Meritage Homes Corporation (MTH)
NYSEConsumer DiscretionaryResidential ConstructionSnapshot 2026-09-04
$67.33-0.21%
Close 2026-09-04 · 1-day change
NYSEConsumer DiscretionaryResidential ConstructionSnapshot 2026-09-04
QuarterlyIQ Insights · MTH
How strong the business is — where it ranks within its sector on capital efficiency and cash generation, and how well management has been executing.
How management runs the business: capital, margins, balance sheet, and how reliably they guide and deliver.
Met or beat guidance 0% of the last 1 guided quarters · -25.2% avg surprise
Priorities management has stated in recent disclosures, with status and evidence drawn from earnings calls, filings, and press releases.
Sustain home closing volume and revenue close to 2025 results despite market softness and macroeconomic challenges.
Stated as a priority in 2 of last 2 quarters. Management updated 2026 full year guidance to around 5% below 2025 home closing volume and revenue. Actual home closing revenue declined 16% and home closing volume declined 12% year-over-year in first six months of 2026. The trajectory shows a decline consistent with management's updated guidance, reflecting market softness and macroeconomic challenges.
Each factor is a parallel diagnostic with a clear read of what it shows and how names like it have historically fared. Never aggregated into a single score.
Operating income rose in 0 of the last 3 quarter-over-quarter moves. Historically, Consumer Discretionary names rated neutral grew net income 45% of the time over the next year (vs 59% for the rest of the cohort, n=6943).
Not investment advice. Scores describe historical and current data; they are not forecasts of future returns. Consult a licensed advisor before making investment decisions.
“we are updating our guidance for full year 2026 home closing volume and revenue to around 5% below full year 2025 results”
“the Company is updating its guidance for full year 2026 home closing volume and revenue to at or within 5% of full year 2025 results.”
Maintain disciplined capital allocation balancing growth, liquidity, and shareholder returns including dividends and share repurchases.
Stated as a priority in 2 of last 2 quarters. Management returned $131 million to shareholders in Q2 2026 via share repurchases and dividends, with $230 million spent on repurchases and $63 million on dividends year-to-date. Cash and liquidity remain strong with $807 million cash at Q2 end. The trajectory is delivering on disciplined capital allocation and shareholder returns.
“We remain committed to a disciplined capital allocation strategy that balances growth and shareholder returns while ensuring sufficient liquidity.”
“We maintained our objective of balance sheet preservation in uncertain times while continuing to execute on our shareholder returns commitment.”
Grow the number of active communities by 5-10% annually to support future home sales growth.
Stated as a priority in 2 of last 2 quarters. Management targets 5-10% year-over-year community count growth for 2026. Actual community count increased 9% year-over-year in Q2 2026 and 19% in Q1 2026, supporting the growth objective. The trajectory is delivering on community expansion.
“We are reiterating our prior community count growth expectation of 5-10% year-over-year for full year 2026.”
“We opened 40 new communities and ended the quarter with 345 communities, our highest ever store count.”
Maintain capital expenditures discipline targeting around $2.0 billion for full year 2025, down from prior $2.5 billion target.
Newly stated in 2025-Q3. Management set a capital expenditure target of around $2.0 billion for 2025, down from prior $2.5 billion. No subsequent quarters restated this target in the supplied data. The priority is stated but lacks recent updates or financial results to assess delivery.
“targeting around $2.0 billion for the full year, down from $2.5 billion previously.”
The company aims to keep 2026 revenue at or within 5% of 2025 levels.
Over the trailing year it converted 0.06x of net income into operating cash flow. Historically, Consumer Discretionary names rated fragile grew net income 40% of the time over the next year (vs 53% for the rest of the cohort, n=3652).
Most sensitive to the broad stock market and long-term interest rates.
Not enough signal to read sensitivity to the US dollar, Fed net liquidity (low R² over the window).
12 material management or governance events in the past 24 months, led by executive changes. Historically, Consumer Discretionary names rated neutral grew net income 48% of the time over the next year (vs 53% for the rest of the cohort, n=2538).
Not investment advice. As of 2026-09-04.