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MTH Meritage Homes

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

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Calendar

30 Jul 21
1 Aug 21
31 Dec 21
Quarter (USD)
Jun 21 Mar 21 Dec 20 Sep 20
Revenue
Cost of revenue
Operating income
Operating margin
Net income
Net profit margin
Cash on hand
Change in cash
Diluted EPS
Annual (USD)
Dec 20 Dec 19 Dec 18 Dec 17
Revenue
Cost of revenue
Operating income
Operating margin
Net income
Net profit margin
Cash on hand
Change in cash
Diluted EPS

Financial data from company earnings reports.

Cash burn rate (estimated) Burn method: Change in cash Burn method: Operating income/loss Burn method: FCF (opex + capex)
Last Q Avg 4Q Last Q Avg 4Q Last Q Avg 4Q
Cash on hand (at last report) 684.37M 684.37M 684.37M 684.37M 684.37M 684.37M
Cash burn (monthly) 10.69M (positive/no burn) (positive/no burn) (positive/no burn) 43.18M (positive/no burn)
Cash used (since last report) 11.65M n/a n/a n/a 47.07M n/a
Cash remaining 672.72M n/a n/a n/a 637.3M n/a
Runway (months of cash) 63.0 n/a n/a n/a 14.8 n/a

Beta Read what these cash burn values mean

Date Owner Security Transaction Code Indirect 10b5-1 $Price #Shares $Value #Remaining
11 May 21 Haddock Gerald W MTH Common Stock Sell Dispose S No No 112.59 2,000 225.18K 4,500
7 May 21 Haddock Gerald W MTH Common Stock Sell Dispose S No No 111.89 2,000 223.78K 6,500
6 May 21 Oppel Raymond MTH Common Stock Sell Dispose S No No 110.41 6,500 717.67K 12,500
6 May 21 Haddock Gerald W MTH Common Stock Sell Dispose S No No 110.99 2,000 221.98K 8,500
4 May 21 Peter L Ax MTH Common Stock Sell Dispose S No No 108.49 1,309 142.01K 25,591
4 May 21 Peter L Ax MTH Common Stock Sell Dispose S No No 108.07 4,191 452.92K 27,209
30 Apr 21 Feliciano Javier MTH Common Stock Sell Dispose S No No 105.85 6,700 709.2K 8,937

Data for the last complete 13F reporting period. To see the most recent changes to ownership, click the ownership history button above.

94.9% owned by funds/institutions
13F holders
Current Prev Q Change
Total holders 276 297 -7.1%
Opened positions 43 58 -25.9%
Closed positions 64 37 +73.0%
Increased positions 90 96 -6.3%
Reduced positions 111 109 +1.8%
13F shares
Current Prev Q Change
Total value 5.89B 3.06B +92.6%
Total shares 35.91M 36.93M -2.7%
Total puts 214.3K 99.7K +114.9%
Total calls 143K 99.2K +44.2%
Total put/call ratio 1.5 1.0 +49.1%
Largest owners
Shares Value Change
BLK Blackrock 6.63M $609.16M +7.6%
Vanguard 4.2M $385.85M +0.1%
Dimensional Fund Advisors 2.15M $197.68M -24.3%
Earnest Partners 1.54M $141.11M +5.5%
TROW T. Rowe Price 1.35M $124.49M +22.6%
Fisher Asset Management 1.29M $118.58M -5.7%
STT State Street 1.18M $108.2M +0.1%
MCQEF Macquarie 902.54K $82.96M -2.8%
Balyasny Asset Management 837.22K $76.96M +131.0%
Geode Capital Management 771.37K $70.9M +5.3%
Largest transactions
Shares Bought/sold Change
Norges Bank 0 -745.4K EXIT
Dimensional Fund Advisors 2.15M -689.85K -24.3%
Alliancebernstein 102.37K -499.87K -83.0%
Balyasny Asset Management 837.22K +474.86K +131.0%
BLK Blackrock 6.63M +465.31K +7.6%
PXGPE Phoenix 339.43K +339.43K NEW
Basswood Capital Management, L.L.C. 327.49K +327.49K NEW
Boston Partners 271.05K +271.05K NEW
TROW T. Rowe Price 1.35M +250.04K +22.6%
NTRS Northern Trust 648.54K -242.16K -27.2%

Financial report summary

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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.
  • 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 sales 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 a rating agency.
  • Our business may be negatively impacted by natural disasters or extreme weather events.
  • 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 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.
Management Discussion
  • Companywide. In 2020, home closings improved 27.7% to 11,834 units valued at $4.5 billion compared to 9,267 units valued at $3.6 billion in 2019. The increase in closings year-over-year reflects a 42.7% increase in order volume to 13,724 units valued at $5.2 billion in 2020 as compared to 9,616 units valued at $3.7 billion in 2019, as well as increased backlog conversion due to selling and closing more speculative inventory homes in 2020 compared to the prior year. The higher volume of spec sales and a notably higher orders pace year-over-year are due to the heightened demand in today's market for available, new and healthier single-family homes at affordable price points due to the macroeconomic events discussed in "Industry Conditions". This customer demand is aligned with our focus on the first-time and first move-up buyers, as our entry-level communities offer only spec homes for sale, and in both our entry-level and first move-up communities we have achieved shorter construction cycle times, allowing quicker move-ins for our customers. The increase in home closing revenue was due entirely to 2,567 additional units closed as average sales prices ("ASP") decreased 3.0%, reflective of a higher percentage of lower-priced entry-level homes in our closing mix that was partially offset by sequential price increases throughout 2020 in all of our geographies. At December 31, 2020 we had 195 actively selling communities, 20.1% lower than prior year, as a 67.7% improvement in orders pace to 5.2 per month in 2020 compared to 3.1 in 2019 resulted in communities selling and closing out faster than we were able to open replacement communities. We ended the year with 4,672 homes in backlog valued at $1.8 billion, reflecting 67.9% and 65.1% increases in backlog units and value, respectively, compared to 2019. ASP of homes in backlog declined by 1.7% to $388,000 from $394,700 in 2019 primarily a result of our shift to entry-level homes offset by price increases, as noted previously.
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