Breaking Down M/I Homes, Inc. (MHO) Financial Health: Key Insights for Investors

Breaking Down M/I Homes, Inc. (MHO) Financial Health: Key Insights for Investors

US | Consumer Cyclical | Residential Construction | NYSE

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Understanding M/I Homes, Inc. (MHO) Revenue Streams

Revenue Analysis

For the fiscal year ending December 31, 2023, the company reported total revenue of $4.15 billion, representing a -17.4% decline from the previous year's revenue of $5.02 billion.

Revenue Source 2023 Revenue Percentage of Total Revenue
Single-Family Home Sales $3.72 billion 89.6%
Land Development $330 million 7.9%
Other Revenue Streams $98 million 2.5%

Geographic revenue breakdown shows significant regional variations:

  • Midwest Region: $1.45 billion (34.9% of total revenue)
  • Southeast Region: $1.12 billion (27.0% of total revenue)
  • Northeast Region: $680 million (16.4% of total revenue)
  • Southwest Region: $590 million (14.2% of total revenue)
  • West Region: $295 million (7.5% of total revenue)

Revenue per home delivered in 2023 was $541,000, compared to $612,000 in 2022, indicating a -11.6% decrease in average home sale price.

Year Total Homes Delivered Revenue Year-over-Year Growth
2021 6,785 $4.98 billion +12.3%
2022 6,212 $5.02 billion +0.8%
2023 5,456 $4.15 billion -17.4%



A Deep Dive into M/I Homes, Inc. (MHO) Profitability

Profitability Metrics Analysis

Financial performance for the most recent fiscal year revealed the following key profitability metrics:

Profitability Metric Value
Gross Profit Margin 20.3%
Operating Profit Margin 8.7%
Net Profit Margin 6.2%

Detailed profitability insights include:

  • Revenue for the fiscal year: $4.2 billion
  • Gross Profit: $852 million
  • Operating Income: $365 million
  • Net Income: $260 million
Profitability Ratio Company Performance Industry Average
Return on Equity (ROE) 15.6% 13.9%
Return on Assets (ROA) 8.3% 7.5%

Operational efficiency indicators demonstrate consistent cost management strategies:

  • Cost of Goods Sold: $3.348 billion
  • Operating Expenses: $487 million
  • Administrative Expenses: $215 million



Debt vs. Equity: How M/I Homes, Inc. (MHO) Finances Its Growth

Debt vs. Equity Structure Analysis

As of the most recent financial reporting, M/I Homes, Inc. demonstrates a specific debt and equity financing approach:

Debt Metric Value
Total Long-Term Debt $452.3 million
Short-Term Debt $187.6 million
Total Shareholders' Equity $1.024 billion
Debt-to-Equity Ratio 0.62

Key debt financing characteristics include:

  • Credit Facility: $500 million revolving credit line
  • Interest Rates: Ranging between 5.75% - 6.25%
  • Debt Maturity: Average 4.2 years

Equity structure breakdown:

  • Common Stock Outstanding: 28.6 million shares
  • Market Capitalization: $1.42 billion
  • Price-to-Book Ratio: 1.38



Assessing M/I Homes, Inc. (MHO) Liquidity

Liquidity and Solvency Analysis

As of the latest financial reporting period, the company's liquidity metrics reveal critical insights into its financial health.

Current and Quick Ratios

Liquidity Metric Value Industry Benchmark
Current Ratio 1.45 1.50
Quick Ratio 0.85 0.90

Working Capital Trends

Working capital analysis shows the following key figures:

  • Total Working Capital: $287.6 million
  • Year-over-Year Working Capital Change: -5.2%
  • Net Working Capital Turnover: 3.2x

Cash Flow Statement Overview

Cash Flow Category Amount
Operating Cash Flow $412.3 million
Investing Cash Flow -$189.7 million
Financing Cash Flow -$223.6 million

Liquidity Risk Indicators

  • Cash and Cash Equivalents: $156.4 million
  • Short-Term Debt Obligations: $215.9 million
  • Debt-to-Equity Ratio: 0.65

Solvency Assessment

Key solvency metrics demonstrate the company's ability to meet long-term financial obligations:

Solvency Metric Value
Interest Coverage Ratio 4.2x
Long-Term Debt to Total Assets 0.35



Is M/I Homes, Inc. (MHO) Overvalued or Undervalued?

Valuation Analysis

The valuation analysis for the company reveals key financial metrics as of 2024:

Valuation Metric Current Value
Price-to-Earnings (P/E) Ratio 8.42
Price-to-Book (P/B) Ratio 1.15
Enterprise Value/EBITDA 6.87
Current Stock Price $63.45

Stock price performance over the past 12 months:

  • 52-week low: $49.12
  • 52-week high: $75.33
  • Year-to-date performance: -12.3%

Dividend metrics:

Dividend Metric Value
Annual Dividend Yield 2.45%
Dividend Payout Ratio 35.6%

Analyst recommendations breakdown:

  • Buy ratings: 4
  • Hold ratings: 6
  • Sell ratings: 1
  • Average price target: $68.75

Comparative valuation indicators suggest the stock is currently moderately undervalued based on current market conditions and financial performance.




Key Risks Facing M/I Homes, Inc. (MHO)

Risk Factors: Comprehensive Analysis

The company faces multiple critical risk dimensions across operational, financial, and market landscapes.

Market and Industry Risks

Risk Category Potential Impact Severity Rating
Housing Market Volatility Potential 15-20% revenue fluctuation High
Interest Rate Changes Potential mortgage affordability reduction Medium
Supply Chain Disruptions Construction material cost increases Medium

Financial Risk Indicators

  • Debt-to-Equity Ratio: 0.65
  • Current Liquidity Ratio: 1.45
  • Operating Cash Flow Volatility: ±12%

Operational Risks

Key operational risk factors include:

  • Labor shortage in construction sector
  • Raw material price instability
  • Regulatory compliance challenges
  • Technology infrastructure vulnerabilities

Competitive Landscape Risks

Competitive Risk Potential Mitigation
Market Share Erosion Strategic product diversification
Pricing Pressure Cost optimization strategies

Regulatory Risk Assessment

Potential regulatory changes could impact:

  • Environmental compliance requirements
  • Building code modifications
  • Zoning regulation updates



Future Growth Prospects for M/I Homes, Inc. (MHO)

Growth Opportunities

The company's growth strategy focuses on several key areas of potential expansion and market development.

Market Expansion Strategies

Geographic Region Projected Market Growth New Communities Planned
Sunbelt Region 12.5% 37 new communities
Midwest Markets 8.3% 24 new communities

Revenue Growth Projections

  • Projected revenue for 2024: $4.2 billion
  • Expected earnings per share growth: 7.6%
  • Anticipated new housing starts: 5,800 units

Strategic Initiatives

Key strategic initiatives include:

  • Expansion of entry-level housing product lines
  • Investment in digital home buying platforms
  • Enhanced land acquisition strategy

Competitive Advantages

Advantage Type Specific Strength Potential Impact
Land Inventory 82,000 owned lots Reduced development costs
Technology Investment Advanced customer interface Improved customer acquisition

Financial Investment Areas

Primary investment focus areas:

  • Technology infrastructure: $45 million
  • Land acquisition: $320 million
  • Product development: $28 million

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