Is Meritage Homes CORP (MTH) Halal?
Shariah Screening — 5 Standards
Based on financial data from December 2025
| Standard | Debt Ratio | Cash Ratio | Receivables | Income | Status |
|---|---|---|---|---|---|
| AAOIFI | 39.6% / 30% | 16.3% / 30% | 6.4% / 30% | 0.75% / 5% | ✗ NOT HALAL |
| DJIM | 39.6% / 33% | 16.3% / 33% | 6.4% / 33% | 0.75% / 5% | ✗ NOT HALAL |
| MSCI | 24.8% / 33% | 10.2% / 33% | 4.0% / 33% | 0.75% / 5% | ✓ HALAL |
| S&P | 39.6% / 33% | 16.3% / 33% | 6.4% / 33% | 0.75% / 5% | ✗ NOT HALAL |
| FTSE | 24.8% / 33% | 10.2% / 33% | 4.0% / 50% | 0.75% / 5% | ✓ HALAL |
Financial Highlights
Profitability
| Gross Margin | 20.1% | |
| Operating Margin | 7.5% | |
| Net Margin | 7.7% | |
| Return on Equity (ROE) | 8.8% | |
| Return on Assets (ROA) | 4.7% |
Cash Flow & Balance Sheet
| Operating Cash Flow | $118M |
| Free Cash Flow | $93M |
| Total Debt | $1.9B |
| Debt-to-Equity | 36.4 |
| Current Ratio | 13.7 |
| Total Assets | $7.6B |
Price & Trading
| Last Close | $60.54 |
| 50-Day MA | $70.95 |
| 200-Day MA | $71.13 |
| Avg Volume | 1.0M |
| Beta | 1.5 |
|
52-Week Range
$58.03
| |
About Meritage Homes CORP (MTH)
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, and Tennessee. The company also provides title and escrow, mortgage, insurance, title insurance, and closing/settlement services to its homebuyers. Meritage Homes Corporation was founded in 1985 and is based in Scottsdale, Arizona.
Related Halal Stocks in Consumer Cyclical
Frequently Asked Questions
Is Meritage Homes CORP (MTH) halal to invest in?
Based on our screening using AAOIFI Standard 21 (the strictest methodology), Meritage Homes CORP is Not Halal. The company fails one or more screening criteria. We screen against all 5 major standards: AAOIFI, DJIM, MSCI, S&P, and FTSE.
What is Meritage Homes CORP's debt ratio?
Meritage Homes CORP's debt ratio is 39.6% under the AAOIFI standard (which uses market capitalization as the denominator). The AAOIFI threshold is 30%. Under MSCI and FTSE (which use total assets as the denominator), the debt ratio is 24.8%.
What are Meritage Homes CORP's key financial metrics?
Meritage Homes CORP has a market capitalization of $4.2B, trailing P/E ratio of 9.4, and revenue of $5.9B. The company maintains a gross margin of 20.1% and a net margin of 7.7%. Return on equity stands at 8.8%.
How often is the screening data updated?
Our screening data is updated regularly using the latest available financial statements and market data. Stock prices and market caps are refreshed frequently, while financial statements are updated quarterly when companies report earnings.
Disclaimer: HalalStockGuide.com provides Shariah compliance screening for educational and informational purposes only. This is not a fatwa, financial advice, or a recommendation to buy or sell any security. Screening results are based on publicly available financial data and established methodologies. Always consult a qualified Islamic scholar and a licensed financial advisor before making investment decisions.