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M/I Homes (MHO)
NYSE:MHO
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M/I Homes (MHO) AI Stock Analysis

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MHO

M/I Homes

(NYSE:MHO)

Rating:80Outperform
Price Target:
$163.00
▲(3.88% Upside)
M/I Homes' strong financial performance and attractive valuation are the primary drivers of its high score. The technical analysis indicates a strong upward trend, although overbought conditions suggest caution. The earnings call reflects resilience but also highlights challenges such as declining new contracts and interest rate impacts.

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

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. Its revenue model is based on building and selling homes in various communities, with homes typically sold at a markup over construction costs. Key revenue streams include home sales, where the company earns margins on the homes sold, and additional income from options and upgrades that buyers select during the home buying process. The company also benefits from strategic partnerships with suppliers and subcontractors, which help manage costs and ensure quality. Additionally, M/I Homes may recognize revenue from the sale of land and lots, which further contributes to its overall earnings. The timing of home sales, housing market conditions, and interest rates also significantly impact the company's financial performance.

M/I Homes Earnings Call Summary

Earnings Call Date:Jul 23, 2025
(Q2-2025)
|
% Change Since: |
Next Earnings Date:Oct 22, 2025
Earnings Call Sentiment Neutral
M/I Homes demonstrated resilience with record revenue and strong balance sheet metrics despite facing challenges such as declining new contracts and lower gross margins due to the tough macroeconomic environment and higher interest rates.
Q2-2025 Updates
Positive Updates
Record Second Quarter Revenue and Homes Delivered
M/I Homes achieved record second quarter revenue of $1.2 billion, a 5% increase from the previous year, and delivered a record 2,348 homes, a 6% increase compared to a year ago.
Strong Balance Sheet
The company ended the second quarter with an all-time record $3.1 billion of equity, a book value per share of $117 (up 17% from a year ago), and $800 million in cash with no borrowings under its revolving credit facility, resulting in a net debt-to-capital ratio of negative 3%.
Community Growth and Land Position
M/I Homes increased its community count to 234, up from 211 a year ago, and remains on track for a 5% growth in average community count for 2025. The company owns approximately 24,500 lots and controls 26,000 additional lots, equating to a 5- to 6-year supply.
Mortgage and Title Operations Performance
The mortgage and title operations achieved a slight increase in pretax income to $14.5 million, with revenue increasing by 2% to a record $31.5 million for the second quarter.
Negative Updates
Decrease in New Contracts
New contracts in the second quarter were down 8% compared to the previous year, with a notable decrease of 13% in the Northern region and 4% in the Southern region.
Gross Margin Decline
The company's gross margin fell to 24.7%, down 320 basis points year-over-year, contributing to an 18% decrease in pretax income.
Earnings Per Share Decrease
Earnings per diluted share for the quarter decreased by 14% to $4.42 from $5.12 in the same period last year.
Interest Rate Challenges
Higher interest rates continue to create uncertainty and impact consumer confidence, contributing to a challenging market environment.
Company Guidance
During the M/I Homes Second Quarter Earnings Conference Call, the company reported record second-quarter revenue of $1.2 billion, a 5% increase from the previous year, and a record delivery of 2,348 homes, marking a 6% rise. The company's gross margin stood at 25%, with a pretax income of $160.1 million, representing a 14% return, and a 17% return on equity. Despite an 8% year-over-year decline in new contracts, the monthly sales pace was sustained at three homes per community. The company highlighted the strategic use of mortgage rate buydowns to mitigate challenging market conditions driven by high interest rates, which affected consumer confidence. M/I Homes ended the quarter with a robust balance sheet, showcasing $3.1 billion in equity, a debt-to-capital ratio of 18%, and $800 million in cash. The average community count increased by 5% from 2024, with a total of 234 communities. The mortgage division reported a slight pretax income increase to $14.5 million, with a 92% capture rate of the business in the second quarter.

M/I Homes Financial Statement Overview

Summary
M/I Homes demonstrates strong financial performance with stable profitability, effective leverage management, and healthy cash flow generation. Despite a slight slowdown in revenue growth, the company's strong margins and solid balance sheet provide a robust foundation. Cash flow volatility poses potential risks, but overall, the financial health remains sound.
Income Statement
85
Very Positive
M/I Homes shows strong profitability with a consistent gross profit margin and net profit margin over recent years. The company has maintained stable revenue growth, with a slight decrease in the latest TTM compared to the previous annual report. The EBIT and EBITDA margins are robust, indicating effective cost management and operational efficiency.
Balance Sheet
78
Positive
The company's balance sheet reflects a solid equity base with a low debt-to-equity ratio, suggesting prudent leverage management. The return on equity remains strong, illustrating the company's effective use of equity to generate profits. The equity ratio is favorable, indicating good financial stability and asset management.
Cash Flow
70
Positive
Operating cash flow relative to net income is healthy, indicating effective conversion of profits into cash. Free cash flow has shown significant growth, particularly in the TTM period. However, fluctuations in operating cash flow and past negative free cash flow years indicate potential volatility.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue4.49B4.50B4.03B4.13B3.75B3.05B
Gross Profit1.14B1.20B1.01B1.04B908.91M676.34M
EBITDA671.74M749.06M601.72M652.06M532.63M334.79M
Net Income511.40M563.73M465.37M490.66M396.87M239.87M
Balance Sheet
Total Assets4.74B4.55B4.02B3.71B3.24B2.64B
Cash, Cash Equivalents and Short-Term Investments800.40M821.57M732.80M311.54M236.37M260.81M
Total Debt1.03B1.04B917.15M999.52M1.01B924.35M
Total Liabilities1.66B1.61B1.51B1.64B1.62B1.38B
Stockholders Equity3.08B2.94B2.52B2.07B1.62B1.26B
Cash Flow
Free Cash Flow136.45M171.32M546.36M174.74M-42.12M156.66M
Operating Cash Flow139.09M179.74M552.13M184.07M-16.82M168.33M
Investing Cash Flow-42.60M-54.90M-18.63M-27.38M-51.72M-33.87M
Financing Cash Flow-133.55M-36.07M-112.24M-81.52M44.10M120.26M

M/I Homes Technical Analysis

Technical Analysis Sentiment
Positive
Last Price156.91
Price Trends
50DMA
129.07
Positive
100DMA
118.61
Positive
200DMA
124.69
Positive
Market Momentum
MACD
6.84
Negative
RSI
78.83
Negative
STOCH
91.15
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MHO, the sentiment is Positive. The current price of 156.91 is above the 20-day moving average (MA) of 143.71, above the 50-day MA of 129.07, and above the 200-day MA of 124.69, indicating a bullish trend. The MACD of 6.84 indicates Negative momentum. The RSI at 78.83 is Negative, neither overbought nor oversold. The STOCH value of 91.15 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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
80
Outperform
$4.14B8.6117.56%7.39%-1.37%
79
Outperform
$3.25B9.4611.38%-3.59%-10.82%
77
Outperform
$3.20B9.3822.12%13.87%6.54%
73
Outperform
$4.63B9.0014.07%1.47%3.65%-0.61%
73
Outperform
$2.07B8.5010.34%1.62%3.76%-17.55%
68
Neutral
$1.55B10.117.84%-7.89%-19.53%
61
Neutral
$17.99B12.87-3.56%2.97%1.27%-14.28%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
MHO
M/I Homes
156.91
1.32
0.85%
KBH
KB Home
67.97
-10.81
-13.72%
TPH
Tri Pointe
37.14
-4.86
-11.57%
LGIH
LGI Homes
67.01
-38.23
-36.33%
CCS
Century Communities
69.66
-24.10
-25.70%
GRBK
Green Brick Partners
73.38
-0.38
-0.52%

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.

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.Date of analysis: Aug 20, 2025