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MHO (M/I Homes) Altman Z-Score : 4.88 (As of Oct. 31, 2024)


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What is M/I Homes Altman Z-Score?

The Altman Z-Score is a model designed to predict the likelihood of a company going bankrupt within the next two years. Created by American finance professor Edward Altman in 1968, the model is specifically designed for publicly traded manufacturing companies with assets greater than $1 million.

Good Sign:

Altman Z-score of 4.9 is strong.

M/I Homes has a Altman Z-Score of 4.88, indicating it is in Safe Zones. This implies the Altman Z-Score is strong.

The zones of discrimination were as such:

When Altman Z-Score <= 1.8, it is in Distress Zones.
When Altman Z-Score >= 3, it is in Safe Zones.
When Altman Z-Score is between 1.8 and 3, it is in Grey Zones.

The historical rank and industry rank for M/I Homes's Altman Z-Score or its related term are showing as below:

MHO' s Altman Z-Score Range Over the Past 10 Years
Min: 2.89   Med: 3.21   Max: 4.9
Current: 4.9

During the past 13 years, M/I Homes's highest Altman Z-Score was 4.90. The lowest was 2.89. And the median was 3.21.


M/I Homes Altman Z-Score Historical Data

The historical data trend for M/I Homes's Altman Z-Score can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

M/I Homes Altman Z-Score Chart

M/I Homes Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Altman Z-Score
Get a 7-Day Free Trial Premium Member Only Premium Member Only 3.57 3.58 3.88 3.82 4.85

M/I Homes Quarterly Data
Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24
Altman Z-Score Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 4.30 4.25 4.85 4.75 4.58

Competitive Comparison of M/I Homes's Altman Z-Score

For the Residential Construction subindustry, M/I Homes's Altman Z-Score, along with its competitors' market caps and Altman Z-Score data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


M/I Homes's Altman Z-Score Distribution in the Homebuilding & Construction Industry

For the Homebuilding & Construction industry and Consumer Cyclical sector, M/I Homes's Altman Z-Score distribution charts can be found below:

* The bar in red indicates where M/I Homes's Altman Z-Score falls into.



M/I Homes Altman Z-Score Calculation

Altman Z-Score model is an accurate forecaster of failure up to two years prior to distress. It can be considered the assessment of the distress of industrial corporations.

M/I Homes's Altman Z-Score for today is calculated with this formula:

Z=1.2*X1+1.4*X2+3.3*X3+0.6*X4+1.0*X5
=1.2*0.8366+1.4*0.5959+3.3*0.1591+0.6*2.5988+1.0*0.9621
=4.88

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency. GuruFocus does not calculate Altman Z-Score when X4 or X5 value is 0.

Trailing Twelve Months (TTM) ended in Jun. 2024:
Total Assets was $4,340 Mil.
Total Current Assets was $4,003 Mil.
Total Current Liabilities was $372 Mil.
Retained Earnings was $2,586 Mil.
Pre-Tax Income was 194.139 + 180.239 + 137.974 + 177.964 = $690 Mil.
Interest Expense was 0 + 0 + 0 + 0 = $0 Mil.
Revenue was 1109.781 + 1046.703 + 972.588 + 1046.371 = $4,175 Mil.
Market Cap (Today) was $4,155 Mil.
Total Liabilities was $1,599 Mil.

* Note that for stock reported semi-annually or annually, GuruFocus uses latest annual data as the TTM data.

X1=Working Capital/Total Assets
=(Total Current Assets - Total Current Liabilities)/Total Assets
=(4003.176 - 372.118)/4340.07
=0.8366

X2=Retained Earnings/Total Assets
=2586.155/4340.07
=0.5959

X3=Earnings Before Interest and Taxes/Total Assets
=(Pre-Tax Income - Interest Expense)/Total Assets
=(690.316 - 0)/4340.07
=0.1591

X4=Market Value Equity/Book Value of Total Liabilities
=Market Cap/Total Liabilities
=4155.352/1598.953
=2.5988

X5=Revenue/Total Assets
=4175.443/4340.07
=0.9621

The zones of discrimination were as such:

Distress Zones - 1.81 < Grey Zones < 2.99 - Safe Zones

M/I Homes has a Altman Z-Score of 4.88 indicating it is in Safe Zones.

Study by Altman found that companies that are in Distress Zone have more than 80% of chances of bankruptcy in two years.


M/I Homes  (NYSE:MHO) Altman Z-Score Explanation

X1: The Working Capital/Total Assets (WC/TA) ratio is a measure of the net liquid assets of the firm relative to the total capitalization. Working capital is defined as the difference between current assets and current liabilities. Ordinarily, a firm experiencing consistent operating losses will have shrinking current assets in relation to total assets. Altman found this one proved to be the most valuable liquidity ratio comparing with the current ratio and the quick ratio. This is however the least significant of the five factors.

X2: Retained Earnings/Total Assets: the RE/TA ratio measures the leverage of a firm. Retained earnings is the account which reports the total amount of reinvested earnings and/or losses of a firm over its entire life. Those firms with high RE, relative to TA, have financed their assets through retention of profits and have not utilized as much debt.

X3, Earnings Before Interest and Taxes/Total Assets (EBIT/TA): This ratio is a measure of the true productivity of the firm's assets, independent of any tax or leverage factors. Since a firm's ultimate existence is based on the earning power of its assets, this ratio appears to be particularly appropriate for studies dealing with corporate failure. This ratio continually outperforms other profitability measures, including cash flow.

X4, Market Value of Equity/Book Value of Total Liabilities (MVE/TL): The measure shows how much the firm's assets can decline in value (measured by market value of equity plus debt) before the liabilities exceed the assets and the firm becomes insolvent.

X5, Revenue/Total Assets (S/TA): The capital-turnover ratio is a standard financial ratio illustrating the sales generating ability of the firm's assets.

Read more about Altman Z-Score and the original research.


Be Aware

Altman Z-Score does not apply to financial companies.


M/I Homes Altman Z-Score Related Terms

Thank you for viewing the detailed overview of M/I Homes's Altman Z-Score provided by GuruFocus.com. Please click on the following links to see related term pages.


M/I Homes Business Description

Traded in Other Exchanges
Address
4131 Worth Avenue, Suite 500, Columbus, OH, USA, 43219
M/I Homes Inc is an American construction company that focuses on residential construction. It consists of two distinct operations: homebuilding and financial services. The homebuilding operations are spread into the Midwest, Mid-Atlantic, and Southern regions and the financial services operations support homebuilding operations by providing mortgage loans and title services to the customers of homebuilding operations. Homebuilding operations comprise the most significant portion of the revenue. The company builds homes and communities that target entry-level, move-up, and luxury homebuyers.
Executives
Robert H Schottenstein director, officer: Chairman, CEO & President
Ann Marie Hunker officer: Principal Accounting Officer
Phillip G Creek director, officer: Ex. Vice President and CFO
Susan E Krohne officer: Chief Legal Officer, Secretary 4131 WORTH AVE, SUITE 500, COLUMBUS OH 43219
Bruce A Soll director 17655 WATERVIEW PKWY, DALLAS TX 75252
Norman L Traeger director
J Thomas Mason director, officer: Ex. VP & Chief Legal Officer 3 EASTON OVAL, SUITE 500, COLUMBUS OH 43219
Kumi D Walker director 17 STANBERRY AVENUE, BEXLEY OH 43209
William H Carter director C/O MOMENTIVE SPECIALTY CHEMICALS INC., 180 EAST BROAD STREET, COLUMBUS OH 43215
Michael P Glimcher director C/O GLIMCHER REALTY TRUST, 180 EAST BROAD STREET, COLUMBUS OH 43215
Nancy J Kramer director
Friedrich Km Bohm director
Elizabeth K Ingram director 555 W. GOODALE STREET, COLUMBUS OH 43215
Thomas D Igoe director
Sharen J Turney director THREE LIMITED PARKWAY, COLUMBUS OH 43230

M/I Homes Headlines

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