M/I Homes (MHO) AI Stock Analysis

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M/I Homes

(NYSE:MHO)

74Outperform

M/I Homes scores well overall, reflecting its strong financial foundation and attractive valuation. While the technical indicators suggest limited momentum, the company's robust equity and undervalued stock price present potential opportunities. The earnings call highlights both strengths in gross margin and community expansion, and challenges like declining revenues and contracts, resulting in a cautiously optimistic outlook.

M/I Homes (MHO) vs. S&P 500 (SPY)

Market Cap

$3.06B

Dividend YieldN/A

Average Volume (3M)249.99K

Price to Earnings (P/E)5.8

Beta (1Y)1.19

Revenue Growth8.68%

EPS Growth8.39%

CountryUS

Employees1,760

SectorConsumer Cyclical

Sector Strength77

IndustryResidential Construction

Share Statistics

EPS (TTM)3.98

Shares Outstanding26,783,787

10 Day Avg. Volume215,329

30 Day Avg. Volume249,988

Financial Highlights & Ratios

PEG Ratio-1.34

Price to Book (P/B)1.00

Price to Sales (P/S)0.00

P/FCF Ratio24.80

Enterprise Value/Market CapN/A

Enterprise Value/RevenueN/A

Enterprise Value/Gross ProfitN/A

Enterprise Value/EbitdaN/A

Forecast

1Y Price Target

$151.00

Price Target Upside36.79% 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

Very Positive

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.

Balance Sheet

Positive

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.

Cash Flow

Positive

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.

TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Breakdown
Income Statement		Total Revenue
4.43B	4.50B	4.03B	4.13B	3.75B	3.05B
	Gross Profit
1.17B	1.20B	1.02B	1.04B	908.91M	676.34M
	EBIT
667.55M	706.29M	576.86M	637.45M	518.30M	319.26M
	EBITDA
696.78M	749.06M	601.72M	652.06M	532.63M	339.83M
	Net Income Common Stockholders
536.90M	563.73M	465.37M	490.66M	396.87M	239.87M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
776.38M	821.57M	732.80M	311.54M	236.37M	260.81M
	Total Assets
4.59B	4.55B	4.02B	3.71B	3.24B	2.64B
	Total Debt
982.26M	1.04B	917.15M	999.52M	1.01B	924.35M
	Net Debt
205.88M	214.98M	184.35M	687.98M	777.11M	663.54M
	Total Liabilities
1.58B	1.61B	1.51B	1.64B	1.62B	1.38B
	Stockholders Equity
3.01B	2.94B	2.52B	2.07B	1.62B	1.26B
Cash Flow		Free Cash Flow
119.37M	171.32M	546.36M	174.74M	-42.12M	156.66M
	Operating Cash Flow
128.85M	179.74M	552.13M	184.07M	-16.82M	168.33M
	Investing Cash Flow
-40.72M	-54.90M	-18.63M	-27.38M	-51.72M	-33.87M
	Financing Cash Flow
-181.92M	-36.07M	-112.24M	-81.52M	44.10M	120.26M

M/I Homes Technical Analysis

Technical Analysis Sentiment

Negative

Last Price110.39

Price Trends

50DMA

111.97

Negative

100DMA

119.46

Negative

200DMA

139.47

Negative

Market Momentum

MACD

0.16

Negative

RSI

49.69

Neutral

STOCH

53.41

Neutral

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 110.39 is above the 20-day moving average (MA) of 108.07, below the 50-day MA of 111.97, and below the 200-day MA of 139.47, indicating a neutral trend. The MACD of 0.16 indicates Negative momentum. The RSI at 49.69 is Neutral, neither overbought nor oversold. The STOCH value of 53.41 is Neutral, 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 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
TPH	76 Outperform	$2.93B	6.95	13.28%	―	10.82%	19.34%
GRBK	76 Outperform	$2.69B	7.46	24.29%	―	21.22%	24.90%
MHO	74 Outperform	$3.06B	5.80	19.02%	―	8.68%	8.39%
KBH	69 Neutral	$4.02B	6.83	15.58%	1.85%	5.54%	11.12%
CCS	65 Neutral	$1.69B	5.72	12.36%	1.94%	10.75%	8.31%
Sector *	61 Neutral	$6.98B	11.29	2.93%	3.90%	2.60%	-21.72%
LGIH	58 Neutral	$1.34B	7.38	9.36%	―	-4.37%	-3.17%

* Consumer Cyclical Sector Average

Performance Comparison

MHO

M/I Homes

110.39

-17.25

-13.51%

KBH

KB Home

54.39

-17.31

-24.14%

TPH

Tri Pointe

31.69

-8.21

-20.58%

LGIH

LGI Homes

57.21

-48.03

-45.64%

CCS

Century Communities

55.71

-30.47

-35.36%

GRBK

Green Brick Partners

61.78

4.31

7.50%

M/I Homes Earnings Call Summary

Earnings Call Date:Apr 23, 2025

(Q1-2025)

% Change Since: 0.97%|

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.

M/I Homes Corporate Events

Executive/Board ChangesShareholder Meetings

M/I Homes Annual Shareholder Meeting Decisions

Neutral

May 14, 2025

On May 14, 2025, M/I Homes held its Annual Meeting of Shareholders, where key decisions were made regarding the company’s leadership and financial oversight. Shareholders elected Nancy J. Kramer, Yvette McGee Brown, and Robert H. Schottenstein as directors to serve until 2028. Additionally, the shareholders approved the compensation of the company’s executive officers and ratified Deloitte & Touche LLP as the independent public accounting firm for the 2025 fiscal year.

The most recent analyst rating on (MHO) stock is a Buy with a $200.00 price target. To see the full list of analyst forecasts on M/I Homes stock, see the MHO Stock Forecast page.

Spark’s Take on MHO Stock

According to Spark, TipRanks’ AI Analyst, MHO is a Outperform.

M/I Homes is a fundamentally strong company with robust financial health and attractive valuation, though faced with recent operational challenges. Despite macroeconomic pressures, the firm maintains a solid equity base and optimistic future outlook, balanced by mixed technical signals.

To see Spark’s full report on MHO stock, click here.

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.