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

Are you keeping a close watch on the financial health of M/I Homes, Inc. (MHO) and what are the key indicators that might influence your investment decisions? In 2024, M/I Homes achieved a record 9,055 home deliveries, resulting in $4.5 billion in revenue, which is a 12% increase over 2023. The company's financial achievements, including a pre-tax income of $734 million and a return on equity of 21%, reflect its robust performance. But what do these figures really mean for investors like you?

M/I Homes, Inc. (MHO) Revenue Analysis

M/I Homes, Inc. is a key player in the real estate sector, with its revenue primarily derived from building and selling single-family homes. Understanding the sources of their revenue and how they've changed over time provides valuable insights for investors. Let's delve into a detailed revenue analysis, focusing on recent financial data.

Based on the 2024 fiscal year data, M/I Homes' revenue streams can be broken down as follows:

• Home Sales: The vast majority of M/I Homes' revenue comes from the sale of new single-family homes. This includes both detached and attached homes across various price points and geographic locations.
• Financial Services: M/I Homes also generates revenue through its financial services segment, which includes mortgage origination and title services provided to its homebuyers.

Analyzing the year-over-year revenue growth rate provides a clear picture of the company's performance. Keep in mind that the figures below are based on the most recent 2024 fiscal year data.

M/I Homes reported total revenue of $4.7 billion for the year ended December 31, 2024, which is up from $4.1 billion in 2023. This represents a 14.6% increase year-over-year.

Here's a summary of revenue growth rates:

• 2024 Revenue: $4.7 billion (14.6% increase)
• 2023 Revenue: $4.1 billion

To further understand the dynamics of M/I Homes' revenue, it's useful to examine the contribution of different business segments. As mentioned earlier, the primary segments are home sales and financial services.

Based on the 2024 data:

• Home Sales: Contributed approximately 95% of the total revenue.
• Financial Services: Accounted for the remaining 5%.

Any significant changes in these revenue streams can indicate shifts in the company's strategy or market conditions. For example, an increased focus on financial services could diversify revenue, while a shift in home sales could reflect changing consumer preferences or regional market dynamics.

In 2024, M/I Homes saw an increase in both home sales revenue and financial services revenue. The increase in home sales was primarily driven by an increase in the number of homes delivered and an increase in the average sales price. The increase in financial services revenue was driven by an increase in the number of mortgages originated.

For additional insights into the investor profile of M/I Homes, Inc., you might find this resource helpful: Exploring M/I Homes, Inc. (MHO) Investor Profile: Who’s Buying and Why?

M/I Homes, Inc. (MHO) Profitability Metrics

Analyzing the profitability of involves looking at gross profit, operating profit, and net profit margins. These metrics reveal how efficiently generates profit from its revenue. Let's delve into M/I Homes, Inc.'s profitability based on the latest available data.

For the full year 2024, M/I Homes, Inc. reported:

• Gross Profit: The gross profit for 2024 was $1.19 billion.
• Operating Income: The operating income was $692.40 million.
• Net Income: The net income reached $563.73 million, or $19.71 per diluted share.

Here's a more detailed breakdown of M/I Homes, Inc.'s profitability metrics:

Gross Profit Margin:

In 2024, M/I Homes, Inc. had a gross margin of 26.6%, which is an improvement of 130 basis points compared to the 25.3% in 2023. The gross profit margin indicates the percentage of revenue remaining after subtracting the cost of goods sold (COGS). For the fourth quarter of 2024, the gross margin was 24.6%, a decrease of 50 basis points year-over-year and down 250 basis points from the third quarter.

Operating Margin:

The operating margin for 2024 was 16.3%, up from 15.1% in the previous year. This margin measures the percentage of revenue remaining after deducting operating expenses. The operating margin at the end of 2024 was 16.29%, reflecting an increase of 8.17%. The operating margin (TTM) as of April 2025 is 15.67%.

Net Profit Margin:

M/I Homes, Inc.'s net profit margin reflects its overall profitability after accounting for all expenses, including taxes and interest. For the year 2024, the company’s net profit margin can be derived from a net income of $563.7 million and revenue of $4.5 billion.

Trends in Profitability Over Time:

Examining the trends in profitability over the years provides valuable insights into M/I Homes, Inc.'s financial health and stability.

The following table shows the trends in M/I Homes, Inc.'s gross profit margin and operating margin from 2019 to September 2024:

Operational Efficiency:

M/I Homes, Inc.'s operational efficiency can be assessed through various metrics, including cost management and gross margin trends.

• Cost Management: Effective cost management is crucial for maintaining and improving profitability. M/I Homes, Inc. has demonstrated its ability to manage costs effectively, as reflected in its improved gross margins and pre-tax margins for 2024.
• Gross Margin Trends: The company's gross margin improved to 26.6% for the year 2024, which is 130 basis points better than the previous year. However, the company anticipates some gross margin compression in 2025 due to the continued use of mortgage rate buy downs.

To gain more insight into the investors of M/I Homes, Inc., check out this related article: Exploring M/I Homes, Inc. (MHO) Investor Profile: Who’s Buying and Why?

M/I Homes, Inc. (MHO) Debt vs. Equity Structure

Understanding how M/I Homes, Inc. (MHO) finances its growth involves analyzing its debt and equity structure. This includes examining the levels of long-term and short-term debt, the debt-to-equity ratio, and any recent financing activities. Balancing debt and equity is crucial for sustainable growth and financial stability.

As of the fiscal year 2024, M/I Homes, Inc. (MHO) reported a total debt of $1.23 billion. This consists of:

• Short-term debt: $7.92 million
• Long-term debt: $1.22 billion

The debt-to-equity ratio is a key metric for assessing financial leverage. As of December 31, 2024, M/I Homes, Inc. (MHO) 's debt-to-equity ratio stood at 0.62. This ratio indicates the proportion of debt and equity used to finance the company's assets. A ratio of 0.62 suggests that M/I Homes, Inc. (MHO) uses $0.62 of debt for every $1 of equity.

Here's a snapshot of M/I Homes, Inc. (MHO)'s debt profile:

For more detailed insights, you can check out: Breaking Down M/I Homes, Inc. (MHO) Financial Health: Key Insights for Investors.

M/I Homes, Inc. (MHO) Liquidity and Solvency

Analyzing M/I Homes, Inc.'s (MHO) financial health requires a close look at its liquidity and solvency. Liquidity refers to the company's ability to meet its short-term obligations, while solvency assesses its ability to meet long-term liabilities.

Here's an overview of key liquidity measures for M/I Homes, Inc. (MHO):

• Current Ratio: As of December 31, 2024, the current ratio was 4.7. This indicates that M/I Homes, Inc. (MHO) has $4.7 of current assets for every $1 of current liabilities.
• Quick Ratio: The quick ratio, which excludes inventories from current assets, stood at 0.7 as of December 31, 2024. This more conservative measure suggests the company has $0.7 of liquid assets available to cover each $1 of current liabilities.

Working capital, the difference between current assets and current liabilities, provides insight into M/I Homes, Inc.'s (MHO) short-term operational efficiency. Monitoring the trend in working capital helps to identify whether the company is effectively managing its resources to meet its immediate obligations.

A review of M/I Homes, Inc.'s (MHO) cash flow statements reveals the following trends:

• Operating Cash Flow: Net cash provided by operating activities was $285.9 million for the year 2024.
• Investing Cash Flow: Net cash used in investing activities totaled $25.3 million for the year 2024.
• Financing Cash Flow: Net cash used in financing activities amounted to $232.2 million for the year 2024.

Here is a table summarizing M/I Homes, Inc.'s (MHO) cash flow activities for the year 2024:

Based on these figures, M/I Homes, Inc. (MHO) demonstrates a strong ability to generate cash from its operations. The investing activities indicate capital expenditures, while the financing activities reflect how the company manages its debt and equity.

For further insights into M/I Homes, Inc.'s (MHO) strategic direction, see Mission Statement, Vision, & Core Values of M/I Homes, Inc. (MHO).

M/I Homes, Inc. (MHO) Valuation Analysis

Determining whether M/I Homes, Inc. (MHO) is overvalued or undervalued involves examining several key financial ratios and indicators.

Here's a breakdown:

• Price-to-Earnings (P/E) Ratio: As of April 4, 2025, the P/E ratio for M/I Homes stands at 5.63. This is calculated using the current Earnings Per Share (EPS) of $20.29 and a stock price of $114.29. The P/E ratio has decreased by 24% compared to the average of 7.4 of the last four quarters.
• The trailing P/E ratio is 5.39 and the forward P/E ratio is 5.76.
• Over the last ten years, the average P/E ratio for M/I Homes has been 7.6. The current P/E ratio is 26% lower than this historical average.

Here is a historical view of M/I Homes' P/E ratio:

• Price-to-Book (P/B) Ratio: As of April 2025, M/I Homes has a P/B ratio of approximately 0.98.
• M/I Homes's latest twelve months price/book is 1.1x.
• The company's book value per share for the quarter that ended in December 2024 was $108.62.

The historical P/B ratios for M/I Homes show the following:

• Enterprise Value-to-EBITDA (EV/EBITDA) Ratio: As of February 7, 2025, the EV/EBITDA ratio for M/I Homes Inc. (MHO) is 5.1.
• The company's enterprise value is $3.06 billion.
• MHO's TTM EBITDA according to its financial statements is $722 million as of December 2024.
• The stock’s EV/EBITDA ratio is 4.32.

These are important considerations regarding the EV/EBITDA ratio:

• A lower EV/EBITDA ratio could indicate that a stock is potentially undervalued.
• EV/EBITDA takes debt into account, making it useful for valuing potential acquisition targets.

Stock Price Trends:

• On April 17, 2025, the closing stock price for M/I Homes (MHO) was $106.19, which is up 1.97% from the previous day.
• The stock is down 8.39% over the past 30 days.
• The stock has decreased by 4.68% for the past 12 months.
• The 52-week high is $176.18, and the 52-week low is $100.22.
• The all-time high was $176.18 on October 17, 2024.

Here's a summary of M/I Homes' stock price changes:

Dividend Yield and Payout Ratios:

• M/I Homes does not currently pay a dividend.
• The last ex-dividend date was June 27, 2008.
• Therefore, the dividend yield is 0%, and the payout ratio is 0.

Analyst Consensus on Stock Valuation:

• The consensus rating for M/I Homes is 'Strong Buy'.
• Out of 3 analysts, 2 have given a 'Strong Buy' rating, and 1 has given a 'Buy' rating.
• The average twelve-month price target is $176.50.
• The high price target is $185.00, and the low price target is $168.00.
• This average price target represents a forecasted upside of 66.62% from the current price of $105.93.

Here is a summary of analyst ratings:

For further insights into M/I Homes, Inc., you might find this resource helpful: Mission Statement, Vision, & Core Values of M/I Homes, Inc. (MHO).

M/I Homes, Inc. (MHO) Risk Factors

M/I Homes, Inc. (MHO) faces a variety of internal and external risks that could significantly impact its financial health. These risks span industry competition, regulatory changes, and overall market conditions, all of which require careful monitoring and strategic management.

Here's an overview of key risk areas:

• Industry Competition: The homebuilding industry is highly competitive. M/I Homes, Inc. (MHO) competes with other national and regional homebuilders, as well as smaller local companies. Increased competition could lead to lower sales prices and reduced profitability.
• Regulatory Changes: Changes in zoning laws, building codes, and environmental regulations can increase costs and delay projects. Compliance with these regulations requires ongoing investment and adaptation.
• Market Conditions: Economic downturns, rising interest rates, and fluctuations in housing demand can negatively affect home sales and prices. These macroeconomic factors are largely beyond the company's control but have a direct impact on its financial performance.

Operational, financial, and strategic risks are frequently highlighted in M/I Homes, Inc. (MHO)'s earnings reports and filings. These include:

• Land Acquisition and Development: The availability and cost of suitable land for development are critical to M/I Homes, Inc. (MHO)'s operations. Delays in land acquisition or increases in land costs can impact project timelines and profitability.
• Construction Costs: Fluctuations in the cost of raw materials, labor, and other construction-related expenses can affect profit margins. Effective cost management is essential to maintaining financial stability.
• Sales and Marketing: The ability to attract and retain customers is crucial. Changes in consumer preferences, marketing effectiveness, and competitive pressures can impact sales volumes and revenue.

M/I Homes, Inc. (MHO) employs several mitigation strategies to address these risks:

• Diversification: Diversifying across different geographic markets and product types can reduce the company's exposure to regional economic downturns and changes in consumer preferences.
• Strategic Land Acquisition: Investing in land strategically, with a focus on high-growth areas and favorable market conditions, can help ensure a steady supply of land for future development.
• Cost Management: Implementing efficient construction practices, negotiating favorable contracts with suppliers, and closely monitoring expenses can help control costs and protect profit margins.
• Financial Planning: Maintaining a strong balance sheet, managing debt levels, and carefully forecasting cash flows are essential for navigating economic uncertainties and maintaining financial flexibility.

For more in-depth insights, check out: Breaking Down M/I Homes, Inc. (MHO) Financial Health: Key Insights for Investors

M/I Homes, Inc. (MHO) Growth Opportunities

M/I Homes, Inc. (MHO) exhibits several key growth drivers that suggest promising future prospects. These include strategic market expansions, a focus on product innovation, and the ability to capitalize on competitive advantages within the homebuilding industry. Let's delve into these areas to understand the potential for future growth.

One of the primary drivers for M/I Homes, Inc. (MHO) is its strategic expansion into new and existing markets. As of the fiscal year 2024, the company has been actively increasing its presence in regions with strong demand for new homes. For example, M/I Homes has expanded operations in the Southeast and Texas, regions benefiting from population growth and favorable economic conditions.

Product innovation also serves as a critical growth driver. M/I Homes, Inc. (MHO) continuously refines its home designs and construction processes to meet evolving consumer preferences. This includes incorporating energy-efficient technologies, offering customizable floor plans, and focusing on sustainable building practices. These innovations not only attract buyers but also help reduce costs and improve customer satisfaction.

The projected revenue growth and earnings estimates for M/I Homes, Inc. (MHO) reflect a positive outlook. While specific figures can fluctuate based on market conditions, analysts’ reports suggest a steady increase in revenue over the next few years, supported by the ongoing demand for new homes and the company's strategic initiatives. Earnings estimates are also expected to rise, driven by improved operational efficiencies and higher average selling prices.

Strategic initiatives and partnerships further bolster M/I Homes, Inc. (MHO)'s growth prospects. The company has established partnerships with various suppliers and subcontractors to ensure a reliable supply chain and manage construction costs effectively. Additionally, M/I Homes actively engages in land acquisition and development to secure future building sites in desirable locations.

M/I Homes, Inc. (MHO) possesses several competitive advantages that position it favorably for future growth:

• Strong Brand Reputation: M/I Homes has built a solid reputation for quality construction and customer service, which helps attract and retain buyers.
• Efficient Operations: The company's focus on operational efficiency and cost management enhances profitability and allows for competitive pricing.
• Strategic Land Acquisition: M/I Homes' proactive approach to land acquisition ensures a steady supply of building sites in key markets.
• Financial Stability: A strong balance sheet and prudent financial management provide the flexibility to invest in growth opportunities and weather economic downturns.

To provide a clearer picture, here's a summary of key financial data and projections:

These figures are based on market analyses and company forecasts, reflecting anticipated growth in key areas. As always, actual results may vary depending on market conditions and other factors.

For more insights into the investors behind M/I Homes, Inc. (MHO), you might find this link helpful: Exploring M/I Homes, Inc. (MHO) Investor Profile: Who’s Buying and Why?