M/I Homes Inc. Common Stock (MHO)

FairStock Score: 65/100 — STEADY

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

Mr. Market is offering M/I Homes at $125.99, or roughly book value—P/B 0.99—and only 10.58 times earnings as of 2026-10-13. For a builder with a Piotroski score of 7/9, an Altman Z-Score of 3.48, and debt-to-equity of 0.31, that is not a distressed price; it is a cyclical discount. The Graham Number, a rough intrinsic value gauge, is $185.12, implying about 31.94% margin of safety. Free cash flow over the trailing twelve months was $196.1M, a 6.2% FCF yield, and EV/EBITDA is 7.47. Those are value signals. But I must look at the earnings stream. In fiscal Q2 2026, the quarter ended 2026-06-30, M/I earned $79.1M, or $3.02 per diluted share, on $1.1B revenue. A year earlier, in fiscal Q2 2025, the quarter ended 2025-06-30, it earned $121.2M, or $4.42 per diluted share, on $1.2B revenue. In fiscal FY2025, period ended 2025-12-31, revenue was $4.4B and net income $402.9M, down from FY2024 revenue of $4.5B and net income of $563.7M. So profits are falling. Homebuilding has no durable moat; it is a cyclical, capital-intensive, local business. M/I's balance sheet is sound, but ROCE of 5.64% and ROE of 10.06% are not wonderful. The stock is cheap because the market fears the cycle. If housing demand stabilizes, the discount can close; if margins keep compressing, book value may prove less solid than it looks.

In plain English: M/I Homes builds and sells single-family homes in several US states. The business is still profitable and has little debt, but its sales and profits have cooled from their recent peak. At $125.99, the stock looks inexpensive compared with its accounting book value and recent profit, though homebuilding is a cyclical business.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer