Forensic Analysis · Industrials / Manufacturing / Defense · as of Aug 11, 2026

Meritage Homes Corp (MTH)

A forensic read on Meritage Homes Corp built from its complete SEC filings — financial-health screens, earnings quality, red flags and a price-aware rating. Reproducible math, not opinion.

D · Weak — demands caution

Forensic grade

Clean

Earnings quality

Forensic signals

14.6

P / E (ttm)

8.7%

ROE

$4.7B

Market cap

2.52%

Dividend yield

-13.3%

Revenue growth

This free snapshot doesn't read filing or proxy text, so the auditor-quality and governance checks that can lower a grade were not evaluated (red flags, auditor quality, say on pay, board independence). Those checks only ever lower a grade, so the full analysis can land below the grade above but never above it — treat it as the most favourable reading, not the settled one.

Meritage Homes Corp earns a D (Weak — demands caution) forensic quality grade. 3 forensic signals were flagged in its latest SEC filings, led by cash conversion.

What the filings flag

0.12×

FY2023–FY2025

Cash conversion. Over FY2023–FY2025, operating cash flow was 0.12× cumulative net income. Reported profit is not turning into cash. The shortfall is profit tied up in working capital rather than collected — the accrual and receivables lines below show where.

449% of FCF

FY2025

Shareholder returns. Returned $416M to shareholders (buybacks + dividends) in FY2025 — 449% of free cash flow. More than free cash flow generated — and beyond operating cash too, so the extra is coming from debt or cash reserves, which isn't sustainable indefinitely.

7.3%

FY2025

Return on invested capital. Return on invested capital is 7.3% in the latest fiscal year and slipping from 23% — slightly below its ~9% cost of capital — reinvestment is roughly a wash.

Key fundamentals

Free Cash Flow$92.6M

Return on Equity8.7%

Debt / Equity0.35x

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Data from SEC EDGAR public filings · metrics as of Aug 11, 2026. Forensic signals flag probability, not certainty.