Meritage Homes Corporation (MTH) exhibits 41.0% gross margins and 8.0% return on invested capital within Consumer Discretionary (Homebuilding), balanced against a 7.7x enterprise multiple and 7.1% implied options volatility.
Sustained 41.0% gross profitability converts into 47.0% operating margin and 8.0% ROIC, outpacing sector cost of capital.
ROIC: 8.0% // GM: 41.0%YoY revenue trajectory of +8.8% paired with 2.20% free cash flow yield supports self-funded R&D and capital return.
REV YOY: +8.8% // FCF YLD: 2.20%Altman Z-Score of 2.70 and Piotroski F-Score of 7/9 indicate low near-term refinancing stress.
ALTMAN Z: 2.70 // F-SCORE: 7/9Trading at 9.3x trailing P/E (8.6x Fwd P/E) leaves valuation vulnerable if real 10Y TIPS yields spike.
P/E: 9.3x // EV/EBITDA: 7.7xOptions market prices a ±7.1% implied move with a 0.66 put/call ratio around $63.00 max pain.
IMPL MOVE: ±7.1% // P/C: 0.66Elevated industry capital intensity and customer concentration in Homebuilding require continuous execution to defend 38.5% net margins.
NET MARGIN: 38.5% // D/E: 0.20x| FILER | SIDE | $ VALUE |
|---|---|---|
| INSPECT FULL OWNERSHIP LEDGER IN OWN <GO> | ||
| STRIKE / EXP | TYPE | PREMIUM |
|---|---|---|
| INSPECT GEX & CHAIN IN OPT <GO> | ||
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