Meritage Homes Corporation
MTH Consumer Cyclical Residential Construction
Meritage Homes Corporation’s revenue for fiscal 2025 (year ended December 2025) was $5.9 billion, down 8.40% from fiscal 2024. In the quarter to June 2026, revenue fell 13.8%, EPS fell 33.0%, free cash flow grew 2,517.0% and total debt rose 1.07%, each against the same quarter a year earlier. Dividend growth for three consecutive years.
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Meritage Homes Corporation (MTH) Beneish M-score
Meritage Homes Corporation's Beneish M-score for fiscal 2025 is −1.98; values above −1.78 are the model's flag for possible earnings manipulation — a statistical screen, not a finding.
Beneish M-score, annual
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Annual newest first
| Period | Beneish M-score | Change (points) |
|---|---|---|
| FY2025 | −1.98 | (0.14) |
| FY2024 | −1.85 | 0.02 |
| FY2023 | −1.87 | (0.28) |
| FY2022 | −1.59 | (0.34) |
| FY2021 | −1.24 | 1.35 |
| FY2020 | −2.59 | (0.13) |
| FY2019 | −2.47 | 0.10 |
| FY2018 | −2.57 | (0.54) |
| FY2017 | −2.03 | (0.24) |
| FY2016 | −1.79 | 0.41 |
How fiscal 2025’s score is made up
| Component | This year | Year before | Result | Points |
|---|---|---|---|---|
| Days’ sales in receivables index | 1.31 | — | 1.20 | |
| Gross margin index | 1.26 | — | 0.67 | |
| Asset quality index | 0.99 | — | 0.40 | |
| Sales growth index | 0.92 | — | 0.82 | |
| Depreciation index | 1.01 | — | 0.12 | |
| SG&A index | 1.05 | — | −0.18 | |
| Total accruals to total assets | 0.04 | — | 0.21 | |
| Leverage index | 1.13 | — | −0.37 | |
| Beneish M-score | Elevated | −1.98 | ||
How the Beneish M-score works
M = −4.84 + 0.920 × DSRI + 0.528 × GMI + 0.404 × AQI + 0.892 × SGI + 0.115 × DEPI − 0.172 × SGAI + 4.679 × TATA − 0.327 × LVGI (Beneish, 1999): eight changes in the accounts from one fiscal year to the next, which the model weighs for the pattern seen in companies that later restated their earnings. Higher is worse.
| below −2.22 | Low — no pattern the model associates with manipulation |
|---|---|
| −2.22 to −1.78 | Elevated |
| above −1.78 | Flagged by the model |
−1.78 is the cut-off usually quoted from the paper, −2.22 a common conservative one. A statistical screen, not a finding of wrongdoing.
When asset quality, depreciation or SG&A cannot be worked out, that index is set to 1, as Beneish did, and the breakdown says so; with all three missing there is no score. Depreciation includes amortisation, and asset quality leaves out securities. Not worked out for banks, insurers and REITs.
Beneish M-score against peers
| Company | Beneish M-score |
|---|---|
| IBP Installed Building Products, Inc. compare | −2.7× |
| SKY Champion Homes, Inc. compare | −2.6× |
| CVCO Cavco Industries, Inc. compare | −2.6× |
| KBH KB Home compare | −2.4× |
| TOL Toll Brothers Inc. compare | −2.4× |
| MTH Meritage Homes Corporation | −2.0× |
| LGIH LGI Homes, Inc. compare | −2.0× |
| GRBK Green Brick Partners, Inc. compare | −0.3× |
| MHO M/I Homes, Inc. compare | — |
What Beneish M-score is
The Beneish M-Score combines eight year-on-year changes in the accounts into a statistical screen for patterns seen in companies that overstated earnings.
−4.84 + 0.920 × DSRI + 0.528 × GMI + 0.404 × AQI + 0.892 × SGI + 0.115 × DEPI − 0.172 × SGAI + 4.679 × TATA − 0.327 × LVGI