Recent News
On March 4, 2026, a long-serving Board member notified the company of his intent to retire at the 2026 Annual Meeting. On March 2, 2026, the company launched a “Spring Into Savings” buyer incentive offering select 30‑year fixed-rate financing and rate buydown programs for quick move-in homes closing by May 29, 2026.
Technical Analysis
Directional indicators show an emerging trend: ADX stands at 22.95, consistent with an emerging trend in momentum, while DI+ at 25.52 is increasing and DI‑ at 23.26 is decreasing, a bullish directional configuration that supports near-term upside pressure on price.
MACD reads 0.45 with the MACD line above the signal line (-1.30) and the MACD trend increasing; that cross-above the signal line signals bullish momentum continuation for short-term price action.
MRO equals 13.99 and is increasing; because MRO is positive, the price sits above the oscillator’s target, implying greater risk of a reversion toward the target level despite current upside momentum.
RSI at 48.3 and rising places momentum in neutral territory with room to run before overbought signals; the 12‑day and 26‑day EMAs (128.22 and 127.20) remain below price, reinforcing the short-term bullish bias.
Price sits above the 20‑day average ($125.96) and the 50‑day average ($130.82), and slightly below the 200‑day average ($133.84), reflecting a near-term bullish posture but proximity to the longer-term average that can act as resistance. Price also trades just above the 1x upper Bollinger band ($131.87), indicating stronger-than-average intraday momentum but not an extreme volatility event.
Bullish technical signals should be viewed against the current valuation assessment: technical momentum supports additional upside over days to weeks, yet MRO and proximity to the 200‑day average suggest increased probability of intermittent pullbacks before sustained follow‑through.
Fundamental Analysis
Revenue totaled $1,147,305,000 with YoY revenue growth of 1.37% and QoQ revenue growth reported as -151.76%; gross margin stands at 21.60%, slightly below the industry peer mean of 23.29%. Gross margin declined YoY by 12.30% and QoQ by 11.967%.
Operating income (EBIT) equals $114,727,000, producing an EBIT margin of 10.00%. That margin sits above the industry peer mean (4.85%) and industry peer median (6.72%). EBIT margin contracted QoQ by 20.77% and YoY by 26.50%.
EPS for the reported period reached $2.55 versus an estimate of $2.51, an earnings surprise of +1.59%.
Liquidity metrics remain robust: current ratio equals 1,888.65% (18.886), quick ratio 462.37% (4.624), and cash ratio 297.03% (2.970). The current ratio exceeds the industry peer mean (4.31) and the peer high (14.19); the company maintains sizable cash and short‑term investments ($689,189,000) and end‑period cash flow of $689,189,000.
Leverage and coverage show moderate risk: total debt equals $1,029,831,000 with debt to assets at 21.56%, slightly below the industry peer mean of 24.84%; debt to EBITDA measures 8.65x and interest coverage stands at 17.17x, marginally below the industry peer mean of 17.80x but still indicative of healthy coverage.
Cash flow dynamics weaken: free cash flow totaled -$12,964,000 (free cash flow yield -0.37%), with free cash flow contracting QoQ and YoY; operating cash flow reads -$8,707,000 and cash flow to earnings equals 21.06%.
Profitability returns remain low: return on equity equals 2.02% and return on assets 1.34%, with both metrics showing notable QoQ and YoY declines. Inventory remains elevated at $3,309,396,000 and days inventory outstanding registers 354.73 days, consistent with heavy work‑in‑process and land holdings typical of homebuilders.
Valuation and WMDST view: trailing PE equals 55.67 and forward PE equals 32.46; enterprise multiple stands at 32.07. Given these multiples, cash flow weakness, and compressed margins, the current valuation as determined by WMDST classifies the stock as over‑valued.
MOST-RECENT QUARTERLY REPORT
| REPORT PERIOD ENDING: | 2025-12-31 |
| REPORT DATE: | 2026-04-22 |
| NEXT REPORT DATE: | 2026-07-22 |
| CASH FLOW | Begin Period Cash Flow | $ 734.2 M |
| Operating Cash Flow | $ -8.71 M | |
| Capital Expenditures | $ -4.26 M | |
| Change In Working Capital | $ -59.22 M | |
| Dividends Paid | — | |
| Cash Flow Delta | $ -44.98 M | |
| End Period Cash Flow | $ 689.2 M | |
| INCOME STATEMENT | REVENUE | |
| Total Revenue | $ 1.1 B | |
| Forward Revenue | $ 460.0 M | |
| COSTS | ||
| Cost Of Revenue | $ 899.5 M | |
| Depreciation | $ 4.0 M | |
| Depreciation and Amortization | $ 4.4 M | |
| Research and Development | — | |
| Total Operating Expenses | $ 1.0 B | |
| PROFITABILITY | ||
| Gross Profit | $ 247.8 M | |
| EBITDA | $ 119.1 M | |
| EBIT | $ 114.7 M | |
| Operating Income | $ 114.7 M | |
| Interest Income | $ 5.9 M | |
| Interest Expense | — | |
| Net Interest Income | $ 5.9 M | |
| Income Before Tax | $ 80.6 M | |
| Tax Provision | $ 16.6 M | |
| Tax Rate | 20.586 % | |
| Net Income | $ 64.0 M | |
| Net Income From Continuing Operations | $ 64.0 M | |
| EARNINGS | ||
| EPS Estimate | $ 2.51 | |
| EPS Actual | $ 2.55 | |
| EPS Difference | $ 0.04 | |
| EPS Surprise | 1.594 % | |
| Forward EPS | $ 3.98 | |
| BALANCE SHEET | ASSETS | |
| Total Assets | $ 4.8 B | |
| Intangible Assets | $ 26.8 M | |
| Net Tangible Assets | $ 3.1 B | |
| Total Current Assets | $ 4.4 B | |
| Cash and Short-Term Investments | $ 689.2 M | |
| Cash | $ 689.2 M | |
| Net Receivables | — | |
| Inventory | $ 3.3 B | |
| Long-Term Investments | $ 68.8 M | |
| LIABILITIES | ||
| Accounts Payable | $ 181.2 M | |
| Short-Term Debt | — | |
| Total Current Liabilities | $ 232.0 M | |
| Net Debt | $ 284.0 M | |
| Total Debt | $ 1.0 B | |
| Total Liabilities | $ 1.6 B | |
| EQUITY | ||
| Total Equity | $ 3.2 B | |
| Retained Earnings | $ 3.3 B | |
| VALUATION & PER-SHARE METRICS | EQUITY & PER-SHARE METRICS | |
| Book Value Per-Share | $ 121.08 | |
| Shares Outstanding | 25.763 M | |
| Revenue Per-Share | $ 43.88 | |
| VALUATION | Market Capitalization | $ 3.5 B |
| Enterprise Value | $ 3.8 B | |
| Enterprise Multiple | 32.067 | |
| Enterprise Multiple QoQ | 22.571 % | |
| Enterprise Multiple YoY | 30.293 % | |
| Enterprise Multiple IPRWA | high: 129.523 mean: 41.228 median: 36.744 MHO: 32.067 low: -63.283 |
|
| EV/R | 3.329 | |
| CAPITAL STRUCTURE | ||
| Asset To Equity | 1.509 | |
| Asset To Liability | 2.965 | |
| Debt To Capital | 0.245 | |
| Debt To Assets | 0.216 | |
| Debt To Assets QoQ | 4.926 % | |
| Debt To Assets YoY | -5.373 % | |
| Debt To Assets IPRWA | high: 1.293 mean: 0.248 median: 0.24 MHO: 0.216 low: 0.018 |
|
| Debt To Equity | 0.325 | |
| Debt To Equity QoQ | 4.538 % | |
| Debt To Equity YoY | -7.756 % | |
| Debt To Equity IPRWA | high: 2.637 mean: 0.688 median: 0.439 MHO: 0.325 low: -1.159 |
|
| PRICE-BASED VALUATION | ||
| Price To Book (P/B) | 1.099 | |
| Price To Book QoQ | -3.97 % | |
| Price To Book YoY | -17.588 % | |
| Price To Book IPRWA | high: 4.487 mean: 1.683 MHO: 1.099 median: 1.007 low: -0.944 |
|
| Price To Earnings (P/E) | 55.665 | |
| Price To Earnings QoQ | 58.343 % | |
| Price To Earnings YoY | 81.042 % | |
| Price To Earnings IPRWA | high: 95.881 mean: 59.855 median: 59.723 MHO: 55.665 low: -91.544 |
|
| PE/G Ratio | -1.426 | |
| Price To Sales (P/S) | 3.032 | |
| Price To Sales QoQ | -4.765 % | |
| Price To Sales YoY | -6.753 % | |
| Price To Sales IPRWA | high: 19.648 mean: 3.217 MHO: 3.032 median: 2.721 low: 0.018 |
|
| FORWARD MULTIPLES | ||
| Forward P/E | 32.457 | |
| Forward PE/G | -0.832 | |
| Forward P/S | 7.337 | |
| EFFICIENCY | OPERATIONAL | |
| Operating Leverage | -14.364 | |
| ASSET & SALES | ||
| Asset Turnover Ratio | 0.24 | |
| Asset Turnover Ratio QoQ | 0.979 % | |
| Asset Turnover Ratio YoY | -10.163 % | |
| Asset Turnover Ratio IPRWA | high: 0.616 mean: 0.256 median: 0.248 MHO: 0.24 low: 0.015 |
|
| Receivables Turnover | — | |
| Receivables Turnover Ratio QoQ | — | |
| Receivables Turnover Ratio YoY | — | |
| Receivables Turnover Ratio IPRWA | — | |
| Inventory Turnover | 0.271 | |
| Inventory Turnover Ratio QoQ | 3.737 % | |
| Inventory Turnover Ratio YoY | -9.176 % | |
| Inventory Turnover Ratio IPRWA | high: 1.972 mean: 0.787 median: 0.776 MHO: 0.271 low: 0.156 |
|
| Days Sales Outstanding (DSO) | — | |
| CASH CYCLE | ||
| Cash Conversion Cycle Days (CCC) | — | |
| Cash Conversion Cycle Days QoQ | — | |
| Cash Conversion Cycle Days YoY | — | |
| Cash Conversion Cycle Days IPRWA | high: 372.306 median: 372.306 mean: 270.294 low: 67.681 MHO: 0 |
|
| CAPITAL DEPLOYMENT | ||
| Cash Conversion Ratio | 0.276 | |
| CapEx To Revenue | -0.004 | |
| CapEx To Depreciation | -1.064 | |
| CAPITAL, LIQUIDITY & COVERAGE | CAPITAL STRUCTURE | |
| Total Capital | $ 4.1 B | |
| Net Invested Capital | $ 4.1 B | |
| Invested Capital | $ 4.1 B | |
| Net Tangible Assets | $ 3.1 B | |
| Net Working Capital | $ 4.2 B | |
| LIQUIDITY | ||
| Cash Ratio | 2.97 | |
| Current Ratio | 18.886 | |
| Current Ratio QoQ | 37.597 % | |
| Current Ratio YoY | 20.558 % | |
| Current Ratio IPRWA | MHO: 18.886 high: 14.19 mean: 4.309 median: 2.192 low: 0.367 |
|
| Quick Ratio | 4.624 | |
| Quick Ratio QoQ | 40.025 % | |
| Quick Ratio YoY | 5.459 % | |
| Quick Ratio IPRWA | MHO: 4.624 high: 3.978 mean: 1.269 median: 1.214 low: 0.129 |
|
| COVERAGE & LEVERAGE | ||
| Debt To EBITDA | 8.646 | |
| Cost Of Debt | 0.507 % | |
| Interest Coverage Ratio | 17.175 | |
| Interest Coverage Ratio QoQ | -19.689 % | |
| Interest Coverage Ratio YoY | -30.041 % | |
| Interest Coverage Ratio IPRWA | high: 56.0 mean: 17.799 MHO: 17.175 median: 8.314 low: -186.651 |
|
| Operating Cash Flow Ratio | 0.058 | |
| TIMING / LIQUIDITY | ||
| Days Payables Outstanding (DPO) | 23.459 | |
| DIVIDENDS | ||
| Dividend Coverage Ratio | — | |
| Dividend Payout Ratio | — | |
| Dividend Rate | — | |
| Dividend Yield | — | |
| PERFORMANCE | GROWTH | |
| Asset Growth Rate | 0.159 % | |
| Revenue Growth | 1.371 % | |
| Revenue Growth QoQ | -151.755 % | |
| Revenue Growth YoY | -74.876 % | |
| Revenue Growth IPRWA | high: 55.638 % MHO: 1.371 % median: -1.106 % mean: -1.202 % low: -54.099 % |
|
| Earnings Growth | -39.031 % | |
| Earnings Growth QoQ | 245.041 % | |
| Earnings Growth YoY | 410.409 % | |
| Earnings Growth IPRWA | high: 112.5 % median: -13.669 % MHO: -39.031 % mean: -44.249 % low: -400.0 % |
|
| MARGINS | ||
| Gross Margin | 21.598 % | |
| Gross Margin QoQ | -11.967 % | |
| Gross Margin YoY | -12.3 % | |
| Gross Margin IPRWA | high: 100.0 % mean: 23.291 % median: 23.029 % MHO: 21.598 % low: 8.474 % |
|
| EBIT Margin | 10.0 % | |
| EBIT Margin QoQ | -20.773 % | |
| EBIT Margin YoY | -26.503 % | |
| EBIT Margin IPRWA | high: 18.727 % MHO: 10.0 % median: 6.715 % mean: 4.848 % low: -113.088 % |
|
| Return On Sales (ROS) | 10.0 % | |
| Return On Sales QoQ | -20.773 % | |
| Return On Sales YoY | -26.503 % | |
| Return On Sales IPRWA | high: 18.403 % MHO: 10.0 % median: 6.087 % mean: 5.297 % low: -43.681 % |
|
| CASH FLOW | ||
| Free Cash Flow (FCF) | $ -12.96 M | |
| Free Cash Flow Yield | -0.373 % | |
| Free Cash Flow Yield QoQ | -131.99 % | |
| Free Cash Flow Yield YoY | -114.286 % | |
| Free Cash Flow Yield IPRWA | high: 22.267 % mean: 6.069 % median: 3.61 % MHO: -0.373 % low: -25.709 % |
|
| Free Cash Growth | -130.859 % | |
| Free Cash Growth QoQ | -770.041 % | |
| Free Cash Growth YoY | -47.517 % | |
| Free Cash Growth IPRWA | high: 258.256 % median: -14.534 % mean: -52.579 % MHO: -130.859 % low: -328.289 % |
|
| Free Cash To Net Income | -0.203 | |
| Cash Flow Margin | 1.174 % | |
| Cash Flow To Earnings | 0.211 | |
| VALUE & RETURNS | ||
| Economic Value Added | $ 0.03 | |
| Return On Assets (ROA) | 1.34 % | |
| Return On Assets QoQ | -40.179 % | |
| Return On Assets YoY | -54.776 % | |
| Return On Assets IPRWA | high: 10.592 % MHO: 1.34 % median: 0.966 % mean: 0.941 % low: -51.797 % |
|
| Return On Capital Employed (ROCE) | 2.524 % | |
| Return On Equity (ROE) | 0.02 | |
| Return On Equity QoQ | -40.254 % | |
| Return On Equity YoY | -55.507 % | |
| Return On Equity IPRWA | high: 0.212 mean: 0.025 median: 0.021 MHO: 0.02 low: -0.522 |
|
| DuPont ROE | 2.026 % | |
| Return On Invested Capital (ROIC) | 2.201 % | |
| Return On Invested Capital QoQ | -17.566 % | |
| Return On Invested Capital YoY | -96.313 % | |
| Return On Invested Capital IPRWA | high: 21.182 % mean: 2.275 % MHO: 2.201 % median: 1.727 % low: -39.014 % |
|