Meritage Homes Corporation, together with its subsidiaries, designs and builds single-family attached and detached homes in the United States. The company operates through two segments: Homebuilding and Financial Services. It acquires and develops land; and constructs, markets, and sells homes for entry-level and first move-up buyers in Arizona, California, Colorado, Utah, Texas, Alabama, Florida, Georgia, Mississippi, North Carolina, South Carolina, …
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Competitive advantage assessment
Key strengths
Strong Liquidity BufferLiquidity position is strong (score 0.81), providing operational cushion.
Key risks
ROIC Below WACC or PeersROIC at 33.3th percentile suggests inefficient capital deployment.
Weak or Negative Cash FlowCash generation is weak (score 0.38), limiting financial flexibility.
The dashed ring is the peer median. Defense scores are percentile ranks
against peers, so 50 is roughly the typical company in this group.
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Meritage Homes Corporation ranks #13 of 22
scored companies in Residential Construction by moat score — the top 59%.
The widest moat in the group is PulteGroup, Inc. (PHM)
at 80/100.
Moat scores for companies ranked near MTH in Residential Construction
Pricing power is the ability to raise prices without losing volume.
Cost Advantage
Score 60
· 15% of the moat score
A cost advantage means delivering the same product for structurally less — better purchasing, denser distribution, a more automated process.
Customer Stickiness
Score 50
· 15% of the moat score
Stickiness is what makes revenue repeat without being re-won every year.
Capital Efficiency
Score 36
· 18% of the moat score
Capital efficiency asks what the company earns on the money tied up in the business.
Resilience
Score 65
· 17% of the moat score
Resilience is the capacity to get through a bad year on its own terms — enough liquidity, enough interest cover, and enough cash generation to avoid a rescue financing or a forced sale.
Scale & Market Position
Score 38
· 15% of the moat score
Scale matters only when it converts into economics.
Meritage Homes Corporation (MTH) scores 47 out of 100 on the StatsAlpha Moat Map, which rates its competitive advantage as developing. It ranks #13 of 22 scored companies in Residential Construction, the top 59%. The score is a weighted composite of 6 competitive defenses, each measured against industry peers of 21 companies in Residential Construction. Its strongest defense is Resilience (65/100) and its weakest is Capital Efficiency (36/100).
How does Meritage Homes Corporation compare with other Residential Construction companies?
Meritage Homes Corporation ranks #13 of 22 scored companies in Residential Construction by moat score. The widest moat in Residential Construction is PulteGroup, Inc. (PHM) at 80/100. The companies ranked closest are Champion Homes, Inc. (SKY) at 50 just above it and Lennar Corporation (LEN) at 46 just below it.
How is the moat score calculated?
Each company is scored with an industry-specific template — Corporate Default in this case, chosen because the defenses that matter to a bank are not the ones that matter to a software company. Every defense combines several financial signals, and each signal is measured as a percentile against a peer group of 21 companies in Residential Construction. The defenses are then weighted to produce the overall score out of 100.
Why is Meritage Homes Corporation scored with the Corporate Default template?
Most public companies sell a product or a service at a margin, so the moat question is whether that margin survives contact with competitors. The Corporate template scores the six defenses that show up in a general operating company's financial signature: whether it can hold price, produce more cheaply than rivals, keep its customers, earn a return above its cost of capital, withstand a downturn, and turn size into economics.
Which competitive defenses are measured for Meritage Homes Corporation?
The Corporate Default template measures 6 defenses, and MTH scores: Pricing Power (41), Cost Advantage (60), Customer Stickiness (50), Capital Efficiency (36), Resilience (65), Scale & Market Position (38). Each is scored independently as a percentile against peers, so a company can be strong on one and weak on another — the overall score reflects how those defenses are weighted for this industry.
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