Loading...
Docoh

Meritage Homes (MTH)

Meritage Homes is the sixth-largest public homebuilder in the United States, based on homes closed in 2020. Meritage offers a variety of homes that are designed with a focus on first-time and first move-up buyers in Arizona, California, Colorado, Texas, Florida, Georgia, North Carolina, South Carolina and Tennessee.

Company profile

Ticker
MTH
Exchange
CEO
Steven Hilton
Employees
Incorporated
Location
Fiscal year end
Industry (SIC)
Former names
HOMEPLEX MORTGAGE INVESTMENTS CORP, MERITAGE CORP, MONTEREY HOMES CORP
SEC CIK
IRS number
860611231

MTH stock data

Calendar

29 Jul 22
12 Aug 22
31 Dec 22
Quarter (USD) Jun 22 Mar 22 Dec 21 Sep 21
Revenue
Cost of revenue
Operating income
Operating margin
Net income
Net profit margin
Cash on hand
Change in cash
Diluted EPS
Annual (USD) Dec 21 Dec 20 Dec 19 Dec 18
Revenue
Cost of revenue
Operating income
Operating margin
Net income
Net profit margin
Cash on hand
Change in cash
Diluted EPS
Cash burn rate (est.) Burn method: Change in cash Burn method: Operating income Burn method: FCF (opex + capex)
Last Q Avg 4Q Last Q Avg 4Q Last Q Avg 4Q
Cash on hand (at last report) 272.15M 272.15M 272.15M 272.15M 272.15M 272.15M
Cash burn (monthly) 82.75M 34.35M (no burn) (no burn) 73.01M 17.95M
Cash used (since last report) 119.7M 49.69M n/a n/a 105.61M 25.97M
Cash remaining 152.45M 222.45M n/a n/a 166.54M 246.18M
Runway (months of cash) 1.8 6.5 n/a n/a 2.3 13.7

Beta Read what these cash burn values mean

Date Owner Security Transaction Code Indirect 10b5-1 $Price #Shares $Value #Remaining
10 Aug 22 Clinton Malissia MTH Common Shares Grant Acquire A No No 0 3,322 0 3,322
8 Mar 22 Phillippe Lord MTH Common Stock Sell Dispose S No No 94.39 1,111 104.87K 30,351
4 Mar 22 Peter L Ax MTH Common Stock Sell Dispose S Yes No 98.86 5,062 500.43K 15,029
2 Mar 22 Feliciano Javier MTH Common Stock Sell Dispose S No Yes 101.67 1,100 111.84K 16,545
2 Mar 22 Feliciano Javier MTH Common Stock Sell Dispose S No Yes 101.21 3,548 359.09K 17,645
47.5% owned by funds/institutions
13F holders Current Prev Q Change
Total holders 272 309 -12.0%
Opened positions 37 59 -37.3%
Closed positions 74 34 +117.6%
Increased positions 111 96 +15.6%
Reduced positions 93 117 -20.5%
13F shares Current Prev Q Change
Total value 2.68B 4.38B -38.7%
Total shares 33.66M 35.64M -5.6%
Total puts 50.1K 48.6K +3.1%
Total calls 71.9K 183K -60.7%
Total put/call ratio 0.7 0.3 +162.4%
Largest owners Shares Value Change
BLK Blackrock 6.74M $534.27M -0.0%
Vanguard 4.22M $334.05M +0.6%
Dimensional Fund Advisors 1.72M $136.6M +0.1%
Earnest Partners 1.46M $115.72M -2.6%
TROW T. Rowe Price 1.38M $109.51M -0.2%
STT State Street 1.31M $103.72M +3.4%
Fisher Asset Management 1.17M $92.35M -1.7%
MCQEF Macquarie 865.73K $68.59M -7.2%
Balyasny Asset Management 792.32K $62.78M +84.5%
Fuller & Thaler Asset Management 791.11K $62.68M +3.8%
Largest transactions Shares Bought/sold Change
Victory Capital Management 77.47K -747.29K -90.6%
Norges Bank 0 -471.68K EXIT
Balyasny Asset Management 792.32K +362.78K +84.5%
FMR 169.42K -344.33K -67.0%
Shellback Capital 100K -180.7K -64.4%
Nuveen Asset Management 130.82K -137.25K -51.2%
GS Goldman Sachs 779.37K -129.81K -14.3%
DB Deutsche Bank AG - Registered Shares 152.75K +128.03K +518.0%
Capital Growth Management 0 -120K EXIT
BK Bank Of New York Mellon 746.9K +110.23K +17.3%

Financial report summary

?
Risks
  • Increases in interest rates or decreases in mortgage availability may make purchasing a home more difficult or less desirable and may negatively impact the ability to sell new and existing homes.
  • Our future operations may be adversely impacted by high inflation or deflation.
  • Our ability to acquire and develop raw or partially finished lots may be negatively impacted if we are unable to secure performance bonds.
  • If home prices decline, potential buyers may not be able to sell their existing homes, which may negatively impact our sales.
  • A reduction in our orders absorption levels may force us to incur and absorb additional community-level costs.
  • The value of our real estate inventory may decline, leading to impairments and reduced profitability.
  • High cancellation rates may negatively impact our business.
  • If we are unable to successfully compete in the highly competitive housing industry, our financial results and growth may suffer.
  • We are subject to home warranty and construction defect claims arising in the ordinary course of business, which may lead to additional reserves or expenses.
  • A major safety incident relating to our operations could be costly in terms of potential liabilities and reputational damage.
  • We experience fluctuations and variability in our operating results on a quarterly basis and, as a result, our historical performance may not be a meaningful indicator of future results.
  • Our level of indebtedness may adversely affect our financial position and prevent us from fulfilling our debt obligations.
  • Our ability to obtain third-party financing may be negatively affected by any downgrade of our credit rating from one or more rating agencies.
  • The physical impacts of climate change such as natural disasters or extreme weather events could increase our costs and adversely affect our operations.
  • Our long-term success depends on the availability of lots and land that meet our land investment criteria.
  • If our current strategies are not successful, it could have negative consequences on our operations, financial position and cash flows.
  • Reduced levels of sales may cause us to re-evaluate the viability of existing land option contracts, resulting in a potential termination of these contracts which may lead to impairment charges.
  • Our lack of geographic diversification could adversely affect us if the homebuilding industry in our markets decline.
  • Our ability to build energy-efficient technologies at a profitable price point may be replicated by other builders in the future, which could reduce our competitive advantage.
  • Shortages in the availability of subcontract labor may delay construction schedules and increase our costs.
  • Information technology failures and data security breaches could harm our business.
  • The loss of key personnel may negatively impact us.
  • Expirations, amendments or changes to tax laws, incentives or credits currently available to us and our homebuyers may negatively impact our business.
  • Our income tax provision and other tax liabilities may be insufficient if taxing authorities initiate and are successful in asserting tax positions that are contrary to our position.
  • Failure to comply with laws and regulations by our employees or representatives may harm us.
  • We are subject to extensive government regulations that could cause us to incur significant liabilities or restrict our business activities.
  • Our financial services operations are subject to extensive regulations that could cause us to incur significant liabilities or restrict our business activities.
Management Discussion
  • Companywide. In 2021, home closing revenue grew by 14.1% to $5.1 billion on 12,801 units compared to $4.5 billion on 11,834 units in 2020. The improved revenue reflects an 8.2% increase in volume and a 5.5% increase in ASP on closings resulting from pricing power on continued elevated demand in the homebuilding market due to the macroeconomic events discussed in "Industry Conditions." Order value increased 12.0% to $5.8 billion from $5.2 billion, due almost entirely to pricing power, as ASP on orders increased 11.3% year-over-year, while both order volume and orders pace were comparable with prior year as we metered orders in 2021 to align with our current production capacity. Order volume was 13,808 and 13,724 for the years ended December 31, 2021 and 2020, respectively, as a 1.9% higher number of average active communities was offset by a 1.3% decline in orders pace of 5.1 per month in 2021 compared to 5.2 in 2020. We ended the year with 5,679 homes in backlog valued at $2.5 billion, 21.6% and 38.8% higher backlog units and value, respectively, compared to 2020. ASP on homes in backlog grew by 14.2% to $443,100 at December 31 2021, compared to $388,000 in 2020, reflective of the persistent pricing power experienced throughout the year.

Content analysis

?
Positive
Negative
Uncertain
Constraining
Legalese
Litigous
Readability
H.S. sophomore Avg
New words: alternative, Avid, back, cadence, cooling, dollar, ENGERY, excellence, fell, foundation, household, incremental, longstanding, moving, normalcy, rewarded, risen, robust, scaled, showed, Similarly, softened, softening, stability, thirteen, unprecedented
Removed: amendment, avoid, Incorporation, Meeting, metered, pattern, potentially, prepaid, preserve, protective, reduced, slower, thereon, unintended, utilization