M/I Homes Remains A Top Tier Candidate In A Struggling Housing Market

Daniel JonesInvesting Group LeaderFollow5ShareSavePlay(9min)CommentsSummaryM/I Homes remains a compelling "Buy" despite recent market headwinds and a challenging housing environment.MHO trades at attractive mid-to-high single-digit multiples, both absolutely and relative to peers, with superior net leverage.Community count growth and resilient net new orders offset softness in deliveries and average prices, supporting forward resilience.Upside potential of 30%–60.7% exists if MHO re-rates to peer average multiples, underpinned by a strong balance sheet.Looking for a helping hand in the market? Members of Crude Value Insights get exclusive ideas and guidance to navigate any climate. Learn More » Tony Anderson/DigitalVision via Getty Images If you follow my work closely, there is a high probability that you understand that I currently have conflicting feelings about the housing market. In the long run, I am incredibly bullish about this industry. The fact of the matter is that several yearsThis article was written byDaniel Jones36.62K FollowersFollowDaniel is an avid and active professional investor. He runs Crude Value Insights, a value-oriented newsletter aimed at analyzing the cash flows and assessing the value of companies in the oil and gas space. His primary focus is on finding businesses that are trading at a significant discount to their intrinsic value by employing a combination of Benjamin Graham's investment philosophy and a contrarian approach to the market and the securities therein. Learn more.Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.