Is Meritage Stock a Good Investment?

Meritage Investment Advice

MTH

To provide specific investment advice or recommendations on Meritage stock, we recommend investors consider the following general factors when evaluating Meritage. This will help you to make an informed decision on whether to include Meritage in one of your diversified portfolios:

Examine Meritage's financial health by looking at its balance sheet, income statement, and cash flow statement. Analyze key financial ratios, such as Price-to-Earnings (P/E), Price-to-Sales (P/S), and Price-to-Book (P/B), to determine whether the stock is fairly valued or over/undervalued.
Research Meritage's leadership team and their track record. Good management can help Meritage navigate difficult times and make strategic decisions that benefit shareholders and increases its net worth.
Consider the overall health of the Household Durables space and any emerging trends that could impact Meritage's business and its evolving consumer preferences.
Compare Meritage's performance and market position to its competitors. Analyze how Meritage is positioned in terms of product offerings, innovation, and market share.
Check if Meritage pays a dividend and its dividend yield and payout ratio.
Review what financial analysts are saying about Meritage's stock and their price targets. However, remember that analysts' opinions can vary, and their predictions may not always be accurate.

It's important to note that investing in Meritage stock, carries risks, and you should carefully consider your investment goals and risk tolerance before making any investment decisions. Also, remember that it's important for investors to have a long-term perspective and a well-diversified portfolio to manage the impact of stock market volatility on their investments. Below is a detailed guide on how to decide if Meritage is a good investment.

Sell

Buy

Hold

Macroaxis provides unbiased advice on Meritage that should be used to complement current analysts and expert consensus on Meritage. Our investment recommendation engine determines the firm's potential to grow exclusively from the perspective of an investors' current risk tolerance and investing horizon. To make sure Meritage is not overpriced, please verify all Meritage fundamentals, including its cash flow from operations, working capital, and the relationship between the cash per share and number of employees . Given that Meritage has a price to earning of 6.71 X, we recommend you to check Meritage market performance and probability of bankruptcy to ensure the company can sustain itself in the current economic cycle given your last-minute risk tolerance and investing horizon.

Market Performance	Very Weak	Details
Volatility	Very steady	Details
Hype Condition	Under 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

Examine Meritage Stock

Researching Meritage's stock involves analyzing various aspects of the company and its industry to make an informed investment decision. The key areas to focus on are fundamentals, business model and competitive advantage. It is also important to analyze trends in revenue, net income, and cash flow, as well as key financial ratios, such as price-to-earnings (P/E), price-to-sales (P/S), and debt-to-equity (D/E). About 98.0% of the company shares are owned by institutional investors. The company has price-to-book ratio of 0.98. Typically companies with comparable Price to Book (P/B) are able to outperform the market in the long run. Meritage has Price/Earnings To Growth (PEG) ratio of 1.28. The entity recorded earning per share (EPS) of 10.72. The firm last dividend was issued on the 17th of March 2025. Meritage had 2:1 split on the 3rd of January 2025.

To determine if Meritage is a good investment, evaluating the company's potential for future growth is also very important. This may include expanding into new markets, launching new products or services, or improving operational efficiency. Companies with strong growth prospects can be more attractive investments. This aspect of the research should be conducted in the context of the overall market and industry in which the company operates and should include an analysis of growth potential, competitive landscape, and any regulatory or economic factors that could impact the business. Some of the essential points regarding Meritage's research are outlined below:

	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 stockhead.com.au: Mithril shines bright on high-grade silver and gold in Mexico

Meritage uses earnings reports to provide investors with an update of all three financial statements, including the income statement, the balance sheet, and the cash flow statement. Therefore, it is also crucial when considering investing in Meritage. Every quarterly earnings report provides investors with an overview of sales, expenses, and net income for the most recent period. It also may provide a comparison to Meritage's previous reporting period. The quarterly earnings reports are usually disseminated to the public via Form 10-Q, which is a legal document filed with the Securities and Exchange Commission every quarter.

	31st of January 2024 Upcoming Quarterly Report	View
	24th of April 2024 Next Financial Report	View
	31st of December 2023 Next Fiscal Quarter End	View
	31st of January 2024 Next Fiscal Year End	View
	30th of September 2023 Last Quarter Report	View
	31st of December 2022 Last Financial Announcement	View

Earnings surprises can significantly impact Meritage's stock price both in the short term and over time. Negative earnings surprises usually result in a price decline. However, it has been seen that positive earnings surprises lead to an immediate rise in a stock's price and a gradual increase over time. This is why we often hear news about some companies beating earning projections. Financial analysts spend a large amount of time predicting earnings per share (EPS) along with other important future indicators. Many analysts use forecasting models, management guidance, and additional fundamental information to derive an EPS estimate. Below are the table of largest EPS Surprises Meritage's investors have experienced.

Reported	Fiscal Date	Estimated EPS	Reported EPS	Surprise
2011-02-02	2010-12-31	-0.04	-0.0279	0.0121	30
1999-04-29	1999-03-31	0.08	0.1	0.02	25
1998-07-30	1998-06-30	0.1	0.13	0.03	30
1999-07-29	1999-06-30	0.15	0.19	0.04	26
1998-10-22	1998-09-30	0.14	0.18	0.04	28
1998-05-05	1998-03-31	0.05	0.09	0.04	80
2016-04-28	2016-03-31	0.44	0.5	0.06	13
2011-07-29	2011-06-30	-0.04	0.02	0.06	150

Meritage Target Price Consensus

Meritage target price is determined by taking all analyst projections and averaging them out. There is no one specific way to measure analysts' performance other than comparing it to past results via a very sophisticated attribution analysis. Meritage's target price projections below should be used in combination with other traditional price prediction techniques such as stock price forecasting, investor sentiment analysis, technical analysis, earnings estimate, and various momentum models.

Buy

Most Meritage analysts issue ratings four times a year, at intervals of three months. Ratings are usually accompanied by a target price to help potential investors understand Meritage stock's fair price compared to its market value. Analysts arrive at stock ratings after researching the public financial statements of Meritage, talking to its executives and customers, or listening to those companies' conference calls.

Macroaxis Advice Exposure Valuation

Meritage Target Price Projection

Meritage's current and average target prices are 71.17 and 103.78, respectively. The current price of Meritage is the price at which Meritage is currently trading. On the other hand, Meritage's target price is what analysts think the stock is worth or could sell for in the future. The more significant the discrepancy between the two prices, the more it stimulates investors to act.

Current Price

Meritage Market Quote on 20th of March 2025

Low Price	69.6	Odds
High Price	71.77	Odds

71.17 Target Price

Analyst Consensus On Meritage Target Price

Low Estimate	94.44	Odds
High Estimate	115.2	Odds

103.7844

Historical

Lowest Forecast 94.44

Target Price 103.78

Highest Forecast 115.2

Note that most analysts generally publish their price targets in research reports on specific companies, along with recommendations for the company's stock.Although price targets are often quoted in the financial news media, there could be a delay between the publication of the latest analyst outlook on Meritage and the information provided on this page.

Meritage Analyst Ratings

Meritage's analyst stock recommendations are determined by taking an average estimate of all analysts we track and classifying them as Strong Buy, Buy, Hold, Strong Sell, or Sell. Ratings generally communicate what analysts sense about Meritage stock, and they use a lot of effort and time to analyze it and arrive at a rating. That suggests that analyst recommendations are the outcome of an objective and thorough examination of Meritage's financials, market performance, and future outlook by experienced professionals. Meritage's historical ratings below, therefore, can serve as a valuable tool for investors.

Know Meritage's Top Institutional Investors

Have you ever been surprised when a price of an equity instrument such as Meritage is soaring high without any particular reason? This is usually happening because many institutional investors are aggressively trading Meritage backward and forwards among themselves. Meritage's institutional investor refers to the entity that pools money to purchase Meritage's securities or originate loans. Institutional investors include commercial and private banks, credit unions, insurance companies, pension funds, hedge funds, endowments, and mutual funds. Operating companies that invest excess capital in these types of assets may also be included in the term and may influence corporate governance by exercising voting rights in their investments.

		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

Note, although Meritage's institutional investors appear to be way more sophisticated than retail investors, it remains unclear if professional active investment managers can reliably enhance risk-adjusted returns by an amount that exceeds fees and expenses.

Meritage's market capitalization trends

The company currently falls under 'Mid-Cap' category with a total capitalization of 5.06 B.

Market Cap

1.48 Billion

Meritage's profitablity analysis

	Last Reported	Projected for Next Year
Return On Tangible Assets	0.11	0.12
Return On Capital Employed	0.19	0.20
Return On Assets	0.11	0.12
Return On Equity	0.15	0.16

The company has Net Profit Margin of 0.12 %, which implies that it may need a different competitive strategy as even a very small decline in it revenue may erase profits and result in a net loss. This is way below average. In the same way, it shows Net Operating Margin of 0.13 %, which entails that for every 100 dollars of revenue, it generated $0.13 of operating income.

Determining Meritage's profitability involves analyzing its financial statements and using various financial metrics to determine if Meritage is a good buy. For example, gross profit margin measures Meritage's profitability after accounting for the cost of goods sold, while net profit margin measures profitability after accounting for all expenses. Other important metrics include return on assets, return on equity, and free cash flow. By reviewing multiple sources and metrics, you can gain a complete picture of Meritage's profitability and make more informed investment decisions.

Meritage's Earnings Breakdown by Geography

Evaluate Meritage's management efficiency

Meritage has Return on Asset of 0.0886 % which means that on every $100 spent on assets, it made $0.0886 of profit. This is way below average. In the same way, it shows a return on shareholders' equity (ROE) of 0.1612 %, implying that it generated $0.1612 on every 100 dollars invested. Meritage's management efficiency ratios could be used to measure how well Meritage manages its routine affairs as well as how well it operates its assets and liabilities. The Meritage's current Return On Tangible Assets is estimated to increase to 0.12. The Meritage's current Return On Capital Employed is estimated to increase to 0.20. As of now, Meritage's Other Assets are increasing as compared to previous years. The Meritage's current Total Current Assets is estimated to increase to about 1.4 B, while Intangible Assets are projected to decrease to under 23.1 M.

	Last Reported	Projected for Next Year
Book Value Per Share	70.94	74.49
Tangible Book Value Per Share	68.14	71.55
Enterprise Value Over EBITDA	6.05	8.14
Price Book Value Ratio	1.08	1.14
Enterprise Value Multiple	6.05	8.14
Price Fair Value	1.08	1.14
Enterprise Value	1.7 B	1.7 B

Understanding the operational decisions made by Meritage management offers insights into its financial robustness. This evaluation is crucial for assessing the stock's investment potential.

Dividend Yield

0.0246

Forward Dividend Yield

0.0246

Forward Dividend Rate

1.72

Beta

1.924

Basic technical analysis of Meritage Stock

As of the 20th of March, Meritage secures the Standard Deviation of 2.13, mean deviation of 1.67, and Risk Adjusted Performance of (0.15). In connection with fundamental indicators, the technical analysis model lets you check existing technical drivers of Meritage, as well as the relationship between them.

Meritage's insider trading activities

Some recent studies suggest that insider trading raises the cost of capital for securities issuers and decreases overall economic growth. Trading by specific Meritage insiders, such as employees or executives, is commonly permitted as long as it does not rely on Meritage's material information that is not in the public domain. Local jurisdictions usually require such trading to be reported in order to monitor insider transactions. In many U.S. states, trading conducted by corporate officers, key employees, directors, or significant shareholders must be reported to the regulator or publicly disclosed, usually within a few business days of the trade. In these cases Meritage insiders are required to file a Form 4 with the U.S. Securities and Exchange Commission (SEC) when buying or selling shares of their own companies.

		Alison Sasser over two weeks ago Acquisition by Alison Sasser of 2866 shares of Meritage subject to Rule 16b-3
		Steven Hilton over a month ago Disposition of 11000 shares by Steven Hilton of Meritage at 74.51 subject to Rule 16b-3
		Phillippe Lord over two months ago Disposition of 00 shares by Phillippe Lord of Meritage at 126.03 subject to Rule 16b-3
		Steven Hilton over two months ago Disposition of 20000 shares by Steven Hilton of Meritage subject to Rule 16b-3
		Lantz Erin N over three months ago Acquisition by Lantz Erin N of 375 shares of Meritage subject to Rule 16b-3
		Lantz Erin N over three months ago Insider Trading
		Phillippe Lord over six months ago Disposition of 2500 shares by Phillippe Lord of Meritage subject to Rule 16b-3
		Alison Sasser over a year ago Disposition of tradable shares by Alison Sasser of Meritage at 151.91 subject to Rule 16b-3
		C White over a year ago Sale by C White of 6812 shares of Meritage

Meritage's Outstanding Corporate Bonds

Meritage issues bonds to finance its operations. Corporate bonds make up one of the largest components of the U.S. bond market, which is considered the world's largest securities market. Meritage uses the proceeds from bond sales for a wide variety of purposes, including financing ongoing mergers and acquisitions, buying new equipment, investing in research and development, buying back their own stock, paying dividends to shareholders, and even refinancing existing debt. Most Meritage bonds can be classified according to their maturity, which is the date when Meritage has to pay back the principal to investors. Maturities can be short-term, medium-term, or long-term (more than ten years). Longer-term bonds usually offer higher interest rates but may entail additional risks.

	Meritage Homes 5125 Corp Bond US59001ABA97	View
	US59001ABD37 Corp Bond US59001ABD37	View
	AerCap Global Aviation Corp Bond US00773HAA59	View

View All Meritage Corporate Bonds

Understand Meritage's technical and predictive indicators

Using predictive indicators to make investment decisions involves analyzing Meritage's various financial and market-based factors to help forecast future trends and identify investment opportunities. Select the indicators that are most relevant to your investment strategy. Each indicator has its own strengths and weaknesses, so it's essential to combine multiple indicators to get a more comprehensive view of the market and reduce the risk of making poor decisions based on limited data.

	Risk Adjusted Performance	(0.15)
	Market Risk Adjusted Performance	(0.35)
	Mean Deviation	1.67
	Coefficient Of Variation	(581.72)
	Standard Deviation	2.13
	Variance	4.53
	Information Ratio	(0.13)
	Jensen Alpha	(0.27)
	Total Risk Alpha	(0.14)
	Treynor Ratio	(0.36)
	Maximum Drawdown	8.89
	Value At Risk	(3.81)
	Potential Upside	2.8
	Skewness	0.111
	Kurtosis	(0.13)

	Risk Adjusted Performance	(0.15)
	Market Risk Adjusted Performance	(0.35)
	Mean Deviation	1.67
	Coefficient Of Variation	(581.72)
	Standard Deviation	2.13
	Variance	4.53
	Information Ratio	(0.13)
	Jensen Alpha	(0.27)
	Total Risk Alpha	(0.14)
	Treynor Ratio	(0.36)
	Maximum Drawdown	8.89
	Value At Risk	(3.81)
	Potential Upside	2.8
	Skewness	0.111
	Kurtosis	(0.13)

Consider Meritage's intraday indicators

Meritage intraday indicators are useful technical analysis tools used by many experienced traders. Just like the conventional technical analysis, daily indicators help intraday investors to analyze the price movement with the timing of Meritage stock daily movement. By combining multiple daily indicators into a single trading strategy, you can limit your risk while still earning strong returns on your managed positions.

	Accumulation Distribution	22266.55
	Daily Balance Of Power	0.6037
	Rate Of Daily Change	1.02
	Day Median Price	70.69
	Day Typical Price	70.85
	Price Action Indicator	1.14
	Period Momentum Indicator	1.31
	Relative Strength Index	39.66

Meritage Corporate Filings

F4	14th of March 2025 The report filed by a party regarding the acquisition or disposition of a company's common stock, as well as derivative securities such as options, warrants, and convertible securities	View Verify
8K	7th of March 2025 Report filed with the SEC to announce major events that shareholders should know about	View Verify
	3rd of March 2025 Prospectus used primarily for registering securities for public sale.	View Verify
	27th of February 2025 Other Reports	View Verify

Meritage time-series forecasting models is one of many Meritage's stock analysis techniques aimed to predict future share value based on previously observed values. Time-series forecasting models ae widely used for non-stationary data. Non-stationary data are called the data whose statistical properties e.g. the mean and standard deviation are not constant over time but instead, these metrics vary over time. These non-stationary Meritage's historical data is usually called time-series. Some empirical experimentation suggests that the statistical forecasting models outperform the models based exclusively on fundamental analysis to predict the direction of the market movement and maximize returns from investment trading.

Meritage Stock media impact

Far too much social signal, news, headlines, and media speculation about Meritage that are available to investors today. That information is available publicly through Meritage media outlets and privately through word of mouth or via Meritage internal channels. However, regardless of the origin, that massive amount of Meritage data is challenging to quantify into actionable patterns, especially for investors that are not very sophisticated with ever-evolving tools and techniques used in the investment management field.

A primary focus of Meritage news analysis is to determine if its current price reflects all relevant headlines and social signals impacting the current market conditions. A news analyst typically looks at the history of Meritage relative headlines and hype rather than examining external drivers such as technical or fundamental data. It is believed that price action tends to repeat itself due to investors' collective, patterned thinking related to Meritage's headlines and news coverage data. This data is often completely overlooked or insufficiently analyzed for actionable insights to drive Meritage alpha.

Meritage Sentiment by Major News Outlets

Investor sentiment, mood or attitude towards Meritage can have a significant impact on its stock price or the market as a whole. This sentiment can be positive or negative, and various factors, such as economic indicators, news events, or market trends, can influence it. When investor sentiment is positive, investors are more likely to buy stocks, increasing demand and increasing the stock price. Positive investor sentiment can be driven by good news about the company or the broader market, such as solid earnings reports or positive economic data.

Note that negative investor sentiment can cause investors to sell stocks, leading to a decrease in demand and a drop in the stock price. Negative sentiment can be driven by factors such as poor earnings reports, negative news about the company or industry, or broader economic concerns. It's important to note that investor sentiment is just one of many factors that can affect stock prices. Other factors, such as company performance, industry trends, and global economic conditions, can also play a significant role in determining the value of a stock.

Meritage Historical Investor Sentiment

Investor biases related to Meritage's public news can be used to forecast risks associated with an investment in Meritage. The trend in average sentiment can be used to explain how an investor holding Meritage can time the market purely based on public headlines and social activities around Meritage. Please note that most equities that are difficult to arbitrage are affected by market sentiment the most.

Meritage's market sentiment shows the aggregated news analyzed to detect positive and negative mentions from the text and comments. The data is normalized to provide daily scores for Meritage and other traded tickers. The bigger the bubble, the more accurate the estimated score. Higher bars for a given day show more participation in the average Meritage news discussions. The higher the estimate score, the more favorable the investor's outlook on Meritage.

Meritage Maximum Pain Price Across June 20th 2025 Option Contracts

Meritage's options can also be used to analyze investors' bias and current market sentiment in the context of behavioral finance. For example, Max pain usually refers to a trading concept that asserts that market manipulation can cause the market price of Meritage close to the expiration of its current option contract to expire worthlessly. According to most research, about 35% of options are not executed, with roughly 50% traded out before expiration. So, Max pain occurs when market makers reach a net favorable position across all options at a strike price where option holders stand to lose the most money. By contrast, option sellers may reap the most after selling more options than buying, causing them to expire worthlessly. Please continue to view the detailed analysis of Meritage's options.

Meritage Corporate Directors

Michael Odell	Independent Director	Profile
Peter Ax	Lead Independent Director	Profile
Gerald Haddock	Independent Director	Profile
Dana Bradford	Independent Director	Profile

When determining whether Meritage offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Meritage's financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Meritage Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Meritage Stock: