09%))
1.092
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.09
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 0.23% + (1.092 * 5.96%)
6.73%

Discounted Cash Flow Calculation for DB:MEY using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Meritage Homes is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

Note: Free cash flow to equity valuations ignore the company's cash or debt.

DB:MEY DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 6.73%)
2020 68.85 Analyst x2 64.51
2021 58.86 Est @ -14.51% 51.67
2022 52.92 Est @ -10.09% 43.52
2023 49.22 Est @ -6.99% 37.92
2024 46.84 Est @ -4.83% 33.82
2025 45.29 Est @ -3.31% 30.63
2026 44.27 Est @ -2.25% 28.05
2027 43.61 Est @ -1.51% 25.89
2028 43.18 Est @ -0.99% 24.02
2029 42.91 Est @ -0.62% 22.36
Present value of next 10 years cash flows $362.00
DB:MEY DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= $42.91 × (1 + 0.23%) ÷ (6.73% – 0.23%)
$660.97
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $660.97 ÷ (1 + 6.73%)10
$344.45
DB:MEY Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $362.00 + $344.45
$706.45
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $706.45 / 38.30
$18.45
DB:MEY Discount to Share Price
Calculation Result
Non-primary Listing Adjustment Factor 1 share in DB:MEY represents 0.90714x of NYSE:MTH
(This could be a different class, a depositary receipt, a different currency, or all of these things.)
0.90714x
Value per Share
(Listing Adjusted, EUR)
= Value per Share (USD) x Listing Adjustment Factor
= $ 18.45 x 0.90714
€16.73
Value per share (EUR) From above. €16.73
Current discount Discount to share price of €63.50
= -1 x (€63.50 - €16.73) / €16.73
-279.5%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

  • The current share price of Meritage Homes is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Meritage Homes's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Meritage Homes's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
DB:MEY PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-09-30) in USD $5.78
NYSE:MTH Share Price ** NYSE (2019-11-14) in USD $70
Germany Consumer Durables Industry PE Ratio Median Figure of 8 Publicly-Listed Consumer Durables Companies 17.05x
Germany Market PE Ratio Median Figure of 402 Publicly-Listed Companies 19.83x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Meritage Homes.

DB:MEY PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NYSE:MTH Share Price ÷ EPS (both in USD)

= 70 ÷ 5.78

12.12x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Meritage Homes is good value based on earnings compared to the DE Consumer Durables industry average.
  • Meritage Homes is good value based on earnings compared to the Germany market.
Price based on expected Growth
Does Meritage Homes's expected growth come at a high price?
Raw Data
DB:MEY PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 12.12x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 7 Analysts
9.5%per year
Germany Consumer Durables Industry PEG Ratio Median Figure of 5 Publicly-Listed Consumer Durables Companies 0.97x
Germany Market PEG Ratio Median Figure of 255 Publicly-Listed Companies 1.36x

*Line of best fit is calculated by linear regression .

DB:MEY PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 12.12x ÷ 9.5%

1.28x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Meritage Homes is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on Meritage Homes's assets?
Raw Data
DB:MEY PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-09-30) in USD $48.92
NYSE:MTH Share Price * NYSE (2019-11-14) in USD $70
Germany Consumer Durables Industry PB Ratio Median Figure of 12 Publicly-Listed Consumer Durables Companies 1.69x
Germany Market PB Ratio Median Figure of 577 Publicly-Listed Companies 1.83x
DB:MEY PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NYSE:MTH Share Price ÷ Book Value per Share (both in USD)

= 70 ÷ 48.92

1.43x

* Primary Listing of Meritage Homes.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Meritage Homes is good value based on assets compared to the DE Consumer Durables industry average.
X
Value checks
We assess Meritage Homes's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Consumer Durables industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Consumer Durables industry average (and greater than 0)? (1 check)
  5. Meritage Homes has a total score of 3/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

MEY Future Performance

 How is Meritage Homes expected to perform in the next 1 to 3 years based on estimates from 7 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
9.5%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Meritage Homes expected to grow at an attractive rate?
  • Meritage Homes's earnings growth is expected to exceed the low risk savings rate of 0.2%.
Growth vs Market Checks
  • Meritage Homes's earnings growth is positive but not above the Germany market average.
  • Meritage Homes's revenue growth is expected to exceed the Germany market average.
Annual Growth Rates Comparison
Raw Data
DB:MEY Future Growth Rates Data Sources
Data Point Source Value (per year)
DB:MEY Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 7 Analysts 9.5%
DB:MEY Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 7 Analysts 5.1%
Germany Consumer Durables Industry Earnings Growth Rate Market Cap Weighted Average 15%
Germany Consumer Durables Industry Revenue Growth Rate Market Cap Weighted Average 4.4%
Germany Market Earnings Growth Rate Market Cap Weighted Average 12.7%
Germany Market Revenue Growth Rate Market Cap Weighted Average 4.9%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
DB:MEY Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (1 month ago) See Below
Future Estimates Average of up to 7 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
DB:MEY Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2022-12-31 4,088 271 1
2021-12-31 3,924 282 1
2020-12-31 3,876 61 260 5
2019-12-31 3,555 270 222 5
2019-11-14
DB:MEY Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2019-09-30 3,539 356 222
2019-06-30 3,482 386 206
2019-03-31 3,494 312 209
2018-12-31 3,529 262 227
2018-09-30 3,466 161 187
2018-06-30 3,387 33 176
2018-03-31 3,311 -20 164
2017-12-31 3,241 -87 143
2017-09-30 3,175 -129 160
2017-06-30 3,121 -124 154
2017-03-31 3,117 -106 152
2016-12-31 3,042 -103 150

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Meritage Homes's earnings are expected to grow by 9.5% yearly, however this is not considered high growth (20% yearly).
  • Meritage Homes's revenue is expected to grow by 5.1% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
DB:MEY Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (1 month ago) See Below
Future Estimates Average of up to 7 Analyst Estimates (S&P Global) See Below

All data from Meritage Homes Company Filings, last reported 1 month ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

DB:MEY Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2022-12-31 6.82 6.82 6.82 1.00
2021-12-31 7.26 8.08 6.44 2.00
2020-12-31 6.65 7.34 6.12 7.00
2019-12-31 5.69 5.79 5.62 7.00
2019-11-14
DB:MEY Past Financials Data
Date (Data in USD Millions) EPS *
2019-09-30 5.78
2019-06-30 5.29
2019-03-31 5.28
2018-12-31 5.67
2018-09-30 4.63
2018-06-30 4.35
2018-03-31 4.05
2017-12-31 3.56
2017-09-30 3.97
2017-06-30 3.83
2017-03-31 3.80
2016-12-31 3.74

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Unable to establish if Meritage Homes will efficiently use shareholders’ funds in the future without estimates of Return on Equity.
X
Future performance checks
We assess Meritage Homes's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Germany market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Germany market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Meritage Homes has a total score of 2/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

MEY Past Performance

  How has Meritage Homes performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Meritage Homes's growth in the last year to its industry (Consumer Durables).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Meritage Homes's year on year earnings growth rate has been positive over the past 5 years.
  • Meritage Homes's 1-year earnings growth exceeds its 5-year average (18.2% vs 11.2%)
  • Meritage Homes's earnings growth has exceeded the DE Consumer Durables industry average in the past year (18.2% vs -21.1%).
Earnings and Revenue History
Meritage Homes's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Meritage Homes Company Filings, last reported 1 month ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

DB:MEY Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-09-30 3,538.53 221.53 384.08
2019-06-30 3,481.75 205.86 379.63
2019-03-31 3,494.34 208.87 380.35
2018-12-31 3,528.58 227.33 380.38
2018-09-30 3,465.88 187.40 370.83
2018-06-30 3,386.61 175.82 362.13
2018-03-31 3,310.87 163.56 351.39
2017-12-31 3,240.98 143.26 345.69
2017-09-30 3,174.59 159.51 341.80
2017-06-30 3,121.44 153.85 340.06
2017-03-31 3,117.18 152.14 341.04
2016-12-31 3,041.73 149.54 338.90
2016-09-30 2,942.35 150.63 324.03
2016-06-30 2,859.31 144.05 315.16
2016-03-31 2,658.48 133.31 302.70
2015-12-31 2,579.46 128.74 301.27
2015-09-30 2,496.69 125.05 299.58
2015-06-30 2,383.25 127.32 292.14
2015-03-31 2,290.77 133.26 280.00
2014-12-31 2,179.76 142.24 261.34
2014-09-30 2,016.10 139.12 243.82
2014-06-30 1,950.33 144.74 232.27
2014-03-31 1,893.66 137.80 225.23
2013-12-31 1,820.70 124.46 218.23
2013-09-30 1,647.54 173.50 201.74
2013-06-30 1,496.67 142.10 188.92
2013-03-31 1,327.38 121.96 174.92
2012-12-31 1,194.45 105.16 163.02

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Meritage Homes has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Meritage Homes used its assets more efficiently than the DE Consumer Durables industry average last year based on Return on Assets.
  • Meritage Homes's use of capital has not improved over the past 3 years (Return on Capital Employed).
X
Past performance checks
We assess Meritage Homes's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Consumer Durables industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Meritage Homes has a total score of 4/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

MEY Health

 How is Meritage Homes's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Meritage Homes's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Meritage Homes is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Meritage Homes's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Meritage Homes's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is covered by short term assets, assets are 2.7x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Meritage Homes Company Filings, last reported 1 month ago.

DB:MEY Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-09-30 1,873.57 1,309.85 454.81
2019-06-30 1,798.10 1,307.92 407.43
2019-03-31 1,743.07 1,309.30 327.50
2018-12-31 1,720.76 1,310.06 311.47
2018-09-30 1,712.48 1,311.72 205.76
2018-06-30 1,682.94 1,311.26 169.43
2018-03-31 1,625.33 1,311.35 172.55
2017-12-31 1,576.83 1,283.80 170.75
2017-09-30 1,539.11 1,304.24 115.17
2017-06-30 1,492.44 1,357.53 216.74
2017-03-31 1,448.37 1,171.43 85.69
2016-12-31 1,421.50 1,127.31 131.70
2016-09-30 1,367.41 1,139.82 107.92
2016-06-30 1,326.80 1,114.04 128.17
2016-03-31 1,284.31 1,119.39 172.18
2015-12-31 1,258.94 1,117.04 262.21
2015-09-30 1,202.67 1,145.96 235.41
2015-06-30 1,168.34 1,138.86 217.02
2015-03-31 1,135.29 965.75 89.25
2014-12-31 1,109.49 935.21 103.33
2014-09-30 1,056.70 921.20 84.11
2014-06-30 1,020.32 921.81 230.63
2014-03-31 982.59 921.02 260.96
2013-12-31 841.39 921.05 274.14
2013-09-30 792.33 814.21 177.58
2013-06-30 750.68 798.22 218.02
2013-03-31 711.64 881.22 325.02
2012-12-31 694.21 729.09 170.46
  • Meritage Homes's level of debt (69.9%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has been reduced over the past 5 years (87.1% vs 69.9% today).
  • Debt is well covered by operating cash flow (27.2%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 33.2x coverage).
X
Financial health checks
We assess Meritage Homes's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Meritage Homes has a total score of 5/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

MEY Dividends

 What is Meritage Homes's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
0%
Current annual income from Meritage Homes dividends. Estimated to be 0% next year.
If you bought €2,000 of Meritage Homes shares you are expected to receive €0 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Unable to evaluate Meritage Homes's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.
  • Unable to evaluate Meritage Homes's dividend against the top 25% market benchmark as the company has not reported any payouts.
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
DB:MEY Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 7 Analyst Estimates (S&P Global) See Below
Germany Consumer Durables Industry Average Dividend Yield Market Cap Weighted Average of 6 Stocks 3.1%
Germany Market Average Dividend Yield Market Cap Weighted Average of 334 Stocks 2.9%
Germany Minimum Threshold Dividend Yield 10th Percentile 0.7%
Germany Bottom 25% Dividend Yield 25th Percentile 1.4%
Germany Top 25% Dividend Yield 75th Percentile 3.7%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

DB:MEY Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2022-12-31
2021-12-31
2020-12-31 0.00 1.00
2019-12-31 0.00 1.00
2019-11-14

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to perform a dividend volatility check as Meritage Homes has not reported any payouts.
  • Unable to verify if Meritage Homes's dividend has been increasing as the company has not reported any payouts.
Current Payout to shareholders
What portion of Meritage Homes's earnings are paid to the shareholders as a dividend.
  • Unable to calculate sustainability of dividends as Meritage Homes has not reported any payouts.
Future Payout to shareholders
  • No need to calculate the sustainability of Meritage Homes's dividends in 3 years as they are not expected to pay a notable one for Germany.
X
Income/ dividend checks
We assess Meritage Homes's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.7%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Meritage Homes afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Meritage Homes has a total score of 0/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

MEY Management

 What is the CEO of Meritage Homes's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Steve Hilton
COMPENSATION $7,900,183
AGE 58
TENURE AS CEO 22.9 years
CEO Bio

Mr. Steven J. Hilton, also known as Steve, co-founded Meritage Homes Corporation in 1985 and has also been its Chairman and Chief Executive Officer since May 18, 2006. Mr. Hilton served as the Co-Chairman and Co-Chief Executive Officer of Meritage Homes Corporation (Formerly Meritage Corp.) from 1996 to May 18, 2006. He has almost 32 years of real estate experience and is considered an expert and innovator in the homebuilding industry. He is a frequent participant in panels and interviews regarding the industry. In 1985, he co-founded Monterey Homes Arizona, Inc. and served as its Treasurer and Secretary until December 31, 1996. Mr. Hilton founded Monterey Homes Construction Inc. and served as its Chairman of the Board. He serves as a Director at Meritage Homes of North Carolina, Inc. He has been a Director of Western Alliance Bancorporation since December 2002. He has been an Inside Director of Meritage Homes Corporation since 1997. He serves as a Director at Meritage Homes Of Tennessee, Inc. Mr. Hilton served as a Director at Meritage Corp.'s predecessor until December 1996. He has been a Director of Western Alliance Bank since March 2017 and previously served as its Director since February 2003 until December 2013. He is a Member of the National Association of Homebuilders and the Central Arizona Homebuilders' Association. He also serves as a member of the NAHB’s High Production Home Builders Council, has served for over 10 years as a board member for the Boys & Girls Clubs of Greater Scottsdale and is active in many local civic organizations. Mr. Hilton holds as Bachelor of Science Degree in Accounting from the University of Arizona.

CEO Compensation
  • Steve's compensation has been consistent with company performance over the past year, both up more than 20%.
  • Steve's remuneration is higher than average for companies of similar size in Germany.
Management Team Tenure

Average tenure and age of the Meritage Homes management team in years:

5
Average Tenure
45
Average Age
  • The average tenure for the Meritage Homes management team is over 5 years, this suggests they are a seasoned and experienced team.
Management Team

Steve Hilton

TITLE
Chairman & CEO
COMPENSATION
$8M
AGE
58
TENURE
22.9 yrs

Hilla Sferruzza

TITLE
CFO & Executive VP
COMPENSATION
$3M
AGE
43
TENURE
3.6 yrs

Phillippe Lord

TITLE
COO & Executive VP
COMPENSATION
$4M
AGE
45
TENURE
4.6 yrs

Tim White

TITLE
General Counsel
COMPENSATION
$2M
AGE
58
TENURE
14.1 yrs

Javier Feliciano

TITLE
Chief Human Resources Officer & Executive VP
COMPENSATION
$1M
AGE
45

Brent Anderson

TITLE
Vice President of Investor Relations

Chris Ryan

TITLE
President of Florida Division
TENURE
2.6 yrs

Richard Harvey

TITLE
President of Texas Region Operations
TENURE
13.3 yrs

Clint Szubinski

TITLE
President of South Region
TENURE
1.8 yrs

Jay Thrower

TITLE
South Region President
TENURE
5.5 yrs
Board of Directors Tenure

Average tenure and age of the Meritage Homes board of directors in years:

12.5
Average Tenure
58
Average Age
  • The average tenure for the Meritage Homes board of directors is over 10 years, this suggests they are a seasoned and experienced board.
Board of Directors

Steve Hilton

TITLE
Chairman & CEO
COMPENSATION
$8M
AGE
58
TENURE
23.8 yrs

Peter Ax

TITLE
Lead Independent Director
COMPENSATION
$351K
AGE
60
TENURE
17.1 yrs

Gerald Haddock

TITLE
Independent Director
COMPENSATION
$301K
AGE
71
TENURE
14.8 yrs

Michael Odell

TITLE
Independent Director
COMPENSATION
$296K
AGE
55
TENURE
7.9 yrs

Ray Oppel

TITLE
Independent Director
COMPENSATION
$296K
AGE
62
TENURE
21.9 yrs

Dana Bradford

TITLE
Independent Director
COMPENSATION
$301K
AGE
54
TENURE
10.3 yrs

Deb Henretta

TITLE
Independent Director
COMPENSATION
$291K
AGE
58
TENURE
3.7 yrs

Joe Keough

TITLE
Independent Director
AGE
49
TENURE
0.4 yrs
Who owns this company?
Recent Insider Trading
  • Meritage Homes individual insiders have only sold shares in the past 3 months.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (€) Value (€)
04. Nov 19 Sell Michael Odell Individual 01. Nov 19 01. Nov 19 -5,000 €64.93 €-324,655
28. Oct 19 Sell Dana Bradford Individual 25. Oct 19 25. Oct 19 -9,000 €68.35 €-615,191
17. Sep 19 Sell Raymond Oppel Individual 13. Sep 19 13. Sep 19 -15,000 €61.64 €-924,617
12. Sep 19 Sell Steven Hilton Individual 11. Sep 19 12. Sep 19 -100,000 €61.98 €-6,128,254
06. Sep 19 Sell Gerald Haddock Individual 04. Sep 19 04. Sep 19 -7,500 €60.12 €-450,925
26. Aug 19 Sell Raymond Oppel Individual 23. Aug 19 23. Aug 19 -6,000 €58.45 €-350,680
06. Aug 19 Sell Peter Ax Individual 02. Aug 19 02. Aug 19 -17,100 €57.64 €-985,669
05. Aug 19 Sell Raymond Oppel Individual 01. Aug 19 02. Aug 19 -16,000 €57.59 €-914,437
05. Aug 19 Sell Steven Hilton Individual 01. Aug 19 01. Aug 19 -579,026 €57.22 €-32,971,829
31. Jul 19 Sell Steven Hilton Individual 29. Jul 19 31. Jul 19 -420,974 €57.65 €-23,864,828
31. Jul 19 Sell C. White Individual 29. Jul 19 29. Jul 19 -7,946 €57.79 €-459,190
31. Jul 19 Sell Gerald Haddock Individual 29. Jul 19 29. Jul 19 -5,000 €56.46 €-282,318
31. Jul 19 Sell Raymond Oppel Individual 29. Jul 19 29. Jul 19 -4,000 €56.74 €-226,968
29. Apr 19 Sell Hilla Sferruzza Individual 26. Apr 19 26. Apr 19 -5,300 €45.46 €-240,948
29. Apr 19 Sell Phillippe Lord Individual 26. Apr 19 26. Apr 19 -3,000 €45.46 €-136,386
06. Feb 19 Sell Gerald Haddock Individual 27. Nov 18 27. Nov 18 -5,000 €33.54 €-167,714
08. Mar 19 Sell Phillippe Lord Individual 08. Mar 19 08. Mar 19 -2,272 €39.13 €-88,912
06. Feb 19 Sell C. White Individual 04. Feb 19 04. Feb 19 -19,500 €39.43 €-768,919
X
Management checks
We assess Meritage Homes's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Meritage Homes has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

MEY News

Simply Wall St News

MEY Company Info

Description

Meritage Homes Corporation designs and builds single-family homes in the United States. The company operates through two segments, Homebuilding and Financial Services. It acquires and develops land; and constructs, markets, and sells homes for first-time and first move-up buyers. The company also offers luxury homes; and title insurance and closing/settlement services to its homebuyers. It builds and sells homes in Texas, Arizona, California, Colorado, Florida, North Carolina, South Carolina, Georgia, and Tennessee under the Meritage Homes brand name. Meritage Homes Corporation was founded in 1985 and is based in Scottsdale, Arizona.

Details
Name: Meritage Homes Corporation
MEY
Exchange: DB
Founded: 1985
$2,434,559,589
38,299,111
Website: http://www.meritagehomes.com
Address: Meritage Homes Corporation
8800 East Raintree Drive,
Suite 300,
Scottsdale,
Arizona, 85260,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NYSE MTH Common Stock New York Stock Exchange US USD 21. Jul 1988
DB MEY Common Stock Deutsche Boerse AG DE EUR 21. Jul 1988
Number of employees
Current staff
Staff numbers
1,615
Meritage Homes employees.
Industry
Homebuilding
Consumer Durables
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/11/14 21:32
End of day share price update: 2019/11/14 00:00
Last estimates confirmation: 2019/10/30
Last earnings filing: 2019/10/28
Last earnings reported: 2019/09/30
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.