M/I Homes, Inc. (MHO) Bundle
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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