Meritage Homes Corporation logo MTH - Meritage Homes Corporation

Price: -- -- | CONSENSUS: Buy DETAILS
STRONG
BUY
0
BUY 18
HOLD 17
SELL 3
STRONG
SELL
0
| PRICE TARGET: $87.00 DETAILS
HIGH: $93.00
LOW: $80.00
MEDIAN: $88.00
CONSENSUS: $87.00
UPSIDE: 19.97%
AlphaQuality

AlphaQuality

Quantitative six-pillar business-quality grade

Cyclical & Capital-Intensive

AlphaQuality — archetype-weighted quantitative grade

C+ 57.9 / 100 composite

Composite Grade

Composite of six pillars weighted for cyclical & capital-intensive businesses. Purely quantitative — the six pillars score only reported financials, no analyst input.

Profitability

Weight: 15%
C 52.9
  • 5yr Avg ROIC 13.7% 76/100
  • Operating Margin Trend -2.49 pp/yr 0/100
Contributes 7.9 pts toward composite.

Capital Efficiency

Weight: 15%
A- 86.2
  • 5yr Avg ROE 17.9% 87/100
  • 5yr Share-Count CAGR -1.7% 85/100
Contributes 12.9 pts toward composite.

Growth Quality

Weight: 10%
C 54.1
  • 5yr Revenue CAGR 5.4% 62/100
  • 5yr EPS CAGR 3.1% 41/100
  • Revenue-Growth Years (5) 3/5 60/100
Contributes 5.4 pts toward composite.

Cash Generation

Weight: 15%
F 20.7
  • 5yr FCF Margin 1.1% 30/100
  • 5yr FCF/NI Conversion 0.09x 9/100
Contributes 3.1 pts toward composite.

Balance Sheet

Weight: 25%
A- 86.7
  • Net Debt / EBITDA 1.83x 73/100
  • Interest Coverage (EBIT/Int) 30.00x 100/100
  • Altman Z-Score 4.19 96/100
Contributes 21.7 pts toward composite.

Stability

Weight: 20%
D 34.6
  • EPS Volatility (σ/μ) 0.70 14/100
  • Negative-Revenue Years (5) 2/5 60/100
  • Piotroski F-Score 4 44/100
Contributes 6.9 pts toward composite.

Guru Flow

Curated superinvestor sentiment — not part of the AlphaQuality grade.
Dumping

3 of 3 gurus held; 1 new buy; 2 trimmed.

Holders
3 +1
Avg Δ position
-58.2%
New buys
1
Full exits
0
As of Q2 2026
How this is calculated

AlphaQuality grades six pillars from 0-100 and weights each by archetype:

  • Profitability (15%) — 5yr Avg ROIC, Operating Margin Trend
  • Capital Efficiency (15%) — 5yr Avg ROE, 5yr Share-Count CAGR
  • Growth Quality (10%) — 5yr Revenue CAGR, 5yr EPS CAGR, Revenue-Growth Years (5)
  • Cash Generation (15%) — 5yr FCF Margin, 5yr FCF/NI Conversion
  • Balance Sheet (25%) — Net Debt / EBITDA, Interest Coverage (EBIT/Int), Altman Z-Score
  • Stability (20%) — EPS Volatility (σ/μ), Negative-Revenue Years (5), Piotroski F-Score

The six pillars read only reported financial-statement fields — no analyst targets or consensus ratings. The archetype that picks which pillar formulas apply is not fully price-free, though: it can route a company to the distressed/ungradable archetype based on price vs. its 52-week high, and beta affects one classification check. A minimum of 5 fiscal years of audited statements is required. Insurers and banks are graded on their own methodology — insurers on loss ratio, its trend and stability, and premiums-to-surplus; banks on the efficiency ratio, its trend and stability, and equity-to-assets — rather than on industrial margin/ROIC signals. Distressed, highly leveraged infrastructure, asset-manager, and other financial businesses are declared ungradable rather than forced into a numeric score.