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M/I Homes
(NYSE:MHO)
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Rating:63Neutral
Price Target:
$121.00
▼(-20.55% Downside)
Action:Reiterated
Date:10/22/26
Overall score reflects solid-but-cooling fundamentals (positive margins, manageable leverage, and positive free cash flow) offset by a clearly bearish technical trend (price below key moving averages and negative MACD). Valuation is supportive at ~10.6x earnings, while the latest earnings call underscores near-term demand and margin pressure despite strong liquidity and continued buybacks.
Positive Factors
Strong balance sheet
Exceptional liquidity and low leverage provide resilience through a housing downturn, while the substantial equity base preserves borrowing capacity. This financial flexibility can support land investment, operations and shareholder returns without relying heavily on incremental debt.
Negative Factors
Demand deterioration
Falling contracts and closings indicate that elevated mortgage rates and weaker confidence are affecting customer demand. If this persists, lower absorption could delay revenue conversion, increase incentives and make the expanded community base less productive.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong balance sheet
Exceptional liquidity and low leverage provide resilience through a housing downturn, while the substantial equity base preserves borrowing capacity. This financial flexibility can support land investment, operations and shareholder returns without relying heavily on incremental debt.
Read all positive factors
M/I Homes (MHO) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$2.88B
Dividend YieldN/A
Average Volume (3M)237.40K
Price to Earnings (P/E)10.6
Beta (1Y)0.69
Revenue Growth-5.91%
EPS Growth-38.43%
CountryUS
Employees1,801
SectorConsumer Cyclical
Sector Strength84
IndustryResidential Construction
Share Statistics
EPS (TTM)10.75
Shares Outstanding25,283,031
10 Day Avg. Volume300,265
30 Day Avg. Volume237,400
Financial Highlights & Ratios
PEG Ratio-0.33
Price to Book (P/B)1.08
Price to Sales (P/S)0.77
P/FCF Ratio28.33
Enterprise Value/Market Cap1.34
Enterprise Value/Revenue0.92
Enterprise Value/Gross Profit4.44
Enterprise Value/Ebitda8.89
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)12.05
Revenue Forecast (FY)$4.18B
M/I Homes Business Overview & Revenue Model
Company Description
M/I Homes, Inc. (MHO), along with its affiliated companies, constructs single-family residences across a broad geographical area, including Ohio, Indiana, Illinois, Minnesota, Michigan, Florida, Texas, North Carolina, and Tennessee. Its operations...
How the Company Makes Money
M/I Homes makes money primarily by selling newly constructed homes to homebuyers. Its core revenue stream is homebuilding revenue recognized from the sale of homes (including the underlying land) once the company satisfies the applicable closing/t...
M/I Homes Earnings Call Summary
Earnings Call Date:Oct 21, 2026
(Q3-2026)
| % Change Since: |
Next Earnings Date:Feb 03, 2027
Earnings Call Sentiment Neutral
The call reflected a challenging near-term operating environment, with higher mortgage rates, weaker September contracts, lower closings, revenue, margins, EBITDA, earnings per share, and mortgage profitability. These pressures were partially offset by a record balance sheet, substantial liquidity, a strong land position, high mortgage capture, solid buyer credit metrics, community growth, stable construction costs, and management's confidence in execution and long-term homebuilding fundamentals.Positive Updates
Strong Balance Sheet and Liquidity
The company ended the third quarter with an all-time record $3.3 billion of equity, book value of $130 per share, over $600 million in cash, and zero borrowings under its $900 million unsecured revolving credit facility. Debt to capital was 18% and net debt to capital was 2%, described as among the lowest debt levels in the homebuilding industry.
Negative Updates
Higher Interest Rates and Challenging Demand Environment
The 10-year U.S. Treasury yield increased from 4.5% on July 1 to 5.3% on September 30, while the average par contract rate for a 30-year fixed mortgage rose nearly 100 basis points from roughly 6.75% to close to 7.75%. Management said rising rates, elevated fuel prices, inflation concerns, and the continued conflict in Iran impacted consumer confidence and demand and contributed to economic uncertainty.
Read all updates
Q3-2026 Updates
Positive
Negative
Strong Balance Sheet and Liquidity
The company ended the third quarter with an all-time record $3.3 billion of equity, book value of $130 per share, over $600 million in cash, and zero borrowings under its $900 million unsecured revolving credit facility. Debt to capital was 18% and net debt to capital was 2%, described as among the lowest debt levels in the homebuilding industry.
Read all positive updates
Company Guidance
Management estimates its 2026 year-end community count will be about 5% higher than last year and said increasing community count 5% to 10% a year is kind of our goal; it has reduced starts a little bit, with spec levels a little over 3 thousand in total and finished spec levels in that 700 range, and said it could be doing probably 1 thousand or 1.5 thousand more homes a year if the demand was there. Management said it is not gonna make any material changes to strategy, although in 2 or 3 or maybe 4 markets it is shifting the mix a little bit more towards the move up, and will be more careful about new deals, watch new hiring, and control expenses; it also said the current choppy and challenging conditions may continue for some time.M/I Homes Financial Statement Overview
Summary
Income Statement
68
Positive
Balance Sheet
78
Positive
Cash Flow
62
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 4.21B | 4.42B | 4.50B | 4.03B | 4.13B | 3.75B |
| Gross Profit | 870.28M | 1.02B | 1.20B | 1.01B | 1.04B | 908.91M |
| EBITDA | 434.60M | 563.30M | 749.06M | 621.77M | 652.06M | 525.60M |
| Net Income | 277.42M | 402.94M | 563.73M | 465.37M | 490.66M | 396.87M |
Balance Sheet | ||||||
| Total Assets | 4.86B | 4.78B | 4.55B | 4.02B | 3.71B | 3.24B |
| Cash, Cash Equivalents and Short-Term Investments | 620.60M | 689.19M | 822.00M | 736.22M | 311.33M | 236.37M |
| Total Debt | 927.68M | 1.09B | 1.04B | 917.15M | 999.52M | 1.01B |
| Total Liabilities | 1.61B | 1.61B | 1.61B | 1.51B | 1.64B | 1.62B |
| Stockholders Equity | 4.86B | 3.17B | 2.94B | 2.52B | 2.07B | 1.62B |
Cash Flow | ||||||
| Free Cash Flow | 145.76M | 120.73M | 171.32M | 546.36M | 174.74M | -42.12M |
| Operating Cash Flow | 150.01M | 130.34M | 179.74M | 552.13M | 184.07M | -16.82M |
| Investing Cash Flow | -69.81M | -59.74M | -54.90M | -18.63M | -27.38M | -51.72M |
| Financing Cash Flow | -147.81M | -202.98M | -36.07M | -112.24M | -81.52M | 44.10M |
M/I Homes Technical Analysis
Negative
152.29
Price Trends
139.90
Negative
144.02
Negative
137.97
Negative
Market Momentum
-5.63
Positive
22.88
Positive
10.56
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MHO, the sentiment is Negative. The current price of 152.29 is above the 20-day moving average (MA) of 129.69, above the 50-day MA of 139.90, and above the 200-day MA of 137.97, indicating a bearish trend. The MACD of -5.63 indicates Positive momentum. The RSI at 22.88 is Positive, neither overbought nor oversold. The STOCH value of 10.56 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for MHO.
M/I Homes Risk Analysis
M/I Homes disclosed 32 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
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
69 Neutral | $38.87B | 13.20 | 12.77% | 1.30% | -3.54% | -15.86% | |
63 Neutral | $2.88B | 10.61 | 7.68% | ― | -5.91% | -38.43% | |
63 Neutral | $3.93B | 12.36 | 6.38% | 3.15% | -13.27% | -45.63% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
60 Neutral | $1.58B | 11.85 | 5.21% | 2.30% | -8.37% | -45.09% | |
52 Neutral | $2.63B | 11.85 | 5.93% | 2.33% | -20.80% | -50.30% | |
47 Neutral | $893.23M | -114.54 | -0.65% | ― | -12.75% | -112.80% |
* Consumer Cyclical Sector Average
MHO
M/I Homes
123.30
-8.90
-6.73%
BZH
Beazer Homes
33.48
9.49
39.56%
DHI
DR Horton
147.66
-9.01
-5.75%
KBH
KB Home
46.19
-15.74
-25.41%
MTH
Meritage
63.63
-6.07
-8.71%
CCS
Century Communities
58.34
-5.46
-8.57%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
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.