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M/I Homes (MHO) is back on investors’ radar after recent share price moves, with the stock closing at $133.45. You might be weighing how this homebuilder’s latest performance fits into your portfolio today.

See our latest analysis for M/I Homes.

That latest move to $133.45 comes after a mixed short term stretch, with a 1 day share price return of 1.69% decline and a 7 day share price return of 2.70% decline, set against a 3 year total shareholder return of 126.53% and 5 year total shareholder return of 170.31%. This combination points to strong longer term momentum despite recent softness.

If M/I Homes has you rethinking where housing fits in your portfolio, this could be a useful moment to compare it with other fast growing stocks with high insider ownership that are catching attention right now.

With annual revenue and net income both showing recent declines, yet the share price sitting below the average analyst target of $157, you have to ask yourself: is M/I Homes undervalued, or is the market already pricing in future growth?

With M/I Homes closing at $133.45 against a most-followed fair value estimate of $157, the current price sits well below that narrative benchmark.

Strong balance sheet fundamentals (record-high equity, substantial cash reserves, low net debt, and aggressive share repurchases) not only provide downside protection but also amplify future earnings per share (EPS) and return on equity as demand and deliveries ramp up.

Read the complete narrative.

Analysts are tying this fair value to a detailed mix of revenue expectations, margin assumptions, and future P/E levels. Curious which input carries the most weight here, and how buybacks factor into the earnings path behind that $157 figure.

Result: Fair Value of $157 (UNDERVALUED)

Have a read of the narrative in full and understand what’s behind the forecasts.

However, you still need to factor in the risk that softer new contracts and rising inventory exposure could pressure margins and weaken the case for upside.

Find out about the key risks to this M/I Homes narrative.

While the fair value narrative of $157 suggests upside, the Simply Wall St DCF model lands in a very different place, with an estimate of $38.03 per share. This would make the current $133.45 price look expensive rather than cheap. As an investor, which story do you trust more, the earnings path or the cash flows?

Look into how the SWS DCF model arrives at its fair value.

Simply Wall St performs a discounted cash flow (DCF) on every stock in the world every day (check out M/I Homes for example). We show the entire calculation in full. You can track the result in your watchlist or portfolio and be alerted when this changes, or use our stock screener to discover 871 undervalued stocks based on their cash flows. If you save a screener we even alert you when new companies match – so you never miss a potential opportunity.

If you are not fully aligned with these narratives or prefer to lean on your own work, you can test the numbers yourself in just a few minutes, then Do it your way.

A great starting point for your M/I Homes research is our analysis highlighting 2 key rewards and 1 important warning sign that could impact your investment decision.

If M/I Homes has sharpened your focus, do not stop here. The next step is to line up a few fresh watchlist candidates using focused screeners.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Companies discussed in this article include MHO.

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