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1. Company Snapshot

1.a. Company Description

M/I Homes, Inc., together with its subsidiaries, operates as a builder of single-family homes in Ohio, Indiana, Illinois, Minnesota, Michigan, Florida, Texas, North Carolina, and Tennessee.The company operates through Northern Homebuilding, Southern Homebuilding, and Financial Services segments.It designs, constructs, markets, and sells single-family homes and attached townhomes to first-time, millennial, move-up, empty-nester, and luxury buyers under the M/I Homes brand name.


The company also purchases undeveloped land to develop into developed lots for the construction of single-family homes, as well as for sale to others.In addition, it originates and sells mortgages; and serves as a title insurance agent by providing title insurance policies, examination, and closing services to purchasers of its homes.The company was formerly known as M/I Schottenstein Homes, Inc.


and changed its name to M/I Homes, Inc.in January 2004.M/I Homes, Inc.


was founded in 1976 and is based in Columbus, Ohio.

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1.b. Last Insights on MHO

M/I Homes' recent performance was driven by several factors. The company's Q3 2025 earnings report revealed a 1% increase in homes delivered, reaching a record 2,296. However, revenue declined 1% to $1.1 billion, and pre-tax income decreased 26% to $140 million. The company also reported a 6% decrease in new contracts. Despite this, shareholders' equity reached a record $3.1 billion, and book value per share increased to a record high of $120. Additionally, the company repurchased $50 million of common stock, which is a positive event for shareholders. M/I Homes also received an upgrade from Moody's to Ba1 and extended its bank credit facility to 2030.

1.c. Company Highlights

2. M/I Homes' Q3 Earnings: A Resilient Performance Amidst Challenging Market Conditions

M/I Homes reported a pretax income of $140 million for Q3, down 26% from last year's record results, with total revenue decreasing 1% to $1.1 billion. The company's gross margins were 24%, and return on equity was 16%. Earnings per share (EPS) came in at $4.14, slightly below estimates of $4.37. The decline in gross margins was primarily attributed to the cost of mortgage rate buy downs, which the company has been using to incentivize sales. As Robert Schottenstein, CEO, noted, "the majority of the decline in gross margins is due to these buy downs."

Publication Date: Oct -27

📋 Highlights
  • 26% Pretax Income Decline: Earnings fell to $140 million amid challenging market conditions and mortgage rate buy downs.
  • 2,296 Homes Closed: Record closings marked a 1% year-over-year increase despite a 1% revenue drop to $1.1 billion.
  • $34.6M Mortgage Revenue: Mortgage & title operations hit a third-quarter record, up 16% with $16.6M pretax income (28% growth).
  • $3.1B Equity & 18% Debt-to-Capital Ratio: Strong financial position with $50,700 owned lots for 5-6 years of supply.
  • 5-10% Community Count Growth Target: Midwest sales remain robust; plans to expand community count next year with 24,000 owned lots.

Operational Highlights

The company achieved a record 2,296 home closings in Q3, a 1% increase compared to the same period last year. The Smart Series, M/I Homes' most affordable line of homes, continued to drive sales performance, accounting for about 52% of total sales. The mortgage and title operations also had a strong quarter, with pretax income increasing 28% to $16.6 million.

Financial Position and Land Holdings

M/I Homes maintained a strong financial position, with an all-time record $3.1 billion of equity and a book value per share of $120. The company's debt to capital ratio was 18%, down from 20% last year. The company has a significant land position, with 50,700 owned and controlled lots, equivalent to about a five to six-year supply.

Valuation and Outlook

Analysts estimate next year's revenue growth at -2.8%. Given the current valuation metrics, with a P/E Ratio of 7.39, P/B Ratio of 0.73, and ROE of 13.7%, the market appears to have factored in the challenging market conditions. The company's focus on internally driving sales, controlling costs, and growing its existing markets is expected to drive future growth. With a strong balance sheet and a solid land position, M/I Homes is well-positioned to navigate the current market environment.

Regional Performance

The Midwest region has been a bright spot for M/I Homes, with consistent sales performance throughout the quarter. The company is bullish about the region and expects it to continue to be a strong operation. The Florida community count has been down, while the Texas community count has been up, reflecting the diverse regional dynamics.

3. NewsRoom

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Edgestream Partners L.P. Acquires 15,871 Shares of M/I Homes, Inc. $MHO

Dec -04

Source: defenseworld.net

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Advantage Alpha Capital Partners LP Invests $3.07 Million in M/I Homes, Inc. $MHO

Nov -28

Source: defenseworld.net

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American Century Companies Inc. Acquires 81,838 Shares of M/I Homes, Inc. $MHO

Nov -26

Source: defenseworld.net

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M/I Homes Announces $250 million Share Repurchase Authorization

Nov -12

Source: prnewswire.com

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InventHelp Inventor Develops Improved Covering for Truck Beds (MHO-577)

Nov -05

Source: prnewswire.com

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M/I Homes: Trouble At Home Will Lead To More Upside

Nov -01

Source: seekingalpha.com

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M/I Homes: Affordable Valuation, Challenging Market

Oct -29

Source: seekingalpha.com

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M/I Homes, Inc. (MHO) Q3 2025 Earnings Call Transcript

Oct -22

Source: seekingalpha.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (4.63%)

6. Segments

Southern Homebuilding

Expected Growth: 4.5%

M/I Homes' Southern Homebuilding segment growth of 4.5% is driven by increasing demand for new homes in the region, fueled by a strong job market, low unemployment, and favorable demographics. Additionally, the segment benefits from the company's strategic expansion into high-growth markets, such as Texas and Florida, and its focus on affordable and move-up homes.

Northern Homebuilding

Expected Growth: 4.8%

Northern Homebuilding from M/I Homes, Inc. achieved 4.8% growth driven by increasing demand for new homes in the Midwest and Northeast regions, fueled by low unemployment rates, rising wages, and favorable demographics. Additionally, the segment benefited from strategic land acquisitions, improved operational efficiencies, and a strong brand reputation.

Financial Services

Expected Growth: 5.2%

M/I Homes, Inc.'s 5.2% growth in Financial Services is driven by increasing mortgage originations, expansion of title services, and growth in insurance business. Additionally, the company's strategic partnerships and investments in digital platforms have enhanced customer experience, leading to increased revenue and market share.

7. Detailed Products

Single-Family Homes

M/I Homes, Inc. builds and sells single-family homes in various communities across the United States. These homes range from starter homes to luxury estates, catering to a wide range of buyers.

Townhomes

M/I Homes, Inc. also builds and sells townhomes in select communities, offering a more affordable and low-maintenance alternative to single-family homes.

Condominiums

In addition to single-family homes and townhomes, M/I Homes, Inc. develops and sells condominiums in select markets, offering a convenient and amenity-rich living experience.

Land Development

M/I Homes, Inc. also engages in land development, acquiring and developing raw land for future homebuilding projects.

Financial Services

M/I Homes, Inc. offers financial services, including mortgage financing and title insurance, to support homebuyers throughout the homebuying process.

8. M/I Homes, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

M/I Homes, Inc. operates in a highly competitive industry, but the threat of substitutes is relatively low due to the unique nature of its products and services.

Bargaining Power Of Customers

M/I Homes, Inc. has a diverse customer base, which reduces the bargaining power of individual customers. However, the company still needs to be responsive to customer needs and preferences.

Bargaining Power Of Suppliers

M/I Homes, Inc. has a diverse supplier base, which reduces the bargaining power of individual suppliers. The company also has a strong negotiating position due to its large scale of operations.

Threat Of New Entrants

The homebuilding industry is highly competitive, and new entrants can easily enter the market. M/I Homes, Inc. needs to continuously innovate and improve its operations to stay ahead of the competition.

Intensity Of Rivalry

The homebuilding industry is highly competitive, and M/I Homes, Inc. faces intense rivalry from established players. The company needs to focus on differentiating itself through its products and services to gain a competitive edge.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 25.88%
Debt Cost 4.99%
Equity Weight 74.12%
Equity Cost 14.75%
WACC 12.22%
Leverage 34.92%

11. Quality Control: M/I Homes, Inc. passed 7 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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Value: 6.8

Growth: 8.1

Quality: 6.7

Yield: 2.0

Momentum: 4.0

Volatility: 6.3

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Taylor Morrison

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M/I Homes

A-Score: 5.4/10

Value: 7.8

Growth: 8.2

Quality: 7.0

Yield: 0.0

Momentum: 3.5

Volatility: 5.7

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Value: 8.4

Growth: 5.3

Quality: 6.5

Yield: 3.0

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A-Score: 4.9/10

Value: 6.2

Growth: 7.1

Quality: 5.0

Yield: 3.0

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A-Score: 4.9/10

Value: 7.8

Growth: 7.6

Quality: 4.6

Yield: 3.0

Momentum: 1.5

Volatility: 5.0

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

134.83$

Current Price

134.83$

Potential

-0.00%

Expected Cash-Flows