Meritage Homes Corporation — Earnings Quality Grade F
MTH · Consumer Cyclical
Major red flags
Screening Summary
Management Signals
Financial Trends
Revenue & Net Income ($B)
Margins (%)
18-Point Screening
Revenue Quality
Insufficient data
Insufficient data
Revenue -8.3%, CFFO 152.0%. Cash follows revenue
Expense Quality
Inventory 4.5% vs COGS -1.9%. Normal
CapEx growth -10.2% vs revenue -8.3%. Normal
SG&A/Gross Profit = 53.3%. Normal
Gross margin swung -5.3pp (25.0% → 19.7%)
Cash Flow Quality
CFFO < Net Income for 3 consecutive years
FCF < 50% of Net Income for 3 years
Accruals ratio = 4.4%. Low accruals
Cash $0.8B covers only 41% of debt $1.9B
Balance Sheet Health
No goodwill. Clean balance sheet
Debt/EBITDA = 3.1x. Healthy
Other assets 9.1% vs revenue -8.3%. Normal
No write-off data
Acquisition Risk
FCF after acquisitions positive
No goodwill
Manipulation Score
Insufficient data
Portfolio monitoring
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Altman Z-Score
Generated from public financial data using forensic accounting frameworks. Not investment advice. Data: Yahoo Finance · 2026-04-25