M/I Homes (MHO) AI Stock Analysis

• Market Cap: $3.34B
• Dividend Yield: N/A
• Average Volume (3M): 208.82K
• Price to Earnings (P/E): 7.5
• Beta (1Y): 0.90
• Revenue Growth: 4.77%
• EPS Growth: -9.30%
• Country: US
• Employees: 1,760
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Residential Construction
• EPS (TTM): 3.92
• Shares Outstanding: 26,148,508
• 10 Day Avg. Volume: 236,136
• 30 Day Avg. Volume: 208,816
• PEG Ratio: 0.31
• Price to Book (P/B): 1.26
• Price to Sales (P/S): 0.82
• P/FCF Ratio: 21.56
• Enterprise Value/Market Cap: 1.25
• Enterprise Value/Revenue: 0.93
• Enterprise Value/Gross Profit: 3.78
• Enterprise Value/Ebitda: 6.42
• 1Y Price Target: $170.00
• Price Target Upside: 33.10% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): 16.21
• Revenue Forecast (FY): $4.38B

• Rating: 75 Outperform
• Price Target: $147.00 ▲(15.10% Upside)

M/I Homes presents a strong financial profile with robust profitability and a solid balance sheet. The recent credit facility expansion further strengthens its financial position. However, challenges in revenue growth and sales volume, along with bearish technical indicators, temper the overall score.

Positive Factors

Financial Flexibility

The expanded credit facility enhances M/I Homes' financial flexibility, allowing for strategic investments and operational resilience.

Cash Flow Management

Significant improvement in free cash flow growth indicates effective cash management, supporting long-term operational stability.

Mortgage Operations

Strong performance in mortgage operations boosts profitability and complements core homebuilding activities, enhancing revenue streams.

Negative Factors

Revenue Decline

A decline in revenue reflects challenges in sales volume, potentially impacting future growth and market competitiveness.

Sales Volume

Decreased sales volume suggests market headwinds or competitive pressures, which could affect long-term revenue stability.

Gross Margin Decline

A decline in gross margins indicates potential cost pressures or pricing challenges, affecting profitability and operational efficiency.

M/I Homes Business Overview & Revenue Model

Company Description

M/I Homes (MHO) is a leading builder of single-family homes in the United States, primarily focusing on the Midwest and Southeast regions. The company operates in the residential construction sector, offering a variety of home styles and designs including traditional, contemporary, and custom homes. M/I Homes is dedicated to building high-quality homes with energy-efficient features, catering to first-time buyers, move-up buyers, and empty nesters alike. In addition to home construction, the company also provides home financing services through its subsidiary.

How the Company Makes Money

M/I Homes generates revenue primarily through the sale of newly constructed homes. The company's revenue model relies on several key streams: the direct sale of homes, which includes both standard models and custom builds, and home financing services provided to buyers. The company also profits from the sale of lots and land development, which enables them to control their building sites. Significant partnerships with suppliers and subcontractors help M/I Homes manage costs effectively and maintain quality. Additionally, favorable market conditions, such as low interest rates and increased demand for housing, contribute positively to its earnings.

M/I Homes Financial Statement Overview

Summary

M/I Homes demonstrates strong profitability and a robust balance sheet with a low debt-to-equity ratio. However, the recent decline in revenue growth and fluctuations in free cash flow growth pose challenges.

Income Statement

M/I Homes has shown strong profitability with a consistent gross profit margin around 25% and a net profit margin above 10% over the years. However, the recent TTM data indicates a decline in revenue growth rate by 24.8%, which is a concern. Despite this, the company maintains healthy EBIT and EBITDA margins, reflecting operational efficiency.

Balance Sheet

The company's balance sheet is robust with a low debt-to-equity ratio of 0.19 in the TTM period, indicating strong financial stability. Return on equity remains solid at 13.7%, though it has decreased from previous years. The equity ratio is strong, suggesting a well-capitalized structure.

Cash Flow

M/I Homes has demonstrated significant improvement in free cash flow growth at 82% in the TTM period, indicating better cash management. The operating cash flow to net income ratio is close to 1, showing efficient cash conversion. However, past fluctuations in free cash flow growth highlight potential volatility.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	4.47B	4.50B	4.03B	4.13B	3.75B	3.05B
Gross Profit	1.11B	1.20B	1.01B	1.04B	908.91M	684.78M
EBITDA	651.67M	749.06M	621.77M	652.06M	532.63M	334.79M
Net Income	472.44M	563.73M	465.37M	490.66M	396.87M	239.87M
Balance Sheet
Total Assets	4.77B	4.55B	4.02B	3.71B	3.24B	2.64B
Cash, Cash Equivalents and Short-Term Investments	734.17M	822.00M	736.22M	311.33M	236.37M	260.81M
Total Debt	979.93M	750.39M	751.31M	753.78M	1.01B	924.35M
Total Liabilities	1.62B	1.61B	1.51B	1.64B	1.62B	1.38B
Stockholders Equity	3.15B	2.94B	2.52B	2.07B	1.62B	1.26B
Cash Flow
Free Cash Flow	243.03M	171.32M	546.36M	174.74M	-42.12M	156.66M
Operating Cash Flow	250.45M	179.74M	552.13M	184.07M	-16.82M	168.33M
Investing Cash Flow	-40.56M	-54.90M	-18.63M	-27.38M	-51.72M	-33.87M
Financing Cash Flow	-195.64M	-36.07M	-112.24M	-81.52M	44.10M	120.26M

M/I Homes Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 127.72
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: 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 127.72 is below the 20-day moving average (MA) of 133.86, below the 50-day MA of 131.38, and above the 200-day MA of 124.77, indicating a neutral trend. The MACD of -0.35 indicates Positive momentum. The RSI at 40.54 is Neutral, neither overbought nor oversold. The STOCH value of 22.31 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for MHO.

M/I Homes Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MHO	75 Outperform	$3.34B	7.50	15.76%	―	4.77%	-9.30%
GRBK	73 Outperform	$2.79B	8.34	20.37%	―	6.62%	-1.90%
TPH	73 Outperform	$2.76B	9.42	9.47%	―	-16.60%	-29.85%
KBH	71 Outperform	$3.72B	9.33	10.72%	1.77%	-10.01%	-27.81%
MTH	69 Neutral	$4.69B	8.89	10.50%	2.62%	-6.06%	-32.39%
LGIH	65 Neutral	$1.03B	9.54	5.21%	―	-20.62%	-45.74%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%

M/I Homes Corporate Events

M/I Homes Expands Credit Facility to $900 Million

On September 18, 2025, M/I Homes, Inc. amended its unsecured revolving credit facility, increasing lender commitments to $900 million and extending the maturity to 2030. The amendment also introduced an accordion feature allowing potential expansion to $1.05 billion, reduced the SOFR margin, and adjusted commitment fees based on leverage ratios, enhancing financial flexibility for the company.