M/I Homes Inc (MHO)
NYSE:MHO
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M/I Homes
(NYSE:MHO)
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Rating:68Neutral
Price Target:
$140.00
▲(10.78% Upside)
Action:DowngradedDate:04/22/26
Overall score reflects solid financial quality and an attractive low earnings multiple, partially offset by cooling revenue/margin momentum and a mixed technical trend (below key longer-term moving averages, negative MACD). The latest earnings call reinforced balance-sheet strength and capital returns, but highlighted meaningful near-term margin pressure.
Positive Factors
Balance sheet strength & liquidity
Very strong liquidity and low net leverage provide durable financial flexibility to fund land development, withstand housing-cycle volatility, support buybacks and opportunistic investment without pressuring refinancing needs for several quarters.
Negative Factors
Material margin and earnings deterioration
Substantial margin compression and double-digit declines in pretax and EBITDA indicate cost and pricing pressure that can persist if incentives, lot costs or mix shifts remain; this erodes long-term earnings power and free-cash-flow capacity.
Read all positive and negative factors
Positive Factors
Negative Factors
Balance sheet strength & liquidity
Very strong liquidity and low net leverage provide durable financial flexibility to fund land development, withstand housing-cycle volatility, support buybacks and opportunistic investment without pressuring refinancing needs for several quarters.
Read all positive factors
M/I Homes (MHO) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$3.22B
Dividend YieldN/A
Average Volume (3M)227.54K
Price to Earnings (P/E)11.7
Beta (1Y)0.77
Revenue Growth-1.83%
EPS Growth-30.18%
CountryUS
Employees1,760
SectorConsumer Cyclical
Sector Strength84
IndustryResidential Construction
Share Statistics
EPS (TTM)13.58
Shares Outstanding25,590,109
10 Day Avg. Volume231,905
30 Day Avg. Volume227,536
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 Cap1.10
Enterprise Value/Revenue0.81
Enterprise Value/Gross Profit3.67
Enterprise Value/Ebitda6.35
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusHold
Number of Analyst Covering1
EPS Forecast (FY)13.32
Revenue Forecast (FY)$4.35B
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:Apr 22, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Jul 29, 2026
Earnings Call Sentiment Neutral
The call conveyed a mixed but fundamentally stable picture: the company demonstrated a very strong balance sheet, record book value per share, continued sales momentum (new contracts +3% and sold homes +3%), and an improved mortgage capture rate, which supported profitability. However, profitability metrics materially declined (pretax income -39%, EBITDA -36%, EPS -36%) driven by a 390 bps gross margin compression, higher incentives and lot costs, and regional volume variances. Management emphasized discipline on land, inventory and rate-buys, and highlighted market diversification and buyer quality as offsets to near-term margin pressure.Positive Updates
Strong Balance Sheet and Liquidity
Record shareholders' equity of $3.2 billion, cash balance of $767 million (over $750M), no borrowings under the $900M revolving credit facility, debt-to-capital 18% and net debt-to-capital negative 2%.
Negative Updates
Decline in Pretax Income and Profitability Metrics
Pretax income fell 39% year-over-year to $89.2M, and EBITDA decreased to $99M from $154M (down ~36%), reflecting margin pressure and lower operating profit versus prior year.
Read all updates
Q1-2026 Updates
Positive
Negative
Strong Balance Sheet and Liquidity
Record shareholders' equity of $3.2 billion, cash balance of $767 million (over $750M), no borrowings under the $900M revolving credit facility, debt-to-capital 18% and net debt-to-capital negative 2%.
Read all positive updates
Company Guidance
Management gave limited formal guidance but outlined key forward targets and positioning: they’re on track to grow community count ~5% in 2026 (230 communities at Q1; opened 22/closed 24 in Q1; plan to open >80 new stores), will continue share repurchases (Q1 buybacks $50M, $170M remaining authorization; ~ $200M/year historical pace), and expect ASPs to remain in the upper $400Ks (Q1 ASP $459K, -4% Y/Y). They emphasized balance-sheet strength and land supply as the foundation for 2026 results: record shareholders’ equity $3.2B and book value/share $125, cash $767M, $0 drawn on $900M revolver, debt-to-capital 18% (net debt-to-capital -2%), owned ~24,200 lots (~3‑year supply) plus ~25,800 controlled (~50,000 total, ~5‑year supply), Q1 unsold land $1.9B and Q1 land spend $183M. While declining to give explicit margin guidance, they reiterated confidence in delivering solid 2026 results supported by Q1 operating metrics (Q1 revenue $921M, pretax income $89.2M or 10% pretax, ROE 12%, gross margin 22% [-390 bps], SG&A 12.7% of revenue, EBITDA $99M, EPS $2.55, homes sold 2,350 +3%, closings 1,914 -3%, cancellations 8%, inventory homes 2,584 with 740 completed) and mortgage business strength (mortgage pretax $14.1M, revenue $31.2M, loans originated 1,579 +3%, avg loan $401K, avg LTV 85%, capture rate 96%).M/I Homes Financial Statement Overview
Summary
Income Statement
72
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 | 4.36B | 4.42B | 4.50B | 4.03B | 4.13B | 3.75B |
| Gross Profit | 969.67M | 1.02B | 1.20B | 1.01B | 1.04B | 908.91M |
| EBITDA | 559.63M | 566.67M | 749.06M | 621.77M | 652.06M | 532.63M |
| Net Income | 359.54M | 402.94M | 563.73M | 465.37M | 490.66M | 396.87M |
Balance Sheet | ||||||
| Total Assets | 4.79B | 4.78B | 4.55B | 4.02B | 3.71B | 3.24B |
| Cash, Cash Equivalents and Short-Term Investments | 767.42M | 689.19M | 822.00M | 736.22M | 311.33M | 236.37M |
| Total Debt | 1.01B | 1.09B | 1.04B | 917.15M | 999.52M | 1.01B |
| Total Liabilities | 1.60B | 1.61B | 1.61B | 1.51B | 1.64B | 1.62B |
| Stockholders Equity | 3.19B | 3.17B | 2.94B | 2.52B | 2.07B | 1.62B |
Cash Flow | ||||||
| Free Cash Flow | 199.43M | 120.73M | 171.32M | 546.36M | 174.74M | -42.12M |
| Operating Cash Flow | 207.69M | 130.34M | 179.74M | 552.13M | 184.07M | -16.82M |
| Investing Cash Flow | -51.69M | -59.74M | -54.90M | -18.63M | -27.38M | -51.72M |
| Financing Cash Flow | -164.96M | -202.98M | -36.07M | -112.24M | -81.52M | 44.10M |
M/I Homes Technical Analysis
Neutral
126.38
Price Trends
131.96
Negative
132.64
Negative
133.43
Negative
Market Momentum
-1.98
Negative
52.09
Neutral
49.89
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 126.38 is above the 20-day moving average (MA) of 122.20, below the 50-day MA of 131.96, and below the 200-day MA of 133.43, indicating a neutral trend. The MACD of -1.98 indicates Negative momentum. The RSI at 52.09 is Neutral, neither overbought nor oversold. The STOCH value of 49.89 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 |
|---|---|---|---|---|---|---|---|
75 Outperform | $2.79B | 11.48 | 16.90% | ― | -0.02% | -16.42% | |
74 Outperform | $3.99B | 145.98 | 5.53% | ― | -24.29% | -53.38% | |
68 Neutral | $3.22B | 11.74 | 11.42% | ― | -1.83% | -30.18% | |
68 Neutral | $4.21B | 18.83 | 7.40% | 2.62% | -10.63% | -45.01% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
61 Neutral | $3.01B | 29.80 | 9.01% | 1.76% | -13.61% | -37.18% | |
50 Neutral | $1.04B | 105.92 | 3.39% | ― | -22.62% | -60.74% |
* Consumer Cyclical Sector Average
MHO
M/I Homes
125.73
18.08
16.80%
KBH
KB Home
48.09
-3.95
-7.59%
MTH
Meritage
63.05
-1.75
-2.71%
TPH
Tri Pointe
46.81
16.16
52.72%
LGIH
LGI Homes
44.88
-8.31
-15.62%
GRBK
Green Brick Partners
64.70
5.83
9.90%
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.