M/I Homes Inc (MHO)
NYSE:MHO
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M/I Homes
(NYSE:MHO)
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Rating:71Outperform
Price Target:
$136.00
▲(10.88% Upside)
Action:DowngradedDate:01/29/26
The score is driven primarily by solid (but cooling) financial performance—especially margin compression and weaker cash conversion—tempered by a notably low P/E. Technical indicators are neutral, and the latest earnings call reinforced strong balance-sheet flexibility and improving orders, but also underscored ongoing margin and inventory-related risks.
Positive Factors
Balance Sheet Strength
A large cash balance and no borrowings provide durable financial flexibility for a cyclical homebuilder. This reduces refinancing risk, funds lot purchases or temporary incentives, supports share repurchases, and lets management sustain operations and opportunistic investments across housing cycles.
Negative Factors
Margin Compression
A sustained ~220 bps contraction in gross margin (ex-charges) and weaker Q4 margins indicate structural pricing or cost-pressure trends. Lower margins reduce cash generation and ROE, limiting reinvestment capacity and making it harder to fund growth or buybacks without margin recovery.
Read all positive and negative factors
Positive Factors
Negative Factors
Balance Sheet Strength
A large cash balance and no borrowings provide durable financial flexibility for a cyclical homebuilder. This reduces refinancing risk, funds lot purchases or temporary incentives, supports share repurchases, and lets management sustain operations and opportunistic investments across housing cycles.
Read all positive factors
M/I Homes (MHO) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$3.20B
Dividend YieldN/A
Average Volume (3M)240.39K
Price to Earnings (P/E)8.5
Beta (1Y)0.86
Revenue Growth4.77%
EPS Growth-9.30%
CountryUS
Employees1,760
SectorConsumer Cyclical
Sector Strength84
IndustryResidential Construction
Share Statistics
EPS (TTM)3.91
Shares Outstanding25,767,710
10 Day Avg. Volume206,641
30 Day Avg. Volume240,393
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 Cap1.14
Enterprise Value/Revenue0.83
Enterprise Value/Gross Profit3.58
Enterprise Value/Ebitda5.84
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusHold
Number of Analyst Covering1
EPS Forecast (FY)13.21
Revenue Forecast (FY)$4.40B
M/I Homes Business Overview & Revenue Model
Company Description
M/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, South...
How the Company Makes Money
M/I Homes makes money primarily by selling newly constructed homes to homebuyers. Its core revenue stream comes from homebuilding operations: it acquires or controls land (directly or via options), develops lots and community infrastructure, const...
M/I Homes Earnings Call Summary
Earnings Call Date:Jan 28, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Apr 22, 2026
Earnings Call Sentiment Neutral
The call conveyed a balanced message: the company emphasized a very strong balance sheet, record equity, solid liquidity, mortgage/financial services strength, community growth and operational improvements, while also acknowledging meaningful margin compression, $59 million of inventory/warranty charges (concentrated in entry-level communities), and a decline in EPS and pretax income versus the prior year. Management highlighted improving order trends late in the year (Q4 new contracts +9% YoY and southern region strength) and expects to leverage flexibility in lot control and continued execution to navigate 2026, but cautioned margins remain under pressure.Positive Updates
Strong Balance Sheet and Liquidity
Ended 2025 with $689 million cash, zero borrowings under a $900 million revolver, a debt-to-capital ratio of 18% and net debt-to-capital of 0%, positioning the company in its 'best financial condition' in history.
Negative Updates
Margin Compression Year-over-Year
Full-year gross margin (excluding $59 million charges) was 24.4%, down 220 basis points versus 2024; Q4 gross margin was 18.1% including $51 million of Q4 charges and 22.6% excluding those charges.
Read all updates
Q4-2025 Updates
Positive
Negative
Strong Balance Sheet and Liquidity
Ended 2025 with $689 million cash, zero borrowings under a $900 million revolver, a debt-to-capital ratio of 18% and net debt-to-capital of 0%, positioning the company in its 'best financial condition' in history.
Read all positive updates
Company Guidance
Management offered limited formal guidance but did provide a few clear metrics: they expect average 2026 community count to be about 5% above 2025 (company ended 2025 with 232 active communities after opening 81 new communities) and expect a 2026 effective tax rate of roughly 23.5%, while declining to give margin guidance; they reiterated continued use of mortgage‑rate buydowns (targeting a sub‑5% 30‑year fixed—~4.875%—often with a 2/1 temporary buydown) supported by a high mortgage capture (94% in Q4; record ~93% for the year) and financial‑services pretax income of $56M for 2025. Management emphasized balance‑sheet strength underpinning growth: $689M cash, zero borrowings on a $900M revolver, 18% debt‑to‑capital (net debt‑to‑cap ~0%), ~26,000 owned lots (~<3‑year supply) plus ~24,000 option‑controlled lots for a total ~50,000 lots (~5–6‑year supply, 49% via options), $220M available repurchase authority, and debt maturities in 2028 and 2030.M/I Homes Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
74
Positive
Cash Flow
58
Neutral
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 4.42B | 4.50B | 4.03B | 4.13B | 3.75B |
| Gross Profit | 1.02B | 1.20B | 1.01B | 1.04B | 908.91M |
| EBITDA | 566.67M | 749.06M | 621.77M | 652.06M | 532.63M |
| Net Income | 402.94M | 563.73M | 465.37M | 490.66M | 396.87M |
Balance Sheet | |||||
| Total Assets | 4.78B | 4.55B | 4.02B | 3.71B | 3.24B |
| Cash, Cash Equivalents and Short-Term Investments | 689.19M | 822.00M | 736.22M | 311.33M | 236.37M |
| Total Debt | 1.09B | 1.04B | 917.15M | 999.52M | 1.01B |
| Total Liabilities | 1.61B | 1.61B | 1.51B | 1.64B | 1.62B |
| Stockholders Equity | 3.17B | 2.94B | 2.52B | 2.07B | 1.62B |
Cash Flow | |||||
| Free Cash Flow | 120.73M | 171.32M | 546.36M | 174.74M | -42.12M |
| Operating Cash Flow | 130.34M | 179.74M | 552.13M | 184.07M | -16.82M |
| Investing Cash Flow | -59.74M | -54.90M | -18.63M | -27.38M | -51.72M |
| Financing Cash Flow | -202.98M | -36.07M | -112.24M | -81.52M | 44.10M |
M/I Homes Technical Analysis
Neutral
122.66
Price Trends
133.22
Negative
132.75
Negative
133.17
Negative
Market Momentum
-2.85
Negative
46.21
Neutral
77.30
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 122.66 is below the 20-day moving average (MA) of 123.16, below the 50-day MA of 133.22, and below the 200-day MA of 133.17, indicating a neutral trend. The MACD of -2.85 indicates Negative momentum. The RSI at 46.21 is Neutral, neither overbought nor oversold. The STOCH value of 77.30 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 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 |
|---|---|---|---|---|---|---|---|
77 Outperform | $2.90B | 8.76 | 17.70% | ― | 6.62% | -1.90% | |
71 Outperform | $3.20B | 8.49 | 12.99% | ― | 4.77% | -9.30% | |
71 Outperform | $3.99B | 11.14 | 7.29% | ― | -16.60% | -29.85% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
60 Neutral | $3.23B | 29.80 | 9.01% | 1.76% | -10.01% | -27.81% | |
60 Neutral | $4.45B | 10.29 | 8.65% | 2.62% | -6.06% | -32.39% | |
48 Neutral | $919.54M | 13.73 | 3.51% | ― | -20.62% | -45.74% |
* Consumer Cyclical Sector Average
MHO
M/I Homes
124.12
16.95
15.82%
KBH
KB Home
51.60
1.45
2.88%
MTH
Meritage
66.55
3.66
5.83%
TPH
Tri Pointe
46.82
17.31
58.66%
LGIH
LGI Homes
39.75
-17.48
-30.54%
GRBK
Green Brick Partners
67.28
10.46
18.41%
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.