Meritage Stock Buy Hold or Sell Recommendation
| MTH Stock | USD 70.42 1.01 1.46% |
Considering the 90-day investment horizon and your above-average risk tolerance, our recommendation regarding Meritage is 'Hold'. The recommendation algorithm takes into account all of Meritage's available fundamental, technical, and predictive indicators you will find on this site.
Check out Meritage Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool. For more detail on how to invest in Meritage Stock please use our How to Invest in Meritage guide. In addition, we conduct extensive research on individual companies such as Meritage and provide practical buy, sell, or hold advice based on investors' investing horizon and their risk tolerance towards Meritage. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in estimate.
Meritage |
Execute Meritage Buy or Sell Advice
The Meritage recommendation should be used to complement the buy-or-sell advice compiled from the current analysts' consensus on Meritage. Macroaxis does not own or have any residual interests in Meritage or other equities on which the buy-or-sell advice is provided. Please provide your input below to execute Meritage's advice using the current market data and latest reported fundamentals.
Time Horizon
Risk Tolerance
 |  |
Hold
Market Performance | Very Weak | Details | |
Volatility | Very steady | Details | |
Hype Condition | Over hyped | Details | |
Current Valuation | Undervalued | Details | |
Odds Of Distress | Very Small | Details | |
Economic Sensitivity | Almost mirrors the market | Details | |
Investor Sentiment | Impartial | Details | |
Analyst Consensus | Buy | Details | |
Financial Strenth (F Score) | Frail | Details | |
Financial Leverage | Not Rated | Details | |
Reporting Quality (M-Score) | Possible Manipulator | Details |
Meritage Trading Alerts and Improvement Suggestions
| Meritage generated a negative expected return over the last 90 days | |
| Meritage is unlikely to experience financial distress in the next 2 years | |
| Meritage has about 861.56 M in cash with (227.58 M) of positive cash flow from operations. This results in cash-per-share (CPS) ratio of 8.19. | |
| Meritage has a frail financial position based on the latest SEC disclosures | |
| Over 98.0% of the company shares are owned by institutional investors | |
| Latest headline from news.google.com: Meritage Homes Director Joseph Keough Acquires 5,000 Shares - TradingView |
Meritage Returns Distribution Density
The distribution of Meritage's historical returns is an attempt to chart the uncertainty of Meritage's future price movements. The chart of the probability distribution of Meritage daily returns describes the distribution of returns around its average expected value. We use Meritage price's Value At Risk and its Upside Potential as a relative measure of the distribution. The graph of the distribution of Meritage returns is essential to provide solid investment advice for Meritage.
| Mean Return | -0.34 | Value At Risk | -3.81 | Potential Upside | 3.21 | Standard Deviation | 2.18 |
Return Density |
| Distribution |
Investment risk management requires an estimate of the probability of extreme price changes. Therefore, the correct representation of the distribution of Meritage historical returns presented in an easy-to-digest graphical form helps investors and money managers understand the risk-reward trade-off of different investement strategies.
Meritage Stock Institutional Investors
| Shares | Norges Bank | 2024-12-31 | 661.1 K | First Trust Advisors L.p. | 2024-12-31 | 571.1 K | T. Rowe Price Investment Management,inc. | 2024-12-31 | 524.3 K | Groupama Asset Management | 2024-12-31 | 500 K | Charles Schwab Investment Management Inc | 2024-12-31 | 486.2 K | Macquarie Group Ltd | 2024-12-31 | 481.2 K | Northern Trust Corp | 2024-12-31 | 475.7 K | Jacobs Levy Equity Management, Inc. | 2024-12-31 | 418.9 K | Bank Of New York Mellon Corp | 2024-12-31 | 405.9 K | Blackrock Inc | 2024-12-31 | 6.1 M | Vanguard Group Inc | 2024-12-31 | 4.1 M |
Meritage Cash Flow Accounts
| 2020 | 2021 | 2022 | 2023 | 2024 | 2025 (projected) | ||
| Change In Cash | 426.2M | (127.3M) | 243.2M | 59.7M | (269.7M) | (256.2M) | |
| Free Cash Flow | 510.4M | (177.8M) | 378.3M | 317.4M | (256.2M) | (243.4M) | |
| Other Non Cash Items | 14.4M | (2.9M) | 10.7M | 5.4M | (1.1B) | (1.0B) | |
| Capital Expenditures | 19.9M | 25.7M | 27.0M | 38.2M | 28.7M | 30.1M | |
| Net Income | 423.5M | 737.4M | 992.2M | 738.7M | 786.2M | 825.5M | |
| End Period Cash Flow | 745.6M | 618.3M | 861.6M | 921.2M | 651.6M | 684.1M | |
| Depreciation | 31.1M | 26.2M | 24.7M | 25.3M | 26.0M | 15.9M | |
| Change To Inventory | (40.1M) | (948.1M) | (624.5M) | (357.4M) | (979.3M) | (930.3M) | |
| Investments | 995K | (1.7M) | (32.3M) | (42.1M) | (44.1M) | (41.9M) | |
| Change To Netincome | 36.0M | 33.5M | 35.6M | 33.0M | 38.0M | 22.5M | |
| Net Borrowings | (309.3M) | (16.4M) | 118.7M | (20.5M) | (18.4M) | (17.5M) | |
| Change Receivables | (9.1M) | 2.1M | (65.1M) | (103.0M) | (92.7M) | (88.0M) |
Meritage Greeks
Most traded equities are subject to two types of risk - systematic (i.e., market) and unsystematic (i.e., nonmarket or company-specific) risk. Unsystematic risk is the risk that events specific to Meritage or Household Durables sector will adversely affect the stock's price. This type of risk can be diversified away by owning several different stocks in different industries whose stock prices have shown a small correlation to each other. On the other hand, systematic risk is the risk that Meritage's price will be affected by overall stock market movements and cannot be diversified away. So, no matter how many positions you have, you cannot eliminate market risk. However, you can measure a Meritage stock's historical response to market movements and buy it if you are comfortable with its volatility direction. Beta and standard deviation are two commonly used measures to help you make the right decision.
α | Alpha over Dow Jones | -0.24 | |
β | Beta against Dow Jones | 1.01 | |
σ | Overall volatility | 2.11 | |
Ir | Information ratio | -0.11 |
Meritage Volatility Alert
Meritage exhibits very low volatility with skewness of 0.13 and kurtosis of -0.27. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Meritage's stock risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact Meritage's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different financial instruments as prices fall.Meritage Fundamentals Vs Peers
Comparing Meritage's fundamentals to the average values of its peers is one of the most widely used and accepted methods of equity analyses. It helps to analyze Meritage's direct or indirect competition across all of the common fundamentals between Meritage and the related equities. This way, we can detect undervalued stocks with similar characteristics as Meritage or determine the stocks which would be an excellent addition to an existing portfolio. Peer analysis of Meritage's fundamental indicators could also be used in its relative valuation, which is a method of valuing Meritage by comparing valuation metrics with those of similar companies.
| Better Than Average | Worse Than Average | Compare Meritage to competition |
| Fundamentals | Meritage | Peer Average |
| Return On Equity | 0.16 | -0.31 |
| Return On Asset | 0.0886 | -0.14 |
| Profit Margin | 0.12 % | (1.27) % |
| Operating Margin | 0.13 % | (5.51) % |
| Current Valuation | 5.72 B | 16.62 B |
| Shares Outstanding | 71.77 M | 571.82 M |
| Shares Owned By Insiders | 2.19 % | 10.09 % |
| Shares Owned By Institutions | 97.81 % | 39.21 % |
| Number Of Shares Shorted | 3 M | 4.71 M |
| Price To Earning | 6.71 X | 28.72 X |
| Price To Book | 0.98 X | 9.51 X |
| Price To Sales | 0.79 X | 11.42 X |
| Revenue | 6.36 B | 9.43 B |
| Gross Profit | 1.6 B | 27.38 B |
| EBITDA | 1.03 B | 3.9 B |
| Net Income | 786.19 M | 570.98 M |
| Cash And Equivalents | 861.56 M | 2.7 B |
| Cash Per Share | 8.19 X | 5.01 X |
| Total Debt | 1.31 B | 5.32 B |
| Debt To Equity | 0.31 % | 48.70 % |
| Current Ratio | 8.11 X | 2.16 X |
| Book Value Per Share | 71.49 X | 1.93 K |
| Cash Flow From Operations | (227.58 M) | 971.22 M |
| Short Ratio | 3.18 X | 4.00 X |
| Earnings Per Share | 10.72 X | 3.12 X |
| Price To Earnings To Growth | 1.28 X | 4.89 X |
| Target Price | 98.78 | |
| Number Of Employees | 1.9 K | 18.84 K |
| Beta | 1.92 | -0.15 |
| Market Capitalization | 5.05 B | 19.03 B |
| Total Asset | 7.16 B | 29.47 B |
| Retained Earnings | 5 B | 9.33 B |
| Working Capital | 6.23 B | 1.48 B |
Note: Acquisition by Alison Sasser of 2866 shares of Meritage subject to Rule 16b-3 [view details]
Meritage Market Momentum
Traders often use several daily momentume indicators to supplement a more traditional technical analysis when analyzing securities such as Meritage . With many different options, investors must choose the best indicators for them and familiarize themselves with how they work. We suggest combining traditional momentum indicators with more near-term forms of technical analysis such as Accumulation Distribution or Daily Balance Of Power. With their quantitative nature, daily value technical indicators can also be incorporated into your automated trading systems.
About Meritage Buy or Sell Advice
When is the right time to buy or sell Meritage? Buying financial instruments such as Meritage Stock isn't very hard. However, what challenging for most investors is doing it at the right time to beat the market. Proper market timing is something most people cannot do without sophisticated tools, which help to isolate the right opportunities. Macroaxis provides hands-on modules to deliver winning trades and diversify your portfolios on a daily basis. Most of our advising modules are very easy to use and apply.
Please read more on our stock advisor page.
Use Investing Ideas to Build Portfolios
In addition to having Meritage in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.Did You Try This Idea?
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Check out Meritage Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool. For more detail on how to invest in Meritage Stock please use our How to Invest in Meritage guide.You can also try the Equity Valuation module to check real value of public entities based on technical and fundamental data.
Is Household Durables space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Meritage. If investors know Meritage will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Meritage listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth (0.12) | Dividend Share 1.5 | Earnings Share 10.72 | Revenue Per Share | Quarterly Revenue Growth (0.02) |
The market value of Meritage is measured differently than its book value, which is the value of Meritage that is recorded on the company's balance sheet. Investors also form their own opinion of Meritage's value that differs from its market value or its book value, called intrinsic value, which is Meritage's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Meritage's market value can be influenced by many factors that don't directly affect Meritage's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Meritage's value and its price as these two are different measures arrived at by different means. Investors typically determine if Meritage is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Meritage's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.