M/I Homes (MHO, Financial) reported its financial results for the first quarter, revealing a revenue decline to $976 million, down from $1.05 billion in the same period last year. The company delivered 1,976 homes during the quarter, marking an 8% decrease compared to the previous year. Despite this downturn, the company maintained a robust gross margin of 25.9%.
The decline in new contracts by 10% year-over-year did not deter the company from achieving a 15% pre-tax profit margin and a 19% return on equity. CEO and President Robert H. Schottenstein highlighted the strength of the company's balance sheet, noting a record net worth of $3 billion—up 14% from last year—and a book value of $112 per share.
Key financial highlights include no borrowings under a $650 million unsecured line of credit, $776 million in cash reserves, a homebuilding debt-to-capital ratio of 19%, and a net debt-to-capital ratio of negative 3%. Additionally, M/I Homes concluded the quarter with 226 active communities, the highest in its history, and aims to increase its community count by an average of 5% in the current year.
Despite ongoing market challenges and decreased consumer confidence, M/I Homes remains optimistic about its growth prospects for 2025, supported by a solid financial foundation and strategic market positioning.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 3 analysts, the average target price for M/I Homes Inc (MHO, Financial) is $168.00 with a high estimate of $185.00 and a low estimate of $151.00. The average target implies an upside of 53.66% from the current price of $109.33. More detailed estimate data can be found on the M/I Homes Inc (MHO) Forecast page.
Based on the consensus recommendation from 3 brokerage firms, M/I Homes Inc's (MHO, Financial) average brokerage recommendation is currently 1.3, indicating "Buy" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for M/I Homes Inc (MHO, Financial) in one year is $99.61, suggesting a downside of 8.89% from the current price of $109.33. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the M/I Homes Inc (MHO) Summary page.
