Meritage Homes Corporation (MTH)

Executive Summary

Meritage Homes closed at $59.16 on October 16, about 0.76 times its June 30 book value of $77.61 a share, below its year-end multiple in every one of the last ten years. With the 30-year mortgage rate at 7.40%, incentives and rate buydowns cut first-half gross margin and EPS fell 42%. The balance sheet held up, with $807 million of cash and nothing drawn on the revolver, and Meritage bought back 4.9% of its shares in the first half below book.

What’s Inside The Full Report

• Executive summary and key points
• What Meritage Sells
• Ten Years Of Numbers
• Where Higher Rates Hit
• Cash, Debt And Returns
• Buybacks Below Book
• Several Ways To Value It
• The Risks
• My Read
• TTCM rating and position disclosure