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M/I Homes Inc (MHO)
:MHO
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M/I Homes
(NYSE:MHO)
73Outperform
M/I Homes (MHO) vs. S&P 500 (SPY)
Market Cap
$2.96B
Dividend YieldN/A
Average Volume (3M)266.56K
Price to Earnings (P/E)5.8
Beta (1Y)1.18
Revenue Growth8.68%
EPS Growth8.39%
CountryUS
Employees1,760
SectorConsumer Cyclical
Sector Strength59
IndustryResidential Construction
Share Statistics
EPS (TTM)3.98
Shares Outstanding26,783,787
10 Day Avg. Volume247,216
30 Day Avg. Volume266,564
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.00
Price to Cash Flow (P/CF)0.00
P/FCF Ratio0.00
Enterprise Value/Market Cap1.15
Enterprise Value/RevenueN/A
Enterprise Value/Gross Profit2.84
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$151.00Price Target Upside36.61% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
M/I Homes Business Overview & Revenue Model
Company DescriptionM/I Homes, Inc., together with its subsidiaries, operates as a builder of single-family homes in Ohio, Indiana, Illinois, Minnesota, Michigan, Florida, Texas, North Carolina, and Tennessee. The company operates through Northern Homebuilding, Southern Homebuilding, and Financial Services segments. It designs, constructs, markets, and sells single-family homes and attached townhomes to first-time, millennial, move-up, empty-nester, and luxury buyers under the M/I Homes brand name. The company also purchases undeveloped land to develop into developed lots for the construction of single-family homes, as well as for sale to others. In addition, it originates and sells mortgages; and serves as a title insurance agent by providing title insurance policies, examination, and closing services to purchasers of its homes. The company was formerly known as M/I Schottenstein Homes, Inc. and changed its name to M/I Homes, Inc. in January 2004. M/I Homes, Inc. was founded in 1976 and is based in Columbus, Ohio.
How the Company Makes MoneyM/I Homes generates revenue primarily through the sale of newly constructed homes. The company's homebuilding segment is the largest contributor to its revenue, encompassing the design, construction, and sale of single-family homes. Revenue is recognized when the homes are delivered to buyers. In addition to home sales, M/I Homes earns income through its financial services division, which provides mortgage financing and title services to homebuyers. This vertical integration allows the company to capture additional revenue through loan origination fees and other related financial services. Strategic partnerships with local contractors and suppliers help M/I Homes manage costs and maintain competitive pricing, further supporting its profitability.
M/I Homes Financial Statement Overview
Summary
M/I Homes shows strong financial health with consistent revenue and profitability growth. The company has effectively managed its leverage, improving its debt profile and maintaining a solid equity position. While cash flow generation has been positive, there is room for improvement in operational cash efficiency. The company's financials suggest a well-managed firm with a strong foundation but with potential to enhance cash flow operations.Income Statement
M/I Homes demonstrates a strong financial position with a consistent increase in revenue from $3,046 million in 2020 to $4,434 million in TTM 2025. The Gross Profit Margin remains healthy at 26.3% in TTM 2025, showcasing efficient cost management. The Net Profit Margin is robust at 12.1%, reflecting strong profitability. Revenue growth has been steady, although there was a slight decline from 2024 to TTM 2025. EBIT and EBITDA margins are also strong, indicating operational efficiency.85
Very Positive
Balance Sheet
The balance sheet shows a stable financial structure with a decreasing Debt-to-Equity Ratio from 0.79 in 2020 to 0.33 in TTM 2025, indicating reduced leverage. The Return on Equity is strong at 17.8% in TTM 2025, showing efficient use of equity capital. The Equity Ratio has improved, with Stockholders' Equity making up 65.6% of Total Assets, highlighting financial stability. However, the overall asset base growth is moderate.78
Positive
Cash Flow
Cash flow analysis reveals a positive trend in Free Cash Flow, with a growth from $156 million in 2020 to $119 million in TTM 2025, though it decreased from 2024. The Operating Cash Flow to Net Income Ratio is modest at 0.24, indicating that cash generation from operations is relatively low compared to net income. The Free Cash Flow to Net Income Ratio is healthier at 0.22, suggesting effective cash utilization.70
Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 4.50B | 4.03B | 4.13B | 3.75B | 3.05B | Gross Profit |
| 1.20B | 1.02B | 1.04B | 908.91M | 676.34M | EBIT |
| 706.29M | 576.86M | 637.45M | 518.30M | 319.26M | EBITDA |
| 749.06M | 601.72M | 652.06M | 532.63M | 339.83M | Net Income Common Stockholders |
| 563.73M | 465.37M | 490.66M | 396.87M | 239.87M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 821.57M | 732.80M | 311.54M | 236.37M | 260.81M | Total Assets |
| 4.55B | 4.02B | 3.71B | 3.24B | 2.64B | Total Debt |
| 1.04B | 917.15M | 999.52M | 1.01B | 924.35M | Net Debt |
| 214.98M | 184.35M | 687.98M | 777.11M | 663.54M | Total Liabilities |
| 1.61B | 1.51B | 1.64B | 1.62B | 1.38B | Stockholders Equity |
| 2.94B | 2.52B | 2.07B | 1.62B | 1.26B |
| Cash Flow | Free Cash Flow | |||
| 171.32M | 546.36M | 174.74M | -42.12M | 156.66M | Operating Cash Flow |
| 179.74M | 552.13M | 184.07M | -16.82M | 168.33M | Investing Cash Flow |
| -54.90M | -18.63M | -27.38M | -51.72M | -33.87M | Financing Cash Flow |
| -36.07M | -112.24M | -81.52M | 44.10M | 120.26M |
M/I Homes Technical Analysis
Neutral
110.53
Price Trends
112.92
Negative
122.60
Negative
141.00
Negative
Market Momentum
-1.37
Negative
52.31
Neutral
59.72
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MHO, the sentiment is Neutral. The current price of 110.53 is above the 20-day moving average (MA) of 106.86, below the 50-day MA of 112.92, and below the 200-day MA of 141.00, indicating a neutral trend. The MACD of -1.37 indicates Negative momentum. The RSI at 52.31 is Neutral, neither overbought nor oversold. The STOCH value of 59.72 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for MHO.
M/I Homes Risk Analysis
M/I Homes disclosed 31 risk factors in its most recent earnings report. M/I Homes reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
M/I Homes Peers Comparison
Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | $2.86B | 7.00 | 13.28% | ― | 10.82% | 19.34% | |
76 Outperform | $2.64B | 7.27 | 24.29% | ― | 21.22% | 24.90% | |
73 Outperform | $2.96B | 5.84 | 19.02% | ― | 8.68% | 8.39% | |
71 Outperform | $3.94B | 6.70 | 15.58% | 1.82% | 5.54% | 11.12% | |
65 Neutral | $1.68B | 5.69 | 12.36% | 1.95% | 10.75% | 8.31% | |
61 Neutral | $6.64B | 11.67 | 3.04% | 3.98% | 2.60% | -21.24% | |
58 Neutral | $1.29B | 7.21 | 9.36% | ― | -4.37% | -3.17% |
* Consumer Cyclical Sector Average
Performance Comparison
MHO
M/I Homes
110.53
-13.41
-10.82%
KBH
KB Home
54.70
-14.37
-20.80%
TPH
Tri Pointe
31.45
-8.10
-20.48%
LGIH
LGI Homes
55.93
-41.76
-42.75%
CCS
Century Communities
54.62
-29.03
-34.70%
GRBK
Green Brick Partners
59.54
3.14
5.57%
M/I Homes Earnings Call Summary
Earnings Call Date:Apr 23, 2025
(Q1-2025)
| % Change Since: 1.10%|
Next Earnings Date:Jul 23, 2025
Earnings Call Sentiment Neutral
The earnings call reflects a mix of positive financial metrics, such as strong gross margins and an increased community count, along with challenges like declining new contracts, revenues, and pressures on gross margins. The company maintains a robust equity position and successful mortgage operations. Despite challenges, the overall sentiment for future performance remains optimistic.Q1-2025 Updates
Positive Updates
Strong Gross Margin
The company reported a strong gross margin of 25.9% for the first quarter, which is a sequential improvement over the previous quarter, despite challenging economic conditions.
Record Equity Position
M/I Homes ended the quarter with an all-time record of $3 billion in equity, equating to a book value per share of $112.
Increased Community Count
The company reported a record 226 communities and plans to grow this by an average of 5% in 2025.
Successful Mortgage Operations
Mortgage and title operations achieved pre-tax income of $16.1 million, a 31% increase from the previous year.
Strong Buyer Profile
The credit quality of buyers remains robust with average credit scores of 746 and average down payments of nearly $90,000.
Negative Updates
Decreased New Contracts and Deliveries
New contracts were down 10% compared to last year, and home deliveries decreased by 8% to 1,976 homes.
Revenue and Pre-Tax Income Decline
Revenues decreased by 7% to $976 million, and pre-tax income decreased by 19% to $146 million.
Pressure on Gross Margins
Gross margins are expected to be under pressure and below 2024's full year margins of 26.6% due to continued use of mortgage rate buydowns.
Regional Performance Variability
New contracts in the Southern region decreased by 11% compared to last year's first quarter, and deliveries in the Southern region decreased 13%.
Company Guidance
In the first quarter of fiscal year 2025, M/I Homes faced challenging macroeconomic conditions, posting solid results nonetheless. The company reported a 10% decrease in new contracts compared to the previous year, with gross margins at 25.9%, down 120 basis points year-over-year but showing a sequential improvement over the fourth quarter of 2024. Homes delivered decreased by 8% to 1,976 units, and revenues dropped by 7% to $976 million. Pre-tax income fell 19% to $146 million, though the pre-tax income margin remained strong at 15%. The company ended the quarter with a record 226 communities, aiming for a 5% average growth in community count in 2025. M/I Homes' balance sheet was robust, with $3 billion in equity, a debt-to-capital ratio of 19%, and a net debt-to-capital ratio of negative 3%. The company continues to employ mortgage rate buydowns, with 54% of buyers using this incentive, as a strategy to drive traffic and sales amid ongoing market uncertainties.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.