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

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MHO

M/I Homes

(NYSE:MHO)

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Outperform 75 (OpenAI - 5.2)
Rating:75Outperform
Price Target:
$171.00
▲(14.13% Upside)
Action:Reiterated
Date:08/18/26
The score is driven primarily by solid underlying financial performance (healthy margins, moderate leverage, and positive TTM free cash flow) and supported by a reasonable earnings multiple. It is held back by evidence of cycle normalization (slightly lower TTM revenue and lower profitability/returns vs prior years) and earnings-call noted near-term profitability headwinds from incentive costs, despite constructive but not strong technical momentum.
Positive Factors
Strong balance sheet and liquidity
Low leverage, substantial cash and unused borrowing capacity provide resilience through housing-cycle volatility. This financial flexibility supports land investment, construction activity and customer incentives without creating excessive refinancing or liquidity risk.
Negative Factors
Revenue and profitability normalization
Slower revenue and earnings show that the prior period's unusually strong housing profitability is normalizing. Lower volume and returns could constrain internal capital generation and reduce operating leverage if market conditions remain subdued.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong balance sheet and liquidity
Low leverage, substantial cash and unused borrowing capacity provide resilience through housing-cycle volatility. This financial flexibility supports land investment, construction activity and customer incentives without creating excessive refinancing or liquidity risk.
Read all positive factors

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

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 built homes. The company acquires and develops lots (directly or through controlled/optioned arrangements), builds homes, and recognizes homebuilding revenue when a home is closed and title transfer...

M/I Homes Earnings Call Summary

Earnings Call Date:Jul 29, 2026
(Q2-2026)
|
% Change Since: |
Next Earnings Date:Oct 28, 2026
Earnings Call Sentiment Neutral
The call presented a balanced mix of strong operational and balance-sheet positives — record new contracts and home sales, solid gross margins, a very healthy balance sheet with improved credit rating, and an exceptionally strong mortgage capture rate — alongside meaningful near-term financial pressures including lower revenue, a 35% decline in pretax income, reduced closings, lower EBITDA and EPS, higher incentive costs from mortgage buy-downs, and some market-specific softness (notably in parts of Florida and Austin). Management emphasized disciplined land and community selection, inventory control and liquidity as mitigants and conveyed cautious optimism about the remainder of 2026.
Positive Updates
Record New Contracts and Home Sales
Sold a Q2 record 2.39 thousand homes, up 15% year-over-year; first 6 months sold 4.74 thousand homes, up 8% year-over-year. Record second-quarter new contracts driving a month sales pace of 3.4 homes per community vs 3.0 a year ago.
Negative Updates
Revenue and EPS Declines
Q2 revenue of $1.1 billion down 9% year-over-year. Diluted EPS decreased to $3.02 from $4.42 a year ago (approximately a 32% decline).
Read all updates
Q2-2026 Updates
Negative
Record New Contracts and Home Sales
Sold a Q2 record 2.39 thousand homes, up 15% year-over-year; first 6 months sold 4.74 thousand homes, up 8% year-over-year. Record second-quarter new contracts driving a month sales pace of 3.4 homes per community vs 3.0 a year ago.
Read all positive updates
Company Guidance
Guidance: M/I Homes said it remains on track to grow its average 2026 community count by about 5% (opening more new communities in H2 than H1) and expects a “very solid” 2026 in core markets including Columbus, Cincinnati, Indianapolis, Chicago, Minneapolis, Orlando, Dallas, Charlotte and Raleigh (Tampa/Sarasota noted as challenged; Nashville and Fort Myers/Naples gaining traction); management will continue to use mortgage-rate buy‑downs (programs for both spec and to‑be‑built homes, with longer locks for TBUs) to support demand. The outlook is supported by a strong balance sheet (cash $736M, no borrowings on a $900M revolver, S&P upgrade to BB+, debt-to-cap 18%, net debt-to-cap –1%), healthy land supply (≈23.5K owned lots ≈2.5‑yr supply; ≈25.7K optioned lots; ≈49K total ≈5‑yr supply), and operating momentum from Q2 (record 2.39K homes sold, +15% YoY; 4.74K YTD sold, +8% YoY; Q2 revenue ~$1.1B, gross margin 22.1% / 22.5% excl. $4M charges; pretax margin 10%; ROE 10%; mortgage capture 96%; average buyer FICO 748 and ~15% down payment), which management cited as the foundation for its near‑term expectations.

M/I Homes Financial Statement Overview

Summary
Financials are solid for a cyclical homebuilder: healthy TTM profitability (gross margin ~22%, operating margin ~12.5%, net margin ~8%), moderate leverage (debt-to-equity ~0.32), and positive TTM free cash flow (~$201M) with ~1x conversion vs net income. The score is tempered by slightly declining TTM revenue (~-2.3%), margin/ROE normalization versus 2022–2024, and historically volatile cash flows typical of inventory/working-capital swings.
Income Statement
76
Positive
Balance Sheet
82
Very Positive
Cash Flow
71
Positive
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue4.26B4.42B4.50B4.03B4.13B3.75B
Gross Profit918.55M1.02B1.20B1.01B1.04B908.91M
EBITDA509.99M566.67M749.06M621.77M652.06M525.60M
Net Income317.36M402.94M563.73M465.37M490.66M396.87M
Balance Sheet
Total Assets4.86B4.78B4.55B4.02B3.71B3.24B
Cash, Cash Equivalents and Short-Term Investments735.94M689.19M822.00M736.22M311.33M236.37M
Total Debt1.00B1.09B1.04B917.15M999.52M1.01B
Total Liabilities1.63B1.61B1.61B1.51B1.64B1.62B
Stockholders Equity3.23B3.17B2.94B2.52B2.07B1.62B
Cash Flow
Free Cash Flow201.09M120.73M171.32M546.36M174.74M-42.12M
Operating Cash Flow206.75M130.34M179.74M552.13M184.07M-16.82M
Investing Cash Flow-51.25M-59.74M-54.90M-18.63M-27.38M-51.72M
Financing Cash Flow-173.99M-202.98M-36.07M-112.24M-81.52M44.10M

M/I Homes Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price149.83
Price Trends
50DMA
150.09
Negative
100DMA
139.45
Positive
200DMA
136.37
Positive
Market Momentum
MACD
0.77
Positive
RSI
49.70
Neutral
STOCH
43.95
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 149.83 is below the 20-day moving average (MA) of 150.64, below the 50-day MA of 150.09, and above the 200-day MA of 136.37, indicating a neutral trend. The MACD of 0.77 indicates Positive momentum. The RSI at 49.70 is Neutral, neither overbought nor oversold. The STOCH value of 43.95 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

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
75
Outperform
$3.91B12.359.97%-4.94%-35.08%
73
Outperform
$3.07B10.6315.42%-8.66%-14.97%
64
Neutral
$3.46B12.977.04%1.74%-17.52%-45.77%
64
Neutral
$4.84B14.806.38%2.48%-13.27%-45.63%
62
Neutral
$1.38B19.823.15%-16.52%-57.00%
61
Neutral
$18.38B12.79-2.54%3.03%1.52%-15.83%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
MHO
M/I Homes
149.95
3.03
2.06%
KBH
KB Home
54.46
-9.17
-14.41%
MTH
Meritage
71.05
-6.98
-8.95%
LGIH
LGI Homes
56.75
-10.72
-15.89%
GRBK
Green Brick Partners
70.87
-0.17
-0.24%
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 18, 2026