As part of our ongoing series here at The Acquirer’s Multiple, we provide this feature article titled ‘Stock in Focus‘ where we focus on one of the stocks from our Stock Screeners.
One of the cheapest stocks in our Stock Screeners is Meritage Homes Corp (NYSE: MTH).
Meritage Homes Corp is an American residential construction company that primarily builds single-family and active adult housing communities across the western, southern, and southeastern parts of the United States. Meritage Homes has a homebuilding presence in over 25 metro markets and has expanded its presence in Texas, Florida, Georgia, and the Carolinas. The company is considered one of the industry’s leading energy-efficient homebuilders. Meritage completes approximately 6,000 home orders annually, and the majority of its revenue is derived from move-up single-family homes, followed by active adult housing communities.
A quick look at the share price history for Meritage Homes Corp (below) over the past twelve months shows that the price is up 188%. Here’s why the company is undervalued.
Summary
Market Cap: $3.54 Billion
Enterprise Value: $3.84 Billion
Operating Earnings
Operating Earnings: $524 Million
Acquirer’s Multiple
Acquirer’s Multiple: 7.33
Free Cash Flow (TTM)
Free Cash Flow: $510 Million
FCF/EV Yield
FCF/EV Yield: 13%
Other Indicators
Piotroski F-Score: 9
Altman Z-Score: 3.79
Beneish M-Score: -2.51
Shareholder Yield
Shareholder Yield: 2%
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