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MHO vs RRR

MHO
M/I Homes, Inc.
NEUTRAL
Price
$129.99
Market Cap
$3.35B
Sector
Consumer Cyclical
AI Confidence
85%
RRR
Red Rock Resorts, Inc.
BEARISH
Price
$55.53
Market Cap
$3.25B
Sector
Consumer Cyclical
AI Confidence
85%

Valuation

P/E Ratio
MHO
9.77
RRR
17.8
Forward P/E
MHO
8.41
RRR
16.96
P/B Ratio
MHO
1.04
RRR
15.55
P/S Ratio
MHO
0.77
RRR
2.8
EV/EBITDA
MHO
7.08
RRR
8.23

Profitability

Gross Margin
MHO
21.62%
RRR
67.47%
Operating Margin
MHO
9.06%
RRR
31.77%
Profit Margin
MHO
8.24%
RRR
9.35%
ROE
MHO
11.6%
RRR
111.3%
ROA
MHO
6.49%
RRR
9.38%

Growth

Revenue Growth
MHO
-5.7%
RRR
3.2%
Earnings Growth
MHO
-35.9%
RRR
-1.8%

Financial Health

Debt/Equity
MHO
0.32
RRR
10.46
Current Ratio
MHO
7.91
RRR
0.79
Quick Ratio
MHO
1.37
RRR
0.6

Dividends

Dividend Yield
MHO
--
RRR
1.87%
Payout Ratio
MHO
0.0%
RRR
32.37%

AI Verdict

MHO NEUTRAL

MHO exhibits a strong deterministic health profile with a Piotroski F-Score of 7/9 and an exceptionally liquid balance sheet (Current Ratio 7.91). While the stock is significantly undervalued relative to its Graham Number ($193.29) and trades at a low P/E of 9.77, these value drivers are offset by severe fundamental decay. Year-over-year earnings have plummeted by 35.9%, and insider sentiment is heavily bearish with consistent selling from the CEO and CFO. The company is currently a 'value trap' candidate: fundamentally healthy and cheap, but lacking growth catalysts and internal confidence.

Strengths
Strong Piotroski F-Score (7/9) indicating robust financial health
Exceptional liquidity with a Current Ratio of 7.91
Low leverage with a Debt/Equity ratio of 0.32
Risks
Severe earnings contraction (-35.9% YoY)
Negative revenue growth (-5.7% YoY) indicating slowing demand
Strongly bearish insider activity (13 sells, 0 buys)
RRR BEARISH

RRR exhibits a concerning disconnect between its market price ($55.53) and its deterministic value markers, with a Graham Number of $15.84 and an Intrinsic Value of $21.84. While the Piotroski F-Score of 4/9 indicates stable health, this is overshadowed by an extreme Debt/Equity ratio of 10.46 and a Current Ratio of 0.79, signaling significant leverage and liquidity risk. Despite strong operating margins and bullish analyst targets, the lack of meaningful revenue growth (3.2%) and negative earnings growth (-1.8%) fail to justify the current valuation premium. The technical trend is currently bearish, suggesting a lack of market conviction despite analyst 'buy' ratings.

Strengths
Strong operating margins (31.77%) and gross margins (67.47%)
Exceptionally high ROE (111.30%), though heavily inflated by leverage
Sustainable dividend payout ratio (32.37%)
Risks
Extreme leverage with a Debt/Equity ratio of 10.46
Liquidity risk indicated by a Current Ratio of 0.79
Severe overvaluation relative to Graham Number ($15.84) and Intrinsic Value ($21.84)

Compare Another Pair

MHO vs RRR: Head-to-Head Comparison

This page compares M/I Homes, Inc. (MHO) and Red Rock Resorts, Inc. (RRR) across key fundamental metrics including valuation ratios, profitability margins, growth rates, financial health indicators, and dividend metrics. Each metric highlights the better-performing stock so you can quickly identify relative strengths and weaknesses.

Our AI engine independently analyzes each company's financials, competitive position, and market conditions to produce a verdict (Bullish, Neutral, or Bearish) along with key strengths and risks. Use this comparison alongside your own research to make informed investment decisions.

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