Home Sectors Consumer Cyclical Valuation Now: M/I Homes (NYSE: MHO)

Valuation Now: M/I Homes (NYSE: MHO)


M/I Homes is part of the homebuilding and construction industry and trades as part of the consumer cyclical sector. The company CEO is Robert H. Schottenstein. M/I Homes Inc is a part of the residential construction industry. It primarily builds single-family residential properties for the purpose of sale.

Previous Intraday Trading Performance:

The MHO stock showed a previous change of 0.65% with an open at 26.22 and a close of 26.38. It reached an intraday high of 26.67 and a low of 26.12.

SeekingAlpha:  Beazer and TRI Pointe lead homebuilders down as Q2 net new orders decline


The stock has a market cap of $753.7m with 28.6m shares outstanding, of which the float is 28.4m shares. Trading volume reached 200,447 shares compared to its average volume of 201,940 shares. Based on the current average volume and close price, the trading liquidity is bad, highly speculative and an investor may want to avoid this stock.

Historical Trading Performance:

Over the last five trading days, M/I Homes shares returned 2.05% and in the past 30 trading days it returned 1.34%. Over three months, it changed -14.57%. In one year it has changed 2.77% and within that year its 52-week high was 37.41 and its 52-week low was 24.08. MHO stock is 9.55% above its 52 Week Low.

Our calculations show a 200 day moving average of 31.28 and a 50 day moving average of 27.05. Currently MHO stock is trading -15.66% below its 200 day moving average and may not be a good opportunity to buy as it may continue to trend down.

SeekingAlpha:  Beazer and TRI Pointe lead homebuilders down as Q2 net new orders decline


The last annual fiscal EPS for the company was reported at 2.27 that ended on 31st of December 2017, which according to the previous close, that is a PE of 11.62. Based on 1 analyst estimate, the estimated EPS for the next quarter is 0.93. The TTM EPS is 3.31, which comes to a TTM PE of 7.97. Historically, the PE high was 44.00 and the PE low was 3.70. If the stock reached its PE low, that would represent a price of 12.25, which is a decrease of -53.58%.

The following are the last four quarter reported earnings per share:
06-30-2018:  1.04
03-31-2018:  0.66
12-31-2017:  0.90
09-30-2017:  0.71

Base on our calculations, the intrinsic value per share is 15.41, which means it may be overvalued by -71.24%

Indicators to Watch:

Based on the latest filings, there is 0.70% of insider ownership. Short-interest is 578,325, which is 2.02% of shares outstanding. The short-interest ratio or days-to-cover ratio is 3.06. This stock has some short interest, but it may be normal and no cause for concern if long the position.

The current calculated beta is 1.10

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Fundamental Indicators:

Based on last reported financials, the company's return on equity is 11.05%, return on assets is 4.48%, profit margin is 4.05%, price-to-sales is 0.36 and price-to-book is 0.92.

Company Scores:

All scores are out of six:
 4  :Valuation Score
 4  :Past Performance Score
 4  :Financial Strength Score
 4  :Future Growth Score
 0  :Dividend Score
 4  :Overall Score

John Jones
Worked for several Wall Street firms: Salomon Smith Barney, UBS, and Charles Schwab. Has developed skills and gained extensive experience over the years that is used today to uncover winning penny stocks. Also was an attorney for small businesses in Scottsdale, Arizona. That experience and understanding of law provides a unique perspective and edge in discovering quality companies in various industries.


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