Meritage Homes Corporation cash flow to debt ratio of 6.26% indicates that the company cannot generate enough cash to cover its debt over time. This level indicates weak financial health.

Meritage Homes Corporation's free cash flow has increased -136.13% from $-256.23M last year to $92.57M, signaling increasing performance

Meritage Homes Corporation's debt to equity ratio is 0.35, which means that the company's assets are healthy financed, signaling financial stability. READ MORE: A ratio under 0.60 means the company finances its assets with own equity, signaling financial stability and good management.

Meritage Homes Corporation's debt has increased relative to shareholder equity from 0.27 last year to 0.35 today, signaling weakened financials

Meritage Homes Corporation has a net debt to EBITDA ratio of 1.83x, which is below the 3.00x threshold, indicating healthy leverage and financial stability

Meritage Homes Corporation earns at least as much interest as it pays. Interest obligations are fully covered.

Meritage Homes Corporation's profit margin has decreased (-44.17%) in the last year from 12.29% to 6.86%, signaling decreasing performance

Meritage Homes Corporation's short-term assets of $7.24G exceed its short-term liabilities of $597.59M

Meritage Homes Corporation's return on assets of 5.10% is higher than the 5.00% threshold, indicating efficient asset utilization

Meritage Homes Corporation's return on equity of 7.40%, is lower than 15.00%, indicating bad performance

Meritage Homes Corporation's operating cash flow is lower than its net income, indicating that earnings may not be fully backed by cash generation

Meritage Homes Corporation had positive net income in 5.00 out of 5 years, indicating stable and consistent earnings

Meritage Homes Corporation has positive free cash flow, indicating the company generates cash after capital expenditures

Meritage Homes Corporation has a free cash flow yield of 1.63%, which is below the 2.00% threshold, indicating limited cash return relative to market value

Meritage Homes Corporation's yearly earnings has decreased -42.38% since last year from $786.19M to $453.01M, signaling decreasing performance

Meritage Homes Corporation's yearly revenue has decreased -8.37% since last year from $6.39G to $5.86G, signaling decreasing performance

ROIC 30.21% (Source: FMP key-metrics). At or above the 10% threshold. Score: 2 of 2. The company is generating returns above the upper end of the typical US weighted-average cost of capital range under this definition of invested capital.

Meritage Homes Corporation's 3-year revenue CAGR of -2.36% is negative, indicating declining revenue over the past 3 years

Meritage Homes Corporation had revenue growth in 3.00 out of 5 years, indicating consistent revenue performance

Meritage Homes Corporation had positive ROE in 5.00 out of 5 years, indicating consistent and reliable returns on equity

Meritage Homes Corporation has insufficient data to evaluate this check.

Meritage Homes Corporation has an earnings yield of 6.72%, which is above the 4.00% threshold, indicating the stock offers reasonable value relative to its earnings

Meritage Homes Corporation is overvalued relative to its fair value price of 42.29 based on EBITDA multiple model

Meritage Homes Corporation has an EV/EBITDA ratio of 12.89x, which is below the 20.00x threshold, indicating reasonable valuation relative to its operating earnings

Meritage Homes Corporation is undervalued relative to its fair value price of 184.16 based on Earnings Fair Value model

Meritage Homes Corporation has negative trailing-twelve-month earnings; this ratio is not meaningful and the check fails

Meritage Homes Corporation has a price-to-book ratio of 1.13x, which is below the 5.00x threshold, indicating reasonable valuation relative to its book value

Meritage Homes Corporation has a price-to-sales ratio of 1.01x, which is below the 8.00x threshold, indicating reasonable valuation relative to its revenue